Southern Palladium Limited provided the following update on its recently commenced Phase 1 drilling programme at the Bengwenyama PGM project located on the Eastern Limb of the world class Bushveld Complex, South Africa The Company confirms that drillhole E062 has intersected the first UG2 reef at 31.2m below surface as part of the drilling programme. The mother-hole was completed on 1 September 2022 with an end-of-hole depth of 119.8m and matches stratigraphic models. Marking, logging and scanning of the drillhole is in progress.

A Down-hole acoustic televiewer survey will be completed next and this will be followed by drilling two short non directional deflections on the UG2 reef. Assaying of the reef will commence once all deflections, logging and core scanning is complete. Samples will be sent to ALS Chemex South Africa (PTY) Ltd, located in Johannesburg, which is part of the ALS group.

The South African laboratory is ISO 17025 accredited by SANAS (South African National Accreditation System). The massive UG2 chromitite reef intersection (NQ core size) in drillhole E062 has a downhole length (not true width) of 87cm, with a pegmatoidal pyroxenite as footwall underlain by a poikilitic pyroxenite. These characteristics also assist in the identification of the UG2 reef.

The intersected UG2 width is in line with expectations, and consistent with the average reef width of 71 cm estimated in the JORC-2012 compliant Inferred UG2 Mineral Resource. These reef widths lend themselves to the conventional mining methods utilised in South Africa for narrow tabular orebodies.