Future Metals NL : Half Yearly Report and Accounts - 31 December 2021

Future Metals NL

Interim Financial Report

31 December 2021

ABN 99 124 734 961 future-metals.com.au

CONTENTS	PAGE
Corporate Directory	1
Directors' Report	2
Auditor's Independence Declaration	9
Consolidated Statement of Profit or Loss and Other Comprehensive Income	10
Consolidated Statement of Financial Position	11
Consolidated Statement of Changes in Equity	12
Consolidated Statement of Cash Flows	13
Condensed Notes to the Consolidated Financial Statements	14
Directors' Declaration	22
Auditor's Independent Review Report	23
About PGM's and Schedule of Tenements	25
Important Information and Disclaimers	26

CORPORATE DIRECTORY

Directors and Officers	Auditors
Justin Tremain - Non-Executive Chairman	BDO Audit (WA) Pty Ltd
Aaron Bertolatti - Finance Director	Level 9, Mia Yellagonga Tower 2,
Allan Mulligan - Non-Executive Director	5 Spring Street
Robert Mosig - Independent Non-Executive Director	PERTH WA 6000
Elizabeth Henson - Independent Non-Executive Director
Jardee Kininmonth - Chief Executive Officer	Nominated and Financial Adviser
Company Secretary	Strand Hanson Limited
26 Mount Row, London, W1K 3SQ, UK
Aaron Bertolatti
Registered Office	Stock Exchanges
Australian Securities Exchange (ASX)
First Floor, 35 Richardson Street	(Home Exchange: Perth, Western Australia)
West Perth WA 6005	ASX Code: FME
Share Registry	The AIM market of the London Stock Exchange (AIM)
Computershare Investor Services Pty Ltd
AIM Code: FME
Level 11, 172 St Georges Terrace
Perth WA 6000	Website
	www.future-metals.com.au

DIRECTORS' REPORT

The Directors present their report for Future Metals NL ("Future Metals" or the "Company") and its subsidiaries (together the "Group") for the half-year ended 31 December 2021.

DIRECTORS

The persons who were directors of Future Metals during the half-year and up to the date of this report (unless stated otherwise) are:

• Justin Tremain - Non-Executive Chairman (appointed 31 January 2022), Non-Executive Director (appointed 11 June 2021)
• Aaron Bertolatti - Finance Director (appointed 4 June 2018)
• Allan Mulligan - Non-Executive Director (appointed 11 June 2021)
• Robert Mosig - Independent Non-Executive Director (appointed 11 June 2021)
• Elizabeth Henson - Independent Non-Executive Director (appointed 21 October 2021)
• Greg Bandy - Executive Chairman (appointed 1 August 2010, resigned 31 January 2022)

NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES

The principal activities of the Company during the period were to:

• Carry out exploration on the Company's 100% owned Panton PGM project in the Kimberley region of Western Australia ("Panton Project");
• Evaluate results received from drilling carried out at the Panton Project during the period;
• Progress metallurgical test work programs on drill hole samples from the Panton Project; and
• Carry out detailed review and logging of all information associated with the Panton Project from prior owners.

REVIEW OF OPERATIONS

Future Metals is an active Australian Platinum Group Metals ("PGM") focussed explorer pursuing the development of its 100% owned Panton project in the Kimberley region of Western Australia (the "Panton Project"). The Panton Project has had significant exploration and metallurgical work completed on it since 2000. It is host to a JORC Mineral Resource Estimate ("MRE") of 14.32Mt @ 5.20g/t for 2.4Moz PGM and Gold (refer to Table One). The Company's focus is to undertake sufficient drilling to allow for the remodeling of the pre-existing MRE to establish a shallow, bulk PGM and nickel resource estimate, continuing near surface and at depth, other exploration activities and progressing the understanding of metallurgy in the context of pursuing a bulk mineralization development strategy. These activities will underpin studies to determine the development path for the Panton Project.

Panton PGM Project

The 100% owned Panton PGM project is located 60 kilometres 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 1 kilometre off the Great North Highway which accesses the Port of Wyndham (refer to Figure Three).

The Panton PGM Project has a JORC Mineral Resource estimate of 14.32Mt @ 4.89g/t PGM, 0.31g/t Au and 0.27% Ni.

The Panton mineralisation occurs within a layered, differentiated mafic-ultramafic intrusion referred to as the Panton intrusive which is a 10km long and 3km wide, south-west plunging synclinal intrusion. PGM mineralisation is hosted within two stratiform chromite reefs, the Upper and Middle reefs, within the ultramafic sequence.

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DIRECTORS' REPORT

Figure One | Panton PGM Project Location

The Company completed a 6,000m drilling programme at the Panton Project during the half year to test the lateral extent of PGM and nickel mineralisation at the Panton deposit. This followed an extensive review of the historical drill hole assay data and determined that significant mineralisation potential existed outside the +2 g/t PGE grade envelope used to model the existing MRE. As part of its review, the Company recognised that historically there was often no sampling of drill core outside the high-grade chromitite reef and/or drilling did not extend beyond the upper and middle chromitite reefs through to the lower chromitite reefs. Following these findings, the Company modified its initial drilling programme to test the lateral extent of the near-surface mineralisation at Panton. The Company completed 19 new exploration holes, and recovered diamond drill core from 33 holes drilled historically by Platinum Australia Limited, for a total of 52 holes cut and sampled for assaying, to support an updated MRE. Additionally, the Company completed eight metallurgical holes to provide samples to be used for flotation and physical separation test work programmes. Results obtained to date from the historical review, metallurgical drilling and exploration drilling are set out below.

Historical drill results reported at 0.5g/t PGM3E cut-off grade (maximum 4m dilution) include:

1. 74m @ 1.32g/t PGM(3E) & 0.20% Ni (1.71g/t PdEq) from 111m (PS264)

1. 45.5m @ 1.38g/t PGM(3E) & 0.22% Ni (1.81g/t PdEq) from 80.5m (PS177)

1. 45.5m @ 1.07g/t PGM(3E) & 0.17% Ni (1.46g/t PdEq) from 51m (PS080)

1. 33m @ 3.11g/t PGM(3E) & 0.23% Ni (3.36g/t PdEq) from 69m (PS050-D1)

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DIRECTORS' REPORT

1. 43.5m @ 1.22g/t PGM(3E) & 0.21% Ni (1.60g/t PdEq) from115.4m (PS136)

1. 40.02m @ 1.42g/t PGM(3E) & 0.20% Ni (1.82g/t PdEq) from 48m (PS075)

1. 28.5m @ 2.62g/t PGM(3E) & 0.21% Ni (2.93g/t PdEq) from 21m (PS069)

1. 46m @ 1.15g/t PGM(3E) & 0.16% Ni (1.49g/t PdEq) from 18.5m (PS175)

1. 26.1m @ 2.56g/t PGM(3E) & 0.21% Ni (2.87g/t PdEq) from 14.5m (PS067)

1. 41.5m @ 1.23g/t PGM(3E) & 0.18% Ni (1.61g/t PdEq) from 29.5m (PS209)

1. 35.85m @ 1.55g/t PGM(3E) & 0.22% Ni (1.81g/t PdEq) from 138.5m (PS028)

1. 35m @ 1.21g/t PGM(3E) & 0.16% Ni (1.50g/t PdEq) from 22m (PS109)

1. 26m @ 2.13g/t PGM(3E) & 0.21% Ni (2.49g/t PdEq) from 19m (PS068)

1. 20.05m @ 1.76g/t PGM(3E) & 0.18% Ni (2.09g/t PdEq) from 1.8m (PS081)

1. 25m @ 2.05g/t PGM(3E) & 0.20% Ni (2.39g/t PdEq) from 26m (PS060)

1. 37.5m @ 1.58g/t PGM(3E) & 0.20% Ni (1.96g/t PdEq) from 43m (PS107)

1. 35.5m @ 1.19g/t PGM(3E) & 0.20% Ni (1.61g/t PdEq) from 38m (PS106)

1. 26m @ 1.15g/t PGM(3E) & 0.17% Ni (1.50g/t PdEq) from 46m (PS086)

1. 43.55m @ 1.20g/t PGM(3E) & 0.20% Ni (1.60g/t PdEq) from 146.45m (PS084)

1. 45m @ 0.87g/t PGM(3E) & 0.17% Ni (1.29g/t PdEq) from 30m (PS079)

Assay results for the eight metallurgical holes drilled by the Company included:

1. 20.8m @ 5.34g/t PGM (3E) from 89.3m (PS388)
2. • including 10.1m @ 9.00g/t PGM (3E) from 92.5m

o 14.8m @ 3.88g/t PGM (3E) from 38.4m (PS384)

• including 7.8m @ 6.46g/t PGM (3E) from 39.4m

o 11m @ 3.94g/t PGM (3E) from 100m (PS389)

• including 4.35m @ 5.72g/t PGM (3E) from 103m

o 8m @ 1.98g/t PGM (3E) from 25m (PS382)

• including 2m @ 4.86g/t PGM (3E) from 25.5m

1. 8.4m @ 4.89g/t PGM(3E) (4.90g/t PdEq) from 32.6m (PS383)
2. • 
     o 12.6m @ 2.58g/t PGM(3E) (2.81g/t PdEq) from 54.4m (PS385)
   • including 4.6m @ 5.42g/t PGM(3E) (5.34g/t PdEq) from 54.4m
     o 13m @ 1.03g/t PGM(3E) (1.30g/t PdEq) from 43m (PS386)

Subsequent to 31 December 2021, and as announced on 17 February 2022, assay results were returned for 3 of the 19 exploration holes drilled in the half year to 31 December 2021 which included:

1. 18.27m @ 1.95g/t PdEq (1.58 g/t PGM3E & 0.20% Ni) from 74m (PS394) o 16m @ 1.56g/t PdEq (1.17 g/t PGM3E & 0.19% Ni) from 23m (PS395)
   o 2.6m @ 2.80g/t PdEq (2.46 g/t PGM3E & 0.23% Ni) from 8m (PS393) o 19.2m @ 1.50g/t PdEq (1.09 g/t PGM3E & 0.19% Ni) from 34m (PS393) o 30m @ 1.19g/t PdEq (0.72 g/t PGM3E & 0.21% Ni) from 89m (PS393)

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