Corporate

§  In anticipation of the Company rapidly advancing Panton, Mr Jardee Kininmonth, Chief Executive Officer was appointed to the Board as Managing Director in May 2022. Mr Tom O'Rourke was also appointed as Company Secretary and Chief Financial Officer

§  The Company completed a small placement of share options on the ASX during the June Quarter, which raised A$50,000 before expenses and facilitated the Company obtaining ASX quotation of the entire class of previously unlisted 10c options

§  Cash position of approximately A$3.3 million as at 30 June 2022

¹ Refer page 8 for palladium equivalent (PdEq) calculation

"It has been a pivotal quarter for the Company with the release of our new Mineral Resource Estimate. This new MRE now places Panton as the second largest PGM deposit in Australia, and importantly it contains a discrete high-grade portion which is the highest reported grade PGM deposit in Australia.

The MRE has provided the basis to initiate a scoping study to assess the optimal development pathway for Panton, balancing potential capital requirements, metallurgical progress, mining rates and the resulting economics. Metallurgical test work has progressed well with the Company confirming prior test work successes with high-grade composites.

Subsequent to the quarter end, the Company announced the results of an exploration prospectivity review which highlighted the significant potential for a large Ni-Cu-PGE system at Panton within the largely untested lower portion of the stratigraphy, which outcrops at surface and extends below the reef system. This represents a new exploration model for Panton, targeting a different style of mineralisation than our known reef-style resource.

We are very excited by what we might uncover from an exploration programme for Ni-Cu-PGE sulphides, given the reef-style mineralisation has always been the sole focus for prior owners of Panton. Combined with progressing the scoping study on our already significant PGM-Ni resource, there are now multiple value drivers being progressed at Panton."

June Quarter Activity

Drilling | Exploration Overview

Following release of the much anticipated MRE, the Company continued to complete its prospectivity review of Panton's existing data supported by Ni-Cu-PGE expert Mr Jon Hronsky of Western Mining Services.

This review identified multiple new exploration targets for sulphide-rich (Ni, Cu, Au, Co & PGM) zones. A summary of this work is detailed below which was released after the Quarter end (please refer to the Company's ASX & AIM announcements dated 27 July 2022 for further information).

Lower Zone Exploration Model

The Company has identified three exploration concepts that it will focus on moving forward:

§  the Keel Zone,

§  the Southern Conductors and

§  the Basal Contact Zone.

The Keel Zone coincides with the interpreted syncline axis in the Lower Zone. Such positions are commonly associated with more prospective positions in other mafic-ultramafic intrusions, because of proximity to a likely feeder position.

The Southern Conductors have been identified following the acquisition and analysis of airborne electromagnetic ("EM") data over the tenement, which indicates there are a number of strong late time features suggesting they are relatively deep (~200-300m) and are possibly caused by sulphide rich mineralisation. Anomalous soil samples correlate well with the position of the Southern Conductors.

The Basal Contact Zone is the relatively thick lowermost section of the ultramafic section of the Panton layered intrusion and encompasses what both Platinum Australia Limited and Future Metals have been calling the "Northern Anomaly" mineralisation.

Drilling to date has demonstrated the bulk mineralisation potential of these rocks and the review highlighted the potential for zones (or lenses) of sulphide rich mineralisation to exist within this extensive host unit.

http://www.rns-pdf.londonstockexchange.com/rns/1103U_1-2022-7-28.pdf

Figure One | Panton 3D Geology Model

http://www.rns-pdf.londonstockexchange.com/rns/1103U_1-2022-7-28.pdf

Figure Two | Late EM Conductors - Panton Plan View

Panton Mineral Resource Estimate | Overview

During the June Quarter, the Company received an updated resource estimation and announced that the project's independent JORC Code (2012) MRE had increased to 129Mt @ 1.20g/t PGM_3E, 0.19% Ni, 0.04% Cu and 154ppm Co (1.66g/t PdEq¹) at a cut-off grade of 0.90g/t PdEq for contained metal of 5.0Moz PGM_3E, 239kt Ni, 48kt Cu and 20kt Co (6.9Moz PdEq¹) (please refer to the Company's ASX and AIM announcements of 21 June 2022).

The MRE includes a high-grade reef of 25Mt @ 3.57g/t PGM_3E, 0.24% Ni, 0.07% Cu and 192ppm Co (3.86g/t PdEq¹) for contained metal of 2.9Moz PGM_3E, 60kt Ni, 18kt Cu and 5kt Co (3.2Moz PdEq¹).

http://www.rns-pdf.londonstockexchange.com/rns/1103U_1-2022-7-28.pdf

Table One | Panton Mineral Resource Estimate (JORC Code 2012)

Panton's previous MRE, as set out in the Company's prospectus dated 18 May 2021, related only to the high-grade chromite reefs and did not include any of the mineralised dunite material which envelopes the reefs. The mineralised dunite increases the width of the mineralisation significantly, allowing for the estimation of a bulk-tonnage MRE which supports assessment of potential open-pit mining scenarios, along with a high-grade operation.

Development Optionality | Forward Planning

The new MRE enables the Company to better assess the optimal development options available for the Panton PGM-Ni Project. The significant high-grade component of the MRE provides the Company with optionality on the potential future development path. This component of the MRE outcrops, is highly contiguous and has already been subject to extensive metallurgical flotation test work which has shown PGM recoveries to exceed 70% to a high-grade PGM concentrate grading >100g/t PGM.

http://www.rns-pdf.londonstockexchange.com/rns/1103U_1-2022-7-28.pdf

Figure Three | Plan View of Panton including MRE area

http://www.rns-pdf.londonstockexchange.com/rns/1103U_1-2022-7-28.pdf

Figure Four | Cross Section of Panton Block Model - A Block

http://www.rns-pdf.londonstockexchange.com/rns/1103U_1-2022-7-28.pdf

Figure Five | Cross Section of Panton Block Model - C Block

Metallurgical Update

The remodelling of the previous MRE to include shallow, bulk PGM and Ni mineralisation provides the scale to enable the Company to consider future processing of the lower grade PGM and Ni mineralisation.  The Company's test work is focussed on optimising recoveries and concentrate grades on the lower grade, bulk mineralisation.

Initial sighter test work on both low-grade composites (~2.3g/t PGM3E) and high-grade composites (~7.6g/t PGM3E), using a single stage rougher-scavenger test, yielded PGM3E recoveries of up to 68% and 71% respectively (with higher Pd recovery relative to the Pt recovery) with concentrate grades of up to 17g/t PGM3E for the low-grade composite and ~130g/t PGM3E for the high-grade composite. No cleaning stages were completed during these tests. Previous test work by Panoramic Resources on high-grade composites achieved recoveries of more than 80% and concentrate grades over 200g/t PGM3E. Recoveries for Ni ranged from 45 to 52% from a calculated head grade of 0.25% Ni across both the reef and dunite mineralisation.

These initial tests were exploratory in nature and the Company expects to achieve enhanced results as part of a more systematic programme which is currently underway.

Corporate

Board and Management Changes

In anticipation of the Company rapidly advancing the Panton PGM-Ni project following the completion of the updated MRE, a number of key appointments were made during the June Quarter.

Mr Jardee Kininmonth, Chief Executive Officer of Future Metals, was appointed to the Board as Managing Director with effect from 11 May 2022. Mr  Kininmonth had previously been appointed CEO on 31 January 2022.

In addition, the Company appointed Mr Tom O'Rourke, a qualified chartered accountant as Company Secretary and Chief Financial Officer, to ultimately replace long serving Finance Director and Company Secretary, Mr Aaron Bertolatti.

The skill sets of these appointees, when combined with those of the existing Board members and senior management team, place the Company in an excellent position to advance its wholly owned Panton PGM-Ni Project and generate future shareholder value.

Video Presentation

Following publication of the updated MRE findings, the Company released a short video summarising the updated resource which was presented by MD and CEO, Mr Jardee Kininmonth. This video is available on the Company's website: Media - Future Metals NL (future-metals.com.au).

Financial Commentary

The Quarterly Cashflow Report (Appendix 5B) for the period ending 30 June 2022 provides an overview of the Company's financial activities. The Quarterly Cashflow Report (Appendix 5B) is available at the following link: http://www.rns-pdf.londonstockexchange.com/rns/1103U_2-2022-7-28.pdf and on the Company's website.

The Company held A$3.3 million in cash held at the end of the June Quarter. The Company raised A$50k before expenses from a small placement of share options on the ASX during the June Quarter. This placement facilitated the Company obtaining ASX quotation of the previously unlisted 10c options.

Expenditure on exploration during the quarter amounted to approximately A$565k.

Payments for administration and corporate costs amounted to approximately A$478K. This included payments to related parties and their associates of A$123k, comprising Director fees and remuneration (including superannuation).

Palladium Equivalent (PdEq)

Based on metallurgical test work completed on Panton samples, all quoted elements included in the metal equivalent calculation (palladium, platinum, gold, nickel, copper and cobalt) have a reasonable potential of being ultimately recovered and sold. 

Metal recoveries used in the palladium equivalent (PdEq) calculations are the midpoint of the range of recoveries for each element based on metallurgical test work undertaken to date at Panton. It should be noted that palladium and platinum grades reported in this announcement are lower than the palladium and platinum grades of samples that were subject to metallurgical test work (grades of other elements are similar).

Metal recoveries used in the palladium equivalent calculations are shown below:

§  Palladium 80%, Platinum 80%, Gold 70%, Nickel 45%, Copper 67.5% and Cobalt 60%

Metal prices used are also shown below:

§  Palladium US$1,700/oz, Platinum US$1,300/oz, Gold US$1,700/oz, Nickel US$18,500/t, Copper US$9,000/t and Cobalt US$60,000/t

Metal equivalents were calculated according to the follow formula:

§  PdEq (Palladium Equivalent g/t) = Pd(g/t) + 0.76471 x Pt(g/t) + 0.875 x Au(g/t) +1.90394 x Ni(%) + 1.38936 x Cu(%) + 8.23 x Co(%)

Statement of Commitments

The June Quarter is covered by the Statement of Commitments¹ outlined in the Company's ASX Prospectus dated 18 May 2021.

A summary of expenditure to date is outlined in Table Two below.

Table Two | Statement of Commitments

¹ The above table is a statement of current intentions. Investors should note that the allocation of funds set out in the above table may change depending on a number of factors including the results of exploration, outcome of development activities, regulatory developments and market and general economic conditions. In light of this the Board reserves the right to alter the way the funds are actually applied

This announcement has been approved for release by the Board of Future Metals NL.

For further information, please contact:

Competent Person's Statement:

The information in this announcement that relates to Exploration Results is based on, and fairly represents, information compiled by Mr Shane Hibbird, who is a Member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Mr Hibbird is the Company's Exploration Manager and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a competent person as defined in the 2012 Edition of the "Australasian Code for reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore Reserves" (JORC Code). Mr Hibbird consents to the inclusion in this announcement of the matters based upon his information in the form and context in which it appears.

The information in this announcement that relates to Mineral Resources is based on, and fairly represents, information compiled by Mr Brian Wolfe, who is a Member of the Australian Institute of Geoscientists. Mr Wolfe an external consultant to the Company and is a full time employee of International Resource Solutions Pty Ltd, a specialist geoscience consultancy.  Mr Wolfe has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a competent person as defined in the 2012 Edition of the "Australasian Code for reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore Reserves" (JORC Code). Mr Wolfe consents to the inclusion in this announcement of the matters based upon his information in the form and context in which it appears.

The information in this announcement that relates to Metallurgical Results is based on, and fairly represents, information compiled by Mr Brian Talbot, a Competent Person who is a Member of the Australian Institute of Mining and Metallurgy. Mr Talbot is a full-time employee of R-Tek Group Pty Ltd (R-Tek) a specialist metallurgical consultancy. Mr Talbot has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a competent person as defined in the 2012 Edition of the "Australasian Code for reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore Reserves" (JORC Code). Mr Talbot consents to the inclusion in this announcement of the matters based upon his information in the form and context in which it appears.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as is forms part of United Kingdom domestic law pursuant to the European Union (Withdrawal) Act 2018, as amended.

Notes to Editors

About Platinum Group Metals (PGMs)

PGMs are a group of six precious metals being Platinum (Pt), palladium (Pd), iridium (Ir), osmium (Os), rhodium (Rh), and ruthenium (Ru). Exceptionally rare, they have similar physical and chemical properties and tend to occur, in varying proportions, together in the same geological deposit. The usefulness of PGMs is determined by their unique and specific shared chemical and physical properties.

PGMs have many desirable properties and as such have a wide variety of applications. Most notably, they are used as auto-catalysts (pollution control devices for ICE vehicles), but are also used in jewellery, electronics, hydrogen production / purification and in hydrogen fuel cells.  The unique properties of PGMs help convert harmful exhaust pollutant emissions to harmless compounds, improving air quality and thereby enhancing health and wellbeing.

Appendix One | Exploration and Mining Permits

Changes during the June Quarter

Farm-In / Farm Out Agreement changes during the June Quarter

Interests in Mining & Exploration Permits & Joint Ventures at 30 June 2022