Bengwenyama DFS Drilling Underway

Southern Palladium Limited
Incorporated in the Commonwealth of Australia
Australian Company Number 646 391 899
ASX share code: SPD
JSE share code: SDL
ISIN AU0000220808
("Southern Palladium" or "the Company")


Bengwenyama DFS Drilling Underway


Highlights:

• Commencement of ~10,000m metallurgical and geotechnical drill programme at the Bengwenyama
  PGM project, with four drill rigs now operational on site.
• Metallurgical drill programme designed to collect a 140kg bulk sample from the UG2 Reef for definitive
  test work, to assess metallurgical variability and for use in concentrate off-take discussions.
• Additional drill rigs to be mobilised by October to commence surface geotechnical drill programme for
  design of the first decline and civils of the surface infrastructure
• Drill campaign marks delivery of the next phase of Definitive Feasibility Study (DFS) work, in line with
  Southern Palladium's stated development strategy for staged mine development

Southern Palladium (ASX:SPD and JSE:SDL), ('Southern Palladium' or 'the Company') is pleased to announce
the commencement of its detailed metallurgical and geotechnical drill programmes as part of ongoing field
work to support the delivery of the Definitive Feasibility Study (DFS) for the Bengwenyama Platinum Group
Metals (PGM) Project scheduled for completion in the first half of 2026

Four drill rigs have been secured and mobilised to site. First drilling is now underway to obtain a 140kg sample
from the UG2 reef for detailed metallurgical study work.

The UG2 sample will be used to determine metallurgical variability across the first stage of the planned
development. The results from this sample will also better allow the Company to progress discussions with
South African PGM smelters. Once metallurgical drilling is complete, the rigs will move to assist with deeper
underground geotechnical drilling, which will be incorporated into field studies to optimise decline and
stoping parameters.

A further 2-3 rigs will be added for surface geotechnical drilling, commencing with drilling needed to optimise
the first decline development planning, which is scheduled to start at the beginning of October.

The DFS drill programme will comprise around 10,000m drill metres in total and will include infill drilling to
further enhance definition of the Maiden JORC Ore Reserve of 6.29Moz at 6.17g/t PGM (6E) at Bengwenyama
(refer ASX Announcement 28 October 2024).

This work follows the recent completion of an optimised Pre-Feasibility Study which delivered an estimated
after-tax NPV US$857m with a material reduction in peak-funding requirement through a staged
development approach (refer ASX Announcement 10 July 2025).

The MRA (Mining Right Application) review process is ongoing. With the achievement of a key milestone in
Q2, the Environmental Authorisation approval and the conclusion of the objection period the granting of the
Mining Right is anticipated in the near-term.

Managing Director Johan Odendaal, said: "We are pleased to announce the commencement of our DFS drill
programme following an extensive period of planning and design. Results from this drill programme will
provide important data to further optimise metallurgical processing and mine design for the DFS, which is on
schedule for delivery in the first half of 2026. We look forward to providing further project updates over the
coming weeks. Environmental approvals have now been obtained, an important prerequisite for the granting
of the Mining Right. Final acceptance of the Social and Labour Plan should lead to the grant of the Mining
Right within the foreseeable future.


JORC Compliance Statement

The information in this report relating to the Maiden JORC Ore Reserve of 6.29Moz at 6.17g/t PGM (6E) at
Bengwenyama is extracted from the report entitled " Prefeasibility Study Results: Project NPV8 of
USD1.059bn Maiden JORC Ore Reserve of 6.29 million oz @ 6.17g/t PGM (6E)" created on 28 October 2024
and is available to view on the Company's website at southernpalladium.com (Investor Centre/ASX
Announcements). The Company confirms that it is not aware of any new information or data that materially
affects the information included in the original market announcement and, in the case of estimates of Mineral
Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the
estimates in the relevant market announcement continue to apply and have not materially changed. 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.

Uwe Engelmann

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or
Ore Reserves is based on information compiled by Mr Uwe Engelmann (BSc (Zoo. & Bot.), BSc Hons (Geol.),
Pr.Sci.Nat. No. 400058/08, FGSSA). Mr. Engelmann is a director of Minxcon (Pty) Ltd and a member of the
South African Council for Natural Scientific Professions. Minxcon provides geological consulting services to
Southern Palladium Limited. Mr. Engelmann 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'. Mr. Engelmann consents to the inclusion in the report of the
matters based on his information in the form and context in which it appears. Mr Engelmann has a beneficial
interest in Southern Palladium through a shareholding in Nicolas Daniel Resources Proprietary Limited.

Daan van Heerden

The scientific and technical information contained in this announcement has been reviewed, prepared, and
approved by Mr Daan van Heerden (B Eng (Min.), MCom (Bus.Admin.), MMC, Pr.Eng. No. 20050318, AMMSA,
FSAIMM). Mr van Heerden is a director of Minxcon (Pty) Ltd and a Registered Professional Engineer with the
Engineering Council of South Africa, a Member of the Association of Mine Managers South African Council, as
well as a Fellow Member of the South African Institute of Mining and Metallurgy. Minxcon provides geological
consulting services to Southern Palladium Limited. Mr van Heerden has sufficient experience that is relevant
to the styles of mineralisation and activities being undertaken to qualify as a Competent Person, as such term
is defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves'. Mr. van Heerden consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears. Mr. van Heerden has a beneficial interest in Southern
Palladium through a shareholding in Nicolas Daniel Resources Proprietary Limited.
For further information, please contact:

Johan Odendaal
Managing Director
Southern Palladium
Phone: +27 82 557 6088
Email: johan.odendaal@southernpalladium.com


3 September 2025

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Date: 03-09-2025 08:45:00
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