Southern Palladium provided the following update on the Phase 1 drilling programme at its Bengwenyama PGM project located on the Eastern Limb of the world class Bushveld Complex, South Africa. Phase 1 Drill Programme: The Phase 1a programme will comprise a wider spaced drilling grid (~750m grid), consisting of the initial 31 drillholes. The aim of the programme is to confirm and refine the existing 3D structural model for the shallower areas on the Eastern portion of the farm Eerstegeluk 327 KT.

This will be followed by the Phase 1b programme (32 drillholes), which will comprise infill drilling across a narrower drilling grid (~350m grid). Infill drilling will improve the confidence in the grade distribution and is aimed at converting the targeted shallow portion of Eerstegeluk 327 KT to a JORC 2012-compliant Indicated Mineral Resource. A successful resource upgrade will then form the basis of the forthcoming Mining Right application.

Drilling rigs: The drill rigs that have been deployed for the Phase 1 programme are equipped to drill the shallower areas where the depths are expected to range from approximately 60m to 550m, with an average depth of around 288m. The drill rigs in operation are an Atlas Copco CS-1500, a Delta 520 and a YWE D90R. The three drill rigs are capable of drilling 800m, 180m and 100m respectively, and give Southern Palladium the requisite capabilities to complete Phase 1 drilling as planned.

All three rigs in operation are small track mounted drill rigs, designed for increased manoeuvrability in confined spaces. The Atlas Copco is the first to start drilling and is drilling drillhole E019 which has an estimated end of hole depth of 320m. Drillhole E060 and E062 will follow with expected depths of around 60m and 130m respectively.

The geological team is on the property to start receiving the drill core, and the Company looks forward to updating the market with initial drill results as they are received. To initiate the Phase 1b programme, two additional drill rigs will be added to the site once the first three rigs are up and running.