Future Metals NL — Capital/Financing Update 2021

Jun 17, 2021

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Statement of Commitments

Future Metals NL (formerly named Red Emperor Resources NL) (ACN 124 734 961) ( Company ) confirms that its proposed commitments for expenditure for the purposes of Listing Rule 1.3.2(b) remain as set out in section 1.8 “Use of Funds” in the Company’s Prospectus dated 18 May 2021. This section of the Prospectus is set out below and should be read in conjunction with rest of the Prospectus and Supplementary Prospectus dated 28 May 2021.

Section 1.8 Use of Funds

The Company intends to apply funds raised under the Public Offer, together with its existing cash reserves, over the first two years following re-admission of the Company’s Securities to official quotation on ASX as follows:

Use of funds	A$10,000,000	%
	(Minimum and
	Maximum
	subscription
	amount)
Available funds
Existing cash reserves of the Company as at 31	A$4,225,863	29.7%
December 20201
Gross funds to be raised under the Public Offer	A$10,000,000	70.3%
Total	A$14,225,863	100%
Use of funds
Estimated cash expenses of the Offers2	A$1,077,834	7.6%
Panton Option consideration3	A$3,000,000	21.1%
Estimated duty liability on the Acquisition and	A$1,755,495	12.3%
exercise of the Panton Option4
Exploration and development expenditure on the
_Panton PGM Project, as follows:_5
• Drilling of extensions	A$2,000,000	14.1%
• Metallurgical testwork	A$500,000	3.5%
• Process design, mining and development studies	A$1,000,000	7.0%
• Other technical studies	A$500,000	3.5%
Assessment of complementaryassets orprojects	A$500,000	3.5%
Estimated cash costs for readmission to AIM6	A$1,124,334	7.9%
Administration costs7	A$2,000,000	14.1%
WorkingCapital8	A$768,200	5.4%
Total	A$14,225,863	100%

Notes:

1. The cash reserves for Great Northern Palladium Pty Ltd as at 31 December 2020 have not been included on the basis that it is expected that the remaining cash reserves will have been spent by completion of the Acquisition on such matters as exploration expenditure commitments on the tenements and general operating costs.

2. Refer to Section 6.11 of the Prospectus.

3. Refer to the summary of the Panton Option set out in Section 5.2 of the Prospectus and the Solicitor’s Report on Tenements at Annexure B of the Prospectus.

4. This includes the estimated duty payable for the Acquisition, the exercise of the Panton Option to acquire the remaining interest in Panton Sill Pty Ltd and the estimated duty payable included as a liability (trade and other payables) of Great Northern Palladium Pty Ltd as at 31 December 2020. These figures are estimates only as no assessment from the Office of State Revenue has been issued to date. In the event an alternative (higher) amount is assessed and payable, the Company will reallocate funds from working capital to pay the higher amount.

5. Refer to the Independent Technical Report at Annexure A of the Prospectus for further information.

6. It is currently intended that re-admission to trading on AIM for the enlarged entity will then be sought as soon as practicable (targeting July 2021) following successful completion of the Acquisition and Public Offer on the ASX in order to restore the enlarged entity’s dual listing at the earliest opportunity. Re-admission on AIM is not a condition of the Offers. There can be no guarantee that the Company will be able to complete the Acquisition or any alternative transaction and consequently be re-admitted to trading on AIM. Also, the Company may complete the Acquisition and be reinstated to official quotation on ASX but not subsequently be re-admitted to AIM.

Item of Expenditure	£ AUD/GDP (14 May 2021) A$
AIM fees UK Broker/Corporate Advisory Fees Nomad and Financial Adviser Legal advisers to Nomad and/or Financial Adviser & Broker Legal advisers to Company (UK law) Competent Person’s Report UK Reporting Accountant Printing of admission document Registrars / other	23,386 0.55 42,520 200,000 0.55 363,636 200,000 0.55 363,636 40,000 0.55 72,727 75,000 0.55 136,363 35,000 0.55 63,636 30,000 0.55 54,545 5,000 0.55 9,090 10,000 0.55 18,181
	618,386 1,124,334

1. Includes ASX compliance costs, director, consultants and company secretarial fees, office costs, corporate advisory and PR costs, accounting, IT, audit, and general overhead costs for a period of 24 months following reinstatement to official quotation.

2. Other general working capital may be used for corporate expenditure items or in connection with any project, investment or acquisition, as determined by the Board at the relevant time.

The above table is a statement of current intentions as at the date of this Prospectus. Investors should note that, as with any budget, the allocation of funds set out in the above table may change depending on a number of factors including, but not limited to, the success of exploration programs, as well as regulatory developments and economic conditions. In light of this, the Company reserves the right to alter the way the funds are applied.

The Directors and Proposed Directors consider that, following completion of the Public Offer, the Company will have sufficient working capital to meet its stated objectives and satisfy its working capital requirements for a period of at least two years following the date on which the Company’s Securities are reinstated to official quotation on ASX. Refer to Sections 2.3 and 2.4 of the Prospectus and the Independent Technical Report at Annexure A of the Prospectus for further details on the Company’s proposed business exploration programs and strategies.