Future Metals NL : Quarterly Activities/Appendix 5B Cash Flow Report

ASX Announcement

29 July 2022

ASX | AIM: FME

Quarterly Activities and Cash Flow Report

for the period ended 30 June 2022

Future Metals NL ("Future Metals" or the "Company", ASX | AIM: FME), a platinum group metals ("PGM") focussed company,

is pleased to provide its Quarterly Activities and Cashflow report for the quarter ended 30 June 2022 (the "June Quarter").

High ights

Pa	ton PGM-Ni Project | Updated JORC Mineral Resource Estimate ("MRE")
▪	Updated independent JORC MRE confirmed the Panton PGM-Ni deposit to be of a global scale:
onlyo 129Mt @ 1.20g/t PGM3E, 0.19% Ni, and 154ppm Co (1.66g/t PdEq1)
use	o Containing 5.0Moz PGM3E, 239kt Ni, and 20kt Co (6.9Moz PdEq1)
▪	Represented a 108% increase in contained PGM3E whilst the contained Nickel resource has increased by 526% during the
	Company's 12 months of ownership of the Panton PGM-Ni Project
▪	Included the outcropping, contiguous high-grade reef, providing excellent development optionality:
		o 25Mt @ 3.57g/t PGM3E, 0.24% Ni, and 192ppm Co (3.86g/t PdEq1)
personal	o Containing 2.9Moz PGM3E, 60kt Ni, and 5kt Co (3.2Moz PdEq1); remodelled to be more suitable to potential
underground mining widths
▪	Second largest PGM deposit in Australia, only surpassed by Chalice Mining Ltd's Gonneville discovery
▪	Bulk dunite mineralisation, from surface and constrained to a vertical depth of approximately 150m
		o Drilling confirms bulk dunite mineralisation continues well beyond current MRE with drilling to 800m
		o Over 13,500oz PGM3E and 1,100t Ni per vertical metre in top 150 vertical metres
▪	Significant further growth potential with the Panton deposit remaining 'open' at depth and along strike, highlighted in
	the Company's Exploration Update referred to below
Exploration Update
▪	Multiple new exploration targets for sulphide-rich (Ni, Cu, Au, Co & PGMs) zones identified following a detailed
	prospectivity review of Panton's existing geological data, supported by a review by Ni-Cu-PGE expert Jon Hronsky of
	Western Mining Services
▪	The highly prospective Lower Zone is the lowest portion of the stratigraphy, closest to the feeder conduit of the intrusion
	where sulphides containing PGM, base metals and gold are most likely to accumulate during emplacement
▪	Trends in metal distribution and thickness variations in lithological units support the potential for a highly mineralised
	'Keel Zone' or 'Feeder Conduit' to have developed at depth. High-grade intercepts identified include:
For
	Lower Zone

• 19m @ 0.51 g/t PGM3E1 & 0.49% Ni & 0.28% Cu & 0.022% Co from 88m (PS158) 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 from 104m

Main Zone

• 4m @ 2.18 g/t Au & 1.18% Ni & 1.05% Cu from 242.5m (PS053) including: o 1m @ 6.80 g/t Au & 0.62% Ni & 2.05% Cu from 242.5m (PS053)
  o 2m @ 0.92 g/t Au & 1.93% Ni & 0.76% Cu from 243.5m (PS053)
• 1m @ 23.04 g/t Au & 0.20% Ni & 0.03% Cu from 35m (PS083)
• 1m @ 1.78 g/t Au & 0.19% Ni & 1.42% Cu from 5m (PS180)
• 2m @ 0.14 g/t PGM3E1 & 0.09% Ni & 0.73% Cu & 0.012% Co from 28m (PS269)
• 1m @ 0.72 g/t PGM3E1 & 0.16% Ni & 1.02% Cu & 0.023% Co from 20m (PS128)

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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
only	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

Mr Jardee Kininmonth, Managing Director & CEO of Future Metals, commented on the quarter:

"It has been a pivotal quarter for the Company with the release of our new Mineral Resource Estimate. This new MRE now useplac s 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 personalthe 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

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 ur already significant PGM-Ni resource, there are now multiple value drivers being progressed at Panton."

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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).
L wer Zone Exploration Model
onlyThe Company has identified three exploration concepts that it will focus on moving forward:
▪	the Keel Zone,
▪	the Southern Conductors and
▪	the Basal Contact Zone.
use

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

personalof 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" mi eralisation.

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

For

Figure One | Panton 3D Geology Model

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(please refer to the Company's ASX and AIM announcements of 21 June 2022).

onlyuse

personalFigure 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 PGM3E, 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 PGM3E, 239kt Ni, 48kt Cu and 20kt Co (6.9Moz PdEq1)

The MRE includes a high-grade reef of 25Mt @ 3.57g/t PGM3E, 0.24% Ni, 0.07% Cu and 192ppm Co (3.86g/t PdEq1) for contained metal of 2.9Moz PGM3E, 60kt Ni, 18kt Cu and 5kt Co (3.2Moz PdEq1).

For

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

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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.

onlyDevelopment 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.

usepersonalFigure Three | Plan View of Panton including MRE area For

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