21 March 2023

Future Metals NL

High Grade Mineralisation Intersected in 350m Step Out Hole

Highlights

§  Step out drilling at Panton returns high-grade PGM mineralisation 350m beyond the existing 6.9Moz PdEq JORC Mineral Resource Estimate ("MRE") (refer Appendix 3)

§  Intersections demonstrating significant PGM and sulphide mineralisation include (refer Figure Three):

o  22.4m @ 1.50 g/t PGM_3E¹, 0.21% Ni, 155ppm Co and 0.04% Cu from 786m, including

§ Intersection of the high-grade PGM upper reef of 2m @ 6.6 g/t PGM_3E¹, 0.29% Ni, 153ppm Co, 0.12% Cu from 786m (refer to Figure One)

o  36m @ 0.86 g/t PGM_3E¹, 0.23% Ni, 151ppm Co, 0.01% Cu from 850m

o  19m @ 0.15 g/t PGM_3E¹, 0.19% Ni, 158ppm Co, 0.11% Cu from 1,053m

§  Nickel sulphide exploration model further validated by latest drilling demonstrating two distinct mineralising phases at Panton:

o  First unit (Unit A) is a sulphur rich magma highly prospective for Ni-Cu sulphide mineralisation

o  Second unit (Unit B) hosts the known PGM mineralisation

§  Supports the prospectivity of the 1km long untested embayment feature ("BC1") with multiple coincident Ni-Cu sulphide anomalies

§  Further evaluation of additional prospective nickel sulphide targets underway, including the Panton West & North Prospects, and Copernicus North

§  Drilling planned for Q2 2023 to test the shallow BC1 target and other targets at the Panton West prospect

Future Metals NL ("Future Metals" or the "Company", ASX | AIM: FME), is pleased to announce results from its deep drill hole at its wholly owned Panton Project ("Panton" or "the Project").

The Company completed a 1,328.6m drill hole at Panton (PS414) in January 2023 which targeted the basal contact towards the bottom of the intrusion. The drill hole was co-funded by the Western Australia Government's Exploration Incentive Scheme ("EIS"). This was the first time that a hole has been drilled through the entire Panton intrusion and it has provided highly valuable information relating to the reef-style mineralisation, and the Company's nickel sulphide exploration model targeting high-grade accumulations outside of the known 6.9Moz PdEq MRE.

Drill hole PS414 has demonstrated strong continuity of the high-grade PGM reef, providing a step out intersection of up to 350m from the nearest drill hole included in the current MRE. This provides significant growth potential for an updated MRE the Company is completing on the high-grade reef, comprising 3Moz of the current 6.9Moz PdEq MRE.

Results from the deep drill hole provide further support that Panton may host a significant sulphide system. Critically, the deep drill hole shows that Panton comprises of at least two discrete phases of magma intrusions. The upper zone (Unit B) hosts the previously defined reef-style PGM mineralisation whereas the newly recognised lower zone (Unit A) hosts disseminated magmatic sulphide mineralisation. This supports the Company's interpretation (refer to the Company's announcement of 2 February 2023) that the presence of a large untested embayment feature on the NW margin of the complex is a high-priority target.  It also helps explain the local anomalous high-grade Ni-Cu sulphide intercepts in historical drilling and the recently drilled zones of broad disseminated magmatic sulphide mineralisation in the NW area. The Company's 2022/2023 drill programme has successfully redefined the Panton project as an intrusive complex with significant potential for a nickel sulphide discovery and enabled the Company to focus in on the most prospective areas for drilling a potentially large accumulation of sulphide mineralisation.

Drilling Results Discussion | High-Grade PGM Reef Step Out Intersection

The EIS co-funded drill hole, PS414, is an important drill hole which has served dual purposes for creating value at the Panton project. The hole was planned to drill into the basal contact at depth to inform the Company's nickel sulphide exploration model, and provide a significant step out hole in confirming the continuity of the high-grade PGM reef.

Hole PS414 intersected the PGM reef at 786m, demonstrating high grade mineralisation of 6.6 g/t PGM_3E over 2 metres. This intersection represents a large step out from the drill hole results incorporated into the current 3Moz MRE relating to the high-grade reef. The step out distance for hole PS414 from the closest hole to the NNW is 350m, and 200m to the closest hole in the NE. Hole PS414 has also shown that the reef is flattening at depth. Figure One shows where hole PS414 intersected the high-grade reef, relative to the closest other intersections included in the current MRE wireframe model.

The Company is currently working on an updated JORC MRE to estimate the mineralisation more appropriately in the high-grade reefs. This will enable improved mine and process design to underpin the scoping study on the high-grade PGM mineralisation at the Panton project. The Company expects that this updated MRE will be significantly enhanced by the results from hole PS414.

Figure One | Orthogonal view showing location of PS414 intersection of the high-grade PGM reef relative to the nearest holes in the NNW and NE

The Panton Complex

Drill hole PS414 has confirmed that the ultramafic section of the Panton Intrusive Complex comprises two separate intrusive phases, separated by an approximately 50m thick chilled margin (refer to Photo One). This indicates that there was a significant time period between emplacement of these two events. This chilled margin is interpreted to relate to Unit B and contains clasts of ultramafic rock from Unit A.

The lower ultramafic unit, Unit A (refer to Figure Three), is characterised by the presence of a 'cloud' of trace disseminated copper sulphide mineralisation.  Copper-dominated mineralisation is unlikely to form as primary magmatic mineralisation within an ultramafic host so therefore must represent dispersion from a parental sulphide body yet to be discovered. This "copper cloud" has been observed elsewhere in previous drilling within the Panton Sill, most notably in the NW section stratigraphically above the embayment target. Significantly, this is also the area where anomalous sulphide-rich Ni-Cu mineralisation has been previously intersected (eg holes PS157, PS158 and PS053).

The second unit, Unit B (refer to Figure Three), shows a systematic upward fractionation trend, with the interpreted hottest and most dynamic part of the intrusive section (ie the highest MgO and Ni interval) hosting PGM and chromitite mineralisation. This mineralisation is referred to as the "Main Zone" and is the geological unit that hosts the existing Panton PGM MRE. 

The identification of two distinct intrusions is significant for advancing the exploration of the Panton Sill.  The Panton Sill was historically considered to be one system and this drill hole has confirmed the dynamic nature of what now should be considered the Panton Complex. 

Figure Two | Plan view showing embayment target ('BC1') and significant sulphide intercepts

Figure Three | Cross Section for Drill Hole PS414

Magmatic Sulphide Potential of Unit A

Based on the results from hole PS414, the lower part of the Panton Complex is now recognised as a discrete intrusion (Unit A). This important geological breakthrough provides a framework to help understand the increasing indications of magmatic sulphide mineralisation arising from the Company's recent drilling and analysis.

There are two major lines of evidence for the magmatic sulphide potential of Unit A.

Firstly, there are local historical intersections of sulphide-rich Ni-Cu mineralisation, like those encountered in PS053 which returned 4m @ 1.18% Ni and 1.05% Cu (refer to the Company's announcement of 2 February 2023). Although the mineralised zone in hole PS053 was hosted by a late fault zone, it did contain fragments of undeformed magmatic sulphide-rich mineralisation.  Follow-up drilling did not successfully intersect the target due to a suboptimal drilling angle and the mineralisation likely being a local occurrence. However, a model has now been developed (refer to Figure Four) to explain this mineralisation and its potential relationship to a larger basal-contact associated target. Hole PS053 is interpreted to have intersected a fragment of nickel sulphide mineralisation that has been uplifted along a fault. Additionally, the historic drill holes PS157 and PS158 were drilled near the perimeter of the embayment feature and demonstrate some of the most anomalous Ni-Cu sulphide intercepts from drilling undertaken at Panton. These are historic RC holes so visual analysis is not possible.

The second line of evidence for the prospectivity of Unit A is the widespread presence of trace (to locally more significant) disseminated pyrrhotite-chalcopyrite mineralisation throughout the host ultramafic sequence (refer to Photos Two and Three).  This is referred to as the "Copper Cloud" and results in widespread intervals of copper anomalism throughout the Unit A ultramafic (refer to Figure Three). Textural observations indicate that this copper mineralisation is remobilised. This conclusion is also consistent with the basic geological principles for this type of deposit where primary copper-dominant magmatic mineralisation is not expected to form in an ultramafic host rock (ultramafic hosts usually host Ni-bearing sulphide mineralisation). The significance of this for exploration activity is that it implies that this copper mineralisation must be sourced from some larger primary source of sulphide mineralisation that has not yet been discovered.

The above observations have been integrated into a model to explain the sulphide mineralisation potential of Unit A at Panton. This is illustrated in Figure Four below.

The working concept is that a significant nickel sulphide body may have been emplaced at the base of the Panton Complex (ie the base of Unit A) in the embayment target area. Subsequent ongoing turbulent magma emplacement may have remobilised some of this mineralisation into scattered discrete "blobs" that solidified in the hanging wall of the main sulphide body. Some of these sulphide-rich blobs may have been subsequently elevated to a higher position in the intrusion by later faulting. This is the interpreted context of the sulphide intersection in hole PS053, which is located a significant distance above the interpreted prospective basal contact.

Interestingly, the best PGM mineralisation (highest grade and thickest) in the Main Zone (hosted by the overlying Unit B) occurs immediately overlying (stratigraphically) the embayment position. This can be explained in the context of the Company's model if the same feeder conduit was responsible for emplacement of both Unit A and Unit B.

Figure Four | Nickel Sulphide Emplacement Schematic

1: Emplacement of a hybrid melt (mixture of wallrock sulphide droplets to blebs, plus primary picritic magma) into the base of the sill

2: Accumulation and pooling of Ni-Cu rich sulphide magma in embayments near the feeder; remobilisation of sulphides from the top of this pool by subsequent pulses of turbulent new magma, resulting in sulphide-rich blobs within the overlying dunite formed by the new magma

3: Lower zone, including sulphide blobs overlying the basal sulphide pool, freezes; major new magma pulse into sill (using same feeder position) produces PGM-rich Chromitite layers which are thickest and best mineralised above the sulphide-rich embayment

4: Folding of the sill resulting in the embayment area appearing as a thickened zone on the contact

5: Late faulting locally remobilised sulphide blobs

Photo One | Upper contact of the chilled margin of Unit A with the dunite of Unit B showing the fragments

Photo Two | Pyrrhotite with Chalcopyrite blebs in Unit A at 1,095.3m in hole PS414

Photo Three | NQ2 core, 1,201.6m in hole PS414, pyrrhotite and chalcopyrite vein

Forward Plan | Further Exploration

The Company continues to build upon its nickel sulphide exploration model and work towards a discovery of a large, high-grade accumulation of Ni-Cu sulphides. The 2022/2023 drill programme has enabled the Company to validate the presence of a primary magmatic sulphide system within Panton, reduce the search space for follow-up exploration and identify a discrete untested target in BC1, the embayment feature.

Evaluations and preparatory activities are being undertaken across Panton, BC1 and the Panton West prospect for a follow up drill programme currently planned for Q2 2023. The drill programme will likely involve shallow Reverse Circulation ("RC") drilling as a first pass. The Company will provide further details on these targets in Q2 2023.

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 by virtue of the Market Abuse (Amendment) (EU Exit) Regulations 2019.

Competent Person's Statement

The information in this announcement that relates to Exploration Results is based on, and fairly represents, information compiled by Ms Barbara Duggan, who is a Member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Ms Duggan is the Company's Principal Geologist and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity she 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). Ms Duggan consents to the inclusion in this announcement of the matters based upon her 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.

Notes to Editors:

About the Panton PGM-Ni Project

The 100% owned Panton PGM-Ni Project is located 60kms north of the town of Halls Creek in the eastern Kimberly region of Western Australia, a tier one mining jurisdiction. The project is located on three granted mining licences and situated just 1km off the Great North Highway which accesses the Port of Wyndham (refer to Figure Five).

The Project hosts an independent JORC Code (2012) MRE of 129Mt @ 1.20g/t PGM_3E¹, 0.19% Ni, 0.04% Cu and 154ppm Co (1.66g/t PdEq²) at a cut-off grade of 0.90g/t PdEq² for contained metal of 5.0Moz PGM_3E¹, 239kt Ni, 48kt Cu and 20kt Co (6.9Moz PdEq²). The MRE includes a high-grade reef of 25Mt @ 3.57g/t PGM_3E¹, 0.24% Ni, 0.07% Cu and 192ppm Co (3.86g/t PdEq²) for contained metal of 2.9Moz PGM_3E¹, 60kt Ni, 18kt Cu and 5kt Co (3.2Moz PdEq²).

PGM-Ni mineralisation occurs within a layered, differentiated mafic-ultramafic intrusion referred to as the Panton intrusive which is a 12km long and 3km wide, south-west plunging synclinal intrusion. PGM mineralisation is hosted within a series of stratiform chromite reefs as well as a surrounding zone of mineralised dunite within the ultramafic package.

Figure Five | Panton PGM Project Location

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 1 | Panton Diamond Drill Hole Collar Details

Appendix 2 | PS414 Drilling Assay Results

¹ 3E= Palladium (Pd) + Platinum (Pt) + Gold (Au)

Appendix 3 | Panton Mineral Resource Estimate (JORC Code 2012)²

^Notes

¹ Please refer to the paragraph below for palladium equivalent (PdEq) calculation

² No cut-off grade has been applied to reef mineralisation and a cut-off of 0.9g/t PdEq has been applied to the dunite mineralisation

¹ PGM_3E = Palladium (Pd) + Platinum (Pt) + Gold (Au)

² Metal equivalents were calculated according to the follow formulae:

§   Reef: 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(%)

§   Dunite: PdEq (Palladium Equivalent g/t) = Pd(g/t) + 0.76471 x Pt(g/t) + 0.933 x Au(g/t) +2.03087 x Ni(%) + 1.481990 x Cu(%) + 8.80 x Co(%)

Appendix 4 | JORC Code (2012) Edition Table 1

Section 1 Sampling Techniques and Data

Section 2 Reporting of Exploration Results