Sovereign Metals Limited: Discovery of Significant New Zone of Saprolite-Hosted Graphite Along Strike From Malingunde

(firmenpresse) - DISCOVERY OF SIGNIFICANT NEW ZONE OF SAPROLITE-HOSTED GRAPHITE ALONG STRIKE FROM MALINGUNDE

Sovereign Metals Limited (the Company or Sovereign) is pleased to report the third batch of assay results from the 2017 aircore drilling program completed on its 100%-owned saprolite-hosted flake graphite projects in Malawi. The results represent drilling on a new zone of saprolite-hosted graphite mineralisation at Msinja, 1.5km to the south-east of the southern-most part of the main Malingunde deposit.

Aircore drilling at Malingunde, and other regional targets was conducted in late 2017, with 210 holes for 6,212 metres completed. The drilling program was designed to further define and upgrade the JORC resource classification levels for inclusion in the Malingunde Pre-feasibility Study, as well as to test graphite mineralisation at Msinja and other targets at Lifidzi, some 35km to the south-east.

The drilling at Msinja has defined a new and significant zone of high-grade saprolite-hosted graphite mineralisation over approximately 1km of strike. The mineralisation at Msinja will potentially add significantly to the overall resource base. The Company is targeting an updated JORC resource estimate to be delivered in Q2 2018.

HIGHLIGHTS:
- Assays for the third batch of 2017 aircore samples (34 of 210 holes, with 104 previously reported) have been received, with the majority of results reported from the Msinja target.
- The drilling at Msinja has defined high-grade zones of saprolite-hosted flake graphite mineralisation over about 1km of strike, which remains open to the south-east. Results include:
o MGAC0349:-18m (at) 9.1% TGC inc. 5m (at) 12.0% TGC
o MGAC0352:-15m (at) 15.1% TGC inc. 5m (at) 21.3% TGC
o MGAC0366: -10m (at) 16.7% TGC inc. 5m (at) 20.2% TGC
- Results for the final 72 remaining aircore holes, from the central and northern parts of Malingunde Main Zone, are expected to be delivered over the coming weeks, and will be provided to the market when received.

- An additional, large Exclusive Prospecting Licence (EPL0492) of 1,896km2, located to the north of Malingunde and covering ground highly prospective for saprolite-hosted graphite deposits, has been granted to Sovereign by the Malawi Government. Sovereign continues to expand on its first mover advantage in the region, with the Company currently holding 3,993km2 in central Malawi.


Sovereigns Managing Director Dr Julian Stephens commented, The new graphite zone at Msinja is a fantastic discovery for Sovereign as it demonstrates high-grade, saprolite hosted graphite mineralisation is developed over a strike length in excess of 7km. This gives us further confidence that we will grow the global resource by discovery of additional new deposits to support a multi-generational graphite mining centre, with one of the lowest cost production profiles globally.

ENQUIRIES --Julian Stephens-Managing Director
+618 9322 6322 -Dominic Allen -Business Development Manager

Msinja aircore drilling results
The 2017 drilling program at Malingunde and other regional targets comprised a total of 210 aircore holes for 6,212 metres of drilling. Results for the first 104 aircore holes which focused on infill of the Malingunde Main Deposit were reported on 17th January and 20th February. Results for a total 34 holes (28 from Msinja and 6 from regional targets at Lifidzi) are covered in this report. Results for a further 72 holes from the Malingunde Main Deposit are pending and will be reported once received. The Company expects an updated JORC resource estimate incorporating the new drilling results will be delivered in Q2 2018.

The results from the 28 holes drilled at Msinja show wide (up to 100m cumulative surface widths) and high-grade zones of saprolite-hosted flake graphite mineralisation over about 1km of strike which is open to the south-east. Additionally, the drilling at Msinja has highlighted a number of very high-grade zones of circa 12% to 20% TGC.
This new discovery is significant, as given Msinjas very close proximity to Malingunde (1.5km to the south east), additional tonnages of high-grade saprolite mineralisation have the potential to increase overall mine life and/or provide additional optionality for the mining schedule.

Selected results from the 28 aircore holes from Msinja reported are listed below, with full results listed in Table A.

- MGAC0342 :-25m (at) 7.3% TGC
- MGAC0349*:-18m (at) 9.1% TGC inc. 5m (at) 12.0% TGC
- MGAC0352*:-15m (at) 15.1% TGC inc. 5m (at) 21.3% TGC
- MGAC0353 :-15m (at) 7.9% TGC inc. 6m (at) 10.4% TGC
- MGAC0366*: -10m (at) 16.7% TGC inc. 5m (at) 20.2% TGC
--*denotes results that are also reported in highlights on front page


http://www.irw-press.at/prcom/images/messages/2018/42801/180319.001.jpeg
Figure 1. Cross-section at Msinja showing high-grade, saprolite-hosted graphite mineralisation
http://www.irw-press.at/prcom/images/messages/2018/42801/180319.002.jpeg

Figure 2. Map showing recently received aircore drilling results and mineralisation at the new Msinja discovery.

Lifidzi aircore drilling results
A total of 21 aircore holes were planned to test regional targets previously identified by hand-auger drilling at Lifidzi, some 35km south east of Malingunde. The onset of the wet season in mid December 2017 forced the early curtailment of this program, with only 6 holes having been completed on two targets, Chiziro and Thete. The Company plans to complete this regional program in Q3 2018.
Whilst only 6 holes were completed, they highlight that high-grade, saprolite hosted graphite mineralisation occurs at both prospects and warrants further drilling.
Best results from the limited program are listed below, with full results shown in Table A.
· LFAC0002 :-23m (at) 6.7% TGC inc. 6m (at) 9.1% -(Chiziro prospect)
· LFAC0006 :-12m (at) 8.0% TGC ----(Thete prospect)

Signficant additions to Malawi land-holding
An additional, large Exclusive Prospecting Licence EPL0492 of 1,895km2, located to the north of Malingunde and covering ground highly prospective for saprolite-hosted graphite deposits, has been granted to Sovereign by the Malawi Government. With other statutory relinquishments, this brings the Companys total land holding in central Malawi up to 3,993km2.
The Company intends to re-commence regional exploration for further high-grade, saprolite-hosted graphite mineralisation on EPL0492 and its other existing EPLs in Q2 2018.
http://www.irw-press.at/prcom/images/messages/2018/42801/180319.003.jpeg
Figure 3. Regional map showing Sovereigns large ground holding in central Malawi, location of the new Msinja discovery and the new EPL0492.

Competent Person Statement
The information in this report that relates to Exploration Results is based on information compiled by Dr Julian Stephens, a Competent Person who is a member of the Australian Institute of Geoscientists (AIG). Dr Stephens is the Managing Director of Sovereign Metals Limited and a holder of shares, options and performance rights in Sovereign Metals Limited. Dr Stephens has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr Stephens consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward Looking Statement
This release may include forward-looking statements, which may be identified by words such as "expects", "anticipates", "believes", "projects", "plans", and similar expressions. These forward-looking statements are based on Sovereigns expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Sovereign, which could cause actual results to differ materially from such statements. There can be no assurance that forward-looking statements will prove to be correct. Sovereign makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.


Appendix 1
Table A. Aircore drilling significant intercepts from Lifidzi and Msinja (>=5.0% TGC)
Hole ID From (m) To (m) Width (m) Grade (%) Base of Sa
prolite
(m
down-hole
)

LFAC0001 13 19 6 6.8 *
LFAC0002 4 27 23 6.7 21
inc.
23 27 4 10.7 21
LFAC0003 NSI
LFAC0004 NSI
LFAC0005 7 10 3 5.5 *
LFAC0006 2 14 12 8.0 *
MGAC0341 10 24 14 6.1 20
MGAC0342 5 30 25 7.3 27
MGAC0343 7 11 4 11.1 *
and
25 30 5 10.3 28
MGAC0344 4 21 17 5.6 *
MGAC0345 14 26 12 5.2 22
MGAC0346 10 21 11 5.6 15
MGAC0347 11 20 9 7.5 *
MGAC0348 6 16 10 7.9 *
MGAC0349 5 23 18 9.1 *
inc.
8 13 5 12.0 *
MGAC0350 10 26 16 5.8 *
MGAC0351 18 22 4 5.8 *
MGAC0352 14 29 15 15.1 27
inc.
24 29 5 21.3 27
MGAC0353 7 22 15 7.9 *
inc.
7 13 6 10.4 *
MGAC0354 3 7 4 5.6 *
and
28 33 5 12.8 28
MGAC0355 10 24 14 5.9 *
MGAC0356 25 30 5 5.2 25
MGAC0357 NSI
MGAC0358 4 14 10 6.6 *
MGAC0359 14 25 11 6.5 *
MGAC0360 9 30 21 6.1 28
MGAC0361 20 30 10 5.2 25
MGAC0362 8 21 13 6.5 *
MGAC0363 5 18 13 6.8 *
MGAC0364 4 11 7 8.6 *
MGAC0365 NSI
MGAC0366 5 15 10 16.7 *
inc
10 145 5 20.2 *
MGAC0367 NSI
MGAC0368 7 16 9 5.3 *
Table B. Aircore drill-hole details from Lifidzi and Msinja
Hole ID Easting NorthingRL (m) Total Dip Azimuth Hole
UTM UTM depth (UTM) Type
(m)

LFAC0001600615 8417500 1195 25 -60 270 Aircore
LFAC0002600635 8417500 1195 27 -60 270 Aircore
LFAC0003600714 8417500 1196 24 -60 270 Aircore
LFAC0004600870 8417500 1197 24 -60 270 Aircore
LFAC0005609944 8418950 1222 22 -60 270 Aircore
LFAC0006609924 8418954 1222 20 -60 270 Aircore
MGAC0341573805 8433100 1090 24 -60 270 Aircore
MGAC0342573905 8433100 1089 30 -60 270 Aircore
MGAC0343573925 8433100 1089 30 -60 270 Aircore
MGAC0344573865 8433000 1093 30 -60 270 Aircore
MGAC0345573885 8433000 1092 28 -60 270 Aircore
MGAC0346573955 8433000 1092 21 -60 270 Aircore
MGAC0347573930 8432900 1095 30 -60 270 Aircore
MGAC0348574025 8432900 1095 30 -60 270 Aircore
MGAC0349574064 8432901 1095 30 -60 270 Aircore
MGAC0350573995 8432800 1098 30 -60 270 Aircore
MGAC0351574015 8432800 1098 30 -60 270 Aircore
MGAC0352574090 8432800 1099 30 -60 270 Aircore
MGAC0353574125 8432800 1099 25 -60 270 Aircore
MGAC0354574144 8432800 1099 33 -60 270 Aircore
MGAC0355574075 8432600 1104 30 -60 270 Aircore
MGAC0356574140 8432600 1104 30 -60 270 Aircore
MGAC0357574155 8432400 1108 27 -60 270 Aircore
MGAC0358574180 8432400 1108 28 -60 270 Aircore
MGAC0359574255 8432400 1108 29 -60 270 Aircore
MGAC0360574295 8432200 1111 32 -60 270 Aircore
MGAC0361574325 8432200 1111 30 -60 270 Aircore
MGAC0362573890 8433100 1089 30 -60 270 Aircore
MGAC0363573845 8433000 1093 20 -60 270 Aircore
MGAC0364573910 8432899 1095 30 -60 270 Aircore
MGAC0365573975 8432800 1098 24 -60 270 Aircore
MGAC0366574075 8432800 1099 28 -60 270 Aircore
MGAC0367574055 8432801 1098 21 -60 270 Aircore
MGAC0368574134 8432400 1108 24 -60 270 Aircore


Appendix 2: JORC Code, 2012 Edition - Table 1
Section 1 Sampling Techniques and Data
Criteri JORC Code Commentary
a explanation

SamplinNature and The aircore drilling method was
g quality of employed to obtain bulk drill
Techni sampling (e.g. cuttings at nominal 1-metre
ques cut channels, (downhole) intervals from surface.
random chips, All 1-metre samples were collected in
or specific plastic bags directly beneath the
specialised drilling rig cyclone underflow.
industry
standard
measurement The entire 1-metre sample was manually
tools split using either a 3-tier
appropriate to (87.5:12.5 split) or single tier
the minerals (50:50 split) riffle splitter or a
under combination thereof to facilitate the
investigation, mass reduction of a laboratory assay
such as down split. Compositing of the laboratory
sample split was performed on a
hole gamma geological basis. Mineralised (>=3%
sondes, or v/v visual) laboratory splits of
handheld XRF 1-metre intervals from surface to the
instruments, top of the
etc.). These
examples saprolite zone were not composited
should not be whereas mineralised splits of the
taken as underlying
limiting the
broad meaning saprolite and saprock intervals were
of composited nominally at 2-metres.
sampling.
Unmineralised (=<3% v/v visual),
laboratory splits of 4-metre
intervals from top of hole to bottom
of hole were
composited.

Laboratory splits were submitted
Intertek Perth for assay sample
preparation. Total Graphitic Carbon
(TGC) analysis of all assay pulps
samples was undertaken by Intertek
Perth.

Include Drilling and sampling activities were
reference to supervised by a suitably qualified
measures taken Company geologist who was present at
to ensure the drill rig at all times. All bulk
sample 1-metre drill samples were
geologically logged by the geologist
representivity a at the drill
nd the site.
appropriate
calibration of All 1-metre downhole drill samples
any collected in plastic bags from
measurement directly beneath the cyclone
tools or underflow were individually weighed
systems and moisture content was
used.
qualitatively logged prior to further
splitting and
sampling.

All mass reduction (field and
laboratory splitting) of samples were
performed within

Gys Sampling Nomogram limits relevant
to this style of
mineralisation.

Field duplicate splits were undertaken
nominally every
20
th sample to quantify sampling and
analytical error. A program of field
replicate splitting of selected (~5%)
mineralised intervals was completed
at the conclusion of the drill
program.

Aspects of the Flake graphite content is visually
determination estimated as volume % (% v/v) of each
of 1-metre bulk
mineralisation drill
that are samples during geological logging by
Material to Company geologist. A nominal lower
the Public cut-off of 5% TGC assay has been
Report. In applied to define zones of
cases where mineralisation.
industry
standard work
has been done
this would be
relatively
simple (e.g.
reverse
circulation
drilling was
used to obtain
1 m samples
from which 3
kg was
pulverised to
produce a 30 g
charge for
fire assay).
In other cases
more
explanation
may be
required, such
as where there
is coarse gold
that has
inherent
sampling
problems.
Unusual
commodities or
mineralisation
types (e.g.
submarine
nodules) may
warrant
disclosure of
detailed
information.

DrillinDrill type Conventional blade bit aircore drilling
g (e.g. core, was employed to obtain all drill
Techni reverse cuttings from
ques circulation, surface
open utilising two rigs during this drill
hole hammer, program.
rotary air
blast, auger, Drilling with these rigs was completed
Bangka, sonic, using standard 4-inch diameter/3m
etc.) and length drill rods equipped with inner
details (e.g. tubes. Drilling was performed with
core diameter, standard face discharge
triple or
standard tube, aircore blade bits. The nominal drill h
depth of ole
diamond tails, diameter is 107mm.
face
sampling bit
or other type,
whether core
is oriented
and if so, by
what method,
etc.).

Drill Method of All 1-metre downhole drill samples
Sample recording and collected in plastic bags from
Recove assessing core directly beneath the cyclone
ry and chip underflow were individually weighed
sample and moisture content
recoveries and (dry/damp/moist/wet/saturated)
results recorded prior to further splitting
assessed. and sampling. The outside diameter of
the drill bit cutting face was
measured and recorded by the driller
prior to the commencement of each
drill hole. Each 1-metre sample
interval was separately geologically
logged using standard Company project
specific logging codes. Logging of
weathering and lithology along with
drill

hole diameter, recovered sample
weight, moisture content and dry bulk
density measurements of PQ diamond
core allow the theoretical sample
recovery to be calculated.

Analysis of actual sample recoveries
indicate
an average recovery of greater than
75% for mineralised
intervals.

Measures taken Drill bits (face discharge) used were
to maximise appropriate for the type of formation
sample to maximise amount of drill cutting
recovery and recovered. Drill bits were replaced
ensure where excessive wearing of the
representative tungsten cutting teeth had occurred.
nature of the A number of the 2016 PQ diamond core
samples. holes were twinned by

aircore holes to assess the representiv
ity
of drill samples.
Whether a Twin hole comparison of aircore vs
relationship hand auger and diamond core drill
exists between hole visually estimated grades
sample indicates that no sample bias exists.
recovery and There does not appear to be any
grade and relationship between
whether sample
bias may have aircore sample recovery and TGC % v/v
occurred due grade.
to
preferential
loss/gain of
fine/coarse
material.

LoggingWhether core All drill holes were geologically
and chip logged by a suitably trained Company
samples have geologist using standard Company code
been system. Relevant data for each
geologically individual 1-metre sample for
and
aircore or for each geological
geotechnically l interval for diamond was initially
ogged to a recorded using a standard A4 paper
level of template and later digitally entered
detail to into customised Company MS Excel
support spreadsheets designed with fully
appropriate functional validation. Excel files
Mineral are checked and loaded to MS Access
Resource by the Database Administrator. Upon
estimation loading into the Access database
mining studies further validation is performed. In
and
metallurgical addition, all core is photographed wet
studies. and dry for future reference.



This information is of a sufficient
level of detail to support
appropriate Mineral Resource
estimation.

Whether logging Logging is both qualitative and
is qualitative quantitative. Geological logging
or includes but is not limited to
quantitative lithological features, volumetric
in nature. visual estimates of graphite content
Core (or and flake
costean, characteristics.
channel, etc.)
photography.

The total 100% of drill hole sample intervals
length and have been geologically
percentage of logged.
the relevant
intersection
logged

Sub-samIf core, No core was drilled during this program
pling whether cut or
techni sawn and
ques whether
and quarter, half
sample or all core
prepar taken.
ation


If non-core, The entire 1-metre sample was manually
whether split using either a 3-tier
riffled, tube (87.5:12.5 split) or single tier
sampled, (50:50 split) riffle splitter or a
rotary split, combination thereof to facilitate the
etc. and mass reduction of a laboratory assay
whether split. Compositing of the laboratory
sampled wet or sample split was performed on a
dry. geological basis. Mineralised (>=3%
v/v visual) laboratory splits of
1-metre intervals from surface to the
top of the

saprolite zone were not composited
whereas mineralised splits of the
underlying

saprolite and saprock intervals were
composited nominally at 2-metres.

Unmineralised (=<3% v/v visual),
laboratory splits of 4-metre
intervals from top of hole to bottom
of hole were
composited.

All wet samples were removed from the
drill site without splitting and
relocated to the Companys premises
in Lilongwe. The wet samples were
transferred into large metal trays
and sun dried. Samples were
subsequently hand pulverised and
thoroughly homogenised prior to
splitting 50:50 with a single tier
riffle splitter. One of the
off-splits was submitted to the
laboratory for
assay.

All rejects splits (i.e. the material
not sent for assaying) of each
individual 1-metre interval were
returned to original sample bag,
cable tied and placed in storage for
future
reference.

For all sample Sample preparation is conducted at
types, the either Intertek in Perth or
nature, Johannesburg. The entire submitted
quality and sample (=< ~3kg) is pulverised to 85%
appropriateness -75µm in a LM5. Approximately 100g
of the sample pulp is collected and sent to
preparation Intertek-
technique. Genalysis Perth for chemical analysis.

Quality control All sampling was carefully supervised.
procedures Ticket books were used with
adopted for pre-numbered tickets placed in the
all laboratory sample bag and double
sub-sampling checked against the sample register.
stages to Subsequent to splitting
maximise
an aluminium tag inscribed with hole
representivity o id/sample interval was placed inside
f the bulk 1-metre sample
samples. bag.

Field QC procedures involve the use of
certified reference material assay
standards, blanks, duplicates,
replicates for company QC measures,
and laboratory standards, replicate
assaying and barren washes for
laboratory QC measures. The insertion
rate of each of these averaged better
than 1 in
20.

Measures taken A program of field replicate splitting
to ensure that of selected (5%) mineralised
the sampling intervals was completed at the
is conclusion of the drill program. In
representative addition, a number of air core holes
of the in situ have been drilled to twin diamond
material holes, to assess the
collected,
including for representivity of the air drilling.
instance The results of these programs will
results for be assessed when results are
field received.
duplicate/secon
d-half
sampling.

Whether sample All mass reduction of aircore drill
sizes are samples undertaken during field
appropriate to sampling and laboratory sample
the grain size preparation were guided by standard
of the sampling nomograms and fall within
material being
sampled. Gys safety limits for the type of
mineralisation
sampled.

QualityThe nature, The assaying and laboratory procedures
of quality and are considered to be appropriate for
assay appropriateness reporting graphite mineralisation,
data of the according to industry best practice.
and assaying and
labora laboratory
tory procedures Each entire sample was pulverised to
tests used and 85% -75µm. Approximately 100g pulp is
whether the collected for analysis at
technique is Intertek-
considered Genalysis Perth.
partial or A sample of 0.2g is removed from the 10
total. 0-gram
pulp, first digested in HCl to remove
carbon attributed to carbonate, and
is then heated to 450°C to remove any
organic carbon. An

Eltra CS-2000 induction furnace
infra-red CS analyser is then used to
determine the remaining carbon which
is reported as Total Graphitic Carbon
(TGC) as a
percentage.

For geophysical No non-laboratory devices were used
tools, for chemical
spectrometers, analysis.
handheld XRF
instruments,
etc., the
parameters
used in
determining
the analysis
including
instrument
make and
model, reading
times,
calibrations
factors
applied and
their
derivation,
etc.

Nature of Field QC procedures involve the use of
quality certified reference material assay
control standards, blanks, duplicates and
procedures replicates for company QC measures,
adopted (e.g. and laboratory standards, replicate
standards, assaying and barren washes for
blanks, laboratory QC measures. The insertion
duplicate, rate of each of these averaged better
external than 1 in
laboratory 20.
checks) and
whether
acceptable
levels of
accuracy (i.e.
lack of bias)
and precision
have been
established.

VerificThe Significant mineralisation
ation verification intersections were verified by
of of significant alternative company personnel. An
sampli intersections independent resource consultant
ng & by either conducted a site visit during
assayi independent or December 2016 during the
ng alternative
company aircore drilling program. All drilling
personnel. and sampling procedures were observed
by the consultant during the site
visit.
These procedures remained in use for
this drilling program.


The use of Several of the 2016 PQ diamond core
twinned holes were twinned by
holes.
aircore holes to assess sampling repres
entivity
.
Documentation All data is initially collected on
of primary paper logging sheets and codified to
data, data the Company's templates. This data
entry was hand entered to spreadsheets and
procedures, validated by Company geologists.
data This data was then imported to a
verification, Microsoft Access Database then
data storage validated automatically and
(physical and manually.
electronic)
protocols. Assay data is provided as .csv files
from the laboratory and loaded into
the project specific drill

hole database. Spot checks are made
against the laboratory
certificates.

Discuss any No adjustments have been made to assay
adjustment to data.
assay data.


LocatioAccuracy and Collar points were set out using the
n of quality of Companys R2 Rover DGPS (accuracy
data surveys used 0.04m x/y), and upon completion of
points to locate drilling all collars were picked-up
drill holes again using the same survey tool. The
(collar and accuracy of R2 Rover unit is quoted
down-hole to be 0.04m x/y and 0.09m
surveys), z.
trenches, mine
workings and Down-hole surveying was undertaken on
other selected holes to determine drill
locations used
in Mineral hole deviation. Surveys were carried
Resource out using a Reflex
estimation.
Ez-Trak multi-shot survey tool at
nominal 30m intervals down hole on
selected holes was used to show that
significant deviation does not occur
over the relatively short length of
the

aircore holes. As such drill hole devi
ation is not considered material
throughout the program.


Specification WGS84 (GRS80) UTM Zone 36 South
of the grid
system
used.

Quality and The Companys DGPS survey tool has sub
adequacy of 0.1m accuracy in the X, Y and Z
topographic planes. This is considered
control. sufficiently accurate for the
purposes of topographic control. In
addition, the Company has installed
several independently surveyed
control pegs and undertakes QC
surveys on these points before every
survey program. Given the low
topographic relief of the area it is
believed that this represents high
quality
control.

Previous checking of Hand Auger holes
with the Shuttle Radar Topographic
Mission (SRTM) 1-arc second digital
elevation data has shown that the
Leica GPS System produces
consistently accurate
results.

Data Data spacing Aircore and diamond core drill holes
spacin for reporting occur along east-west sections spaced
g & of Exploration at between 100-400m north-south
distri Results. between
bution 8,43
4,400mN to 8,437,800mN. Spacing along
drill lines generally ranges between
15m and
40m.

Whether the The Companys independent resource
data spacing consultants completed a Mineral
and Resource Estimate (MRE) for
distribution
is sufficient Malingunde in 2017 following the
to establish completion of the 2016 drilling
the degree of program. The Company expects to
geological and update the MRE for
grade
continuity Malingunde once all results from the
appropriate 2017 program have been received.
for the Such an update may include upgrading
Mineral of the JORC resource category in a
Resource and number of areas of the deposit.
Ore Reserve
estimation
procedure(s)
and
classifications
applied.

Whether sample No sample compositing has occurred.
compositing
has been
applied.

OrientaWhether the No bias attributable to orientation of
tion orientation of sampling upgrading of results has
of sampling been
data achieves identified.
in unbiased
relati sampling of
on to possible
geolog structures and
ical the extent to
struct which this is
ure known
considering
the deposit
type

If the No bias attributable to orientation of
relationship sampling upgrading of results has
between the been identified. Flake graphite
drilling mineralisation is conformable with
orientation the main primary layering of the
and the gneissic and schistose host
orientation of
key lithologies. Drill hole inclination of
mineralised -60 degrees are generally near
structures is orthogonal to the interpreted
considered to regional dip of the host units and
have dominant
introduced a foliation.
sampling bias,
this should be
assessed and
reported if
material.

Sample The measures Samples are securely stored at the
securi taken to Companys compound in Lilongwe. Chain
ty ensure sample of custody is maintained from time of
security sampling in the field until sample is
dispatched to the
laboratory.

Audits The results of It is considered by the Company that
or any audits or industry best practice methods have
review reviews of been employed at all stages of the
s sampling exploration.
techniques and
data

Section 2 Reporting of Exploration Results
Criteria JORC Code Commentary
explanation

Mineral Type, reference The Company owns 100% of 4 Exclusive
tenemen name/number, Prospecting Licences (EPLs) in
t & location and Malawi. EPL0355
land ownership
tenure including renewed in 2017 for 2 years, EPL0372
status agreements or renewed
material
issues with in 2018 for 2 years and EPL0413 renew
third parties ed
such as joint
ventures, in 2017 for 2 years. EPL0492 was
partnerships, granted in 2018 for an initial
overriding period of three years
royalties, (renewable).
native title
interests,
historical
sites,
wilderness or
national park
and
environment
settings.

The security of The tenements are in good standing
the tenure and no known impediments to
held at the exploration or mining
time of exist.
reporting
along with any
known
impediments to
obtaining a
licence to
operate in the
area.

ExploratAcknowledgement No other parties were involved in
ion and appraisal exploration.
done of exploration
by by other
other parties.
parties

Geology Deposit type, The graphite mineralisation occurs
geological as multiple bands of graphite
setting and gneisses, hosted within a broader
style of Proterozoic
mineralisation
paragneiss package. In the Malingunde
and

Lifidzi areas specifically, a deep tr
opical weathering profile is
preserved, resulting in significant
vertical thicknesses from near
surface of

saprolite-hosted graphite
mineralisation.

Drill A summary of Refer to Tables A and B in Appendix.
hole all
informa information
tion material to
the
understanding
of the
exploration
results
including a
tabulation of
the following
information
for all
Material drill
holes: easting
and northings
of the drill
hole collar;
elevation or
RL (Reduced
Level-elevation
above sea
level in
metres of the
drill hole
collar); dip
and azimuth of
the hole; down
hole length
and
interception
depth; and
hole
length

If the Not applicable, no information has
exclusion of been
this excluded.
information is
justified on
the basis that
the
information is
not Material
and this
exclusion does
not detract
from the
understanding
of the report,
the Competent
Person should
clearly
explain why
this is the
case

Data In reporting All sample assays contribute to
aggrega Exploration significant intercepts, while
tion Results, adhering to a minimum total
methods weighting significant intercept grade of
averaging >=5%. For simplification of
techniques, reporting following positive
maximum and/or metallurgical results in the
minimum grade treatment of
truncations
(e.g. cutting pedolith material, all material
of above the
high-grades)
and cut-off saprolite-saprock boundary is
grades are considered as
usually
Material and saprolite during generation of
should be significant intercepts.
stated.

Where aggregate Significant intercepts were
intercepts calculated using an outer (edge)
incorporate sample lower cut-off grade of >=5%
short lengths TGC, minimum intercept width of 3m,
of high-grade and a maximum of 6m internal
results and dilution where the final intercept
longer lengths averages >=5% TGC. Substantial
of low grade higher grade zones are reported as
results, the separate including intercepts
procedure used within Table
for such B.
aggregation
should be
stated and
some typical
examples of
such
aggregations
should be
shown in
detail.

The assumptions No metal equivalent values are used
used for any in this
reporting of report.
metal
equivalent

values should
be clearly
stated.

RelationThese Preliminary interpretation of
ship relationships mineralised zones in
between are
mineral particularly aircore holes supported by DD (2016)
isation important in orientated core measurements
widths the reporting suggests that mineralised zones are
& of Exploration shallow-moderate east
interce Results. dipping.
pt
lengths

If the geometry Flake graphite mineralisation is
of the conformable with the main primary
mineralisation layering of the gneissic and
with respect schistose host
to the drill
lithologies. Drill hole inclination
hole angle is of -60 degrees are generally near
known, its orthogonal to the regional dip of
nature should the host units and dominant
be foliation and hence specific drill
reported. hole intercepts for -60 degree
holes may only approximate true
width. The averaged strike of
mineralised zones is approximately
160° grid whereas all -60 inclined

aircore holes were orientated at
grid
east.

If it is not Not Applicable, refer to explanation
known and only directly
the down hole above.
lengths are
reported,
there should
be a clear
statement to
this effect
(e.g. 'down
hole length,
true width not
known'.

DiagramsAppropriate See Figures 1 and 2 within the main
maps and text of this
sections (with report.
scales) and
tabulations of
intercepts
should be
included for
any
significant
discovery
being
reported.
These should
include, but
not be limited
to a plan view
of the drill
collar
locations and
appropriate
sectional
views.


BalancedWhere Representative reporting of low and
reporti comprehensive high-grades has been effected
ng reporting of within this
all report.
Exploration
Results is not
practicable,
representative
reporting of

both low and
high-grades
and/or widths
should be
practiced to
avoid
misleading
reporting of
exploration
results.

Other Other No additional meaningful and
substan exploration material exploration data has been
tive data, if excluded from this report that has
explora meaningful and not previously been reported to the
tion material, ASX.
data should be
reported
including (but
not limited
to: geological
observations;
geophysical
survey
results;
geochemical
survey
results; bulk
samples - size
and method of
treatment;
metallurgical
test results;
bulk density,
groundwater,
geotechnical
and rock
characteristics
; potential
deleterious or
contaminating
substances.

Further The nature and The next phase of exploration is to
work scale of complete
planned
further work aircore drilling on regional saprolit
(e.g. test for e
lateral targets identified through hand
extensions or auger
depth drilling.
extensions or
large-scale
step-out
drilling).

Diagrams See Figure 2 within the main text of
clearly this
highlighting report.
the areas of
possible
extensions,
including the
main
geological
interpretations
and future
drilling
areas,
provided this
information is
not
commercially
sensitive.

Unternehmensinformation / Kurzprofil:
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Datum: 19.03.2018 - 13:05 Uhr
Sprache: Deutsch
News-ID 573493
Anzahl Zeichen: 52819

contact information:
Town:

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Kategorie:

Business News

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Die Pressemitteilung mit dem Titel:
"Sovereign Metals Limited: Discovery of Significant New Zone of Saprolite-Hosted Graphite Along Strike From Malingunde
"
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