Quarterly Activities Report

30 April 2025

Future Metals NL

Quarterly Activities Report for period ending

31 March 2025

Future Metals NL ("Future Metals" or the "Company", ASX | AIM: FME) is pleased to announce its Quarterly Activities and Cashflow Report for the quarter ended 31 March 2025 (the "Quarter").

Highlights

· Maiden Eileen Bore Prospect drilling has confirmed significant Cu-Ni mineralisation, including:

o 30m @1.06% Cu, 0.45%Ni & 1.14g/t PGM(3E) from 88.9m (EBDD002)

· Drilling results & ground magnetics confirm Eileen Bore mineralisation to be a faulted section (offset 300m north) of a newly defined 4.5km NE trending intrusion

· Drilling at the northern end of the 4.5km intrusion confirmed mineralisation, with 127m of anomalous magmatic sulphides intersected including:

o 7.4m @ 0.46% Cu, 0.51% Ni and 0.3g/t PGM(3E) (EBDD003)

· Execution of a Memorandum of Understanding (post quarter end) with Zeta Resources to assess potential of Zeta Resources' Savannah Plant to process Eileen Bore Cu-Ni-PGM & Panton PGM ores

· Completion of placement (post quarter end) raising A$1.58 million at 1.1 cents per share, with Zeta Resources acquiring a 9.99% stake

· Announcement of the intention to undertake a rights issue in the near term, raising ~A$2.64 million (1 for 3 basis) with existing shareholders on same terms as placement

· Total placement and rights issue raising up to A$4.2 million before costs

· Funds raised to be used primarily to advance the development of the Eileen Bore Cu-Ni-PGM deposit, targeting a bulk copper feed source for the Savannah Plant

Figure 1: Plan view on ground gravity (Terrain Corrected bouguer anomaly tilt image) showing the extent of the main intrusion, location of all drilling and density targets similar to hole EBDD003 intersections

Eileen Bore Prospect | Drilling

Eileen Bore is located within a ~20km radius of the Company's 100% owned Panton Project in the highly prospective East Kimberley region of Western Australia. Broad zones of disseminated and net-textured copper and nickel sulphides occur within multiple host intrusions and comprise of chalcopyrite, pyrrhotite, pentlandite and pyrite.

A total of four diamond holes were drilled for 1,195m in aggregate, co-funded by a recent EIS grant. Two diamond holes (EBDD001 and EBDD002) were drilled at Eileen Bore to test for extensions and confirm the continuity of wide zones of copper & nickel mineralisation encountered in historical drilling. Both historical holes, EBRC010 and EBRC003, ended in mineralisation.

· 120m @ 0.73% Cu, 0.29% Ni & 0.86g/t PGM3E from 0m (EOH) (EBRC 010) incl. 16m @ 1.0% Cu, 0.36% Ni & 0.99g/t PGM3E from 100m

· 96m @ 0.70% Cu, 0.29% Ni & 0.78g/t PGM3E from 24m (EOH) (EBRC 003) incl. 10m @ 1.08% Cu, 0.34% Ni & 1.04g/t PGM3E from 56m

A further two diamond holes (EBDD003 and EBDD004) were drilled at Target 2 as an initial test of surface mineralisation (see Figure 1).

Figure 2: | Cross section looking northwest at Eileen Bore. Section line location in Figure 1 & 3 and marked as A-A'.

Hole EBDD002 intersected a 30m zone at 1.06% Cu, 0.45% Ni and 1.14g/t PGM(3E) which confirmed historical grades and mineralisation (see Figure 2).

The ground gravity survey, completed at the same time as the drilling, indicates that mineralisation at Eileen Bore has been faulted approximately 300m north from the main intrusion. The gravity data indicates a 4.5km long intrusion with internal density variations and north-south faulting. There has been no prior drilling into this main intrusive target (see Figure 1).

The prospectivity of this 4.5km intrusion was confirmed by hole EBDD003, which intersected 7.4m at 0.46% Cu, 0.51% Ni and 0.3g/t PGM(3E) within a magmatic sulphide fertile pyroxenite. The fertile ultramafic extends over 127.25m with anomalous associated Ni-Cu-Pd-Pt-S throughout. 

Holes EBDD003 and EBDD004 were drilled in what was previously interpreted to be a fold hinge with confirmed surface soil anomalism and pentlandite, chalcopyrite and pyrrhotite confirmed in historical petrography. The recent ground gravity survey indicates that this interpretation was incorrect, and that the folding is all pre-emplacement of the original mafic-ultramafic, thereby opening up the 4.5km of prospective strike of the intrusion. 

The Target 3 area, now interpreted as the southeastern extent of the 4.5km intrusion, is yet to be drilled. This area also has a coincident soil anomaly and density anomaly larger than that drilled in hole EBDD003 (see Figure 3). Target 3 has no ground geophysics (namely EM) or a complete soil survey.

Figure 3: Plan image on TMI-RTP magnetics 1VD showing soil anomaly with section lines.

Further work to advance the area will include ground EM to focus follow up drilling within the main 4.5km Eileen Bore Intrusion.

Corporate

Subsequent to the Quarter's end, FME announcement the execution of a strategic infrastructure-based non-binding Memorandum of Understanding ("MOU") with Zeta Resources Limited ("Zeta Resources"), and a placement and planned rights issue raising up to A$4.2 million (approximately £2.0 million) before costs ("Capital Raising").

Placement

Future Metals completed the placement of 143,760,123 new fully paid ordinary shares ("Placement Shares") to raise A$1.58 million at a price of A$0.011 per Placement Share ("Placement").

Via the Placement, Zeta Resources has acquired a 9.99% interest in the ordinary share capital of the Company.

Rights Issue

In addition to the Placement, the Company announced it intends on launching a pro rata non-renounceable entitlement offer (the "Rights Issue") of one (1) share for every three (3) shares held by an eligible shareholder on the record date at an issue price of A$0.011 per share, to raise up to ~A$2.64 million on the same terms as the Placement.

Funds raised from the Placement and Rights Issue will be used primarily to advance the development of the Eileen Bore Cu-Ni-PGM Deposit, targeting a bulk copper feed source for the Savannah Plant, as well as for working capital purposes and costs of the Fundraise.

Zeta Resources MOU

Zeta Resources Limited is an investment company specialising in acquiring resource assets. Zeta Resources has a diversified portfolio, with interests in several mining operations. Zeta Resources is the sole shareholder of Panoramic Resources Limited, which owns the Savannah Mine processing plant, currently on care and maintenance. The Savannah Mine processing plant represents a significant opportunity for strategic partnerships to enhance shareholder value.

The MOU between Future Metals and Zeta Resources facilitates the collaborative assessment of the feasibility of Future Metals supplying ore from its Eileen Bore Cu-Ni-PGM Project and/or Panton PGM Project to the Savannah Mine processing plant.

The MOU is non-binding and represents a best-efforts basis for collaboration to create shareholder value through the combination of mineral resources and existing mineral processing infrastructure.

Future Metals and Zeta Resources have agreed to assess the technical, economic, and regulatory aspects of utilising alternate ore sources that may come from Future Metals projects to the Savannah Mine processing plant. This assessment will involve ongoing feasibility analysis, based on the availability of technical and economic information. Should the assessment yield positive results, the parties will negotiate in good faith for a suitable commercial structure for future operations involving a combination of Future Metals' ores and the Savannah Mine's processing plant.

Figure 4: Location of the Eileen Bore Cu-Ni-PGM Project and the Panton PGM Project in proximity to the Savannah Mine

Figure 5: Savannah Mine infrastructure overview and concentrate export facilities at the Port of Wyndham

Figure 6: Regional setting of the Panton PGM Project, Savannah Mine and the Port of Wyndham

Financial Commentary

The Company held approximately A$0.45m in cash at the end of the Quarter. This excludes the Placement of A$1.58m which occurred subsequent to the Quarter's end or the announcement of the intention to launch the Rights Issue to raise up to a further A$2.64m.

Exploration and project development expenditure during the Quarter amounted to approximately A$86k. Payments for administration and corporate costs amounted to approximately A$205k. Also included in corporate costs were payments to related parties and their associates of A$33k, comprising Director fees and remuneration (including superannuation). The Quarterly Cashflow Report (Appendix 5B) for the period ended 31 March 2025 provides an overview of the Company's financial activities.

The Quarterly Cashflow Report (Appendix 5B) is available at the following link : http://www.rns-pdf.londonstockexchange.com/rns/6809G_1-2025-4-29.pdf and on the Company's website Quarterly Reports - Future Metals NL.

For additional information please refer to the ASX/AIM announcements covered in this report:

10 April 2025 FME Execute Strategic Infrastructure MOU with Zeta Resources

17 February 2024 Significant Copper-Nickel Discovery at Eileen Bore

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 any Competent Person's findings are presented have not been materially modified from the original market announcements.

For further information, please contact:

Appendix One | Exploration and Mining Permits

Exploration & Mining Permits changes during the Quarter

Farm-In / Farm Out Agreement changes during the Quarter

Future Metals may earn up to 70% in the two tenements listed above. Details of the transaction can be found in the announcement 'Farm-In Agreement Over East Kimberley Ni-Cu-PGE Prospects' released on 17 January 2023.

Interests in Mining & Exploration Permits & Joint Ventures at 31 March 2025