First Tellurium Corp. — Capital/Financing Update 2021

Dec 17, 2021

FORM 51-102F3

MATERIAL CHANGE REPORT

1. Name and Address of Company:

First Tellurium Corp. 381 – 1440 Garden Place Delta, BC V4M 3Z2

2. Date of Material Change:

December 16, 2021

3. Press Release:

A News Release dated and issued on December 16, 2021 at Vancouver, BC, through Executive Business Services and SEDAR.

4. Summary of Material Change:

First Tellurium Announces Non-Brokered Private Placement

5. Full Description of Material Change:

See news release, a copy of which is attached hereto

6. Reliance on Subsection 7.1(2) of the National Instrument 51-102 Continuous Disclosure Obligations**:**

Not applicable.

7. Omitted Information:

Not applicable.

8. Executive Officer Knowledgeable of Material Change:

Tyrone Docherty, President and CEO Telephone: (604) 789-5653

9. Date of Report:

December 16, 2021

FIRST TELLURIUM CORP.

www.firsttellurium.co

Essential Metals for a Sustainable Future

THIS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

First Tellurium Announces Non-Brokered Private Placement

Vancouver, BC, Canada, December 16, 2021 – First Tellurium Corp. (CSE: FTEL) (the "Company" or "First Tellurium"), announces a non-brokered private placement to raise up to $150,000 through the sale of up to 600,000 flow-through units at a price of $0.25/unit. Each flow-through unit consists of one flow-through common share and one common share purchase warrant exercisable at $0.40 per warrant share for a period of two years following the close of the offering. The Company may pay a finder's fee consisting of cash to eligible finders as permitted under applicable securities laws and CSE policies. Proceeds from this offering will be used for exploration programs on the Company's Deer Horn property.

About First Tellurium Corp.

First Tellurium's unique business model is based on leveraging diverse partnerships to generate revenue and value. Working with Indigenous peoples, NGOs, governments and industry, First Tellurium explores for metals in British Columbia and helps indigenous communities grow and thrive through various industrial, social and environmental ventures.

First Tellurium proudly adheres to and supports the principles and rights set out in the United Nations Declaration on the Rights of Indigenous Peoples and in particular the fundamental proposition of free, prior and informed consent. First Tellurium has been a vocal advocate of the BC Declaration on the Rights of Indigenous Peoples Act since its introduction and passage in the British Columbia legislature in November 2019. First Tellurium also supports federal Bill C-15, the United Nations Declaration on the Rights of Indigenous Peoples Act.

On behalf of the board of directors of First Tellurium Corp.

For further information please contact:

"Tyrone Docherty" Tyrone Docherty President and CEO Tyrone Docherty 604.789.5653 tyrone.doccap@dccnet.com

Neither the Canadian Securities Exchange nor its regulations services accept responsibility for the adequacy or accuracy of this release.

Forward-looking information

All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements involve numerous assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will prove inaccurate, certain of which are beyond the Company's control. Readers should not place undue reliance on forwardlooking statements. Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date hereof or revise them to reflect the occurrence of future unanticipated event.