Commissioning of Sustainable Farming Initiative

• Sovereign has initiated a Conservation Farming Program in Malawi as part of its sustainability initiatives related to the development of Kasiya
• Local farmers will be trained in sustainable farming techniques to increase maize crop yield; protect soil from erosion and degradation; and to improve long term food security
• According to the World Food Program, up to 5.4 million people in Malawi are subject to food insecurity, with many Malawians dependent on subsistence agriculture
• Supporting local communities in addressing their social priorities is a core principle of Sovereign's ESG Strategy as the company advances the development of Kasiya
• Sovereign's owner's team have previously implemented this program at First Quantum Minerals' Zambian operations where over 7,000 farmers were participating in the program by 2022

Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to announce that as part of its Environmental, Social, and Governance (ESG) Strategy in developing its Kasiya Rutile-Graphite Project (Kasiya), it has commissioned a Conservation Farming Program (Program) in Malawi.

Figure 1. Sovereign team members conducting conservation farming training

Malawi's food security depends on maize (corn); it is the major staple food crop in Malawi with 60% of cropped land devoted to its production. Sovereign has commissioned the initial Program for 90 Malawian maize farmers from within the project area, of which at least 50% are female. The Program is to provide training in low-input-cost, high-yield sustainable farming techniques, with the aim to provide a platform for the farmers to increase yield and productivity therefore helping to reduce malnutrition and poverty.

Conservation farming as a system aims to protect soil from erosion and degradation and increase crop yields. It involves three main principles:

• minimum soil disturbance, such as no-till farming,
• maintenance of a permanent soil cover, such as cover crops or crop residues and
• diversification of plant species, such as crop rotation.

According to the United States Agency for International Development, 80% of Malawi's population are smallholder farmers with livelihoods based on agriculture and subsistence farming.

This initiative forms part of Sovereign's ESG Strategy to develop its tier one Kasiya Rutile-Graphite Project while simultaneously restoring and improving the livelihoods of local communities. The Program is being implemented by the Company's experienced team on the ground, which previously ran a very successful initiative for First Quantum Minerals Limited's Zambian operations where its conservation farming program has been effectively operating since 2010. Between 2020 and 2022 harvest crops increased by 67% from 6,000 tonnes to 10,000 tonnes of maize, with over 7,000 farmers in the program at the end of 2022.

Figure 2. Local communities embracing the conservation farming program