FORTUNA METALS LTD — Investor Presentation 2021

Aug 26, 2021

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Corporate Presentation A South Australian ionic rare earth and PNG gold exploration company

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Disclaimer

Cautionary Statement

Corporate Presentation

“ The information contained in this presentation is provided by Frontier Resources Limited (“Frontier”) and its related bodies corporate (the Group”) for background informational purposes only. The information in this presentation is not investment advice, is not intended to be used as the basis for making an investment decision and does not constitute an offer to issue or arrange to issue, or the solicitation of an offer to issue, securities of Frontier. Frontier has made reasonable efforts to ensure that the information contained in this presentation is accurate as of the date hereof, however, there may be inadvertent or unintentional errors. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information contained in this presentation. To the maximum extent permitted by law, none of Frontier nor its directors, officers, employees or agents, nor any other person, accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation.

Technical Information

This presentation includes disclosure of scientific and technical information. The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by or compiled under the supervision of Peter Swiridiuk ‐ Member of the Aust. Inst. of Geoscientists. Peter Swiridiuk is a Technical Consultant and Non ‐ Executive Director for Frontier Resources. Peter Swiridiuk has sufficient experience which is relevant to the type of mineralisation and type of deposit under consideration to qualify as Competent Person as defined in the 2012 Edition of the Australasian Code of Reporting Exploration Results, Mineral Resources and Ore Resources. Peter Swiridiuk consents to the inclusion in the report of the matters based on the information in the form and context in which it appears. Additionally, Mr Swiridiuk confirms that the entity is not aware of any new information or data that materially affects the information contained in the ASX releases referred to in this report.

Forward-looking statements

Certain information contained in this presentation may contain “forward-looking statements”. Forward-looking statements may include, but is not limited to, information with respect to the future financial and operating performance of Frontier, its subsidiaries and affiliates, the estimation of Mineral Reserves and Mineral Resources, realization of Mineral Reserve and Mineral Resource estimates, costs and timing of development of Frontier's projects, costs and timing of future exploration, timing and receipt of approvals, consents and permits under applicable legislation, results of future exploration and drilling and adequacy of financial resources. Forward-looking statements are often characterized by words such as “plan”, “expect”, “budget”, “target”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words or statements that certain events or conditions “may” or “will” occur.

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including: risks associated with investments in publicly listed companies; risks associated with general economic conditions; fluctuations in commodity prices; the inherent risks and dangers of mining exploration and operations in general; the possibility that required permits may not be obtained; environmental risks; uncertainty in the estimation of Mineral Resources and Mineral Reserves; general risks associated with the feasibility, development and production of each of Frontier's projects; the risk that further funding may be required, but unavailable, for the ongoing exploration, development and production of Frontier's projects; changes in laws or government regulations, policies or legislation; unforeseen expenses; fluctuation in the exchange rate of the Australian dollar; litigation risk; risks of being unable to sell production resulting from the development of a project; uninsured hazards; disruptions to Frontier's supplies or service providers; reliance on key personnel; retention of key employees; absence of dividends; and competition.

Forward-looking statements are based on the reasonable assumptions, estimates, analysis and opinions of management made in light of their experience and their perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Frontier believes that the assumptions and expectations reflected in such forward-looking statements are reasonable.

Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been considered by Frontier. Although Frontier has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, the forward looking information contained in this release is expressly qualified in its entirety by this qualifying statement and readers should not place undue reliance on forward-looking statements. Frontier does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

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Frontier Resources | Corporate Presentation 2021

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Corporate Snapshot

Tight capital structure

Excess of $5m in cash (as of 24/8/21)

First mover advantage, strategic landholding in emerging ionic clay hosted REE Murray Basin Along strike of ASX.AR3 Koppamurra discovery ¹ 39.9 Mt @ 725 ppm TREO

• Unique exploration opportunity only two other - ASX listed ionic clay REE companies REE target definition ongoing with multiple exploration programs planned

South Australia ranked in the Top 10 global mining investment jurisdictions by Fraser Institute

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Key Metrics

Directors & Management

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Frontier Resources | Corporate Presentation 2021

*As of June Quarterly, post Capital Raise and Rights Issue, ASX.FNT, 3 Aug 2021, Murraydium Rare Earth Project Acquisition ¹ 29/6/21 - Prospectus - Australian Rare Earths Limited (ar3.com.au)

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Investment Highlights

Recent material acquisition of prospective ionic clay hosted rare earth element (REE) Murraydium Project in the Murray Basin heavy mineral province, South Australia

Murraydium Rare Earth Element's (REE) Project exploring for REE's Dysprosium, Terbium, Neodymium and Praseodymium all of which are used in rare earth permanent magnets (REPM) which were responsible for over 90% of total global REO value traded in ¹ 2020

² Early mover securing 873km of Murray Basin sediments with the potential to host a high value REE assemblage with low radioactivity ore characteristics, analogous to the Koppamurra discovery

Numerous deposits and prospects in the region including Australian Rare Earths (ASX.AR3) Koppamurra Project with an ² - - Inferred Mineral Resource Estimate of 39.9 Mt @ 725 ppm TREO Ce cut off grade

Global push for carbon neutrality driven by renewable energy (particularly wind turbine) installations and Electric Vehicle (EV) adoption driving global demand for the combination of rare earths, in particular neodymium and praseodymium

The Australian Government has highlighted the growing importance of REE's as we 'electrify' the worlds economies by putting ' ³ REE s at the top of the list in the Outlook for Selected Critical Minerals in Australia 2021 Report

¹ Adamas Intelligence September 2020 ² 29/6/21 - Prospectus - Australian Rare Earths Limited (ar3.com.au) ³ Outlook for Selected Critical Minerals (industry.gov.au)

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' Murraydium Rare Earth s Project

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Recent material acquisition of prospective ionic clay hosted rare earth element (REE) Murraydium Project in the Murray Basin heavy mineral province, South Australia

High REE content has been discovered in clay sediments linked with coastal progradation in the SW Murray Basin (South Australia)

Sediments linked to fossil beach strandlines, typically shallow (2-20m thick) and - NW SE trending in direction, see geological schematic below Potential for further new discoveries across the Murray Basin region ' ¹ Australian Rare Earth s (ASX.AR3) $125m market capitlisation , with the recent ² Koppamurra REE discovery hold a total 4,000km in the region adjacent to FNT

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¹ AR3 share price and company information for ASX:AR3

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Murray Basin sediment hosted REE

Emerging Murray Basin heavy mineral and REE province

Landscape evolution models of the Murray Basin to build strategies for heavy - mineral exploration for sediment hosted REE mineralisation

“The Murray Basin is one of the important heavy mineral provenances in Australia. Numerous deposits and prospects are associated with an extensive series of stranded shorelines formed during marine regression in Miocene to early Pliocene time (Loxton Sand Formation, c. 7.2–3.5 Ma).”¹

The rare earths were found to accumulate in the shallow clay layer deposited onto a limestone base (Gambier Limestone)

• Murraydium Project areas are ideally located proximal to the Loxton Parilla strandplain and the Gambier coastal plain, with target generation ongoing prior to fieldwork activities commencing

Ionic Clay REE deposits are relatively fast to drill and develop, with low capex, simple metallurgy and a high value REE offtake product

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¹ M. Köhler (TU Bergakademie Freiberg), October 2020

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REE market and forecasts

Global magnet rare earth oxides consumption will rise 5x by 2030, from ¹ US$2.98B in 2020 to US$ 15.65B by 2030

Source: BloombergNEF, USGS

Forecasts global shortages of NdFeB alloy and powder will amount to ¹ 48KT p.a. by 2030 equals to approx 25 to 30 million EV traction motors Global shortages of NdPr and Dy oxide will collectively rise to 16KT tonnes in 2030, an amount equal to approximately 3x Lynas annual ¹ output

Passenger EVs are forecast to grow at over 26%pa over the next decade, by 2022, EV demand for NdFeB magnets to be double wind turbines and dominate the industry towards the end of the decade, accounting for over 40% of demand ²

Uncertain, tenuous supply, potentially subject to “trade wars” & tariffs affecting international market demand and risks because of pandemic - and trade tensions Anticipation that Chinese government will launch a stockpiling program for light rare earth due to strong domestic demand ³

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Source: Adamas Intelligence

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¹ Adamas Intelligence September 2020 ² Roskill Aug 2020 ³ S&P Global Market Intelligence Sept 2020

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REE market and forecasts

Permanent magnet applications such as in electric vehicles and clean energy are the dominant demand drivers ¹

Supply will struggle to keep up with the rapidly rising demand for critical magnet elements such as Neodymium (Nd), Praseodymium (Pr),Terbium (Tb) and Dysprosium (Dy) ¹

Demand growth for rare earths is strong and increasing

Applications will continue rapid development especially as a dependable, cost effective, high quality ² supply is established outside of China

Customers need secure, dependable, timely source of rare earth products, with fair and predictable material costs , and a flexible supply chain with minimised risks due to geopolitical landscape

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Source: Adamas Intelligence

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Frontier Resources | Corporate Presentation 2021

¹ Adamas Intelligence September 2020 ² Roskill Aug 2020

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Tolukuma Gold Project - PNG

• Tolukuma Gold Project PNG

² The Tolukuma Gold Project covers 223km (ML104, EL2531) in the Central Province 70km north of the national capital Port Moresby

The Tolukuma gold mine contains high grade, narrow epithermal veins with a long history of having its gold reserves continuously extended. The mine currently has a proposed new owner as part of a planned refurbishment of the mine

Visible gold has been encountered by Frontier geologists at the Kimono gold vein system along a 4km zone on the eastern boundary of the Mining Lease where trench sampling results ¹ include :

• -15m @ 13.89g/t Au + 46.7g/t Ag (KC22)

• -7m @ 13.25g/t Au + 13.7g/t Ag (KC29)

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¹ ASX.FNT, 29 July 2021, Activities Report - Quarter Ended 30th June 2021

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Frontier Resources | Corporate Presentation 2021

Tolukuma Gold Project - PNG

• The Saki epithermal gold silver deposit occurs three kilometres east of the Tolukuma mine. Saki has been drilled with 47 diamond holes and an Exploration Target of 100,000oz to 300,000oz gold (600,000 to 1,000,000 tonnes grading 5.0 to 9.0 g/t gold) ¹

The Exploration Target for the Saki prospect, describing the potential quantity and grade, is conceptual in nature. There has been insufficient exploration completed to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

• • The Saki Yava gold system is one of fifteen prospects currently being followed up with sampling and mapping to define drill targets

• The Saki Yava gold system occurs within an envelope of mineralisation of more than ² 3.6 km , providing a substantial target area to expand on the size of Saki system of ² veins. Sample results within this zone include :

• 1,750g/t gold in rock float at Saki

• 1m @ 158g/t gold in trench samples at Soju

Frontier Resources | Corporate Presentation 2021

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¹ For further information please see the ASX release dated 7 October 2019 “Saki Gold Prospect Exploration Target and Plan”. The Company confirms that it is not aware of any new information or ² data that materially affects the information regarding the Exploration Target. ASX.FNT, 19 Aug 2020, Yava Gold Veins Demonstrate a 3km Wide Zone of Mineralisation

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Newsflow Project

' - Murraydium Rare Earth s Project South Australia

Ongoing review of available desktop literature including geological models and historical exploration data

Field mapping to confirm prospective geological horizons to validate geological models and assist in exploration targeting

- Tolukuma Gold Project PNG

Given the proximity of the existing high grade gold prospects within 3km of the Tolukuma gold mine, Frontier is focusing on exploring these near mine gold vein systems to develop potential resources that - - will be required for future mill feed once the mine has re opened

Field mapping and surface sampling to assist in exploration targeting

Defining targets for extensive surface sampling and testing

Systematic drilling in the early stages testing for a broad scale, relatively shallow deposit including but not limited to auger, push tube and aircore drilling

Receive and interpret trench and rock sampling assay results from the Saki veins collected during the June/July 2021 fieldwork program Evaluation of Saki drilling to determine viability of a maiden JORC Resource

Surface excavations of costeans for sampling and bulk metallurgical studies

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Frontier Resources | Corporate Presentation 2021

Connect

Thank you, for enquiries please see

contact details below

Alec Pismiris

Chairman

Level 8, 99 St Georges Terrace, Perth WA 6000

+61 (8) 9486 4036

www.frontierresources.net.au

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