CRITICAL RESOURCES LIMITED — Capital/Financing Update 2016

Sep 27, 2016

ASX Release 28 September 2016

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Sovereign Gold Company Limited ACN 145 184 667

Suite 7, 234 Churchill Avenue SUBIACO WA 6008 Tel: +61 8 6500 6872

Contact Rocco Tassone, Managing Director e: corporate@sovereigngold.com.au

Latest News www.sovereigngold.com.au

Directors / Officers Charles Thomas (Chairman) Rocco Tassone (MD) Patrick Glovac

Drilling Update – Crews Testing North Aubry Lithium Trend

• 500 metres of Diamond drilling program underway at the highly prospective Crescent Lake Lithium Project with assays dispatched regularly for analysis

• Four lithium-bearing pegmatites extensively channel sampled, assay results expected soon, previous grab samples having returned up to 1.84% Li2O at Dempster L40

• Current Lithium-bearing pegmatites traced over 2km of strike length with additional work expected to extend this strike

• Additional field crews have commence work along strike from Ardiden’s (ASX:ADV) adjoining claims, North Aubry and Pye pegmatite swarms, located close to SOC’s property line

ADV recently announced (ASX Released 21 September 2016) a 5km pegmatite exposure strike that extends towards SOC’s boundary

ASX: SOC

• SOC’s in-country operators have identified 10 lithium soil anomalies from historic work for immediate follow-up prospecting with some on the strike extension from the Ardiden’s claims

Sovereign Gold Company Limited (ASX: SOC) (Sovereign or the Company) is delighted to announce that Diamond Drilling at the highly prospective Crescent Lake project has commenced in the north-east portion of SOC claims that hosts four lithium-bearing pegmatites (Figures 1 and 2).

Qualifying Statements

The information in this Report that relates to Exploration Information is based on information compiled by Michael Leu who is a member of The Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists.

Mr Leu is a qualified geologist and is the Chief Geologist of Sovereign Gold Company Limited.

Mr Leu has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Resources. Mr Leu consents to the inclusion in this announcement of the Exploration Information in the form and context in which it appears.

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Figure 1: Lithium Oxide assay results from pegmatites Dempster: L61, L40 and L28.

ASX Release 28 September 2016 - Page 2

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These 4 pegmatite deposits have been extensively exposed and channel sampled over metre by metre lengths. Samples have been dispatched for assay and results are expected soon. Previous grab samples have returned up to 1.84% Li2O at Dempster L40. Sovereign’s exploration team have excavated, cleaned and exposed, under shallow cover, extensions to these 4 main pegmatites. Maps are being prepared showing results of the detailed trench mapping and sampling.

Diamond drill cores are being processed and planned to be dispatched regularly for assay on a 3-4 weeks turnaround, ensuring steady news flow. Drilling is currently on walk-up targets at lithium-bearing pegmatite Demspter L61 prospect. There are two pegmatites at L61, separated by about 13m of tonalite. The east dyke is the larger of the two. The planned holes are designed to cut both dykes.

Sovereign’s claims (Figures 1 and 2) directly abut the north-east boundary of Ardiden’s (ASX:ADV) claims adjacent to the zone that hosts the North Aubry and Pye lithium-bearing pegmatites. Ardiden has identified pegmatite exposures over a 5km strike length that trends towards Sovereign’s claim boundary. The strike trend indicates there is a high probability of similar significant Spodumene mineralisation extending north-east into Sovereign’s claims. The dominant lithium mineralisation trend in both Sovereign’s and Ardiden’s claims is north-east. An additional field crew will be mobilised to locate new pegmatites along this predicted trend extension.

The in-country geological team has identified 10 lithium in soil geochemical anomalies around KM61 (Kilometre 61, Figure 1) and field investigation and trenching has commenced.

Sovereign Gold Company Ltd (Sovereign Gold or Company) (ASX: SOC) has secured an exclusive option to acquire 100% of 28 unpatented mining claims (317 Claim Units, 5,072 hectares, 50.72km2) (Sovereign Claims) within the Crescent Lake Lithium Prospects in Ontario, Canada. SOC’s claims extend northeast 11.5kms from its contact with the north-western boundary of Ardiden Ltd.’s (ASX:ADV) Seymour Lake Lithium Project to Argonaut Resources Ltd.’s (ASX:ARE) Zigzag claims (Crescent Lake area) that contain lithium-bearing pegmatites.

Managing Director Rocco Tassone stated “We are excited that the diamond drilling program is underway in parallel with a substantial ramp-up expansion of exploration to the south-west to locate potential significant Spodumene mineralisation along a trend extending north-east from Ardiden’s adjoining claims, namely the North Aubry strike extension.”

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Figure 2: Lithium-bearing Pegmatites and claim map. The Sovereign Claims relative to the adjacent claims of Ardiden and Argonaut.

ASX Release 28 September 2016 - Page 3

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Drilling program underway for Chappais Lake, Dempster L61, Dempster L40 and Dempster L28. The Sovereign Claims are underexplored and the geological team will also explore along a highly prospective north-east trend of volcano-sedimentary host rocks that parallels an adjacent intrusive contact. They will especially focus on the area trending north-east from Ardiden’s Claims as this may result in discovery of new pegmatites.

For further information please contact:

Rocco Tassone, Managing Director Sovereign Gold Company Limited

Telephone: +61 8 6500 6872

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Figure 3: Regional Location, Crescent Lake is situated in the northeast portion of the Sovereign Claims above the four lithium-bearing pegmatite deposits.

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Dempster L61 (L6100W) deposit, channel sampling surface exposures after stripping and washing to expose the lithium-bearing pegmatite, walk-up drill target

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Dempster L61W (east dyke) deposit, channel samples of lithium-bearing pegmatite prior to dispatch for assay

ASX Release 28 September 2016 - Page 5

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Dempster L61 (L6100W) pegmatite. The large rectangular elongated minerals are Lithium-bearing Spodumenes.