3 November 2022

Future Metals NL

Drilling Confirms Sulphide System at Panton

Highlights

·    Drilling at Panton has intersected broad zones (10-50m) of primary magmatic sulphides, demonstrating another mineralised system in addition to the existing chromite and silicate-hosted reef

·    Presence of primary magmatic sulphides in shallow drilling is a significant technical breakthrough confirming the potential for larger sulphide accumulations at depth which have not previously been tested

·    Gravity modelling has identified prospective basal contact and feeder position under chromite reefs, and a larger anomaly in the south, coincident with electromagnetic ("EM") conductors

·    Magnetic inversion modelling strongly supports the 'Keel Zone' hypothesis and has provided additional large targets coincident with known anomalous nickel, copper and sulphur

·    Government Exploration Incentive Scheme ("EIS") Grant of $220,000 awarded to co-fund deeper drilling

·    Ground-based EM survey expanded to target gravity anomalies with down hole EM planned to commence in November 2022

Future Metals NL ("Future Metals" or the "Company", ASX | AIM: FME), is pleased to provide an update on its ongoing drilling programme and geophysical modelling at its Panton project ("Panton" or "the Project").

Visual inspection of initial diamond drill holes, and geophysical modelling confirm, the potential for a large Ni-Cu-PGE system. Shallow drilling in the 'Lower Zone' of the Panton Intrusion has intersected magmatic disseminated sulphides. Magnetics and gravity inversion modelling have demonstrated multiple potential basal contact and feeder conduit sulphide targets encasing and underlying the existing 6.9Moz PdEq JORC Mineral Resource estimate.

The gravity and EM surveys have importantly highlighted the south of the Project as containing significant targets, with multiple coincident bedrock conductors identified from ground-based EM surveys. In particular, a large gravity anomaly has been identified to the south, starting near surface and extending down to approximately 2km in depth, with multiple shoot-like bedrock EM conductors identified in proximity to this anomaly.

The Company has been awarded a Government EIS Grant of up to $220,000 which will co-fund a deep drill hole into the keel position below the reef.

Figure 1 | Sulphide bearing core from hole PS408

Mr Jardee Kininmonth, Managing Director and Chief Executive Officer of Future Metals, commented:

"The validation of the exploration model validated through the recent drilling and geophysical modelling is an exciting development for the Company. The gravity inversions clearly show a significant keel position underlying the entire Panton intrusion and provide multiple basal contact and potential feeder targets to be drilled.

"Early drilling has been very encouraging, with the identification of magmatically emplaced disseminated sulphides for the first time at Panton. This mineralisation provides significant evidence there is a Ni-Cu-PGE sulphide system encasing and underlying the existing reef-style mineralisation that makes up the current 6.9Moz PdEq JORC MRE. The drilling of these sulphides are at the edge of the system where analogues would suggest mineralisation is at its weakest and it is considered likely that mineralisation will increase towards the keel position, which is yet to be tested.

"The Company has been successful in being awarded a Government EIS Grant to co-fund a deep drill hole into the centre of the northern part of the Panton intrusion. This hole will be drilled directly into the untested bottom of the basal contact and/or feeder position.

"The team looks forward to continuing to systematically test the significant number of high quality targets at Panton and keep the market updated on its progress."

Figure 2 | Sulphide bearing core from hole PS408

Disseminated Magmatic Sulphides in Shallow Drilling

The Company has completed three diamond drill holes for approximately 800m, intercepting disseminated sulphides in each hole. The logging notes and sulphide-bearing intervals are shown in the Table 1 below. The sulphides are predominantly fine-grained and as such have not been reported as discrete sulphide minerals unless otherwise noted, with the percentage estimates based on portable X-Ray Fluorescence ("XRF") analysis and visual estimation of the logging geologist.

Holes PS408 and PS409 were both drilled in the 'Lower Zone' of the Panton Intrusion, and both contain disseminated sulphides which locally show classic intercumulus textures indicative of a primary magmatic origin. This is a significant technical milestone for the Panton Project as it validates the hypothesis that the Panton Intrusion hosts magmatic sulphide mineralisation as well as reef-style mineralisation. It also confirms that these sulphides have not been produced solely by later hydrothermal events.

Hole PS408 was drilled 25m south west of historical reverse circulation ("RC") drill hole PS158 (significant intercepts shown below) which demonstrated a broad zone of sulphide-rich mineralisation. Hole PS408 has demonstrated the continuity of this sulphide-rich zone and provided core to orientate the mineralised structures. Hole PS409 was drilled a further ~150m south of holes PS158 and PS408, through the centre of the shallow magnetic anomaly which they are interpreted to be associated with, with a broad zone of visible sulphides being intercepted here too.

Hole PS158 is an historical hole from the 'Lower Zone' which contained the following sulphide-rich intercept (previously reported on 27 July 2022):

·    19m @ 0.51 g/t PGM3E1 & 0.49% Ni & 0.28% Cu & 0.022% Co from 88m including:

o  3m @ 0.81 g/t PGM3E1 & 1.16% Ni & 0.66% Cu & 0.053% Co from 88m

o  1m @ 0.67 g/t PGM3E1 & 0.46% Ni & 1.57% Cu & 0.022% Co from 95m

o  2m @ 1.09 g/t PGM3E1 & 1.01% Ni & 0.22% Cu & 0.044% Co 104m

These holes are located in a distal position relative to the hypothesised keel targets described below and the mineralisation intersected in them is consistent with a distal position to a larger sulphide accumulation elsewhere.

Initial indications in the field suggest a spatial association between this drill-intersected sulphide mineralisation and some of the smaller magnetic anomalies. This suggests that the larger, currently undrilled magnetic anomalies may relate to greater volumes of mineralisation, particularly as these are located in the more conceptually favourable keel position.

Hole PS407 was drilled into the hangingwall of the chromitite reef, targeting a zone of high-grade sulphide mineralisation previously drilled by a historic hole, PS053. Hole PS407 has provided new core to orientate the local structures, as well as enabling the use of down hole EM to identify any nearby sulphide-rich bodies. The sulphide-rich zones in holes PS053 and PS407 are in shear zones sitting above the large gravity anomaly underneath the reef. Sulphide mineralisation in these holes is interpreted to have been from a secondary event which has remobilised the mineralisation from a source below the shear zones.

Hole PS053 is an historical hole from which drilled into the chromitite reef, and had a sulphide-rich zone in the hanging wall to the reef. PS053 had the following sulphide-rich intercept (previously reported on 27 July 2022):

·    4m @ 2.18 g/t Au & 1.18% Ni & 1.05% Cu from 242.5m including:

·    1m @ 6.80 g/t Au & 0.62% Ni & 2.05% Cu from 242.5m

·    2m @ 0.92 g/t Au & 1.93% Ni & 0.76% Cu from 243.5m

Table 1 | Panton Summary Logs - Sulphide Mineralisation

The below logging notes from observations made in the field of the drill core are from visual observations only, with supporting evidence from pXRF analysis; assay results are pending. Sulphide mineralisation and metal contents are not directly correlated. Assays are required to determine metal content (ie. Pd, Pt, Au, Ni, Cu values).

Po = Pyrrhotite, Cpy = Chalcopyrite, Pn = Pentlandite, Py = Pyrite

1 PGM3E = Palladium (Pd) + Platinum (Pt) + Gold (Au)

Figure 3 | Gravity image with Geologic Structures

3D Geophysical Modelling and Targeting

Ground gravity surveying, on a nominal 50m x 50m grid, was completed at the end of September 2022, covering the entire Panton intrusion within the Panton mining licenses for an approximate area of 23km2.  The survey has provided a very high-quality gravity data set.

The purpose of the gravity survey was to, in conjunction with existing magnetic data, to build a 3D interpreted geophysical model of the Panton intrusion structure. Such a model can then be used to validate the geological model for the intrusion and importantly, help define additional drill targets.

The resultant geophysical model has confirmed the Company's hypothesis that the Panton Intrusion has a keel-like geometry (See Figure 4). This is important because the inferred keel position is the most favourable site for significant magmatic Ni-Cu-PGE sulphide-rich mineralisation but has not been previously drill tested. Both the gravity and magnetic models, which are based on completely independent data sets, were consistent with this keel-like architecture.

Significantly, several discrete volumes of anomalous gravity and magnetic response, located in conceptually favourable positions along the keel-axis, were also defined within the model. It is plausible that these volumes may represent concentrations of sulphide mineralisation as we expect such concentrations to have higher gravity and magnetic responses. Most of these anomalous volumes have not been previously drilled. Where historical drilling has been proximal to some of the magnetic volumes, the drilling results are anomalous with copper, nickel and sulphur assays, close to the basal contact and proximal to a large untested gravity anomaly below the chromite reefs (see Figures 4 and 5).

An unexpected, but potentially highly significant result from the geophysical model is the identification of a large, pipe-like anomalously dense volume, near the south-western end of the intrusion.  Although not present at the surface, this dense volume shows very strong continuity from near surface down to a measured depth of approximately 2km. It is also adjacent to the Panton Fault, a major regional structure. When viewed in context with the overall model for the Panton Intrusion, this body is either a major feeder zone to the Panton Intrusion or alternatively a later intrusive phase that may have used the same magmatic plumbing system (See Figure 6).

Significantly, the Company has identified two strong bedrock EM conductors which are broadly spatially coincident with this gravity high (See Figure 7). It is plausible that they may be related to (perhaps off-shoots from) this large new pipe-like dense volume, which might represent a later, more prospective phase of mafic-ultramafic intrusion that has been emplaced after the main Panton body. This southern density anomaly may therefore represent an important new target for the Panton Project.

Figure 4 | Reef Long Section showing magnetic and gravity anomalies along the Keel Zone encasing and underlying the chromite reef

Figure 5 | Reef Cross Section showing magnetic and gravity anomalies along the Keel Zone

Figure 6 | Panton Intrusion Long Section - Gravity Contours

EM Conductors

The Company has now completed Fixed Loop EM ("FLEM") surveys over approximately 11 target areas identified through the prior airborne Versatile Time Domain EM ("VTEM") survey, as well as in areas where historical drilling demonstrated anomalous base metal sulphides (ie. as opposed to the chromite-associated PGE mineralisation which has historically been characteristic of Panton), and the north-eastern portion of the basal contact where the Keel Zone is interpreted to be plunging to surface.

The FLEM surveys to date have been completed using a Fluxgate system which can detect large massive sulphide bodies down to depths of ~500m where host rock is very resistive, such as at Panton.

Two strong bedrock conductors have been identified to date, both in the south-west of the project area, broadly coincident with the dense, pipe-like volume discussed above (see Figure 7). The characteristics of these conductors are:

·    Target 5-1: strong bedrock conductor (1090 Siemens ("S)), 10m wide and steeply dipping and starting near surface

·    Target 5-3: strong bedrock conductor (6200 S), 20m wide and steeply dipping and starting near surface

The Company is now working with Southern Geoscience Consultants to have a Jessie SQUID system brought to site to test the large, deep gravity targets identified from the gravity survey.

As opposed to completing ground EM across the entire northern section of the Lower Zone, the Company is drilling multiple magnetic anomaly targets which coincide with anomalous copper, nickel and sulphur grades in historical drilling. These drill holes will subsequently have down hole EM run down them, which will be able to detect weaker conductors than surficial EM.

Figure 7 | Magnetic Inversion with Gravity Anomalies and FLEM Conductors

Forward Plan

Following the completion of the geophysical modelling and structural analysis there are a number of high quality targets to be drill tested. The Company is currently systematically testing the magnetic anomalies along the Lower Zone in the north, drilling a central hole through each anomaly to test for sulphide mineralisation, changes in geology, and to allow for follow up DHEM. Following the drill testing of these targets the drill rig will transition to the south and test the EM Conductors, and the shallower areas of the gravity anomalies. The Company is arranging for a larger drill rig to be at site for the 1st of December to drill a deep hole through the northern gravity anomaly, underneath the chromite reef and into the interpreted basal contact or feeder conduit position. This deeper drill hole will be co-funded under the Western Australia State Government's EIS Scheme, which will reimburse the Company for up to $220,000 of drilling costs, including mobilisation and demobilisation. The Company will begin DHEM surveys on each of its holes from mid-November 2022. These plans are subject to change based on ongoing results and weather conditions.

For further information, please contact:

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.

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.

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 autocatalysts (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 1 | Panton Diamond Drill Hole Collar Details

Appendix 2 | JORC Code (2012) Edition Table 1

Section 1 Sampling Techniques and Data

Section 2 Reporting of Exploration Results