Sovereign Metals (SVM) investor relations material

Executive summary

• Focused on advancing the Kasiya rutile-graphite project in Malawi, the world's largest natural rutile and second-largest flake graphite deposit, with a Definitive Feasibility Study (DFS) underway.

• Signed a non-binding MOU with Traxys North America for graphite offtake and recovered heavy rare earth monazite concentrate from Kasiya tailings, adding a potential third revenue stream.

• Collaboration agreement signed with IFC (World Bank Group) to support sustainable development and project financing for Kasiya.

Financial highlights

• Net operating loss after tax for the half year ended 31 December 2025 was $8,986,797, a significant improvement from $19,546,116 in the prior year.

• Exploration and evaluation expenditure totaled $16,098,372 (2024: $16,495,513), reflecting ongoing investment in Kasiya.

• Cash and cash equivalents at 31 December 2025 were $33,937,352, down from $54,538,435 at 30 June 2025, with no debt.

• Net assets decreased to $38,704,181 from $55,387,701 at 30 June 2025, mainly due to exploration spend.

• Basic and diluted loss per share improved to (1.4) cents from (3.3) cents year-over-year.

Outlook and guidance

• DFS for Kasiya expected to be completed in the coming months, with enhanced focus on plant design, environmental, and social impact.

• Active discussions ongoing with US and allied-nation offtakers for rutile and graphite.

• Further updates anticipated on mineral resource estimates, rare earth recovery, and infrastructure planning.