Announcement PDF ASX : FBM ACN 148 966 545 2023 Annual Report For the year ended 30 June 2023 Table of Contents Corporate Information 01 Chairman’s Letter 02 Review of Operations 04 Directors’ Report 22 Auditor’s Independence Declaration 44 Independent Auditor’s Report 45 Consolidated Statement of Profit or Loss and Other Comprehensive Income 49 Consolidated Statement of Financial Position 50 Consolidated Statement of Changes in Equity 51 Consolidated Statement of Cash Flows 52 Notes to the Consolidated Financial Statements 53 Director’s Declaration 77 Corporate Governance Statement 78 ASX Additional Information 79 Corporate Directory This financial report includes the consolidated financial statements and notes of Future Battery Minerals Limited and its controlled entities (‘the Group’). The Group’s functional and presentation currency is AUD ($). A description of the Group’s operations and of its principal activities is included in the review of operations and activities in the Director’s report. The Director’s report is not part of the financial report. Directors Auditors Mr Michael Edwards – Executive Chairman BDO Audit (WA) Pty Ltd Level 9, Mia Yellagonga Tower 2 5 Spring Street, Perth WA 6000 Mr Robin Cox – Technical Director Mr Trevor Eton – Non-Executive Director Mr Paul Brown – Non-Executive Director Bankers Joint Company Secretary National Australia Bank 100 St Georges Terrace, Perth WA 6000 Mr Matthew Worner Ms Silfia Morton Chief Financial Officer Ms Silfia Morton Principal Place of Business Suite 10/ 38-40 Colin St, West Perth WA 6005 T: +61 8 6383 7817 F: +61 8 6245 9853 E: info@futurebatteryminerals.com.au Solicitors Thomson Geer Level 27, Exchange Tower, 2 The Esplanade, Perth WA 6000 Stock Exchange Australian Securities Exchange Limited Level 40, Central Park 152-158 St George’s Terrace, Perth WA 6000 ASX Code: FBM Share Registry Automic Registry Services Level 5, 191 St Georges Terrace Perth WA 6000 Telephone: +1300 288 664 FBM Annual Report | 1 Chairman's Letter Dear Shareholders, I am pleased to address you as Chairman of Future Battery Minerals Limited (ASX: FBM) and provide an overview of the transformative year we experienced in 2023. This year has witnessed a transformative period for Future Battery Minerals Limited, as we embarked on a journey of rebranding and adopted the name Future Battery Minerals Limited (ASX: FBM). Simultaneously, we sharpened our focus by directing our exploration efforts towards the critical mineral of lithium. These strategic moves laid the foundation for the exciting developments we have seen unfold. The highlight of the financial year was the exciting discovery of lithium (Li) deposits at both the Kangaroo Hills Lithium Project (KHLP) and the 80% owned Nevada Lithium Project (NLP). Furthermore, we also divested our Nepean Nickel Project, a strategic manoeuvre that strengthened our financial position with a total cash consideration of $10 million. This sale of the Nepean tenements has helped provide us with the means to expedite exploration activities at KHLP and NLP, underlining our commitment to the lithium sector. At the Kangaroo Hills Lithium Project, we made significant advances with the completion of two drill programmes, and a third reverse circulation (RC) and diamond drilling (DD) program commenced after the reporting period. The outcomes of these programs have been promising, with significant results such as 29 meters (m) @ 1.36% Li2O from 38m (KHRC011) and 27m @ 1.32% Li2O from 64m (KHRC017). Moreover, our continuous target generative work identified seven new high-priority lithiumcaesium-tantalum (LCT) pegmatite targets, covering a total strike length of 3kms, presenting exciting prospects for future drilling targets. Likewise, our efforts at the Nevada Lithium Project have produced exceptional results. The completion of the Phase 1 and Phase 2 drill programs confirmed the presence of an extensive lithium claystone deposit. Significant intercepts 2 | FBM Annual Report include 179.8m @ 766ppm Li from 39.6m (WF23015), including 19.8m @ 1,010ppm from 80.8m, and 170.7m @ 764ppm Li from 67.1m to the end of the hole (WF23-014), including 27.4m @ 1,030ppm Li from 112.8m. Significant advancements have also been made at the Saints Nickel Project, with an updated Mineral Resource Estimate (MRE) paving the way for the release of a Scoping Study in April 2023. This study has confirmed the project’s economic viability, characterised by simple infrastructure requirements and a clear path for mine development. From a corporate standpoint, we underwent a Board transition during the financial year. Aidan Platel stepped down from his role as Managing Director and Chief Executive Officer, and Robin Cox was appointed as the Technical Director, while Paul Brown joined the Board as a NonExecutive Director. As we reflect on the past year’s achievements, it is evident that our aggressive and systematic exploration program has positioned Future Battery Minerals Limited for success in the coming year and beyond. We are committed to our mission of supplying critical lithium minerals to meet the growing demand of the rapidly advancing Electric Vehicle (EV) Battery market. Finally, I would like to extend my gratitude to my fellow board members for their contribution over the past year, our dedicated team, supportive shareholders, and partners who have contributed to our journey of transformation and growth. We look forward to a prosperous year ahead and remain committed to creating long-term value for our shareholders. Michael Edwards, Executive Chairman Dated this 27th September 2023 The highlight of the financial year was the exciting discovery of lithium (Li) deposits at both the Kangaroo Hills Lithium Project (KHLP) and the 80% owned Nevada Lithium Project (NLP)." Michael Edwards, Executive Chairman FBM Annual Report | 3 Review of Operations Kangaroo Hills Lithium Project (KHLP) – 100% The Kangaroo Hills Lithium Project (KHLP) is a recent and exciting hard rock lithium discovery located in the Goldfields of Western Australia (WA) only 17kms south of the township of Coolgardie. Spodumene mineralisation within lithium-caesium-tantalum (LCT) pegmatites was discovered during regional exploration drilling of the Nepean Nickel Project in late 2022. Phase 1 Drilling Phase 2 Drilling In January 2023, FBM commenced a 3,440m reverse circulation (RC) drilling programme, focusing on three high priority lithium-caesiumtantalum (LCT) pegmatite targets identified from surface geochemistry and previous drill hole intercept NPRC084 (6m @ 1.38% Li2O from 198m).1 A total of 14 shallow holes were drilled, with depths ranging between 150-270m. 2 Pegmatite lithologies were identified visually in 12 of the holes (Figure 2). FBM announced initial assay results for four drill holes from the Phase 1 RC programme in March 2023, with significant results including:3 In April 2023, the Company commenced its Phase 2 drilling programme at KHLP4, with the primary objective of testing for potential extensions along strike of significant intercept KHRC11, which returned 29m @ 1.36%Li2O from 38m. The programme consisted of 2,500m of RC drilling and 500m of diamond drilling (DD). • 29m @ 1.36% Li2O from 38m (KHRC011); • 7m @ 1.00% Li2O from 198m (KHRC002); • 2m @ 1.68% Li2O from 1m (KHRC001); and • 5m @ 0.51% Li2O from 42m (KHRC004). Importantly, drill hole KHRC011 was added late to the drill programme after in-field observations led the geology team to believe there was potential for a shallow pegmatite present further east of the planned drill holes. The thickness of the intercept exceeded expectations and at present the mineralised pegmatite remains open to the east, north and south. Assay results from the Phase 2 RC drill programme further supported the significance of the initial March 2023 discovery. A series of vertical holes testing the fresh mineralised pegmatite confirmed the shallow thick high-grade mineralisation which remains open to north and north-west. Significant results included:5 6 • 27m @ 1.32% Li2O from 64m (KHRC017), including: 4m @ 2.5% Li2O from 80m • 23m @ 1.03% Li2O from 53m (KHRC031); • 19m @ 1.03% Li2O from 42m (KHRC015); • 16m @ 1.09% Li2O from 11m (KHRC022); • 13m @ 1.23% Li2O from 41m (KHRC030); and • 12m @ 1.02% Li2O from 8m (KHRC021). 1. ASX Announcement 24 November 2022 – High-grade lithium Discovery at Nepean 2. ASX Announcement 21 February 2023 – Exploration Update: Kangaroo Hill Lithium Project 3. ASX Announcement 20 March 2023 – LCT-Pegmatite Discovery Confirmed at Kangaroo Hill 4. ASX Announcement 20 April 2023 – Exploration Update: Kangaroo Hills Lithium Project 5. ASX Announcement 3 May 2023 – Multiple Thick Grade Assay Results Extend Lithium Discovery 6. ASX Announcement 22 June 2023 – More High-Grade Lithium Assays, New Pegmatite Uncovered 4 | FBM Annual Report FIGURE 01 KHLP Location FIGURE 02 KHLP - North - South Cross Section, Easting 317900 FBM Annual Report | 5 After the completion of the Phase 2 RC drill programme, the DD programme was undertaken to infill the RC drill holes and to provide core sample of the Li pegmatite. Drilling consisted of five (5) shallow holes for 313 metres, infilling the high-grade intercepts from the RC drilling component. These five shallow holes all intercepted the target pegmatite. The diamond core samples have been utilised for early-stage metallurgical and mineralogical test work and assessment to provide much needed structural information. After the reporting period, assay results were received, with significant intercepts including:7 • 23m @ 1.19% Li2O from 44m (KHDD001); • 10m @ 1.30% Li2O from 25m (KHDD002); and • 5.9m @ 1.15% Li2O from 0m (KHDD004). Phase 3 Drilling Subsequent to the reporting period, the Company commenced the Phase 3 RC and DD drill programme, which consisted of 5,000m of RC infilling at the Big Red Prospect (Big Red) and testing the regional targets Rocky, Eastern Grey, Wallaroo and Pademelon8. As the Programme of Work (POW) and permits are received, the drill programme will be expanded on the remaining target areas, which include the areas of Big Red North, Western Grey and Quokka. Diamond drilling (DD) is to be undertaken within the Big Red discovery zone to investigate structural constraints of the pegmatite and to provide high quality samples for detailed geological analysis. The Phase 3 drilling programme initially planned for 5,000m of RC targeting the Big Red Prospect (Big Red) and regional prospects Rocky, Eastern Grey, Wallaroo and Pademelon. Drilling at the Rocky Prospect aimed to further test the outcropping pegmatites and the previous intercept of 5m @ 1.12% Li2O from 104m in KHRC0037. Holes completed to date have intercepted multiple new pegmatites within close proximity to Big Red, which have been interpreted as a larger stacked system and which remains open in all directions. Multiple intercepts have visible spodumene within the pegmatites and are currently awaiting assay results. Currently, the pegmatites show a semi-parallel structure to Big Red, which is characterised by a gentle -20 degree northerly dip. The spodumene pegmatites intercepted exhibit a maximum thickness of 10m (down hole width). However, there is strong potential to intercept thickened zones with similar widths to Big Red (29m @ 1.36% Li2O from 38m KHRC0112) given the pinch and swell nature of the KHLP pegmatites. Importantly, the pegmatites at Rocky remain open in all directions and the Rocky Prospect has the potential to significantly add to the scale and tonnage of lithium mineralisation as exploration drilling at KHLP continues. Following the completion of the Phase 2 drill programme, the Company further identified seven large scale targets, with a combined total strike length of over 3kms.9 These new targets have been identified from the Company’s on-going target generative field and geophysical work. These targets consist of the Big Red Prospect (Big Red), which hosts the identified thick highgrade spodumene bearing pegmatites, Western Grey, Eastern Grey, Rocky, Quokka, Wallaroo and Pademelon prospects (Figure 6) which have all been identified as high priority drill targets with the potential to host further LCT pegmatites as either flat lying sheets similar to the Big Red Prospect pegmatite or swarms. Following a geophysical review, a resistivity anomaly was identified within the Big Red Prospect, which further indicates a potential strike up to 1km in a north-northwest direction, extending from the current drilling area (Figure 5). The resistivity has been derived from the IP Survey completed in early 2022. The Survey was originally planned and designed to detect chargeable anomalies, potentially representing the presence of nickel sulphides. The resistivity is also measured with the IP. The resistivity is thought to detect a change in the country rock lithologies and potentially differentiate the pegmatite unit from the surrounding Mafic-Ultra Mafic greenstone units. 7. ASX Announcement 18 July 2023 – Further High-Grade Lithium Results at Kangaroo Hills 8. ASX Announcement 4 July 2023 – Drilling Underway at Kangaroo Hills Lithium Project 9. ASX Announcement 8 June 2023 – 7 New Large Scale LCT Pegmatite Lithium Targets Identified 6 | FBM Annual Report FIGURE 03 KHLP – Big Red Prospect Drill Holes Plan View FBM Annual Report | 7 FIGURE 04 Geophysical and Field Work it is evident that our aggressive and systematic exploration program has positioned Future Battery Minerals Limited for success in the coming year and beyond. Michael Edwards, Executive Chairman 8 | FBM Annual Report FIGURE 05 Location of Regional LCT Pegmatite Targets FBM Annual Report | 9 At the Kangaroo Hills Lithium Project, we made significant advances with the completion of two drill programmes." Michael Edwards, Executive Chairman Metallurgical Test Work Following the initial discovery in March 2023 of a spodumene bearing pegmatite, FBM commenced early-stage metallurgical test work during the reporting period, to better understand the characteristics and processing requirements of the mineralised pegmatite, as well as its recovery potential.1 Minsol Engineering Pty Ltd (Minsol) was appointed as the lead metallurgical and engineering consultant at the Kangaroo Hills Lithium Project (KHLP) in Western Australia. The early-stage test work is being conducted on KHLP diamond core samples, which intercepted, in March 2023, the spodumene dominant pegmatite identified in drill hole KHDD001. The full test work schedule will be finalised after mineralogical scanning is complete. The test work will consist initially of the following methods: • Non-destructive core scanning; • Sample characterisation and mineralogical assessments; • Stage crush and screening for coarse and fine mineral processing; • Heavy liquid separation (HLS) of the coarse (+850um) fractions to determine amenability to froth Dense Media Separation (DMS); • Preliminary grain size and liberation assessments; and • Sighter flotation tests to determine amenability to froth flotation. Metallurgy and mineralogy will form an important part of the Company’s ongoing technical studies into Li mineralisation at the KHLP. KHDD001 showing of coarse spodumene in drill core at 64.9-65.1m down hole depth (pale green elongated phenocrysts) – 23m @ 1.19% Li2O from 44m 10. ASX Announcement 19 May 2023 – Metallurgical Test Work to Commence at Kangaroo Hills FBM Annual Report | 11 Nevada Lithium Project, USA – 80% The Company acquired an 80% interest in the Nevada Lithium Project (NLP) located in Nevada, USA in June 2022. The NLP consists of five key prospects, Traction, San Antone, Heller, Lone Mountain Prospect and Western Flats, comprising >90km2 of ground that is considered highly prospective for larger sedimentary-hosted lithium deposits. The region is home to several large sedimentary-hosted lithium deposits, including Ioneer Resources’ (ASX: INR), Rhyolite Ridge and American Lithium Corporation’s (TSX.V: LI) (US OTC: LIACF) (Frankfurt: 5LA1) TLC Lithium Project. Albemarle Corporation’s (NYSE: ALB) Silver Peak Lithium Mine, currently the only producing lithium mine in North America, lies approximately 45kms to the west of the NLP. Phase 1 Drilling Phase 2 Drilling The Phase 1 stratigraphic RC drilling programme at the San Antone East and Western Flats prospects commenced in late January 2023, consisting of 15 RC drill holes, with four holes drilled at San Antone East and 11 holes drilled at Western Flats for a total of 2,900m drilled, which were completed in March 2023.10 The hole depths ranged between 152-245m vertical. The host claystone lithologies are believed to be of the Tertiary aged Siebert formation, which were intercepted in ten out of the 15 holes drilled. High-grade lithium claystone was intercepted at Western Flats and San Antone East, with stand-out results including:11 The Phase 2 drilling started in June 2023, with the aim to test strike continuation of mineralisation in drill hole WF23-011 at the Western Flats Prospect. The significant intercept of 109.7m @ 766ppm Li from a 135m downhole depth, importantly hosted a high-grade portion of 29m @ 1,010ppm Li. Subsequent to the reporting period, the Company announced exceptional assay results from the Lone Mountain Prospect, with significant intercepts including:12 • 179.8m @ 766ppm Li from 39.6m (WF23-015) Including 19.8m @ 1,010ppm from 80.8m • 109.7m @ 766ppm Li from 135.6m depth (WF23-011); • 170.7m @ 764ppm Li from 67.1m to end of hole (WF23-014) Including 27.4m 1,030ppm Li from 112.8m • including: 29m @ 1,010ppm Li from a depth of 210.3m • 44.2m @ 542ppm Li from 114.3m (WF23-013) and • 44.2m @ 570ppm Li from 169.2m (WF23-006); and • 22.9m @ 652ppm Li from 163.1m (WF23-013) • 35.1m @ 463ppm Li from 106.7m (WF23-001). WF23-011 was the last hole drilled in the programme located at the southern end of Western Flats and near to the Lone Mountain claim group lease boundary. The hole produced a thick intercept mineralisation of over 100m and also exhibited a significant high-grade component (29m @ 1,010ppm Li from 210.3m). The intercept remains open to the south and west, where there is sufficient potential for further Li mineralisation to be found. 10. ASX Announcement 7 March 2023 – Exploration Update: Nevada Lithium Project 11. ASX Announcement 13 April 2023 – High Grade Lithium Claystone Discovered in Nevada 12. ASX Announcement 4 August 2023 – Large Scale Lithium Discovery Confirmed in Nevada 12 | FBM Annual Report FIGURE 06 Western Flats, NLP – Drill Holes Location FBM Annual Report | 13 FIGURE 07 NLP - Drill Hole Locations at Western Flats and Lone Mountain FIGURE 08 Schematic Cross Section 4218530N- RC drill hole’s WF23-013-WF23-015 14 | FBM Annual Report New Claims During the reporting period, FBM staked new claims at the NLP, increasing the Company’s footprint by 50%. The two strategic land parcels have recently been proven to host multiple lithium bearing claystone units.13 The first parcel of land surrounds the San Antone East claim area (Figure 10). This area has now been expanded with an additional 128 contiguous claims. A second large land parcel to the north of Lone Mountain was also identified as being prospective given the recent drilling success of American Battery Technology Company (OTC Markets code: ABTC) where two phases of drilling have identified lithium (Li) bearing claystone with peak Li concentrations of 1,940ppm. A total of 253 contiguous claims were staked over the vacant area which is now known as Western Flats (Figure 11). In May 2023, the Company expanded its project area via the addition of 36 new claims located contiguous to Western Flats and Lone Mountain. Located on the western margin of the two prospect areas, the additional ground has increased FBM’s footprint in this highly prospective area of the NLP, increasing the opportunity to find additional mineralisation.14 FIGURE 09 FIGURE 10 NLP – Location of San Antone East Claims NLP - Location of Western Flats Claims 13. ASX Announcement 12 January 2023 – Strategic Claim Staking Increases Footprint at NLP 14. ASX Announcement 23 May 2023 – Phase 2 Drilling to Commence at Nevada Lithium Project FBM Annual Report | 15 FIGURE 11 NLP Prospects and New Claims 16 | FBM Annual Report Saints Nickel Project – 100% The Saints Nickel Project (Saints) is located in the Tier 1 nickel mining jurisdiction of the Norseman-Wiluna Greenstone Belt, Western Australia. The Project comprises of two mining leases covering an area of approximately 20km2 of prospective Archaean greenstone belt geology within the Eastern Goldfields province of the Yilgarn Craton. The Saints Nickel Project is located within the same rock sequence as the renowned Scotia nickel mine, which is situated 15km to the south of Saints. The Scotia mine, which ceased operation in July 1977, produced 30,800 tonnes of nickel with a nickel content of 2.2%. Mineral Resource Estimate (MRE) The updated Saints MRE was based on infill diamond drilling completed earlier this year and significantly increases the confidence level of the Resource, with two-thirds of the contained nickel metal being upgraded to the Indicated Resources category. In August 2022, the Company successfully completed an updated JORC 2012 Mineral Resource Estimate (MRE) for the Saints Nickel Project for 911kt @ 2.3% Ni for 20,995t of contained nickel metal.15 Table 1: Saints MRE (1% Ni Cut-off Grade) – August 2022 Indicated Mineral Resource Traditional Tonnage Kt Ni % Cu % Co % Ni t Cu t Co t 1 3.0 0.21 0.09 33 2 1 Fresh 552 2.5 0.19 0.08 13,530 1,055 432 Total 553 2.5 0.19 0.08 13,563 1,058 433 Tonnage Kt Ni % Ni t Cu t Co t Inferred Mineral Resource Cu % Co % Traditional 15 1.9 0.14 0.05 284 21 7 Fresh 343 2.1 0.14 0.06 7,147 492 191 Total 358 2.1 0.14 0.06 7,432 513 198 Total Mineral Resource Tonnage Kt Ni % Cu % Co % Ni t Cu t Co t Traditional 16 2.0 0.15 0.05 317 23 8 Fresh 895 2.3 0.17 0.07 20,677 1,547 623 Total 911 2.3 0.17 0.07 20,995 1,570 631 15. ASX Announcement 10 August 2022 – Saints Nickel Project – Resource Update FBM Annual Report | 17 FIGURE 12 Long section Saints MRE Scoping Study In April 2023, the Company released the Saints Scoping Study, which demonstrated potentially strong financial metrics for the Saints Nickel Project based on a relatively low pre-production capital cost of A$8.6M. Based on the key assumptions of the Base Case scenario, the project payback is modelled to occur within only 12 months of development from a 5-year Life of Mine (LOM).16 Metric Description The Scoping Study describes a decline accessing the Resource that is subsequently mined underground via conventional short lift open stoping. The mined rock is then trucked to surface, and then trucked on public roads to a third-party concentrator. The Company considers the Saints Nickel Project to be technically low risk given the simple mine plan drawing from the majority Indicated Resource and the high processing metal recoveries. The Scoping Study also outlines the initial baseline environmental works that have been carried out to date to progress the Saints Nickel Project along its approval pathway. Nickel Price (LOM avg) US$24,160 Copper Price (LOM avg) US$8,300 Cobalt Price (LOM avg) US$37,460 FX US:AUD (LOM avg) US$0.682 Met Recovery Ni 85% Met Recovery Cu 95% Met Recovery Co 85% Payability Ni 75% Payability Cu 50% Payability Co 25% Royalty (Vendor & State) Pre-tax NPV (@ 8%) Internal Rate of Return (IRR) 362 Capex (including Sustaining) 10.68M OPEX 8.30 16. ASX Announcement 11 April 2023 – Saints Nickel Project Delivers Positive Scoping Study 18 | FBM Annual Report 6 $55.7M Nepean Nickel Project – 80% Sale of Nepean During the reporting period, the Company successfully completed the sale of the Nepean Nickel Project to Rocktivity Nepean Pty Ltd for a total cash consideration of $10 million. The Nepean Nickel Project consist of tenements M15/709, M15/1809 and P15/5750 (Sale Tenements), and, importantly, the Sale Tenements do not include the Kangaroo Hills Lithium Project (KHLP).17 An initial cash consideration of $2.7 million (FBM: $2.16 million) was received upon completion in June 2023, in addition to the $100,000 deposit received on signing, with the remaining deferred consideration of $7.2 million (FBM – 100%) payable as follows: • $2.7 million payable 12 months from Completion of the Transaction (June 2024); • $2.5 million payable 18 months from Completion of the Transaction (Dec 2024); and • $2 million payable 24 months from Completion of the Transaction (June 2025). Leinster Nickel Project – 100% The Leinster Nickel Project is located approximately 40kms southeast of the township of Leinster and approximately 60kms northnorthwest of Leonora in Western Australia. The project area is situated between the Goldfields Highway and the Leonora-Agnew Road and is close to the Eastern Goldfields Gas Pipeline. No significant work was completed at the Leinster Nickel Project during the reporting period. Arden REE-Copper-Zinc Project – 90% Located some 3.5 hours’ drive north from Adelaide, the 90% owned Arden Project boasts a large relatively unexplored area of 1,664km² highly-prospective for sedimentary-exhalative (SEDEX) mineralisation. Results from initial exploration at Ragless Range, Kanyaka and Radford Creek targets have unearthed promising prospects for large scale copper and zinc deposits. The project is located in the base-metal mining region of South Australia, which is host to numerous large base-metal deposits including the Beltana zinc deposit, the Angas zinc deposit and the Kanmantoo copper deposit. Rare Earth Elements (REE) Exploration The Company completed desktop studies of the Arden Project utilising high-resolution airborne magnetics flown in 2018, all historic surface geochemistry data and the mapped geology to identify two priority areas for potential Rare Earth Elements (REE) mineralisation, the Hawker REE Prospect and the Kanyaka Copper-REE Prospect. At both prospects, the interpreted airborne magnetics shows potential for covered mafic diapirs and diapiric brecciation, which are considered to be an important source and potential host rock of REE mineralisation, respectively. Assays from rock-chip samples taken in 2018 from historic trenches and shallow workings identified anomalous REE mineralisation at the Kanyaka Copper-REE Prospect, with values up to 1330.59ppm, 556.54ppm and 388.99ppm Total Rare Earth Oxides (TREO). 17. ASX Announcement 9 May 2023 – Sale of Nepean Nickel Project for $10m in Cash FBM Annual Report | 19 FIGURE 13 Map of the Arden Project showing prospect locations Rock Chip Sampling During the reporting period, the Company commenced field exploration to investigate the REE potential at the Arden Project, with mapping, rock-chip sampling and the first phase of soilsampling completed over priority areas identified as being highly prospective for REE mineralisation. Assays were received for nine rock-chip samples collected during the August 2022 field work. The results are highly encouraging, with anomalous TREO results up to 362ppm, confirming the REE prospectivity at the Hawker and Kanyaka prospect areas. Furthermore, the results have identified a third area that is prospective for REE mineralisation called Mt Arden, with results up to 588ppm TREO and up to 8% Cu from samples of brecciated rock at surface.18 18. ASX Announcement 19 October 2022 – Rock-Chip Results Confirm Copper and Rare Earths Potential at Arden 20 | FBM Annual Report Bonaventura Project – 100% The Bonaventura Project comprises a large exploration package of 415km² in the northern part of Kangaroo Island and covers highly prospective geology and historic mines along 55km of strike of the regional scale CygnetSnelling Fault. Bonaventura has four zinc – copper targets, Dewrang, Vinco, Grainger and Kohinoor. No significant work was completed at the Bonaventura Project during the reporting period. Torrens East Copper Project – 100% Future Battery Minerals’s Torrens East Copper Project comprises two exploration tenements covering a combined area of 1,622km² and is considered highly-prospective for IOCG (iron oxide copper–gold) mineralisation. No significant work was completed at the Torrens East Copper Project during the reporting period. Corporate Board and Management Changes Mr Aidan Platel resigned from his position of Managing Director and Chief Executive Officer of the Company to pursue other opportunities, effective from 3 January 2023.19 Mr Robin Cox was appointed to the FBM Board as Technical Director of the Company, effective from 1 January 2023. 20 Ms Silfia Morton was appointed as a JointCompany Secretary, replacing Mr Cameron O’Brien, effective from 1 December 2022. On 15 March 2023, the Company announced that Mr Michael Edwards, Executive Chairman, is now undertaking his role on a full-time basis. The Company appointed mining engineer, Mr Paul Brown, as a Non-Executive Director of the Company, effective from 1 July 2023. 21 Company Name Change Following shareholder approval at a General Meeting held on 3 February 2023 and the completion of filing with ASIC, the change of Company name from Auroch Minerals Limited to Future Battery Minerals Limited was completed during the reporting period. The ASX also completed the change of ASX ticker code from AOU to FBM. 22 19. ASX Announcement 3 November 2022 – Executive Management Changes 20 ASX Announcement 23 December 2022 – Technical Director Appointment 21. ASX Announcement 26 June 2023 – Appointment of Non-Executive Director 22. ASX Announcement 27 March 2023 – Change of Company Name FBM Annual Report | 21 Directors' Report Directors' Rep