UNIQUE, WORLD CLASS GRAPHITE OPPORTUNITY

July 2014

Sovereign Metals Limited | ASX : SVM T: +61 8 9322 6322 | F: +61 8 9322 6558 | E: info@sovereignmetals.com.au | www.sovereignmetals.com.au

Level 9, BGC Centre, 28 The Esplanade, PERTH WA 6000 | ABN: 71 120 833 427

All the Key Elements in Place

• Large Flake Graphite - driven by lithium battery demand, refractories and other high end applications

High Growth Sector

• Two core projects with world class grade/flake properties plus huge unexplored potential

World Class Projects

• Malawi has very supportive government and good infrastructure to hand

Excellent Mining

Environment

• Sovereign team has a great track record of success – Mantra, Papillon, Sierra etc…

Proven Successful

Management

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Jumbo and Large Flake Graphite Will Attract Growing Premiums

“Large flake graphite prices will likely show significant volatility……By and large, jumbo flake graphite prices should move up, and may even reach an economic ceiling by 2020. What is clear is that low costs are crucial for new mines entering production, much more important than maintaining recoveries at maximum levels and the like. This will likely put a premium on projects that have high in situ grades, large flake sizes, simple mining plans and highly amenable metallurgy. “ Source: Stormcrow Capital Ltd (Industrial minerals experts) June 2014

Jumbo Flake (+425 μm) fraction of Duwi Concentrate

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2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Jumbo $ 3,362 $ 2,135 $ 1,577 $ 1,726 $ 1,884 $ 1,676 $ 1,555 $ 2,596 $ 3,573 $ 6,175

Large $ 2,514 $ 1,595 $ 1,178 $ 1,192 $ 976 $ 996 $ 684 $ 811 $ 947 $ 1,165

Medium $ 2,138 $ 1,514 $ 1,025 $ 991 $ 959 $ 867 $ 521 $ 500 $ 508 $ 517

Small $ 1,375 $ 1,089 $ 855 $ 874 $ 806 $ 784 $ 476 $ 481 $ 487 $ 493

Fine $ 930 $ 689 $ 505 $ 524 $ 509 $ 493 $ 342 $ 347 $ 353 $ 359

2 Excellent Core Projects plus exploration upside

Duwi • High grade – average assays 8.3% CGT • Outcropping 24km strike • World class flake – 64% medium-large-

jumbo • Excellent infrastructure • Initial JORC 2014

Dedza • High grade – average assays 10.3% CGT • Saprolite – soft, free dig, at surface • Mapped for 24km • Excellent flake – 48% jumbo and large • Next to M1 national highway • Drilling and trenching underway

Other Exploration • Over 7,000km2 of tenements – 100%

owned • Hundreds of km of mapped graphitic

gneiss, largely untested to date

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• High-grade flake graphite intersected in trenching and drilling over ~2km strike length.

• Open along strike and at

depth in all areas. • Drilling and trenching

underway. • JORC estimate due late

2014. • 64% high value Medium-

Large-Jumbo flake. • Chemical leach purification

to 99.98%.

Primary Graphite Target – Duwi

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Shallow mineralisation at Duwi

The next objective at Duwi is to define sufficient high grade mineralisation near surface to undertake a Scoping Study. Potentially a simple, low cost, open pit mining operation producing flotation concentrates with a large proportion of Jumbo and Large flake graphite.

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Sovereign Projects have world leading Large Flake %

Company Tonnes (Mt) Grade % Carbon (in-situ) Flake Size Market Cap ($m)1

Sovereign Metals (ASX: SVM) $33.0

Duwi –Malawi - - > 425 µm 19.7%

300 µm - 425 µm 17.1%

150 µm - 300 µm 27.4%

75 µm - 149 µm 15.7%

0 - 75 µm 20.1%

Syrah Resources (ASX: SYR) $737.8

Balama - Mozambique 1,150 10.2% > 425 µm 3.3%

From ASX Announcement dated 15 January 2014

297 µm - 425 µm 12.9%

177 µm - 297 µm 8.9%

149 µm - 176 µm 16.1%

75 µm - 149 µm 33.4%

0 - 75 µm 25.6%

Dedza - Malawi - - > 297 µm 17.3%

177 µm - 297 µm 30.5%

149 µm - 176 µm 10.6%

75 µm - 149 µm 226.9%

0 - 75 µm 14.8%

Triton Minerals (ASX: TON) $144.1

Cobra Plains - Mozambique 103 5.52% No Metallurgy results reported to date

Lamboo Resources (ASX: LMB) $106.8

McIntosh - Australia 7.1 4.9% > 250 µm 5%

Metallurgy Results disclosed on the Lamboo Resources’s website

75 µm - 250 µm 25%

0 - 75 µm 70%

6 1. Market Capitalisation: This is calculated based on the closing share price and total number of ordinary fully paid shares on issue of each as at 7 July 2014

• Saprolite hosted mineralisation mapped over 24km in total.

• Trenching demonstrates

mineable widths of graphitic saprolite at surface over 2km at DME.

• Trenching underway at DMW. • Saprolite met testwork

returned 47% Jumbo and Large flake graphite.

• Considerable opex and capex

advantages for saprolite.

Low cost saprolite target – Dedza

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Saprolite potential at Dedza

Ongoing trenching at Dedza will further define high grade saprolite mineralisation at surface. Note hand dug trenches in soft, friable material.

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Testwork flowsheets

Duwi Testwork Flowsheet Dedza Testwork Flowsheet

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Malawi – Stable and Mining Friendly

• Population 16.4m

• GDP/capita - US$388

• Limited natural resources and supportive of mining

• Corporate tax rate – 30%

• Mining royalty rate is 5%

• Peaceful presidential election in May – 5 years (Peter Mutharika)

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Excellent Infrastructure

• Operational railway with siding located just 21km by road from Duwi – links to deep water port at Nacala, Mozambique.

• High-capacity power line passes within 3km of Duwi.

• Lilongwe, the capital city of Malawi, lies just 15km to the west of Duwi.

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Management Team with a Proven Track Record of Success

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Chartered Accountant with over 25 years of experience in mining and company management. Former MD of Berkeley Resources and Sierra Mining. Grew BKY from a $4m shell to over $200m by acquiring and completing initial scoping study on the Salamanca Uranium Project in Spain. Grew SRM from $5m to over $80m when sold to RTG Mining Inc. by acquiring and exploring the Mabilo Copper/Gold Project in the Philippines.

Matt Syme (Managing Director)

Current Chairman of Papillon Resources Limited, Equatorial Resources Limited and Prairie Downs Metals Limited. Former Chairman of Mantra Resources Limited, Coalspur Mines Limited and Sierra Mining Limited.

Ian Middlemas (Chairman)

Geologist with over 20 years of experience in exploration, development and operations; currently Director of WCP Resources and Equatorial Resources Limited. Formerly a Director of Papillon Resources Limited.

Peter Woodman (Technical Director)

Geologist with over 20 years experience in exploration around the world. Spent over 8 years working in Malawi with Globe Metals. Discovered and vended the Central Malawi Graphite Project to Sovereign.

Julian Stephens (Chief Geologist)

Capital Structure

Capital Structure *

Current Shares on Issue 94,340,328

Performance Shares ‘Class A’ 8,750,000

Performance Shares ‘Class B’ 8,750,000

Incentive Options 6,250,000

Diluted Market Capitalisation (at $0.35) $39.3m

Cash ~$3.0m

Enterprise Value $36.3m

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* As at 7 July 2014

Intensive programs underway = news flow

Duwi • Trenching and drilling for initial

JORC estimate in 2014. • Ongoing metallurgical optimisation

and processing studies. • Scoping Study late 2014/early 2015. Dedza • Trenching and drilling for initial

JORC estimate in late 2014 or early 2015.

• Ongoing saprolite optimisation and processing studies.

• Scoping Study possible early 2015. Initial discussions with potential offtake partners also planned

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Australia: Level 9, The BGC Centre 28 The Esplanade Perth WA 6000 Australia

Tel: +61 8 9225 5485 Fax: +61 8 9322 6558

Email: info@sovereignmetals.com.au

www.sovereignmetals.com.au

Contact Details

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Disclaimer Notice The material in this presentation (“material”) is not and does not constitute an offer, invitation or recommendation to subscribe for, or purchase any security in Sovereign Metals Ltd (“SVM”) nor does it form the basis of any contract or commitment. SVM makes no representation or warranty, express or implied, as to the accuracy, reliability or completeness of this material. SVM, its directors, employees, agents and consultants shall have no liability, including liability to any person by reason of negligence or negligent misstatement, for any statements, opinions, information or matters, express or implied, arising out of, contained in or derived from, or for any omissions from this material except liability under statute that cannot be excluded. Statements contained in this material, particularly those regarding possible or assumed future performance, costs, dividends, production levels or rates, prices, resources, reserves or potential growth of SVM, industry growth or other trend projections are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. Actual results and developments may differ materially from those expressed or implied by these forward looking statements depending on a variety of factors.

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 Sovereign’s 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.

Competent Persons Statement The information in this presentation that relates to Exploration Results, not including Metallurgical Testwork Results, for the Duwi and Nanzeka Prospects is extracted from the report entitled ‘Metallurgical Testwork Confirms Significant Large Flake Potential’ dated 22 January 2014. The information in this report that relates to Exploration Results, not including Metallurgical Testwork Results, for the Dedza Mountain East and Chipili Prospects is extracted from the report entitled ‘Significant New Zone of Flake Graphite Identified at Dedza’ dated 27 March 2014. These announcements are available to view on www.sovereignmetals.com.au. The information in the original ASX Announcements that related to Exploration Results, not including Metallurgical Testwork Results, was based on information compiled by Mr Peter Woodman, who is a member of the Australasian Institute of Mining and Metallurgy. Mr Woodman is a director of Sovereign Metals Limited. Mr Woodman has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, 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'. The Company confirms that it is not aware of any new information or data that materially affects the information including in the original market announcement. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

The information in this presentation that relates to Metallurgical Testwork Results, for the Dedza Prospect is extracted from the report entitled “Excellent Saprolite Metallurgical Results’ dated 17 June 2014. This announcement is available to view on www.sovereignmetals.com.au. The information in the original ASX Announcement is based on information compiled by Mr Oliver Peters, M.Sc., P.Eng., MBA , who is a Member of the Professional Engineers of Ontario (PEO), a ‘Recognised Professional Organisation’ (RPO) included in a list promulgated by the ASX from time to time. Mr Peters is a consultant of SGS Canada Inc. (“SGS”). SGS is engaged as a consultant by Sovereign Metals Limited. Mr Peters has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, 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'. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

The information in this presentation that relates to Metallurgical Testwork Results, for the Duwi Prospect is extracted from the report entitled ‘Metallurgical Testwork Confirms Significant Large Flake Potential’ dated 22 January 2014 and is available to view on www.sovereignmetals.com.au. The information in the original ASX Announcement that related to Metallurgical Testwork Results was based on information compiled by Mr Michael Kenneth Rhodes, who is a Fellow of the Australian Institute of Mining and Metallurgy. Mr Rhodes is an employee of Tenova Mining & Minerals (Pty) Ltd (“Tenova”). Tenova is engaged as a consultant by Sovereign Metals Limited. Mr Rhodes has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, 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'. The Company confirms that it is not aware of any new information or data that materially affects the information including in the original market announcement. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

Disclaimer Notice & Competent Persons Statement

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