Southern Palladium Limited announced the successful completion of the initial resource drilling campaign for the PFS for the Bengwenyama Platinum Group Metal (PGM) project, located on the Eastern Limb of the world class Bushveld Complex, South Africa. The completion of 82 drillholes, totaling 30,746 meters, including 50 reef def collections. These results provide a strong foundation for the upcoming Mineral Resource update and the ongoing PFS.

The metallurgical test work on chromite recovery and the investigation of mineralisation in the footwall of the Merensky Reef will further enhance understanding of the resource potential. Completion of the Initial Drilling Campaign. The initial drilling campaign aimed at declaring Indicated Mineral Resources for the PFS was completed successfully during Second Quarter 2024.

All samples submitted to ALS laboratories in Johannesburg have been received back from the laboratory, allowing for the next MRE to commence. In total 82 drillholes have been completed, totaling 30,746m which included 50 reef def collections. A stratigraphic column has been completed for the project.

Criteria, Explanation, Detail, Further work, The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling)., Phase 1a has been completed which was approximately 10,000m of drilling. Validation routine involved checking spatial location of drillholes collars and intersections, validity of stratigraphic logging, checking for repetition of logged intersections, reasons for the absence of analytical data, negative thicknesses and an assessment of the correlation of all aspects of the new drilling data to the historic drilling data from the Nkwe drillhole database. The Nkwe database was inspected for erroneous /non representative datapoints and removed based on the knowledge gained from the recent SPD drilling., Site visits, Comment on any site visits undertaken by the Competent Person and the outcome of those visits., The Competent Person regularly visits the project site with the latest visit having been carried out on 16 November 2023., If no site visits have been undertaken indicate why this is the case., Refer to above., Geological interpretation, Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit., The Bengwenyama project is bounded to the northern extremity by a mine that is in current operation and economically exploiting the same UG2 reef.

Several SPD drillholes are sited in areas in which similar drilling was completed by Nkwe Platinum during the early 2000s. Knowledge of regional structural geology and regional geological losses guided delineation of fault blocks and the generation of the resultant UG2 and MR 3D wireframe model., Application of results such as the modelled variogram ranges, spatial continuity of kriging efficiencies and the slope of regression results, the sample search volume used and the number of samples informing a grade estimate constrained grade extrapolations beyond known drill data., Discussion of basis for using or not using grade cutting or capping., Statistical analysis on the raw data informing the estimate suggests that no capping or treatment of extreme values is necessary, other than one sample for the MR, and does show reasonable support for geological domaining or any possible anisotropy., The process of validation, the checking process used, the comparison of model data to drillhole data, and use of reconciliation data if available., Integrity of grade estimation was validated through swath plots in the X and Y directions, sample-to-model box-whisker plots on global means for all estimated grades and the visual analysis of grade plans for the 4E and 7E grades as well as plans showing the spatial distribution of the UG2 reef thickness, Slope of Regression, Kriging Efficiencies, Search Volume and the number of samples used to inform grades estimates., Moisture, Moisture, Whether the tonnages are estimated on a dry basis or with natural moisture, and the potential.