16 February 2024

Sylvania Platinum Limited

("Sylvania", the "Company" or the "Group")

Results of Updated Mineral Resource Estimates for Northern Limb Mineral Assets

Sylvania (AIM:SLP), the platinum group metals ("PGM") producer and developer with assets in South Africa, is pleased to announce the updated Mineral Resource Estimates ("MRE") for its Volspruit Project located on the Northern Limb of the Bushveld Complex in South Africa.

The results include revised MREs for the Volspruit North and Volspruit South ore bodies, including for rhodium ("Rh") and ruthenium ("Ru"), both of which had previously not been assayed. The MRE is in line with the JORC (2012) Standard as a whole.

Highlights

Volspruit North

·      Volspruit North JORC MRE (Indicated):

o  16.42 million tonnes ("Mt") at a 4E (4E includes platinum ("Pt"), palladium ("Pd"), Rh and gold ("Au")) grade of 2.52 grams per tonne ("g/t");

o  1.33 million 4E ounces at a grade of 2.52 g/t;

o  21.94 million pounds ("lb") of copper ("Cu") at a grade of 0.07%;

o  61.50 million lb of nickel ("Ni") at a grade of 0.18%;

o  The MRE represents a 10% increase in the indicated tonnage from the previously reported MRE (October 2022) resulting from a more defined geological modelling exercise that has also resulted in the 4E grade improving by 4%; and

o  The addition of Rh estimates has improved the overall grade by approximately 7%.

Volspruit South

·      Volspruit South JORC MRE (Inferred):

o  10.60 Mt at 4E grade of 2.11 g/t;

o  14.83 million lb of Cu at a grade of 0.06%;

o  46.96 million lb of Ni at a grade of 0.20%;

o  This MRE is the first one completed since the mineralised zones have been redefined and, as expected, it reports approximately a third of the tonnages at almost double the grades previously reported by Integrated Geological Solutions (Pty) Ltd ("IGS") in 2012.

Next Steps

The Company has embarked on a Preliminary Economic Assessment ("PEA") of the Volspruit Project in order to assess what value the addition of the Volspruit South resources, and the Rh and Ru resources might add to the overall project. Metallurgical test work is being undertaken on fresh core that was drilled during the course of the 2023 calendar year. Based on the results of the scoping study and metallurgical test work that is expected during Q4 FY2024 a decision will be made on progressing the project to a pre-feasibility study phase during FY2025.

Jaco Prinsloo, CEO of Sylvania, commented:

"I am pleased to announce the successful completion of the Mineral Resource Estimate update at our Volspruit Project, facilitated by Earthlab Technical Division, a South African geological consulting company. The exploration results align with our strategic goals, emphasising the importance of exploration assets as a key driver for Sylvania Platinum's growth strategy.

"The updated geological model reveals a notable 10% increase in the Volspruit North MRE compared to the October 2022 publication, accompanied by improved overall grades. These enhancements result from a more constrained geological model based on interpreted mineralised zones.

"Our commitment to meeting investment and workstream requirements for existing Mining Rights remains steadfast, with specialist teams actively working on authorisations, including the Water Use Licence, Environmental Impact Assessment update, and finalisation of the amended Social and Labour Plan.

"The previously declared Measured Resources for Volspruit North were downgraded to the Indicated category as a result of the short-range variability between closely spaced boreholes being highlighted during the reef redefining exercise. This serves to demonstrate that while our understanding of the resource is improving, we are also able to identify where future efforts will need to be focussed.  Resources for Volspruit South are currently categorised as Inferred due to structural complexity and sparse drilling data.

"In conclusion, the updated Mineral Resource Estimates demonstrate the positive impact of our optimisation efforts at the Volspruit Project. We are optimistic about the future value these results will bring to our stakeholders and are committed to further exploration activities in FY2024 to unlock additional value from our existing mining rights. We anticipate sharing further updates in the near future."

Further Information

The Volspruit PGM-Ni-Cu Project located within the Northern Limb of the Bushveld Igneous Complex in South Africa is covered by approved Mining Rights held by Sylvania.  

Volspruit Project

The Company initiated a Mineral Resource Estimate update with the assistance of Earthlab Technical Division ("Earthlab"), a mining and exploration consulting company, at the Volspruit Project. The primary objective was to apply the revised definition of the mineralised zones to the historic borehole core to better define the Volspruit North resource estimate and redefine the Volspruit South resource estimate. Statistical regression techniques were utilised to estimate the Rh and Ru content of both ore bodies.

The newly defined geological model shows an increase of 10% on the previously published MRE in October 2022 for Volspruit North as well as an improvement of the overall grades. These improvements are the result of the more constrained geological model defined by the interpreted mineralised zones. The historical MRE for Volspruit South was reduced significantly in terms of tonnage, however, the improvement in the overall grade warrants the remodelling and highlights the fact that mineralised zones do exist within the larger low-grade ore body that had previously been modelled.

Rh and Ru values were estimated for both ore bodies after statistical analysis proved a strong relationship between Pt, Pd and Au, and Rh and Ru values. This allowed for regression methods to be utilised to estimate these missing values. It should be noted that regression techniques are commonly utilised and are based on a smaller set of samples that have been analysed for the missing elements to which a relationship is then established. The improvement to the overall grades is in line with expectations.

We continue to meet the investment and workstream requirements relating to the permits under the existing Mining Right, with specialist technical teams currently working on the authorisations. These authorisations include the Water Use Licence for the mining and on-site processing of the ore, updating of the Environmental Impact Assessment and the finalisation of the amended Social and Labour Plan ("SLP") which will update the Local Economic Development ("LED") project that is included in the Mining Right held by the Company.

Mineral Resource Estimate

Tables 1 and 3 show the Volspruit North and Volspruit South mineral resource tons and grades respectively in g/t of Pt, Pd, Rh, and Au, summed up as 4E grade, as well as Ru in g/t and Cu and Ni as percentages. The tons and the metal content are reported on a 100% attributable basis for all the PGMs and Base Metals (Tables 2 and 4). The tables furthermore divide the tons, ounces, and contained base metals into two Resource Classifications for Volspruit North and one Resource Classification for Volspruit South as per the JORC Code (2012). The categories in decreasing confidence levels are Measured, Indicated and Inferred categories. No Measured resources have been declared.

A significantly large proportion of the 4E oz (93%) of Volspruit North reports to the Indicated category. The Inferred Mineral Resources are attributed to faulting resulting in areas of structural complexity and less geological confidence as well as limited drilling closer to the Nyl River. The previously declared Measured resources were downgraded to the Indicated category as a result of short-range variability being observed between the closely spaced boreholes. This serves to highlight that whilst our understanding of the ore body continues to improve through these relogging exercises, areas requiring additional information are being highlighted allowing us to focus future drilling programmes.

At this stage, the entire Volspruit South resource reports to the Inferred category due to the high structural complexity observed in the area coupled with sparse drilling data.