Southern Palladium provided an update on development works that will be incorporated into the forthcoming Pre-Feasibility Study (PFS) for the company's Bengwenyama Platinum Group Metal (PGM) project, on the Eastern Limb of the world class Bushveld Complex, South Africa. Notably, it is strategically positioned in the heart of a significant underground mining region, leveraging existing infrastructure and knowledge for operations. An extensive Scoping Study for Bengwenyama by Minxcon (Pty) Ltd. earlier 2024 confirmed the continuation of the PFS.

Highlights: To date over 30,000m of diamond drilling has been completed, consisting of 79 mother holes and 48 deflections; Recent drilling has targeted the North Horst Block to get a better understanding of that area for the forthcoming PFS and potentially convert more of the Inferred resource to Indicated status; Results for the final drill holes will be incorporated into an updated Mineral Resource estimate, which is scheduled for completion in early third quarter calendar year 2024; Updated Mineral Resource estimate and maiden reserve will form part of the Prefeasibility Study (PFS) which is scheduled for completion early fourth quarter calendar year 2024; SRK Consulting has been commissioned to review ongoing PFS work to ensure the highest standards of due diligence and quality assurance; Environmental Impact Assessment (EIA) remains underway and is advancing on schedule, with submission slated for mid-2024; SPD remains well funded to complete the PFS from existing cash reserves, with a cash position of $8.34 million as at December 31, 2023. A summary of key results from the Scoping Study: Life of Mine (LOM) on the UG2 reef only is estimated at 36 years for an average annual production rate of 330 Koz PGM (6E basis) with cash costs firmly at the low end of the global cost curve; Development of a shallow underground mining operation targeting the ~2 Mtpa UG2 reef via decline systems, employing a hybrid mining method commonly utilized in neighboring mines; The mill feed is characterized by a head grade of 6.55g/t (7E). Processing will involve conventional flotation and spiral plant techniques to produce a marketable PGM concentrate with an anticipated recovery rate of approximately 85% for the major metals.

Additionally, a chrome concentrate will be produced for sale in export markets.