Material Update in Project Value via Updated PFS

• Post-tax NPV more than doubles to US$1.96 billion
• IRR increases to 39.1%
• Chrome becomes a significant co-product
• Peak funding requirement increases by 18%
• Stronger price outlook for PGMs

Southern Palladium Limited has announced a substantial increase in the value of its Bengwenyama PGM-chrome Project in South Africa, following an updated Prefeasibility Study (PFS). The post-tax Net Present Value (NPV) has more than doubled to US$1.96 billion, up from US$857 million in the previous study. The Internal Rate of Return (IRR) has also increased to 39.1% from 26.4%. Chrome, previously a by-product, is now a significant co-product, with recovery rates increasing from 30% to 85.6%. The peak funding requirement has increased by 18% to US$329 million, while the payback period has reduced from 3.8 years to 2.8 years. The project now shows a stronger sensitivity to PGM prices, with a 15% increase in the 6E basket price adding approximately US$454 million to the post-tax NPV.

Post-tax NPV of US$1.96 billion, IRR of 39.1%, payback period of 2.8 years, funding requirement of US$329 million

The updated PFS confirms the project's enhanced value and robustness, positioning it more attractively for potential investors and funding.