Southern Palladium released on the ASX Market Announcements Platform a Scoping Study titled "The Next Significant PGM Producer On The Eastern Limb" on 01 February 2024 (Scoping Study). The Company provides additional information in this Addendum around the nature of the production profile. a sensitivity analysis to 30%.

the ET/resource conversion is disclosed separately on a grade and tonnage basis and a grade/tonnage optimisation curve disclosed in the report for each resource and the ET category. Geological Model and UG2 Continuity. This 40% geological loss is also applied to the LoM tonnages associated with the Exploration Target category.

The current ongoing drilling programme is focused on Mineral Resource upgrades from Inferred Mineral Resource to Indicated Mineral Resource and from Exploration Target to Inferred Mineral Resource, the Far East Block and the northern margin of the dome area. Based on recent Mineral Resource conversions on the project with the recent drilling, it is anticipated that the conversion will be close to 100%. This is evident from the grades estimated to date for the Bengwenyama Project.

The initial grade, modelled from 10 historical drillholes, was 7.70 g/t (4E) over a reef width of 71 cm and the first resource update had a similar grade and width with the latest Mineral Resource grade of 7.95 g/t (4E). This illustrates the grade consistency. Including/Ex Including Inferred Resources and Exploration Target.

A financial run was undertaken to understand the impact of removing all Inferred Mineral Resources and Exploration Target material from the LoM plan to illustrate the impact thereof on the financial results. Simply excluding the Inferred Mineral Resources and Exploration target from the current LoM plan was not possible in the prescribed time period, because the plan needs to be re-scheduled. The equivalent tonnes were therefore excluded from the tail-end of the mine plan, i.e. at year 18.

This is acceptable because of the consistency of the reef. The mine plan could with reasonable certainty be optimised to include only Indicated Mineral Resources with similar results as what is current included in both the Inferred Mineral Resources and exploration Target (Explained in the Grade distribution above). A comparison of the Project NPVs excluding and including the Inferred Mineral Resources and explore material from the LoM plan.