Figure 1: Australian PGM Project Comparison. See Appendix 3 for source information.

Mr Jardee Kininmonth, Managing Director of Future Metals, commented:

"Following recent drilling and interpretation, an improved geological understanding of the Panton PGM deposit has now been incorporated into an upgraded independent MRE. This new MRE clearly highlights the impressive grade of the Reef at Panton. In addition, the High Grade Dunite at the contact of the reef has also been separately modelled for the purposes of more effective underground mine design. Both the Reef and dunite remain open at depth where drilling demonstrates a thickening in mineralisation and increasing grades, providing significant growth potential.

The upgraded MRE also includes the chromite grade for the first time following successful test work demonstrating the ability to produce a saleable chromite concentrate subsequent to PGM flotation. This high-grade chromite mineralisation greatly enhances the overall value of Panton, with chromite being a highly sought after product for use in the steel industry and its global supply highly concentrated in Africa. Structural supply constraints have caused a ~60% price increase over the past 12 months, taking chromite concentrate prices (South Africa, 40-42% CIF China) to ~US$290/t.

We look forward to finalising the Scoping Study and demonstrating our expectation that Panton can support a low capital, long life and profitable operation."

Figure 2: Breakdown of palladium equivalent and basket price per PGM_3E ounce. Assumptions used are those set out under Palladium Equivalent calculations below.

Panton Mineral Resource Estimate Overview

The MRE at Panton has been substantially upgraded with improvements in grade, JORC classification and the inclusion of a chromite estimate. The total MRE at Panton is now 92.9Mt @ 1.5g/t PGM_3E¹, 0.20% Ni, 3.1% Cr₂O₃ (2.0g/t PdEq²) for contained metal of 4.5Moz PGM_3E¹, 185kt Ni, 2.8Mt Cr₂O₃, (6.0Moz PdEq²). The MRE has been reported across three separate units; the Reef, the High-Grade Dunite and the Bulk Dunite.

Table One | Panton Total Mineral Resource Estimate

The Reef component has an MRE of 10.8Mt @ 5.6g/t PGM_3E¹, 0.27% Ni, 14.6% Cr₂O₃ (7.0g/t PdEq²) for contained metal of 2.0Moz PGM_3E¹, 29kt Ni, 1.6Mt Cr₂O₃ (2.4Moz PdEq²).

Table Two | Panton Mineral Resource Estimate - High Grade Reef

The High-Grade Dunite component has an MRE of 26.4Mt @ 1.3g/t PGM_3E¹, 0.21% Ni (1.8g/t PdEq²) for contained metal of 1.1Moz PGM_3E¹, 54kt Ni (1.5Moz PdEq²). The High-Grade Dunite is the mineralisation which sits parallel to the reef mineralisation at the footwall and hangingwall contacts.

Table Three | Panton Mineral Resource Estimate - High Grade Dunite (1.4g/t PdEq cut-off)

The combined Reef and High-Grade Dunite mineralisation has an MRE of 37.2Mt @ 2.6g/t PGM_3E¹, 0.22% Ni, 6.2% Cr₂O₃ (3.3g/t PdEq²) for contained metal of 3.1Moz PGM_3E¹, 83kt Ni, 2.2Mt Cr₂O₃ (3.9Moz PdEq²).

Table Four | Panton Mineral Resource Estimate - Reef & High-Grade Dunite

The Bulk Dunite has been reported at a 0.9g/t PdEq cut-off for an MRE of 55.7Mt @ 0.8g/t PGM_3E¹, 0.18% Ni (1.2g/t PdEq²) for contained metal of 1.4Moz PGM_3E¹, 102kt Ni (2.1Moz PdEq²). A detailed table for the Panton MRE is provided in Appendix One.

The primary change between the previously reported MRE (announced 21 June 2022) and the upgraded MRE set out in this announcement is enhanced geological modelling of the Reef mineralisation and the surrounding dunite into separate geological units. This detailed modelling was undertaken following breakthroughs in the Company's metallurgical test work programmes as announced on 13 February 2023. Ore sorting has been demonstrated to be highly effective at separating the Reef from surrounding dunite mineralisation and waste material, and flotation test work has demonstrated the performance improvements of feeding separated material to the concentrator. The new MRE enables the Company to more accurately model the volume and grade of different mineralisation types which can be mined and milled as part of the forthcoming Scoping Study, which is focussed on the Reef and High Grade Dunite mineralisation.

Another key change to the MRE is the inclusion of a chromite (Cr₂O₃) estimate. This follows numerous successful metallurgical test work programmes demonstrating that a saleable chromite concentrate can be produced from the tails of the PGM flotation where the Ni-PGM concentrate is produced. Figure 2 shows the composition of Panton's PdEq² grade and its basket price where chromite provides a material contribution.

Figure 3: Isometric view of high-grade Panton with drill traces and resource blocks coloured by Resource classification.

The proportion of mineralisation classified as Indicated has also increased, now constituting approximately 44% of the total MRE (and 41% of the Reef), compared to 6% in the previous MRE. This follows the inclusion of a number of recently completed drill holes which were not previously included, and improved metallurgical understanding and performance of the dunite mineralisation.

The Reef has been geologically constrained based on logging, PGM_3E and Cr grades. The Bulk Dunite is reported at a cut-off grade of 0.9g/t PdEq² and estimated down to a vertical depth of just ~150m (300mRL). The High-Grade Dunite has been reported below this depth, at a cut-off grade of 1.4g/t PdEq². This mineralisation occurs along the hangingwall and footwall contact with the reefs and has been reported down to the same depth as the Reef.

The new MRE was prepared independently by International Resource Solutions Pty Ltd and reported in accordance with the JORC Code (2012).

Exploration & Resource Upside

Panton's Reef and High-Grade Dunite are open at depth and shallowing as they plunge to the south-west. Drill hole PS414 (shown in Figure 4) is on the largest step-out and demonstrates increasing grade and a potential thickening in the deposit as it flattens in its plunge. There is considerable potential to grow the high-grade Reef and High-Grade Dunite MRE through further drilling targeting down plunge extensions.

Figure 4: Isometric view of high-grade PGM reef looking north with drill traces and resource blocks coloured by PdEq grade

There is also potential to discover localised zones of economic mineralisation (such as more reefs) near the existing Reef modelled in the MRE. Drill hole PS291 (shown in Figure 4) demonstrates sulphide-rich mineralisation with significantly less chromite than the majority of the reef intersections which inform the MRE. This style of mineralisation is analogous to the Bushveld system in South Africa, where the sulphide-rich Merensky reef sits higher up in the stratigraphy than the chromite-rich UG2 reef.

The majority of the drill holes included in the MRE have only been sampled close to the upper and lower reef contacts. There was limited sampling of mineralisation above or below the reefs by prior owners of Panton, with geological logging providing multiple indications of chromite stringer reefs which have not been sampled (a potential marker for PGM_3E mineralisation). The Company is currently completing a review of this historical logging to target previously drilled holes of interest for follow up re-logging and portable X-Ray Fluorescence ("pXRF") analysis, followed by sampling and assaying.

There is a significant amount of mineralised dunite within Panton which has not been included in the MRE. The area marked out as the Bulk Dunite Extension Zone on Figure 6 has been drilled on wide spaced lines across ~250m, along a NE-SW strike of ~2.5km with all drill holes returning highly anomalous PGM_3E, Ni and Cu mineralisation. Infill drilling and establishment of a metallurgical solution for this mineralisation could enable the Company to significantly grow the near surface Bulk Dunite MRE.

The Company has not included copper or cobalt in its PdEq calculations however continued optimisation of metallurgical performance may warrant their inclusion in subsequent MRE updates. Similarly, the Company's MRE does not include rhodium, iridium or osmium due to paucity of assay data however flotation test work has demonstrated the recovery of these valuable metals. The Company will examine whether resampling of existing drill core for these elements is warranted as it progresses the Project.

Summary of Mineral Resource Estimate and Reporting Criteria

Geology and mineralisation

The Panton Intrusion is a layered mafic-ultramafic intrusion situated within the structurally complex Central Zone of the Halls Creek Orogen ("HCO"), in the Kimberley region of Western Australia. The HCO consists of three north-north-easterly trending, highly deformed, medium to high-grade metamorphic zones comprising sedimentary, volcanic and intrusive rock suites. The HCO separates the Paleoproterozoic Kimberley Basin to the northwest, and the late Archaean Granites-Tanami Region to the southeast.

In outcrop the Panton intrusion is approximately 9km long, 3km wide and 1.7km thick, with a layered, differentiated ultramafic-mafic body.

The Panton intrusion comprises a basal ultramafic zone of chromite-rich olivine cumulate rocks; dunites, peridotites and transitional rocks, with an overlying mafic zone of similar thickness comprised of leucogabbro, gabbro, ferrogabbro, gabbronorites, norites and pyroxenites with an overlying anorthositic unit.

The Panton intrusion has undergone a number of structural deformation events. These various events have resulted in large scale folding, faulting and widespread shearing of the ultramafic/mafic sequence. The intrusion is asymmetrically folded into a tight syncline, which gently plunges to the southwest. The fold is closed at the north-eastern end and faulted off at the southwest end. Other dominant structural features include the numerous small scale and lesser large-scale faulting. The main orientation of faults strike north-south and nearly all have a sinistral movement sense; with displacements from cm scale to in the order of 1,000m for the large fault separating the C and D sub Blocks. Faulting orthogonal to this set is present but less pronounced.

The interpreted weathering profile for Panton is relatively simple, showing a resemblance to the topographic profile. There is a thin veneer of highly weathered material, consisting of predominantly red-brown soil, alluvium and colluvium that covers much of the project area. Its depth ranges from a few centimetres up to 10m but is largely confined to less than 1m.

There are three mineralised horizons, the Upper group chromitites (situated within the upper gabbroic sequence), the Middle group chromitites (situated in the upper portion of the ultramafic cumulate sequence) and the Lower group chromitites (situated toward the base of the ultramafic cumulate sequence). The primary PGM resource is contained within the upper portion of the ultramafic sequence, which has been divided into multiple domains including the upper and lower reefs and their associated footwall and hangingwall dunite mineralisation, as well as a middle dunite unit which sits between the reefs.

Drilling techniques and hole spacing

The drilling database for the Panton deposit includes data collected by reverse circulation ("RC") and diamond core drilling ("DD").  The drilling database has been compiled from drill holes completed since 1970 to present with a total of 79,872.5m of drilling completed in 450 drill holes.  Pancontinental Mining Ltd ("Pancontinental") and Minsarco Resources ("Minsarco") drill holes (PS001 to PS058) were drilled from 1970 to 1991.  The holes were HQ to NQ/NQ2 in size with daughter DD holes drilled BQ/BQ3 in size.  Platinum Australia Limited ("PLA") drill holes, PS059 to PS379 were drilled using RC and DD coring, either PQ3, HQ3 or NQ3 in size.  RC drilling employed a face sampling bit. Several drill holes had RC pre-collars drilled in advance of a diamond core tail.

All of Future Metals drill holes were diamond core holes, either PQ3, HQ3 or NQ3 in size. The top 50m (approximately) of the drill holes were often drilled in PQ3 until competent rock was encountered. The drill hole was then cased off and continued in HQ3 size core drilling. Where there was a need to case off the HQ3 core drilling, the hole continued in NQ3 size core drilling. PQ3 core diameter is 83.0mm, HQ3 core diameter is 61.1mm, NQ3 core diameter is 45.0mm, BQ core diameter is 36.5m. RC drilling bits have a diameter of 15.9cm.

The drilling is generally oriented orthogonal to the interpreted dip and strike of the known chromite reef mineralisation. However, several historical holes were drilled less than optimal to the mineralisation due to structural complexity not being understood at the time of historical drilling. Drill hole spacing varies between 25m to 100m between sections and ~5m to 25m along section.  The spacing is restrictive in areas due to the topographic relief of the Panton Sill.

Sampling and analysis methodology

Diamond drill core samples within the resource were predominately by HQ3 and NQ2/NQ3 core with historical diamond daughter holes by BQ/BQ3.  Samples range from 0.06m to 2m with the average sample interval being approximately 0.5m.  All RC samples are from a rig mounted riffle splitter in 1m or 0.5m intervals.   Individual recoveries of diamond core samples were quantitative when recorded.  Core recovery information was recorded for approximately 60% of the diamond drill holes with recoveries generally excellent.  There is no known relationship between recovery and grade identified. 

Analysis for Au, Pt and Pd was by fire assay with an ICPMS finish.  A mixed acid, or more recently a 4-acid digest with an ICPAES/ICPMS finish was completed for As, Co, Cr, Cu, Ni and S.  Various laboratories have been utilised including Bureau Veritas, Genalysis Intertek and Ultratrace all based in Perth, WA.

Quality assurance and quality control (QA-QC)

PLA and Future Metals submitted standards (Certified Reference Material and blanks) at an average rate of 1 in 30 samples.  Laboratory standards were recorded and included in the QA-QC assessment at 1:8. Laboratory repeat analysis was completed 1:20 samples submitted for assay.  Review of all data shows that the results for Au, Pd, Pt, Ni, Cu and Co are within acceptable levels for a Mineral Resource Estimation.

Estimation methodology

Geological and mineralisation constraints were generated on the basis of logged chromitite reef lithology and the subdivided stratigraphic units defined by the logged geology and mineralization. Hangingwall and footwall units to each reef have been defined and an additional dunite lithology mineralized halo. The constraints were subsequently used in geostatistics, variography, block model domain coding and grade interpolation. Ordinary kriging was used for estimating Pd, Pt, Au, Cu, Ni, Cr and Co.

The constraints were coded to the drillhole database and samples were composited in two ways. In the chromite reefs a single composite interval of varying length was generated which encompassed the downhole thickness of the entire interpreted interval. Outside the reefs, in the encompassing dunite material, 3m downhole length composites were generated. 

A parent block size of 50mE by 50mN by 20mRL was selected with sub-celling to 0.5mE by 0.5mN by 0.5mRL to account for the extreme thickness variability of the chromite reefs. Comparison checks between the block models and wireframes indicate an adequate volume resolution at the selected level of sub celling.

Variography was generated for the various A Block lodes to enable estimation via ordinary kriging. Variography for the A Block lodes generally demonstrated the best structure and were adopted for the other lodes. Hard boundaries were used for the estimation throughout.

Input composite counts for the estimates were variable and set at a minimum of between 4 and a maximum of 6 and this was dependent on domain sample numbers and geometry. A selective mining unit ("SMU") dimension of 10m E by 10m N by 5m RL was selected for the estimation.  Any blocks not estimated in the first estimation pass were estimated in a second pass with an expanded search neighbourhood and relaxed condition to allow the domains to be fully estimated. Extrapolation of the drillhole composite data is commonly approximately 200m to 300m beyond the edges of the drillhole data, however, may be considered appropriate given the overall style and occurrence of mineralisation in continuous chromite reef structures and the classification of such extended grade estimates as Inferred.

Density has been assigned to the block model via a combination of ordinary kriging and in the case of the dunites, direct assignment. Densities have been reduced within the dunites in the top 25m to reflect the partially weathered nature of this horizon. Prior to estimation, the reef intercepts without a directly measured density value were assigned a value by regression against Cr using the following formula:

·      density = 2.7 + (Cr% x 0.0508)

Mineral Resource classification and reporting

The MRE has been classified based on consideration of key criteria outlined in Sections 1, 2 and 3 of the JORC Code Table 1.  The Mineral Resource has been classified as either Indicated or Inferred.  The classification is based on the relative confidence in the mineralised domain continuity countered by variable drill spacing. The classification of Indicated is only considered in areas where the drill spacing is better than approximately 100m strike by 100m down dip. The classification of Indicated applies to the chromite reefs and surrounding stratigraphical units based on the more complete degree of sampling and better knowledge of the metallurgical parameters. Sampling in the dunite material was not completed for every drillhole and the sample spacing is therefore more irregular and incomplete. Metallurgical parameters are also so far unknown as testing is not yet complete. The Resource classification applies to the estimated block grade items of Pt, Pd, Au, Ni, Cr, Cu and Co only.

Reasonable Prospects for Eventual Economic Extraction ("RPEEE")

The MRE is considered to have RPEEE based on the following:

·      Stable tenement status with no known impediments to land access

·      Positive metallurgical characteristics indicated by test work to date

·      The deposit geometry and size lend amenability to the proposed underground and open pit mining methods.

Cut-off grades

A cut-off grade of 1.4g/t PdEq² has been applied to the high-grade dunite estimate. A cutoff grade of 0.9g/t PdEq² has been applied to the bulk dunite estimate. No differentiation between oxide and fresh rock has been made.  No cutoff grade has been applied to the chromitite reefs.

Palladium metal equivalents

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

No metallurgical test work has been undertaken on recovering a chromite concentrate from dunite and this has been excluded from equivalent calculations for the High Grade Dunite and Bulk Dunite. The Company has not included copper or cobalt in its PdEq calculations however continued optimisation of metallurgical performance may warrant their inclusion in subsequent MRE updates. Similarly, the Company's MRE does not include rhodium, iridium or osmium due to paucity of assay data however flotation test work has demonstrated the recovery of these valuable metals. The Company will examine whether resampling of existing drill core for these elements is warranted as it progresses the Project.

Metal recoveries used in the palladium equivalent (PdEq) calculations for each element are based on metallurgical test work undertaken to date at Panton. It should be noted that palladium, platinum and chromite 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 prices used are based on consensus forecasts of analysts estimates. The chromite concentrate price used is a conservative estimate based on historical pricing of South African chrome ore (40-42%, CIF China).

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

§  Reef: Palladium 80%, Platinum 80%, Gold 70%, Nickel 45% and Chromite 70%

§  Dunite: Palladium 75%, Platinum 75%, Gold 85% and Nickel 40%

Assumed metal prices used are also shown below:

§  Palladium US$1,500/oz, Platinum US$1,250/oz, Gold US$1,750/oz, Nickel US$20,000/t and US$175/t for chromite concentrate (40-42% Cr₂O₃)

Metal equivalents were calculated according to the follow formulae:

§  Reef: PdEq (Palladium Equivalent g/t) = Pd(g/t) + 0.833 x Pt(g/t) + 1.02083 x Au(g/t) + 2.33276 x Ni(%) + 0.07560 x Cr₂O₃ (%)

§  Dunite: PdEq (Palladium Equivalent g/t) = Pd(g/t) + 0.833 x Pt(g/t) + 1.322 x Au(g/t) + 2.2118 x Ni(%)

Metallurgical methods and parameters

As announced on 13 February 2023 'Mining and Processing Breakthrough at Panton' and in the announcement on 11 July 2023 'Step Change in PGM Recovery - Improved to 86%' the Company has successfully demonstrated the ability to produce a high-grade Ni-PGM concentrate with consistent PGM_3E flotation recovery of ~80% to concentrate grades over 250g/t PGM_3E. Recoveries for Ni have ranged from 37 - 45%. Recent test work by the Company has shown chromite recoveries of 70% to a concentrate grading between 40-42% Cr₂O₃ through flotation and magnetic separation on a composite of flotation tails. Flotation test work on dunite mineralisation has demonstrated recoveries in line with those stated in the Palladium metal equivalents section above.

The Company believes these results can be further optimised however they do support the development of a scoping level flow sheet. Further optimisation and variability test work will be undertaken as the Company progresses the Project past a scoping stage.

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

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 in relation to the Panton PGM Project is based on and fairly represents information and supporting documentation compiled by Ms. Barbara Duggan (MSc), a Competent Person, who is a Member of the Australian Institute of Geoscientists. Ms. Duggan is a full-time employee of the Company and is entitled to participate in the Future Metals Performance Rights Plan. Ms. Duggan has sufficient experience that is relevant to the activity being undertaken to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for the Reporting of Exploration Results. The Qualified Person has verified the data disclosed in this announcement, including sampling and analytical data underlying the information contained in this announcement. Ms. Duggan consents to the inclusion in this announcement of the matters based on this 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 previous exploration results for the Projects is extracted from the following announcements:

•       21 June 2022 | Independent Resource Estimate of 6.9Moz PdEq

•       27 July 2022 | High Grade Ni-Cu-PGE sulphides confirmed at Panton

•       13 February 2023 | Mining and Processing Breakthrough at Panton

•       21 March 2023 | High Grade PGM Mineralisation from 350m Step Out Drilling

•       4 May 2023 | Drilling to commence at Nickel Sulphide Targets

•       24 May 2023 | RC drilling commences at Panton Ni-Cu-PGM Targets

The above announcements are available to view on the Company's website at future-metals.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant original market announcements. The Company confirms that the information and context in which the Competent Person's findings are presented have not been materially modified from the original market announcements.

Glossary

 Appendix One | Panton Mineral Resource Estimate (JORC Code 2022)

¹ Refer page 12 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 Bulk Dunite mineralisation and 1.4g/t PdEq cut-off to the High-Grade Dunite mineralisation

Appendix Two | JORC Code (2012) Edition Table 1

Section 1 Sampling Techniques and Data

Section 2 Reporting of Exploration Results

Section 3 Estimation and Reporting of Mineral Resources

Appendix Three | Peer Benchmarking References