SOUTHERN PALLADIUM LIMITED – Positive Results of Geophysical Survey and Appointment of Drilling Contractor – SENS

Positive geophysical survey results and drilling contractor appointed

Southern Palladium Limited
Incorporated into the Commonwealth of Australia
Australian company number 646 391 899
ASX share code: SPD
JSE share code: SDL
ISIN AU0000220808
(“Southern Palladium” or “the Company”)



• Total Magnetic Field Gradient (TMF) and Helicopter High Definition Gamma Ray Spectrometry
survey carried out at the Bengwenyama project
• TMF data confirms the previous structural model of the UG2 and Merensky reefs, which form the
framework of the Inferred Mineral Resource 18.8Moz (3PGE+Gold)
• Imagery also confirms the absence of anomalous features (loss of reef) in the target area for Phase 1 drilling
• Confirmation builds confidence in the existing geological structure of the reef on which the phase
1 drilling program is planned
• A contract has been signed with Geomech Africa Proprietary Limited (Geomech) for phase 1 drilling
programme, which should start at the beginning of July

Southern Palladium (ASX:SPD, JSE:SDL, ‘Southern Palladium’ or ‘the Company’) is pleased to announce
results of a helicopter-borne high-definition TMF gradient and gamma-ray spectrometry survey at
Bengwenyama Platinum Group Metals (PGM) Project.

The TMF survey was carried out with the following dual objective:

1. Confirmation of the existing structural model, which was developed based on historical geophysical data
information available in the public domain, and;
2. To investigate evidence of anomalous magnetic characteristics which may indicate any loss of geologic soil
geological features or other discontinuities.

The Company confirms that the TMF data supports and enhances previous structural modeling, which formed
the existing JORC 2012 compliant Inferred Mineral Resource framework of 18.8 Moz (3PGE + Gold),
located in UG2 and Merensky reefs.

Additionally, imaging shows that there are almost no anomalous magnetic features that would indicate a large
areas of potential soil loss geological features in the eastern part of Eerstegeluk, where phase 1
drilling is planned. The anomalies observed on the portion of phase 2 were interpreted as being shallow and
above the reef in the extreme southwest corner and shouldn’t impact our target ounces.

Commenting on Southern Palladium’s dual listing and exploration plans, Managing Director Johan
Odendaal said:

“We are pleased to present the results of a detailed study of the total magnetic field (TMF) at Bengwenyama. The
central objective of the study – to confirm the structural integrity of the inferred mineral resource and to investigate
all potential ground loss disturbances – have both been achieved. We can now start drilling phase 1
program with the appropriate degree of confidence around the mineralized structure of the drill site. With
the appointment of Geomech as a drilling contractor, the mobilization in collaboration with our host community is
underway and we expect to begin drilling operations by July 2022.”

Results of the geophysical survey

A schematic of the current three-dimensional (3D) structural model is shown in Figure 1 which shows the
major structural features interpreted as dykes or faults. These structural features were furthermore
interpreted as projecting PGM reef horizons to shallower depths in the Project area, which would be
material benefit for the economy of the project.

Figure 1: Structural features attributed to mineralization at shallow depth

These structures are clearly visible in total magnetic field (TMF) imaging (shown in Figure 2) which are
almost identical to the historical information that was used for the geological model.

Figure 2 also confirms that the eastern section of the Eerstegeluk, which includes the target reserve of 2 Moz
from the drilling of phase 1, is almost completely free of disturbances of iron-rich ultramafic pegmatites (IRUP) or
magnetic features indicating potential ground loss features.

Figure 2: Imagery shows the presence of magnetic bodies throughout the prospecting area

This confirmation boosted confidence ahead of the start of the Phase 1 drilling program
early July 2022.

Based on the results of the new survey, there will be limited changes to the planned positions of the collars with
compliance with the geological model. A few small shifts may be necessary to move the position of the collar away from
interpreted faults and dykes, but the existing plan for a 350m x 350m drill grid will remain intact.

An overview of the drill program is shown in Figure 3 on the following page.

Figure 3: Map of a 2-phase drilling program targeting a shallow 2 Moz ore reserve and inferred minerals
Resource for the rest of the project area

The geophysical survey included a total of 1,425 line kilometers traveled over two farms; Eerstegeluk 322 KT
and Nooitverwacht 324 KT.

The survey was carried out at a height between 25m and 80m due to topography and residential areas, with
an average height of about 35m to 40m and a spacing of 50m.

The study flight was carried out by the South African company New Resolution Geophysics (Pty) Ltd, using a turbine
AS350B series helicopter.

EXIGE (Pty) Ltd (based in South Africa and Australia) managed the survey, as well as QA/QC and
interpretation of processed survey data.

Appointed drilling contractor

A contract with drilling services group Geomech Africa Proprietary Limited, has been signed, and Southern
Palladium is now in an advanced stage of logistics planning.

Phase 1 drilling (63 diamond drill holes) is scheduled to begin in early July 2022.

Webinar for investors

As announced at the ASX on June 10, 2022, Southern Palladium will also host a 2-hour investor webinar.
PM AEST on Wednesday, June 15, 2022.

For anyone wishing to attend the webinar, please register using the link below.

Register via:

This announcement has been approved for publication by the board of directors of Southern Palladium Limited.

About Southern Palladium:

Southern Palladium Limited (ASX:SPD, JSE:SDL) is a dual-listed platinum group metals (PGM) company
the development of the advanced Bengwenyama PGM project, particularly rich in palladium/rhodium, in the South
Africa. The project is located on the eastern branch of the Bushveld complex, which contains more than 70%
world’s known resources of platinum group metals (PGM). With its 70% stake in the project, the
The company will focus on delivering an established ore reserve of 2Moz to Bengwenyama by
metallurgical studies, geophysical mapping and a two-phase diamond drilling program.

A major development opportunity in the global PGM market, previous exploration at Bengwenyama has
has already delivered a 2012 JORC compliant Inferred Mineral Resource of 18.8 Moz in two reefs – UG2
and Merensky. Additionally, an assessment by mining industry consultants CSA Global assessed the total
Bengwenyama resource potential between 33.9Moz and 52.4Moz. The Company is managed by a
experienced on-the-ground management team, including some of South Africa’s most prominent mining companies
industry executives.

For more information, please contact:

Johan Odendael
General director
Southern Palladium
Telephone: +27 82 557 6088
Email: [email protected]

June 15, 2022

JSE Sponsor
Merchantec Capital

Media and Investor Relations inquiries: Sam Jacobs, Six Degrees Investor Relations: +61 423 755 909
Follow @SouthernPalladium on Twitter
Follow Southern Palladium on LinkedIn

Date: 2022-06-15 07:57:00
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