LAPSE OF PERFORMANCE RIGHTS

Sovereign Metals Limited (ASX:SVM; AIM:SVML; OTCQX:SVMLF) (Sovereign or the Company) advises that 10,977,500 unlisted performance rights that were subject to the “Definitive Feasibility Study Milestone” have lapsed today without exercise or conversion.

Following the lapse of these unlisted performance rights, the Company has the following securities on issue:

·      646,938,703 fully paid ordinary shares (of no par value);

·      4,992,500 unlisted performance rights subject to the “Grant of Mining Licence Milestone” expiring on or before 31 March 2026; and

·      6,190,000 unlisted performance rights subject to the “Final Investment Decision Milestone” expiring on or before 30 June 2026.

Change of Directors’ Interest Notices in relation to the lapse of unlisted performance rights have been provided below.

Link here to view the full announcement

Sovereign Metals Limited (ASX:SVM, AIM:SVML, OTCQX:SVMLF) (Sovereign or the Company) is pleased to provide its quarterly report for the period ended 30 September 2025 including advances made at its Kasiya Rutile-Graphite Project (Kasiya or the Project) in Malawi.

HIGHLIGHTS DURING AND SUBSEQUENT TO THE QUARTER

Japanese Government Launches New Nacala Logistics Corridor Development Initiative

·    Japan commits US$7 billion in development funding – $5.5 billion through joint program with African Development Bank, plus $1.5 billion in public-private impact investment through Japan’s development agency.

·    Initiative focuses on capacity expansion, refurbishment, and resilience upgrades to increase throughput, enhance reliability, and reduce bottlenecks, positioning Kasiya as a key beneficiary of Japan’s mineral security strategy.

·    Nacala Corridor is Kasiya’s preferred transport route – providing lowest-cost pathway from Kasiya to international markets via a deep-water port.

Various Critical Components of DFS now complete

·    Geotechnical investigations successfully completed across all critical infrastructure locations with oversight from the Sovereign-Rio Tinto Technical Committee confirming favourable subsurface conditions aligned with regional geology

o  Over 400 individual tests conducted covering mining infrastructure, tailings storage facility and raw water dam

o  Consistent stratigraphy and suitable subsurface conditions to enable more standardised foundation designs and construction approaches across infrastructure areas

·    Mining fleet specifically engineered for large-scale dry mining operations following the results of the successful Pilot Mining and Land Rehabilitation (Pilot Phase).

o  No drilling, blasting, crushing or milling required at Kasiya resulting in low capital outlays and operating costs.

o  Equipment selection and supplier identification completed for all operational requirements across the proposed initial 25-year mine life

·    Rehabilitation of land at Pilot Phase test pit site successfully completed during the quarter, further de-risking DFS

o  Exceptional first-year results from its rehabilitation trials at the Kasiya, delivering critical data that will inform the progressive rehabilitation strategy for the ongoing definitive feasibility study (DFS).

o  Rehabilitation trials achieved 5x crop yield improvement – demonstrating superior post-mining land productivity versus traditional farming.

New Graphite Tariff Environment Underscores Kasiya’s Global Significance

·    In July 2025, the U.S. Commerce Department announced 93.5% preliminary anti-dumping duties on Chinese graphite imports, fundamentally altering the economics for battery manufacturers seeking secure, cost-competitive supply chains.

·    The new tariff environment highlights Kasiya’s potential as the world’s largest and lowest-cost non-Chinese graphite producer with industry-leading US$241/t incremental cost of production.

Latest Testwork Validates Kasiya Graphite’s World-Class Quality to Anode Manufacturers

·    Latest coating optimisation testwork achieved successful coated spherical purified graphite (CSPG) production characteristics with superior performance metrics.

·    Samples of Kasiya fine flake graphite concentrate have been distributed to leading natural graphite anode producers and anode project developers to support development of offtake agreements while validating market demand for Kasiya’s high-quality battery-grade graphite

Kasiya Unaffected by Malawi Raw Mineral Export Order

·    Subsequent to the quarter, His Excellency President Peter Mutharika, the newly elected President of Malawi, announced an Executive Order regarding the prohibition of the export of raw minerals from the country.

·    This prohibition does not apply to the Company or to Kasiya as the ban only relates to minerals that have not been processed, refined, or value-added in Malawi.

o  With regards to its future planned Kasiya operations, Sovereign has no plans to export run-of-mine Heavy Mineral Sands as defined in the Executive Order. All future mineralisation will be extracted and beneficiated in country to a final premium quality rutile (+95% TiO2) product.  The high-quality Kasiya rutile product is planned to be a direct feedstock for titanium sponge production for high-end titanium metal products, including aerospace and defence applications.

o  Similarly, Sovereign intends to process the run-of-mine Graphite as defined in the Executive Order in-country to produce a high-quality graphite product (96% C) suitable for major industry end markets including battery producers and refractory manufacturers.

Next Steps

Over the quarter ending December 2025, Sovereign will:

·    continue to advance the Kasiya DFS, for completion in the first quarter of 2026, including finalising mining fleet design, process plant configuration, and mine gate-to-vessel logistics solutions;

·    advance rutile and graphite offtake discussions; and

·    further the Company’s community and social development programs in Malawi.

Enquiries
Frank Eagar, Managing Director & CEO South Africa / Malawi +27 21 140 3190
Nominated Adviser on AIM and Joint Broker
SP Angel Corporate Finance LLP	+44 20 3470 0470
Ewan Leggat  Charlie Bouverat
Joint Broker
Stifel	+44 20 7710 7600
Varun Talwar
Ashton Clanfield