Sovereign Metals Rises 9% on 32% Kasiya Resource Upgrade

Resource Upgrade Lifts Sovereign Stock 9%

Sovereign Metals Ltd. shares climbed 9% to 44p after the company announced a major upgrade to its Kasiya rutile-graphite project in Malawi on March 18. The updated mineral resource estimate boosted the higher-confidence Measured and Indicated (M&I) contained rutile by 32% to 16.1 million tonnes. This significant expansion solidifies Kasiya’s position as the world's largest known natural rutile reserve.

The update, which will underpin a forthcoming Definitive Feasibility Study (DFS), now shows a total M&I resource of 1.65 billion tonnes of ore graded at 0.98% rutile. The positive market reaction occurred even as the broader S&P/ASX Small Ordinaries index experienced volatility, highlighting the specific strength of Sovereign's announcement.

Upgrade De-Risks Project Ahead of Feasibility Study

A crucial outcome of the resource update is the significant de-risking of the Kasiya project. Higher-confidence M&I resources now constitute 77% of the total resource base, a key metric for securing project financing and offtake agreements. For the first time, the project includes a 'Measured' resource category—the highest confidence classification—which is projected to support at least the first six years of mining operations.

This milestone provides a new level of geological certainty as the company finalizes its DFS. The improved resource quality strengthens the project's economic case for potential partners and lenders.

The rigour of the updated resource estimation gives our strategic and commercial partners and us high confidence in the resource base underpinning our potential mine schedule.

— Frank Eagar, Managing Director and CEO

Kasiya Positioned to Fill Widening Rutile Supply Deficit

The Kasiya project's expansion is timed to address a forecast structural deficit in the global rutile market. Rutile, a critical mineral used to produce titanium for the aerospace and defense industries, is expected to see demand grow by approximately 3% annually. At the same time, global supply is projected to decline by about 7% per year, creating a significant and widening supply gap.

With its vast scale and near-surface deposits, Kasiya is strategically positioned to become a long-life, large-scale supplier to fill this gap. The project’s progress establishes it as a potential cornerstone asset in the future global titanium supply chain, insulating its value proposition from short-term market fluctuations.