Future Metals NL : Quarterly Activities Report & Appendix 5B

ASX Release

29 July 2021

ASX: FME

Directors

Greg Bandy; Chairman

Justin Tremain, Corporate Director

Allan Mulligan, Technical 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 step-out drilling program

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 Report

30 June 2021

The Board of Future Metals NL (ASX: FME) ('FME', 'Future Metals' or the 'Company') is pleased to provide its Quarterly Activities report for the quarter ended 30 June 2021 ('June Quarter').

June Quarter Highlights

• Recommenced trading on the ASX on 22 June 2021 under the ASX code 'FME', following re-compliance with Chapters 1 and 2 of the ASX Listing Rules
• Completed the acquisition of Great Northern Palladium Pty Ltd, the owner of 80% of the Panton PGM Project in Western Australia
• Exercised option to acquire the remaining 20% by paying $3.0 million to obtain 100% ownership of the Panton PGM Project
• Successfully raised $10.0 million to fund the option exercise and an aggressive resource step-outdrilling program
• Appointment of new Directors Mr Justin Tremain, Mr Allan Mulligan and Mr Rob Mosig along with Mr Mick McMulllen as an Advisor to the Board
• Highly regarded specialist PGM metallurgical consultant appointed to review historical flotation test work on the Panton PGM Project
• Review confirms metallurgical recoveries for the high-grade Panton PGM mineralisation with 81.4% 3PGM (platinum, palladium and gold) recovery to a low mass pull (2.5%) concentrate grading 271g/t 3PGM
• Commercially attractive PGM concentrate obtained from conventional crush, grind and rougher flotation with appropriate reagent regime
• Planning for the commencement of a 10,000m diamond core drilling program
• Drilling contract secured with a highly experienced and reputable drilling contract. Mobilisation expected early August 2021
• Mr Shane Hibbird, appointed as Exploration Manager
• Progressed AIM relisting process. Expect AIM relisting to occur early within Q3 2021
• Cash position of $9.6 million at 30 June 2021 (prior to payment of stamp duty

associated with the Panton PGM Project acquisition)

The June Quarter was a transformational period for Future Metals with the readmission of the Company's listing on the ASX following re-compliance with Chapters 1 and 2 of the ASX Listing Rules, the successful completion of a $10.0 million equity raising and the acquisition of 100% interest in the Panton PGM Project in Western Australia.

The Company announced on 17 June 2021 that it had completed the acquisition of the issued capital of Great Northern Palladium Pty Ltd ('GNP'), the holder of 80% of the issued capital of Panton Sill Pty Ltd ('Panton Sill') and GNP subsequently exercised its option to acquire the remaining 20% of the issued capital of Panton Sill with the payment of $3.0 million to Panoramic Resources Ltd ('Panoramic Resources').

Accordingly, on 17 June 2021 Panton Sill became a wholly owned subsidiary of Future Metals. Panton Sill is the registered holder of a 100% interest in the three granted mining leases that cover the Panton PGM Project.

The Company commenced work on the Panton PGM Project immediately. A contract was secured with experienced diamond drilling contractor Terra Drilling, with mobilisation to site expected to occur early August 2021. The Company has planned a 10,000m step-out drilling program designed to expand the existing JORC Mineral Resource estimate and to provide metallurgical samples for variability and optimisation test work.

Panton PGM Project

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

Figure One | Panton PGM Project Location

The Panton PGM Project is held under three granted Mining Leases (M80/103, M80/104 and M80/105) covering an area of approximately 23km2.

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Past exploration and drilling, predominantly undertaken by Platinum Australia Ltd ('Platinum Australia') in the early 2000s, resulted in the delineation of a Mineral Resource Estimate ('MRE') for the Panton deposit undertaken by Cube Consulting Pty Ltd ('Cube') in April 2003. In August 2015, Cube reviewed and re-reported its 2003 MRE model to report 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 Resource of 14.32Mt @ 5.20g/t for 2.4Moz PGM + Gold (refer Table One).

Table One | Panton JORC 2012 Mineral Resource Estimate

The focus of the JORC 2012 MRE was on two of the chromite layers known as the Top (101) and Middle (201) Reefs, domained into the A, B, C and D blocks (refer Figures Two and Three). 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.

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(refer to Figure Three).

Figure Two | Panton PGM Project Mineral Resource 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 Sill is a 20km2 layered mafic intrusive and shares geological features with the world class Cr-PGM-Ni mafic intrusive hosted deposits of the Bushveld Igneous Complex in South Africa and the Sudbury Complex in Canada.

The Panton Complex 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 (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 zone to the south which is now known as the D zone

Figure Three | Panton PGM Project Geology

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Independent Review of Metallurgical Test Work (Refer ASX announced dated 7 July 2021)

During June Quarter, the Company appointed Dr Evan Kirby of Metallurgical Management Services Pty Ltd ('MMS') to undertake a review of historical flotation test work conducted on the Panton ore by Platinum Australia Ltd and Panoramic Resources. MMS has extensive experience within the PGM industry and provided metallurgical services to several PGM producers in South Africa and the USA.

A series of test work campaigns was carried out in 2015 by ALS Laboratories on behalf of Panoramic Resources to investigate the potential to produce a high-grade PGM concentrate at a >80% 3PGM recovery.

MMS has concluded:

"The 2015 test work achieved a technical breakthrough and the results demonstrated that high performance flotation on the Panton ore was possible. It was shown that a combination of fine grinding, conditioning with sodium dithionate as a reducing agent, and use of nitrogen gas for flotation were essential to the process."

Significantly improved flotation results were achieved following the test work campaigns utilising a primary grind of P80 38 micron with sodium dithionite used as a reducing agent, and with a rapid 14 minutes of flotation time. Test 1279 returned the following flotation results:

PGM Concentrate

Head Grade (3PGE)	Concentrate Mass	Flotation Recovery	Concentrate Grade	Flotation Time
	Pull	(3PGE)	(3PGE)
8.22g/t	2.46%	81.4%	271.7g/t	14 min

Table Two | Test 1279 Flotation Results

September Quarter Planned Activities

No significant exploration has been conducted on the Panton PGM Project for almost 20 years.

The modelled chromite reefs have an unfolded strike length of approximately 3.5 kilometres. Historical drilling has been focused on the A, B, C and D chromite reefs and an approximate 8.5 kilometres of mapped PGM-bearing chromite reefs remain largely untested by drilling. There remains potential to significantly expand the existing resource.

The Company has secured a contract with experienced drilling contractor Terra Drilling for a 10,000m diamond drilling program. Rig mobilisation is expected to occur early August 2021. The drilling program is designed to test for extensions to the current JORC Mineral Resource and provide samples to undertake the planned metallurgical test work outlined above.

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