Southern Palladium Limited released additional results for the MR and UG2 reefs on the Bengwenyama Platinum Group Metal (PGM) project located on the Eastern Limb of the world class Bushveld Complex, South Africa. Progressive UG2 and Merensky Reef Results In total, 8,668 meters of drilling has been completed to date from 29 drillholes - 26 completed and 3 in progress. Assay results for 15 UG2 reef intersections have been received with the average 3PGE+Au grade now 7.86 g/t over 73 cm (intersection width).

The expanded sample results remain above the expected 3PGE+Au grade in the inferred Mineral Resource Estimate (MRE) of 7.7 g/t over 71 cm. The 6PGE+Au grade across the 15 intersections is 9.48 g/t. The additional assay results have continued to confirm the continuity of both the UG2 and MR on the project. Assay results show the average grade of the two reefs continues to confirm the reef widths and grade of the JORC compliant inferred MRE.

Drilling summary: Of the 26 completed drillholes, the UG2 Reef has been encountered in 24 holes. One drillhole appears to have been faulted out at the expected depth, and in one case the reef was not developed. This is considered very encouraging, given the typical distribution of potholes in the UG2 on the Eastern Limb in this area.

Of the 26 drillholes, 12 were expected to intersect the Merensky Reef (MR) as they were drilled east of the subcrop. Of these, nine intersected the MR and two were faulted with one intersection (E013) being inconclusive at this stage. Southern Palladium notes that drilling has been halted temporarily at the Bengwenyama project following unlawful protests.

The Company is working closely with the full support of Bengwenyama community leaders and its advisors to resume safe operations at the earliest opportunity. Additional resource potential within the Far East Block: The latest assays also included results for three intersections east of the dyke in the Far East Block. This area was originally thought not to host the UG2 reef, and the confirmation of UG2 intersections in the Far East Block (refer ASX Announcement 20 December 2022) could result in a potential increase in the size of the Mineral Resource at Bengwenyama.

Assays for three drillholes (E064, E071 and E065) in the Far East Block confirm the presence of PGM mineralisation, including 7.87g/t 3PGE+Au from a sample width of 73cm (E065). Early indications are that the prill split in this block could change, with the prill split for these three drillholes showing increased levels of Platinum where Pt:Pd:Rh:Au is 49:39:11:1. This compares to the prill split of the 12 drillholes west of the dyke being 44.5:44.5:9.6:1.4. One more MR intersection assay result (E007) has been received since the previous announcement. This has resulted in the average 3PGE+Au grade for the MR to date increasing to 2.56 g/t over 202cm, thereby moving closer to the expected 3PGE+Au grade of 2.96 g/t over 191cm.