Ann: Gascoyne REE Project- Drilling Contract Awarded, Rig Secured, page-7

Hi Tom2021,

FYI:

So how does FNT rank on our nearology scale?

We rate FNT’s nearlogy to Hastings as a solid 3 out of possible 4, which is very good. FNT has the potential to be a 4 if they can deliver some positive drill results.

Here is how FNT’s neurology to Hastings stacks up against each of our neurology quality rankings 1 to 4:

1. "Entry level” nearology ✅ – FNT tenements are right in and amongst it in this part of WA.

FNT’s projects are wedged on either side of Hastings’ Yangibana project and directly to the north and contiguous with Dreadnaught’s tenements (who recently confirmed high-grade ironstone structures over a ~2.5kms strike zone at its Yin prospect).

As seen in the image below, FNT definitely ticks off the requirements for the first tier.

1. “Better” nearology ✅ – FNT’s project sits on the same “Durlacher Supersuite” structure and has the same ironstone outcroppings as Hastings Technology’s project.

Hastings Yangibana project was actually discovered based on findings from prospectors who did various rock chip sampling programs in the 1970 and 80s. They targeted the ironstone formations in this part of WA and found some rare earth elements (REE), but until Hastings took control of the project in 2011, the area was largely underexplored for REE.

Hastings then managed to take what began with simple rock chip sampled ironstone outcroppings and turn it into the 27.4mt JORC resource that it has today.

FNT’s Lyons project has similar ironstone outcroppings which sit just above the same “Lyons river fault” that the Yabaninga project sits on top of.

Most importantly though they both sit on top of what's called the “Durlacher Supersuite”. You can just faintly see that it runs into FNT’s Lyons project and almost ends right on the border of the project's southeast section.

FNT also holds the Edmund project which is on the northeast section of this structure. Again almost exactly where the structure ends.

In summary, FNT sits on similar geological structures to Hastings deposit - which is a good thing.

1. “Even Better” nearology ✅ – FNT has rock-chip sampled some of the ironstone outcroppings and has conducted EM surveys - with results due soon.

Having met the criteria for tiers 1 and 2 on our nearology scale, FNT just managed to push itself into the third tier.

With a recent rock-chip sampling program over the outcropping ironstone formations (identical to Hastings next door) which confirmed REE-bearing ironstones with maximum assays of 0.48% total rare earth oxides (TREO) with a combined 0.16% Neodymium and Praseodymium.

Although these grades are nothing to write home about, FNT’s aim with the rock-chip sampling program was to show the presence of something of interest to conduct further exploration.

This compares to Dreadnought’s recent sampling program which produced very high grade rock-chip samples upto ~11.2% TREO, including 3.6% Neodymium + Praseodymium. This sent the share price of Dreadnought from 2.3c to 2.8c in one trading day adding ~$12M in market cap to the stock.

In addition to this, FNT in late 2021 completed an airborne magnetic-radiometric survey covering ~230km of its grounds from which the results should be due very soon.

This will be the final bit of work done before some high-priority drill targets are set and can be readied for drilling.

In the meantime, working with images put together by Geoscience Australia, we can see the conductive lows that FNT’s Lyons project sits on top of (blue colours).

Again, we are not geologists and this is our interpretation of complex geological analysis but to us, it looks like the Yangibana deposit seems to be sitting on really similar coloured blobs to Hastings.

Ultimately we want to see the outcome from the airborne EM surveys FNT did so that we can have a higher level of assurance there are drill-worthy targets on FNT’s grounds.

So in summary, at this point in time, FNT’s rare earths projects have hit our nearology requirements across the first three tiers:

1. “Entry level” nearology - Sitting in the same region, ✅
2. “Better” nearology - Sitting on top of similar rock structures ✅
3. “Even Better” nearology - Rock-chip samples/Aeromagnetic surveys pointing at certain target areas of interest (ironstone outcroppings). ✅

Bringing this all together, FNT ranks in the third tier (“Even better”) of our nearology scale.

The next step is to demonstrate via drilling that the mineralised system that Hastings found does in fact extend or is present in FNT’s ground.

We think this would lead to a significant re-rate in the FNT share price.