Quarterly Activities Report & Appendix 5B

(please refer to announcement dated 28

ASX Release

29 October 2021

ASX: FME

Directors

Greg Bandy; Chairman

Justin Tremain, Non-Executive Corporate Director

Allan Mulligan, Non-Executive Technical Director

Elizabeth Henson, Independent Non- Executive Director

Aaron Bertolatti, Finance Director

Robert Mosig, Non-Exec Director

Investment Highlights

• 100% ownership of the Panton PGM Project in Western Australia
• Panton JORC Mineral Resource Estimate ('MRE' )
  o 14.32Mt @ 5.20g/t PGM & Gold, plus 0.27% Ni
  o 2.4Moz contained PGM's & Gold
  o Palladium dominant (~50% of contained ounces) with full suite of PGMs, gold and base metals
• Resource outcrops | Mineralisation from surface
• Granted Mining Leases
• Metallurgical test work of >80% PGM recoveries to ultra high grade PGM concentrate (crush, grind and flotation)
• 10,000m drilling program underway
• $8.2m cash (30 September 2021)

PGM 2E = Pt & Pd

PGM 6E = Pt, Pd, Rh. Ru, Os & Ir

Contact Details

Future Metals NL

Level 1, 35 Richardson Street

West Perth, WA, 6005

T: [phone]

E: [e-mail]

1. https://future-metals.com.au/@_FutureMetals

Quarterly Activities and Cashflow Report for the period ended 30 September 2021

Future Metals NL (ASX/AIM: FME) ("Future Metals" or the "Company") is

pleased to provide its Quarterly Activities and Cashflow report for the quarter ended 30 September 2021 (the "September Quarter").

Highlights

Panton PGM Project

• +10,000m diamond core drilling programme commenced in August 2021 at the Company's 100% owned Panton PGM Project ("Panton") which is progressing as planned, with approximately 4,550m of drilling completed across 21 holes to date.
• Samples submitted for assaying and results from the initial five holes

reported subsequent to the period end

October 2021):

• 1. 20.8m @ 5.34g/t PGM (2E+Au) from 89.3m (PS388)
  2. • including 10.1m @ 9.00g/t PGM (2E+Au) from 92.5m o 14.8m @ 3.88g/t PGM (2E+Au) from 38.4m (PS384)
     • including 7.8m @ 6.46g/t PGM (2E+Au) from 39.4m o 11m @ 3.94g/t PGM (2E+Au) from 100m (PS389)
     • including 4.35m @ 5.72g/t PGM (2E+Au) from 103m o 8m @ 1.98g/t PGM (2E+Au) from 25m (PS382)
     • including 2m @ 4.86g/t PGM (2E +Au) from 25.5m
• Initial results demonstrate considerably higher PGM grades and widths when compared to historical drilling and resource modelling.
• Assay results pending for several holes.
• Drilling is ongoing at Panton with the current focus to test shallow, bulk mineralisation within the prospective footwall zone outside of the current 2.4Moz JORC Mineral Resource Estimate ("MRE") (please refer to Table One).

Corporate

• Admission to trading on the AIM market of the London Stock Exchange plc occurred on 21 October 2021 under ticker code 'FME' ("Admission").
• Highly respected UK-based company director, Elizabeth Henson, appointed to the Board as an Independent Non-Executive Director on Admission
• Appointment of WH Ireland Limited ("WH Ireland") as UK Broker with effect from Admission.
• Cash position of approximately $8.2 million at 30 September 2021 (prior to

payment of stamp duty associated with the Panton acquisition and costs associated with the AIM Admission)

Panton PGM Project

Panton is located 60km north of Halls Creek and 1km off the Great Northern Highway, in the East Kimberley Region of Western Australia (please refer to Figure One). The Great Northern Highway provides direct access to the Port of Wyndham.

Figure One | Panton Location

Panton is held under three granted Mining Leases (M80/103, M80/104 and M80/105) covering an area of approximately 23km2. Past exploration and drilling, predominantly undertaken by Platinum Australia Ltd ("Platinum Australia") in the early 2000s, resulted in the delineation of the current MRE for the Panton deposit undertaken by Cube Consulting Pty Ltd ("Cube") in April 2003. In August 2015, Cube reviewed and re-reported the MRE in accordance with the Australasian Code for Reporting of Mineral Resources and Ore Reserves 2012 ("JORC 2012").

The Panton PGM Project has a JORC 2012 Mineral Resource Estimate of 14.32Mt @ 5.20g/t for 2.4Moz

PGM plus Gold (please refer to Table One).

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Table One | Panton JORC 2012 MRE

The MRE was based on previous drilling at Panton comprising historical diamond drilling (30 holes or 9,524 metres completed prior to 2001), reverse circulation (RC) (29 holes for 2,366 metres) and diamond drilling (166 holes for 34,410 metres) completed by Platinum Australia. The MRE also included surface trenching and underground channel samples (1,391 metres) conducted by Platinum Australia between 2001 and 2003 in an exploration decline which accessed the upper chromite reef.

Figure Two | Panton MRE Wireframes

The Panton mineralisation occurs within a layered, differentiated mafic-ultramafic intrusion referred to as the Panton intrusive. PGM mineralisation is hosted within two stratiform chromite reefs, the Top and Middle reefs, within the ultramafic sequence. The Panton MRE is domained into the A, B, C and D Blocks (please refer

to Figures Two and Three).

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Figure Three | Panton Geology Showing the A, B, C and D Blocks

The Panton intrusive is a 20km2 layered mafic intrusive and shares geological features with the Cr-PGM-Ni mafic intrusive hosted deposits of the Bushveld Igneous Complex in South Africa and the Sudbury Complex in Canada.

The Panton intrusion has been folded into a syncline such that the shallowest chromite reefs occur around the outer edges and become deeper towards the centre of the complex (please refer to Figure Three). The syncline axis is interpreted to plunge toward the southwest. In addition to folding, the Panton Complex has been subject to several stages of faulting, many of which offset the chromite reefs including a major north-south oriented fault that offsets the C block to the south which is now known as the D block (please refer to Figure Three).

September Quarter Activity

During the September Quarter, the Company commenced its +10,000m drilling program, with approximately 4,550m completed to date across 21 diamond core holes. The drilling program is planned to continue until late December 2021, weather conditions permitting. The program is designed to:

• provide samples for further metallurgical test work;
• test continuity and depth extensions to the MRE;
• test the potential for defining a much larger and shallower mineralised zone at lower cut-off grades;
• test strike extensions to the MRE; and
• test parallel zones of highly anomalous PGM soil geochemistry.

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(please refer to

Photos One and Two | Drilling Underway at Panton

Eight of these holes have been submitted to ALS Metallurgy Pty Ltd for assay and subsequent flotation test work and optimisation. The remaining samples from the drilling program are being submitted Bureau Veritas Australia Pty Ltd for assay. Whilst drilling has been undertaken across all of the domained zones within the Panton MRE to provide samples for metallurgical test work and to test for down dip extensions, the Company is currently drilling a series of shallow sections across the B Block and C Block

Figure Three).

The eight holes (PS382 - PS389) drilled for metallurgical test work were designed to recover sufficient mineralised chromitite reef and associated mineralised dunite for metallurgical test work. The metallurgical holes were drilled at three sites, one at each of the A, B and C Blocks of the northern part of the Panton intrusion (please refer to Figure Three). These eight drill holes were completed in the September Quarter and were successful in recovering suitable material and in the required volumes.

Results have now been received for five of these eight holes as shown in Table One below (refer to announcement

dated 28 October 2021 for further details):

Hole ID

From

To

Width

Pd

Pt

Au

PGM(2E)

Ni

+Au

PS382

25m

33m

8m

0.95g/t

0.93g/t

0.10g/t

1.98g/t

0.21%

including

25.5m

27.5m

2m

2.38g/t

2.27g/t

0.21g/t

4.86g/t

0.21%

PS384

38.4m

53.2m

14.8m

1.86g/t

1.68g/t

0.33g/t

3.88g/t

0.24%

Including

39.4m

47.2m

7.8m

3.17g/t

2.83g/t

0.46g/t

6.46g/t

0.27%

PS387

22m

27m

5m

1.14g/t

1.00g/t

0.18g/t

2.32g/t

0.21%

PS388

89.3m

110.1m

20.8m

2.42g/t

2.30g/t

0.62g/t

5.34g/t

0.40%

including

92.5m

102.6m

10.1m

4.09g/t

3.69g/t

1.22g/t

9.00g/t

0.53%

PS389

100m

111m

11m

1.99g/t

1.73g/t

0.22g/t

3.94g/t

0.29%

including

103m

107.35m

4.35m

3.03g/t

2.47g/t

0.22g/t

5.72g/t

0.32%

Table One | Initial Drilling Assay Results

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