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FTEL.CN ·

First Tellurium Increases Private Placement; Closes First Tranche

Financings

FORM 51-102F3

MATERIAL CHANGE REPORT

1. Name and Address of Company:

First Tellurium Corp.

381 – 1440 Garden Place

Delta, BC V4M 3Z2

2. Date of Material Change:

October 15, 2021

3. Press Release:

A News Release dated and issued on October 15, 2021 at Vancouver, BC, through Executive Business

Services and SEDAR.

4. Summary of Material Change:

First Tellurium Announces Increase to Non-Brokered Private Placement; Closes First Tranche

5. Full Description of Material Change:

See news release, a copy of which is attached hereto

6. Reliance on Subsection 7.1(2) of the National Instrument 51-102 Continuous Disclosure Obligations:

Not applicable.

7. Omitted Information:

Not applicable.

8. Executive Officer Knowledgeable of Material Change:

Tyrone Docherty, President and CEO

Telephone: (604) 789-5653

9. Date of Report:

October 15, 2021

FIRST TELLURIUM

CORP.

THIS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR

DISSEMINATION IN THE UNITED STATES

First Tellurium Announces Increase to

Non-Brokered Private Placement; Closes First Tranche

Vancouver, BC, Canada, October 15, 2021 – First Tellurium Corp. (CSE: FTEL) (the “Company”

or “First Tellurium”), announces that further to its press release of October 4, 2021, it is increasing

its non-brokered private placement (the “ Offering”) such that it proposes to now raise up to

$2,000,000 through the sale of up to 25,000,000 units at a price of $0.08/unit. Each unit consists

of one common share and one common share purchase warrant exercisable at $0.12 per warrant

share for a period of two years from the date of issue of such warrants. The Company may pay a

finder’s fee consisting of cash, shares and/or warrants to eligible finders as permitted under

applicable securities laws and CSE policies. Proceeds from this Offering will be used for

exploration programs on the Company’s properties, to pay outstanding accounts payable and for

unallocated working capital.

1st Tranche Close

First Tellurium also announces that it has closed the first tranche (the “ First Tranche ”) of this

Offering. Under the First Tranche, the Company has issued 5,825,000 units for gross proceeds of

$466,000. No commissions or finder’s fees were paid in connection with the First Tranche closing.

All securities issued under this First Tranche closing are subject to a hold period expiring

February 16, 2022, in accordance with applicable securities laws and the policies of the CSE.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in

the United States of America. The securities have not been and will not be registered under the United States

Securities Act of 1933 (the “1933 Act”) or any state securities laws and may not be offered or sold within the

United States or to U.S. Persons (as defined in the 1933 Act) unless registered under the 1933 Act and

applicable state securities laws, or an exemption from such registration is available.

About First Tellurium Corp.

First Tellurium’s unique business model is based on leveraging diverse partnerships to generate

revenue and value. Working with Indigenous peoples, NGOs, governments and industry, First

Tellurium explores for metals in British Columbia and helps indigenous communities grow and

thrive through various industrial, social and environmental ventures.

First Tellurium proudly adheres to and supports the principles and rights set out in the United

Nations Declaration on the Rights of Indigenous Peoples and in particular the fundamental

proposition of free, prior and informed consent. First Tellurium has been a vocal advocate of the

BC Declaration on the Rights of Indigenous Peoples Act since its introduction and passage in the

Essential Metals for a

Sustainable Future

CSE: FTEL

www.firsttellurium.com

British Columbia legislature in November 2019. First Tellurium also supports federal Bill C-15, the

United Nations Declaration on the Rights of Indigenous Peoples Act.

On behalf of the board of directors of

First Tellurium Corp.

“Tyrone Docherty”

Tyrone Docherty

President and CEO

For further information please contact:

Tyrone Docherty

604.789.5653

[email protected]

Neither the Canadian Securities Exchange nor its regulations services accept responsibility for the adequacy or

accuracy of this release.

Forward-looking information

All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in

the future are forward-looking statements. These forward-looking statements involve numerous assumptions made by the Company based on its experience,

perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition,

these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and

other forward-looking statements will prove inaccurate, certain of which are beyond the Company’s control. Readers should not place undue reliance on forward-

looking statements. Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date hereof or revise

them to reflect the occurrence of future unanticipated event.