Ann: Saki Final Trench Sampling Results Including 1m @128g/t Au, page-74

Hi,

IMHO, 2-3 years is way too far into the future. In fact, IMHO, before the middle of CY 2022, it is highly likely that FNT will put at least one of their projects on ice, due to the fact that the results that they receive will not justify further exploration efforts, accordingly additional CAPEX.

For what it is worth, here is my take on what to expect from FNT over the next 12 months:

1. FNT announce Saki results and establish a JORC "inferred" resource for Saki at Tolukuma EL2531.
2. FNT end their recent/current field work at Tolukuma EL2531 and announce the assay results.
3. FNT enter into a JV or sell their Tolukuma EL2531 tenement (no more expensive drilling results required, and thus no CR required)
4. FNT continue their work at their newly acquired REE/Lithium/Alumina/Kaolin etc. projects in Australia on a shoe string budget (due to the fact that all of the prospects that they are targetting are very shallow deposits, and therefore the first round of exploration, drilling and assaying will be very inexpensive i.e. no CR will be required in the first half of CY 2022).
4. Once one or more projects have been identified as "highly prospective" (after the assays have been received), FNT will concentrate all of their capital and manpower on these projects i.e. undertake an intensive drilling program in order to quickly establish a JORC "inferred" resource. Here again, due to the fact that these "highly prospective" prospects will be very shallow deposits, exploration, drilling assaying will be inexpensive. Having said this, in order to undertake an intensive drilling program and in order to quickly establish a JORC "inferred" resources, I expect that FNT will probably need one CR in the second half CY of 2022.

With regard to which project, or projects, are likely to be "highly prospective" (see point 4.) I see the following two scenarios playing out:

Project 1: "Yangibana Project Area". As FNT announced this week, they have applied for a significant new area prospective for rare earths and lithium pegmatites in the eastern Gascoyne Province which they have appear to have called their "Mt. Clere Project Area". This area appears to be in addition to their existing "Gascoyne Project Area", which FNT acquired around a month ago. Both FNT's "Mt. Clere Project Area" and their "Gascoyne Project Area" are very near HASTINGS TECHNOLOGY METALS' (HAS) world-class Yangibana Deposit (indeed FNT's two "Gascoyne Project Area" tenements actually form bookends to HAS's huge Yangibana Deposit). For this reason, I see FNT concentrating a lot of their efforts (capital and manpower) on exploring and developing both these areas (what I now call FNT's "Yangibana Project Area"), and as long as the assay results warrant it, then moving quickly forward in order to quickly establish a JORC "inferred" resource. As I have already said, due to the fact that both the "Mt. Clere Project Area" and the "Gascoyne Project Area" prospects will be very shallow deposits, the further exploration, drilling and assaying required in order to establish a JORC "inferred" resource will also be relatively inexpensive. I therefore I expect that FNT will probably only require one CR in the second half CY of 2022 in order to complete this second stage. Once FNT have established a JORC "inferred" resource for their "Yangibana Project Area", I then see FNT JVing this with HAS.

Project 2: "Koolya Kaolin-Halloysite-High Purity Alumina Project". FNT also recently acquired the Koolya Kaolin-Halloysite-High Purity Alumina (HPA) Project tenement, which is located in a proven Kaolin producing region i.e. Tellus Holding's "Sandy Ridge" Kaolin mine is located only 30 kms away. As FNT recently reported, they expect to commence drilling at Koolya as soon as the tenement has been granted, with further extensive drilling programs already planned in order to establish a JORC resource, with a feasibility study then to follow. Given the enormous potential of Koolya, and the very shallow depth of this potential resource, I can imagine that it will not take FNT very long before they commence drilling at Koolya. Due to the very shallow depth of Koolya, this initial drilling program should only take a few weeks, with assaying also likely to be completed very quickly. For the same reason, the exploration, drilling and assaying should also be very inexpensive. I therefore strongly doubt that a CR will be required before the second half CY of 2022 (in order to complete this first stage). As long as the initial assay results from Koolya warrant this, I then expect FNT to move forward quickly in order to undertake the necessary exploration, drilling and assaying in order to establish a JORC "inferred" resource asap. For this work, I expect that FNT will probably need one CR in the second half CY of 2022. Once FNT have established a JORC "inferred" resource for Koolya, I see FNT JVing Koolya with Tellus Holdings (their huge "Sandy Ridge" kaolin mine is located only 30 kms away).

In a nutshell, I see FNT making significant progress on all of their new projects over the next 6 months. IMHO, it is highly unlikely that they wil need another CR before the second half CY of 2022 in order to carry out this first stage. If FNT do need a CR in the second half of CY 2022, IMHO, it will only be in order to quickly establish a JORC "probable" resource for their most "highly prospective" projects (probably their "Yangibana Project Area"" and/or their "Koolya Kaolin-Halloysite-High Purity Alumina Project").

The great thing about FNT at the moment is that most of their projects are already underway, with some of them likely to reveal their potential within the next few weeks/months as assay results etc. are received and announced to the market i.e. the kettle is already on the stove.

Depending on how good these various assay results turn out to be, the kettle just might begin to boil.

GLTAH and have a good weekend.