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SOVEREIGN METALS LIMITED 20 October 2021 SEPTEMBER 2021 QUARTERLY REPORT Sovereign Metals Limited ( Company or Sovereign ) is pleased to provide its quarterly report for the period ended 30 September 2021. The Company is focused on the exploration and development of its globally significant rutile province in Malawi . HIGHLIGHTS Significant progress with Scoping Study The Company is well - advanced with the Kasiya Scoping Study ( Study ) targeting a large - scale natural rutile operation . All major technical disciplines have been completed with capital and operating cost estimations being finalised . Logistics study announced on 8 September 2021 , confirmed a reliable , efficient , and high - standard rail and port solution using the high quality existing infrastructure . Study on track for completion in the December quarter . An updated Mineral Resource Estimate ( MRE ) targeting conversion of existing Inferred resources to the higher - confidence Indicated category is expected in the coming weeks . Malawi rutile province expanded with further drilling results at Nsaru Significant rutile drilling results were reported from the recently discovered Nsaru rutile deposit located adjacent to , and within the same geological domain as Kasiya . Step - out drilling has increased the Nsaru rutile - mineralised footprint to 40km² , offering significant potential resource increases planned for early 2022 . Rutile market continues to remain strong Demand for high - grade titanium dioxide feedstocks continued to remain strong , and along with supply shortages has led to continued rutile price appreciation , with some sales in the spot market exceeding US $ 2,000 per tonne¹ . The Company's product development and marketing activities has ramped up with the Phase 2 bulk program metallurgy program near completion with further product samples available to potential future offtakers for assessment . Core drilling program completed Completion of a multi rig core drilling program targeting high - grade rutile zones at Kasiya for conversion to the Indicated resource category to support the Study . A total of 244 holes were completed for 2,484m over an area of 37km² at Kasiya and Nsaru . First results from this program are expected to be reported shortly . Sovereign Metals Limited | ASX : SVM T : +61 8 9322 6322 | F : +61 8 9322 6558 | E : info@sovereignmetals.com.au | www.sovereignmetals.com.au Level 9 , 28 The Esplanade , PERTH WA 6000 | ABN : 71 120 833 427