NEWS RELEASE I 13 SEPTEMBER 2024

ISSUE OF SHARES

Sovereign Metals Limited (ASX: SVM, AIM: SVML, OTCQX: SVMLF) (Sovereign or the Company) advises that it has issued 2,326,880 fully paid ordinary shares (Shares) in the capital of the Company, comprising of 1,290,392 Shares issued to Rio Tinto Mining and Exploration Limited (Rio Tinto) and 1,036,488 Shares issued to SCP Resource Finance,  as an advisory fee of 3% on the amount of Rio Tinto's option investment in July 2024 (refer to Company announcement on 3 July 2024).

An application will be made for the Shares to be admitted to trading on AIM (Admission) and it is expected that Admission will become effective on or around 19 September 2024.

RIO TINTO INCREASES ITS SHAREHOLDING TO 19.9%

Following the exercise of its unlisted options on 3 July 2024, Rio Tinto has made an additional investment of A$690,360 in Sovereign through the issue of 1,290,392 Shares (Additional Shares) pursuant to Rio Tinto's first right of refusal on equity issues. This is in accordance with the Investment Agreement between Rio Tinto and the Company dated 16 July 2023. Following the issue of Additional Shares today, Rio Tinto has increased its shareholding in Sovereign to 19.9%.

Total Voting Rights

For the purposes of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules (DTRs), following Admission of the Shares, Sovereign will have 599,879,879 Ordinary Shares in issue with voting rights attached. The figure of 599,879,879 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the ASX Listing Rules or the DTRs.

Following the issue of Shares, Sovereign has the following securities on issue:

·      599,879,879 fully paid ordinary shares;

·      9,460,000 unlisted performance rights subject to the "Definitive Feasibility Study Milestone" expiring on or before 31 October 2025;

·      3,600,000 unlisted performance rights subject to the "Grant of a Mining Licence Milestone" expiring on or before 31 March 2026; and

·      4,800,000 unlisted performance rights subject to the "Final Investment Decision Milestone" expiring on or before 30 June 2026.

Classification: 2.5 Total number of voting rights and capital

ENQUIRIES