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.

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.