FLAGSHIP MINERALS LIMITED — Capital/Financing Update 2021

Dec 6, 2021

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ASX Announcement | December 07, 2021

Drilling Update Reung Kiet Lithium Prospect, Thailand

HIGHLIGHTS

• Positive assay results from another four (4) holes completed at the Reung Kiet Lithium Project in southern Thailand.

• Results include:

• RKDD027: from 6.9m to 64m hosts 26.35m of composite mineralisation @ 0.84% Li2O.

Incl. 6.40m @ 0.51% Li2O , 406ppm Sn, 263ppm Ta2O5, 821ppm Cs, 0.39% Rb and 2.90% K from 55.80m to 64.20m,

• and 10.6m @ 1.24% Li2O , 540ppm Sn, 144ppm Ta2O5, 400ppm Cs, 0.43% Rb and 3.21% K from 28.3m-38.9m.

• RKDD028: from 66m to 68m @ 0.51% Li2O, 667ppm Sn, 70ppm Ta2O5, 127ppm Cs, 0.22% Rb and 2.61% K.

• RKDD029: from 61m to 73.2m hosts 12.2m @ 0.66% Li2O, 970ppm Sn, 117ppm Ta2O5, 209ppm Cs, 0.31% Rb and 3.03% K.

• RKDD030: from 11.0m to 83.8m hosts 35.35m of composite mineralisation @ 0.65% Li2O.

Incl. 20.7m @ 0.66% Li2O , 1149ppm Sn, 128ppm Ta2O5, 216ppm Cs, 0.35% Rb and 2.66% K from 46.2m to 66.9m,

  - _and_ 8.25m @ 0.52% Li2O _, 981ppm Sn, 98ppm Ta2O5, 186ppm Cs, 0.28% Rb and 2.76% K from 72m to 80.25m._

• Tin, tantalum rubidium, cesium and potassium mineralisation occur in association with lithium, and are identified as lithium indicator elements in spot hand-held XRF analysis of drill core.

• Drilling is ongoing at Reung Kiet.

• Assay results for holes RKDD031-035 are expected by year end.

• Samples from holes RKDD036-042 have recently been dispatched to the

• laboratory.

• Mineral Resources and Exploration Targets anticipated 1[st] Quarter, 2022, followed by a Scoping Study.

PAN ASIA METALS LIMITED

Level 3, 8 Robinson Road, ASO Building, Singapore, 048544 Level 23, 52 Thaniya Plaza, Silom Road, Bangrak, Bangkok, 10500 www.panasiametals.com

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Specialty metals explorer and developer Pan Asia Metals Limited (ASX: PAM) (‘PAM’ or ‘the Company’) is pleased to provide an update for four (4) more drill holes completed at the Reung Kiet lithium prospect in southwest Thailand. These new holes and the results from previously reported holes continue to support the geological model of extensive lithium mineralisation hosted in lepidolite rich pegmatite dykesveins and adjacent metasediments. The mineralised zone is currently defined over a strike length of 1km, which remains open along strike to the north and south, and at depth on many sections.

Pan Asia Metals Managing Director Paul Lock said: “As per our recent release we continue to be very satisfied with the results we are seeing, which compare very favourably with the lithium mica peer group. We remain on track to deliver a Mineral Resource in 1[st] Quarter 2022. Our drilling results suggest that a 10,000 tonne per annum lithium chemical plant is a realistic objective. Once delivered we of course will be seeking to expand on this with further targets identified in the Reung Kiet blocks as well as in our nearby Kata Thong blocks which are currently under application.”

The Reung Kiet Lithium Project (RKLP) is one of PAM’s key assets. RKLP is a hard rock lithium project with lithium hosted in lepidolite/mica rich pegmatites chiefly composed of quartz, albite, lepidolite and muscovite, with minor cassiterite and tantalite as well as other accessory minerals including some rare earths. Previous open pit mining extracting tin from the weathered pegmatites was conducted into the early 1970’s.

PAM’s objective is to continue drilling with the aim of reporting a Mineral Resource in accordance with the JORC Code 2012. The Mineral Resource will be used as part of a Scoping Study that plans to consider initial production of up to 10,000tpa of LCE and associated by-products. PAM is focusing on lepidolite as a source of lithium as peer group studies indicate that lithium carbonate and lithium hydroxide projects using lepidolite as their plant feedstock have the potential to be placed at the bottom of the cost curve. Lepidolite has also been demonstrated to have a lower carbon emission intensity than other lithium sources.

Reung Kiet Prospect (RK)

The RK Prospect was a relatively large open cut tin mine. The old pit is about 500m long and up to 125m wide (see Figure 1).

Mining of the weathered pegmatites extended up to 25m below surface, to the top of hard rock. Pan Asia has identified a prospective zone at least 1km long in association with extensive surface indications of lithium in trenching, rock-chips and

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soil anomalies, which are now supported by drilling results along the whole of the trend. Lithium mineralisation remains open to the north and south and at depth on many sections (see Figure 1).

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Figure 1. Reung Kiet Prospect, Phang Nga Province, southern Thailand

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Reung Kiet Prospect - Drilling

Pan Asia Metals has been drilling at the Reung Kiet Lithium prospect since mid-March, 2021. PAM has recently received assay results for drillholes RKDD027 to RKDD030.

Collar details for these and other relevant holes are provided in Table 1 - Reung Kiet Drillhole Collars, located in Appendix 1. Assay intersections are presented in Table 2. Further technical details are provided in Appendix 2, being JORC Table 1. Appropriate plans and sections are provided throughout this report.

Assay results for holes RKDD006-012 were previously reported in PAM ASX Announcement dated June 29 and titled “Drilling Update Reung Kiet Lithium Prospect, Thailand”. Assay results for holes RKDD013-015 were reported in PAM ASX Announcement dated August 16 and titled “Drilling Update Reung Kiet Lithium Prospect, Thailand”. Assay results from drillholes RKDD016-022 were reported in PAM ASX Announcement on Sept. 14 titled “Drilling Update-Reung Kiet Lithium Prospect”. Assay results for drillholes RKDD023-026 were reported in recent PAM ASX Announcement on December 3[rd] titled “Drilling Update-Reung Kiet Lithium Prospect”.

As outlined in those announcements, many drillholes have returned zones of lithium mineralisation associated with a swarm of lepidolite rich pegmatite dykes and veins and adjacent altered siltstone.

Technical Discussion

The RK pegmatite trend is divided into two main parts, RK North and RK South, each about 500m long (see Figure 1). RK North includes the old open cut and immediate surrounds. RK South extends along strike to the southeast and encompasses a prominent knoll.

At RK North the pegmatite dykes and veins dip at 65-70 degrees to the south-east. The Main dyke intersected in drilling beneath the pit can be up to 30m wide, narrower dykes and veins also occur, particularly to the east. At RK South the pegmatites form a dyke and vein swarm that dips at angles of 60 to 30 degrees. The pegmatite dykes and veins at RK South are typically more numerous when compared to RK North. The dykes and veins host the bulk of the lithium mineralisation however, it is relatively common for adjacent and intercalated meta-siltstone to contain lithium above the cut-off grade selected.

Along the whole trend from west to east the pegmatite swarm at RK South is approximately 100m wide and may taper slightly to the northeast as RK North is approached (see Figure 2).

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Figure 2. Reung Kiet Prospect, drill collars, sections and surface geochemistry

The whole 1km long trend remains open to the north, south and down dip on many sections. Additional infill and extensional drilling are being undertaken. Drill spacings are designed with the aim of estimating Mineral Resources. With continued success PAM expects to report Mineral Resources in 1[st] Quarter, 2022.

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In this report assay results for drillholes RKDD027-RKDD030 are discussed, and cross sections are presented as shown in Figure 2. Other holes that have been drilled on these sections, but for which assay results are awaited are also discussed.

On Section H, in the central parts of the mineralized trend RKDD027, 036 and 037 were drilled to infill the drill spacing in between drillholes on adjacent sections (see Figure 2).

RKDD027 intersected the pegmatite swarm from 4.2m to 122.6m. The best intersections included 10.6m @ 1.24% Li2O, 540ppm Sn, 144ppm Ta2O5, 400ppm Cs, 0.43% Rb and 3.21% K from 28.3m-38.9m, and 6.40m @ 0.51% Li2O, 406ppm Sn, 263ppm Ta2O5, 821ppm Cs, 0.39% Rb and 2.90% K from 55.80m to 64.20m (see Figure 3). Several other zones of mineralisation are also present in the drillhole (see Table 2). This includes 5m @ 0.86% Li2O from 6.9m.

Drillhole RKDD036 was to test for mineralisation down-dip of RKDD027. RKDD036 intersected the dyke swarm from 48m to 242m. The main part of the swarm occurred from 104m to 223m in which 44.5m of composite pegmatite was intersected. Individual dykes range up to 6.9m wide (see Figure 3). Lepidolite is visible in variable amounts through many sections of pegmatite. Spot hand-held XRF of the drill core has yielded elevated readings for lithium indicator elements such as Rb, Cs and Mn. Additional narrow pegmatites also occur up and downhole from the central part of the dyke swarm (see Figure 3).

Drill RKDD037 was drilled as an infill hole between RKDD027 and 036. In RKDD037 the main part of the pegmatite swarm occurs from approximately 54-154m. This section hosts 29.2m of composite pegmatite thickness, in two main zones from 5470m and 114-154m (see Figure 3). The pegmatites within these intervals contain varying amounts of lepidolite. Spot hand-held XRF of the drill core has returned elevated readings for lithium indicator elements such as Rb, Cs and Mn which are generally associated with lepidolite bearing pegmatites.

This drilled section supports the current interpretation of a wide zone which contains a swarm of pegmatite veins and dykes. Importantly the pegmatite swarm remains open at depth beneath RKDD036.

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Figure 3. Section H showing RKDD027 , RKDD036 and RKDD037.

On Section J, RKDD028 and 035 were drilled as infill holes between previous 100m spaced sections (see Figure 2). RKDD028 intersected generally narrow pegmatites with patchy Li2O grades (see Table 2). RKDD035 intersected the main part of the pegmatite swarm from 104-223m, which hosted a composite pegmatite thickness of 44.5m. Spot hand-held XRF indicates that many of the pegmatites intersected contain elevated lithium indicator elements such as Rb, Cs, Mn as well as Sn and Ta.

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The two drillholes on this section serve to define a zone approximately 110m wide which contains numerous pegmatite veins and dykes (see Figure 4). Assays are awaited for RKDD035 and these results will determine the potential for depth extensions and subsequent drill targeting.

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Figure 4. Section J showing RKDD028 and RKDD035

On Section N, RKDD029 and 040 were targeting mineralisation beneath the old open cut and were drilled as infill holes between previously 100m spaced sections (see

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Figure 2). RKDD029 intersected pegmatite from 49.49m-73.2m, which hosted 12.2m @ 0.66% Li2O from 61m-73.2m (see Figure 5). This zone also contained 0.10% Sn and 117ppm Ta2O5. The remaining pegmatite above this zone from 49.95m-61m returned 13.05m 0.07% Li2O, 0.10% Sn and 113ppm Ta2O5. Cs, Rb and K are also elevated in both intersections (see Table 2).

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Figure 5. Section N showing RKDD029 and RKDD040.

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RKDD040 was drilled to test the down-dip extension of the mineralized zone in RKDD029 and intersected the main pegmatite zone from approximately 116m-157m which contained composite pegmatite thickness of 31.9m. Spot hand-held XRF analysis of pegmatites in this zone commonly returned elevated values for lithium indicator elements Rb, Cs, Mn, Sn and Ta. This was repeated in the narrower pegmatites that occurred above the main zone (see Figure 5). Assays for RKDD040 are expected in early 2022.

On section P holes RKDD030 and 041 were drilled as infill holes targeting mineralisation beneath the old open cut (see Figure 2). RKDD030 retuned several intervals containing lithium and related mineralisation including 20.7m @ 0.69% Li2O from 46.2m and 8.25m @ 0.52% Li2O from 72m (see Figure 6). These zones of mineralisation also contained elevated Sn, Ta, Cs, Rb and K (see Table 2). RKDD030 was drilled to 136m to test for a deeper footwall pegmatite. This target was not intersected.

RKDD041 was drilled to test for mineralisation down-dip of RKDD030. RKDD041 intersected the main pegmatite zone from approximately 108m-140m, which contained a composite pegmatite thickness of 25.1m. Spot hand-held XRF of pegmatites in this zone commonly returned elevated values for lithium indicator elements Rb, Cs, Mn, Sn and Ta. Assays for RKDD041 are expected in early 2022. Additional drilling targeting the pegmatite zone down-dip of RKDD041 maybe warranted subject to assay results.

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Figure 6. Section P showing RKDD030 and RKDD041.

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Forward planning

PAM has further drill holes planned at both the Reung Kiet and Bang I Tum lithium prospects, with the aim of defining Mineral Resources and Exploration Targets. At Reung Kiet drilling will focus on deeper holes at RK South seeking to extend higher grade zones down-dip. Further drilling will also target potential for mineralisation north of the old pit as well as geochemical targets on the eastern and western side of RK South.

The Company looks forward to keeping Shareholders and the market updated on the drilling progress and results obtained from the drilling program at the Reung Kiet Lithium Project.

Ends

Authorised by: Board of Directors

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About the Reung Kiet Lithium Project

The Reung Kiet Lithium Project is a lepidolite style lithium project located about 70km north-east of Phuket in the Phang Nga Province in southern Thailand. Pan Asia holds a 100% interest in 3 contiguous Special Prospecting Licences (SPL) and 1 Exclusive Prospecting License Application covering about 40km².

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Regional map: Location of Phang Nga and the Reung Kiet Lithium Project

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About Pan Asia Metals Limited (ASX:PAM)

Pan Asia Metals Limited (ASX:PAM) is a battery and critical metals explorer and developer focused on the identification and development of projects in Asia that have the potential to position Pan Asia Metals to produce metal compounds and other value-added products that are in high demand in the region.

Pan Asia Metals currently owns three lithium projects and two tungsten projects. Four of the five projects are located in Thailand fitting Pan Asia Metal’s strategy of developing downstream value-add opportunities situated in low-cost environments proximal to end market users.

Complementing Pan Asia Metal’s existing project portfolio is a target generation program which identifies desirable assets in the region. Through the program, Pan Asia Metals has a pipeline of target opportunities which are at various stages of consideration. In the years ahead, Pan Asia Metals plans to develop its existing projects while also expanding its portfolio via targeted and value-accretive acquisitions.

To learn more, please visit: www.panasiametals.com

Stay up to date with the latest news by connecting with PAM on LinkedIn and Twitter.

Investor and Media Enquiries

Paul Lock Anthony Thompson Pan Asia Metals Limited Viriathus Capital Pty Ltd Managing Director 1300 509 924 paul.lock@panasiametals.com investors@viriathus.com.au

Stay up to date and be informed by scanning this QR Code, we will deliver the latest news and updates directly to you.

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Competent Persons Statement

The information in this Public Report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr David Hobby, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Hobby is an employee, Director and Shareholder of Pan Asia Metals Limited. Mr Hobby has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Hobby consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward Looking Statements

Various statements in this document constitute statements relating to intentions, future acts and events which are generally classified as “forward looking statements”. These forward looking statements are not guarantees or predictions of future performance and involve known and unknown risks, uncertainties and other important factors (many of which are beyond the Company’s control) that could cause those future acts, events and circumstances to differ materially from what is presented or implicitly portrayed in this document. For example, future reserves or resources or exploration targets described in this document may be based, in part, on market prices that may vary significantly from current levels. These variations may materially affect the timing or feasibility of particular developments. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “potential” and similar expressions are intended to identify forward-looking statements. Pan Asia Metals cautions security holders and prospective security holders to not place undue reliance on these forward-looking statements, which reflect the view of Pan Asia Metals only as of the date of this document. The forwardlooking statements made in this document relate only to events as of the date on which the statements are made. Except as required by applicable regulations or by law, Pan Asia Metals does not undertake any obligation to publicly update or review any forward-looking statements, whether as a result of new information or future events. Past performance cannot be relied on as a guide to future performance.

Important

To the extent permitted by law, PAM and its officers, employees, related bodies corporate and agents (Agents) disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of PAM and/or any of its Agents) for any loss or damage suffered by a Recipient or other persons arising out of, or in connection with, any use or reliance on this document or information.

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APPENDIX 1

Table 1 - Reung Kiet Drill hole collars

Hole ID	East	North	mASL	Dip	Azimuth	Tot.Depth (m)
					(mag)
RKDD027	433362	918288	31.4	-55	310	125.5
RKDD028	433381	918388	12.7	-55	308	78
RKDD029	433498	918576	13.0	-60	307	85
RKDD030	433543	918658	8.5	-65	310	95
RKDD035	433486	918300	16.7	-55.0	310.2	250.1
RKDD036	433435	918217	24.9	-53.6	311.8	230.5
RKDD037	433395	918250	25.3	-54.3	310.2	167.9

Table 2 – RK Drilling Assay Results

Hole ID	from	to	interval (m)	Li2O	Sn	Ta2O5	Cs	Rb	K
	(m)	(m)		(%)	(ppm)	(ppm)	(ppm)	(%)	(%)
RKDD027			1.30
	3.00	4.30		0.39	172	78	165	0.15	1.03
RKDD027			5.00
	6.90	11.90		0.86	445	136	367	0.31	1.86
RKDD027			3.00
	6.90	8.90		1.38	355	142	378	0.31	1.81
RKDD027			0.40
	25.50	25.90		1.01	489	255	576	0.42	2.74
RKDD027			10.60
	28.30	38.90		1.24	540	144	400	0.43	3.21
RKDD027			3.95
	43.85	47.80		0.27	187	90	380	0.10	2.76
RKDD027			6.40
	55.80	64.20		0.51	406	263	821	0.39	2.90
RKDD027			2.30
	59.60	61.90		1.07	468	468	1583	0.92	3.13
RKDD027			1.85
	69.30	71.15		0.33	217	70	326	0.15	2.88
RKDD027			0.60
	84.20	84.80		0.63	583	88	222	0.27	2.74
RKDD027			2.25
	115.25	117.50		0.34	683	103	128	0.20	2.70
RKDD028			0.95
	33.40	34.35		0.51	683	131	184	0.24	2.77
RKDD028			2.80
	48.00	50.80		0.001	630	145	18	0.05	2.77
RKDD028			0.60
	59.10	59.70		0.68	550	96	172	0.26	2.52
RKDD028			2.00
	66.00	68.00		0.51	667	70	122	0.22	2.61

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Hole ID	from	to	interval (m)	Li2O (%)	Sn (ppm)	Ta2O5 (ppm)	Cs (ppm)	Rb	K
	(m)	(m)						(%)	(%)
RKDD029			11.05	0.07	960	113	45
	49.95	61.00						0.14	3.33
RKDD029			12.20	0.66	970	117	209
	61.00	73.20						0.31	3.03
RKDD030			5.30	0.60	382	84	220
	11.00	16.30						0.24	1.86
RKDD030			0.90	1.32	496	256	489
	15.40	16.30						0.54	3.59
RKDD030			20.70	0.69	1149	128	216
	46.20	66.90						0.35	2.66
RKDD030			6.00	0.89	1072	164	285
	59.00	65.00						0.40	2.55
RKDD030			8.25	0.52	981	98	186
	72.00	80.25						0.28	2.76
RKDD030			1.30	1.13	782	242	419
	82.50	83.80						0.45	2.16

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APPENDIX 2 - JORC Code, 2012 Edition – Table 1

PAM Lithium Projects. Drilling

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling	Nature and quality of sampling (eg cut channels,	Cut drillcore samples were selected in order to
techniques	random chips, downhole gamma sondes, handheld	ascertain the degree of lithium enrichment. The
	XRF instruments, etc).	samples are representative of the lithium
	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	mineralisation within the samples collected. Drillcore is subjected to spot analysis by hand held XRF at intervals of around 0.3-0.5m within and adjacent to pegmatite dykes. The quality of this
	Aspects of determination of mineralisation that are	sampling is not representative of the core as a whole
	Material to the Report (eg ‘RC drilling used to obtain	and so the results are viewed as preliminary
	1m samples from which 3kg was pulverised to produce	indications of the grade of target elements.
	a 30g charge for fire assay’; or where there is coarse gold that has inherent sampling problems).	Certified Reference Material is routinely analysed to ensure the XRF is operating accurately and/or
		precisely.
		The mineralisation is contained within alpo-
		pegmatites. Half HQ3 or NQ3 samples were used with
		sample weights of 2.5kg-3.5kg and average sample
		interval is 0.99m. The whole sample was fine crushed,
		and then split to obtain a 0.5-1kg sub-sample all of
		which is pulverised to provide the assay pulp.
Drilling	Drill type (eg core, reverse circulation, etc) and details	All holes are diamond core from surface. HQ and NQ
techniques	(eg core diameter, triple tube, depth of diamond tails,	triple tube diameters were employed. The core was
	face-sampling bit, whether core is oriented; if so, by	oriented using the spear method, as directed by the rig
	what method, etc).	geologist.
Drill	Method of recording and assessing core and chip	Drill core recovery is recorded for every drill run by
sample	sample recoveries and results assessed.	measuring recovered solid core length over the actual
recovery	Measures taken to maximise sample recovery,	drilled length for that run.
	ensuring representative nature of samples.	Triple tube drill methods were used to assist with
	Is sample recovery and grade related; has sample bias occurred due to preferential loss/gain of fine/coarse	maximising sample recovery especially in the weathered zone.
	material?	Sample recovery through the mineralised zones
		averages 96%, so little bias would be anticipated.
Logging	Have core/chip samples been	.
	geologically/geotechnically logged to a level of detail	The drill core was geologically logged at sufficient
	to support appropriate resource estimation, mining	detail. Geotechnical logging was limited to contact
	studies and metallurgical studies.	zones and major structures.
	Is logging qualitative or quantitative in nature. Core (or	The logging is mostly qualitative in nature, with some
	costean, channel, etc) photography.	quantitative data recorded. Photographs of each core
	The total length and percentage of the relevant intersections logged.	tray wet and dry, and of wet cut core were taken. The total length of core logged..
Sub-	If core, cut or sawn and whether quarter, half or all core	All core for sampling was cut in half with a diamond
sampling	taken.	saw. Some samples were cut as ¼ core from the
techniques and sample	If non-core, riffled, tube sampled etc and sampled wet or dry?	original half core, for QA/QC. The sample preparation technique is industry standard, fine crush to 70% less than 2mm. A sub-
	For all sample types, nature, quality and appropriateness of sample preparation technique.	sample of 0.5-1kg or 100% of sample weight if less than 1kg is obtained via rotary splitting. This sample is pulverised to 85% passing 75 microns. The laboratory
	QAQC procedures for all sub-sampling stages to	reports QA/QC particle size analysis for crushed and
	maximise representivity of samples.	pulverised samples. The laboratory also reports

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Criteria	JORC Code explanation		Commentary
	Measures taken to ensure sampling is representative		results for internal standards, duplicates, prep
	of the material collected, e.g. results for field		duplicates and blanks. Pan Asia has collected ¼ core
	duplicate/second-half sampling.		pairs. Comparison of results indicate excellent
	Whether sample sizes are appropriate to the grain size		agreement between Li2O grades from each ¼ pair.
	of the material being sampled.		The sample weights average 2.8kg. This is considered
			appropriate for the material being sampled.
Quality of	Nature, quality and appropriateness of	the assaying	Analysis in by ALS Method ME-MS89L, which uses a
assay data	and laboratory procedures used;	whether the	sodium peroxide digestion with ICP finish, all by ALS
and	technique is considered partial or total.		Chemex in Vancouver or Perth. The method is
laboratory tests	For geophysical tools, spectrometers, handheld XRF instruments etc, parameters used in determining the analysis including instrument make and model,		considered a total technique. Multielement analysis is done by sodium peroxide digestion with ICP-MS finish with 49 elements reported.
	reading times, calibrations factors applied, their derivation, etc.		The laboratory reports results for internal standards, duplicates, prep duplicates and blanks. PAM has
	Nature of QAQC procedures adopted (eg standards,		conducted ¼ sampling and re-analysis of sample
	blanks, duplicates, external laboratory checks);		pulps utilising different digestion and assay methods,
	whether acceptable accuracy levels (ie	lack of bias) /	Pan Asia inserts its own internal Li “standards” as
	precision established.		pulps and blanks as 0.5kg. Both the lab QA/QC and
			additional PAM data indicate acceptable levels of
			accuracy and precision for Li assays, PAM has only
			utilised internal ALS QA/QC for the multielement data.
			For spot hhXRF analysis, an Olympus Vanta+ X-Ray
			Flourescence analyser in Geochem3_extra mode,
			with analysis for 30 seconds. Li cannot be analysed by
			hhXRF. However, Rb, Cs, Mn, show good correlation
			with lab reported Li results. Other elements of interest
			such as Sn. Ta and Nb are also recorded by hhXRF
			as well as many others. Certified standards are
			routinely analysed.
Verification	Verification of significant intersections by independent		Sample results have been checked by company
of sampling and assaying	/ alternative company personnel. The use of twinned holes. Documentation of primary data,	data entry	Chief Geologist and Senior Geologist. Li mineralisation is associated with visual zones of distinctively coloured lepidolite.
	procedures, data verification, data storage (physical		Assays reported as Excel xls files and secure pdf files.
	and electronic) protocols.
	Discuss any adjustment to assay data.		Data entry carried out both manually and digitally by Geologists. To minimize transcription errors field
			documentation procedures and database validation
			are conducted to ensure that field and assay data are
			merged accurately.
			The adjustments applied to assay data for reporting
			purposes:
			Li x 2.153 to convert to Li to Li2O. Ta is converted to
			Ta2O5,by multiplying Ta by 1.221.
Location of	Accuracy and quality of surveys used	to locate drill	Drill hole locations up to RKDD038 are derived from
data points	holes (collar and down-hole surveys), trenches, mine		DGPS_,_with_a_pproximately 10cm accuracy. RKDD039
	workings etc used in estimation.		and onwards are sited by handheld GPS with accuracy
	Specification of grid system used.		of 2-5m in XY. The Z value is derived from topographic model with 1m accuracy.
	Quality and adequacy of topographic control.		All locations reported are UTM WGS84 Zone 47N.

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Criteria		JORC Code explanation	Commentary
Data		Data spacing for reporting of Exploration Results.	The drilling was conducted on variably spaced
spacing and distribution		Is data spacing and distribution sufficient to establish degree of geological and grade continuity appropriate for Resource / Reserve estimation procedure(s) and	sections with holes 50-100m apart on section, with two holes on many sections giving down-dip separations of about 50-100m between holes.
		classifications applied?	Resources or reserves are not being reported.
		Whether sample compositing has been applied.
			Sample compositing relates to reporting total
			aggregate pegmatite thickness, over a drilled interval.
			Grades are then reported byweighted average.
Orientation		Does the orientation of sampling achieve unbiased	The sampling of half core and ¼ core supports the
of data	in	sampling of possible structures; extent to which this is	unbiased nature of the sampling.
relation	to	known/understood.
geological structure		If relationship between drilling orientation and orientation of mineralised structures has introduced a	The drill holes reported are drilled normal or very near normal to the strike of the mineralised zone.
		sampling bias, this should be assessed and reported
		if material.
Sample		The measures taken to ensure sample security.	Samples are securely packaged and transported by by
security			company personnel or reputable carrier to the Thai-
			Laos border, where ALS laboratory personnel take
			delivery or the samples are on forwarded to ALS Laos.
			Pulp samples for analysis are then air freighted to
			Vancouver or Perth in accordance with laboratory
			protocols.
Audits	or	The results of any audits or reviews of sampling	No formal audits conducted at this stage of the
reviews		techniques and data.	exploration program.

Section 2 Reporting of Exploration Results

Criteria	Criteria	JORC Code explanation		Commentary
Mineral		Type, reference name/number,	location and	Three contiguous Special Prospecting Licences
tenement and		ownership including agreements or	material issues	(JSPL1, 2 and 3) covering an area of 48sq km are
land	tenure	with third parties such as joint ventures, partnerships,		registered to Thai company Siam Industrial Metals
status		overriding royalties, native title interests, historical		Co. Ltd. (SIM). Pan Asia Metals holds 100% of SIM
		sites, wilderness or national park and environmental		located 60km north of Phuket in southern Thailand.
		settings.		The tenure is secure and there are no known
		The security of the tenure held at the time of reporting along with any known impediments to		impediments to obtaining a licence to operate, aside from normal considerations.
		obtaining a licence to operate in the area.
Exploration		Acknowledgment and appraisal of	exploration by	The Institute of Geological Sciences, a precursor of
done by other		other parties.		the British Geological Survey (BGS) in the late
parties				1960’s conducted geological mapping, documenting
				old workings, surface geochemical sampling, mill
				concentrates and tailings sampling and metallurgical
				test work on the pegmatite then being mined at
				Reung Kiet. This work appears to be of high quality
				and is in general agreement with Pan Asia’s work.
				In 2014 ECR Minerals reported Li results for rock
				samples collected in Reung Kiet project area. The
				locations and other details of the samples were not
				reported. But the samples showed elevated Li
				contents.
Geology		Deposit type, geological setting	and style of	The project is located in the Western Province of the
		mineralisation.		South-East Asia Tin Tungsten Belt. The Reung
				project area sits adjacent and sub-parallel to the
				regionally extensive NE trending Phangnga fault.
				The Cretaceous age Khao Po granite intrudes into
				Palaeozoic agePhuket Group sediments along the

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Criteria		JORC Code explanation	Commentary
			fault zone, Tertiary aged LCT pegmatite dyke
			swarms intrude parallel to the fault zone.
Drillhole		A summary of information material to the	Drillhole information and intersections are reported in
Information		understanding of the exploration results including a	tabulated from within the public report.
		tabulation for all Material drill holes of:
		• easting and northing of the drill hole collar
		• elevation or RL (Reduced Level – elevation above
		sea level in meters) of the drill hole collar
		• dip and azimuth of the hole
		• downhole length and interception depth
		• hole length.
		If exclusion of this information is not Material, the
		Competent Person should clearly explain why this is
		the case.
Data		Weighting averaging techniques, maximum/	Intersections are reported at > 0.2% Li2O, and may
aggregation		minimum grade cutting and cut-off grades are	rarely, allow for internal dilution of < 0.2% Li2O. No
methods		Material and should be stated.	top cut has been applied.
		Where compositing short lengths of high grade results and longer lengths of low grade results, compositing procedure to be stated; typical	Higher grade zones within the bulk lower grade zones are reported, where material.
		examples of such aggregations to be shown in detail.
		Assumptions for metal equivalent values to be clearly
		stated.
Relationship		These relationships are particularly important in the	Intercept lengths are reported as downhole length.
between		reporting of Exploration Results.
mineralisation widths and intercept		If mineralisation geometry with respect to the drillhole angle is known, its nature should be reported.	The mineralised zones dip around 65-55 degrees southeast. Holes were drilled at -55 to -65 degrees
lengths		If it is not known and only down hole lengths are reported, a clear statement to this effect is required (eg ‘down hole length, true width not known’).	towards the northwest (normal to strike). The true width of the mineralisation reported is around 75- 90% of the reported downhole width.
Diagrams		Appropriate maps and sections (with scales) and	Appropriate plans and sections are provided in the
		tabulations of intercepts to be included for any	public report.
		significant discovery. These to include (not be limited
		to) plan view of collar locations and appropriate
		sectional views.
Balanced		Where comprehensive reporting of all Exploration	Results are reported for every drillhole, that are
reporting		Results is not practicable, representative reporting of	above cut-off grade. Some results below Li2O cut-off
		both low and high grades and/or widths should be	grade are reported to assist interpretation.
		practiced to avoid misleading reporting of Exploration
		Results.
Other		Other exploration data, if meaningful and material,	The drilling results reported are from holes targeting
substantive		should be reported including (but not limited to):	mineralisation beneath and along strike from an old
exploration		geological observations; geophysical survey results;	open cut. Soil, rock-chip and trench sampling by Pan
data		geochemical survey results; bulk samples – size and	Asia indicate additional mineralisation is present
		method of treatment; metallurgical test results; bulk	along trend to the south, where drillholes are also
		density, groundwater, geotechnical and rock	reported Weaker surface Li anomalism is also
		characteristics; potential deleterious or	present immediately north of the pit. The whole
		contaminating substances.	mineralised trend at RK are potentially 1km or more.
			Garson et al 1969 conducted work on concentrates,
			tailings and met test-work on a sample taken from the
			mine. This work was positive, no deleterious
			substanceshave been identified to date.
Further work		The nature and scale of planned further work (eg	Planned further work will include drilling especially
		tests for lateral extensions or depth extensions or	along strike to the south. Infill drilling is also planned
		large-scale step-out drilling).	around existing holes that have intersected higher
			grademineralisation. Thismaylater lead to

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Criteria	JORC Code explanation	Commentary
	Diagrams clearly highlighting the areas of possible	deeper/step out drilling should geological controls on
	extensions, including the main geological	higher grade zones be identified.
	interpretations and future drilling areas (if not
	commercially sensitive).
Criteria	JORC Code explanation	Commentary
Sampling	Nature and quality of sampling (eg cut channels,	Cut drillcore samples were selected in order to
techniques	random chips, downhole gamma sondes, handheld	ascertain the degree of lithium enrichment and The
	XRF instruments, etc).	samples are representative of the lithium
	Include reference to measures taken to ensure sample	mineralisation within the samples collected.
	representivity and the appropriate calibration of any
	measurement tools or systems used.	The mineralisation is contained within alpo-
	Aspects of determination of mineralisation that are Material to the Report (eg ‘RC drilling used to obtain 1m samples from which 3kg was pulverised to produce a 30g charge for fire assay’; or where there is coarse gold that has inherent sampling problems).	pegmatites. Half HQ3 or NQ3 samples were used average sample weight of 2.5kg-3.5kg and average sample interval was 0.99m. The whole sample was fine crushed, and then split to obtain a 0.5-1kg sub- sample all of which is pulverised to provide the assay pulp.
Drilling	Drill type (eg core, reverse circulation, etc) and details	All holes are diamond core from surface. HQ and NQ
techniques	(eg core diameter, triple tube, depth of diamond tails,	triple tube diameters were employed. The core was
	face-sampling bit, whether core is oriented; if so, by	oriented using the spear method, as directed by the rig
	what method, etc).	geologist.
Drill	Method of recording and assessing core and chip	Drill core recovery is recorded for every drill run by
sample	sample recoveries and results assessed.	measuring recovered solid core length over the actual
recovery	Measures taken to maximise sample recovery,	drilled length for that run.
	ensuring representative nature of samples.	Triple tube drill methods were used to assist with
	Is sample recovery and grade related; has sample bias occurred due to preferential loss/gain of fine/coarse	maximising sample recovery especially in the weathered zone.
	material?	Sample recovery through the mineralised zones
		averages 97%, so little bias would be anticipated.
Logging	Have core/chip samples been	.
	geologically/geotechnically logged to a level of detail	The drill core was geologically logged at sufficient
	to support appropriate resource estimation, mining	detail. Geotechnical logging was limited to contact
	studies and metallurgical studies.	zones and major structures.
	Is logging qualitative or quantitative in nature. Core (or	The logging is mostly qualitative in nature, with some
	costean, channel, etc) photography.	quantitative data recorded. Photographs of each core
	The total length and percentage of the relevant intersections logged.	tray wet and dry, and of wet cut core were taken. The total length of core logged..
Sub-	If core, cut or sawn and whether quarter, half or all core	All core for sampling was cut in half with a diamond
sampling	taken.	saw. Some samples were cut as ¼ core from the
techniques and sample	If non-core, riffled, tube sampled etc and sampled wet or dry?	original half core, for QA/QC. The sample preparation technique is industry standard, fine crush to 70% less than 2mm. A sub-
	For all sample types, nature, quality and appropriateness of sample preparation technique.	sample of 0.5-1kg or 100% of sample weight if less than 1kg is obtained via rotary splitting. This sample is pulverised to 85% passing 75 microns. The laboratory
	QAQC procedures for all sub-sampling stages to	reports QA/QC particle size analysis for crushed and
	maximise representivity of samples.	pulverised samples. The laboratory also reports
	Measures taken to ensure sampling is representative of the material collected, e.g. results for field duplicate/second-half sampling.	results for internal standards, duplicates, prep duplicates and blanks. Pan Asia has collected ¼ core pairs. Comparison of results indicate excellent agreement between Li2O grades from each ¼ pair.
	Whether sample sizes are appropriate to the grain size
	of the material being sampled.

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Criteria	JORC Code explanation	Commentary
		The sample weights average 2.6kg. This is considered
		appropriate for the material being sampled.
Quality of	Nature, quality and appropriateness of the assaying	Assaying is performed by ALS Method ME-MS89L
assay data	and laboratory procedures used; whether the	which is a sodium peroxide digestion with ICP finish,
and	technique is considered partial or total.	all by ALS Chemex in Vancouver or Perth. The method
laboratory tests	For geophysical tools, spectrometers, handheld XRF instruments etc, parameters used in determining the	is considered a total technique. Multielement analysis with 49 elements is also reported,
	analysis including instrument make and model, reading times, calibrations factors applied, their derivation, etc.	The laboratory reports results for internal standards, duplicates, prep duplicates and blanks. PAM has conducted ¼ sampling and re-analysis of sample
	Nature of QAQC procedures adopted (eg standards,	pulps utilising different digestion and assay methods,
	blanks, duplicates, external laboratory checks);	Pan Asia inserts its own internal Li “standards” as
	whether acceptable accuracy levels (ie lack of bias) /	pulps and blanks as 0.5kg. Both the lab QA/QC and
	precision established.	additional PAM data indicate acceptable levels of
		accuracy and precision for Li assays, PAM has only
		utilised internal ALS QA/QC for the multielement data..
Verification	Verification of significant intersections by independent	Sample results have been checked by company
of sampling and assaying	/ alternative company personnel. The use of twinned holes. Documentation of primary data, data entry	Chief Geologist and Senior Geologist. Li mineralisation is associated with visual zones of distinctively coloured lepidolite.
	procedures, data verification, data storage (physical	Assays reported as Excel xls files and secure pdf files.
	and electronic) protocols.
	Discuss any adjustment to assay data.	Data entry carried out both manually and digitally by Geologists. To minimize transcription errors field
		documentation procedures and database validation
		are conducted to ensure that field and assay data are
		merged accurately.
		The adjustments applied to assay data for reporting
		purposes:
		Li x 2.153 to convert to Li to Li2O and Ta x 1,221 to
		convert Ta to Ta2O5.
Location of	Accuracy and quality of surveys used to locate drill	Drill hole locations are derived from hand held GPS_,_
data points	holes (collar and down-hole surveys), trenches, mine	with_a_pproximately 2-5m accuracy, sufficient for this
	workings etc used in estimation.	type of reconnaissance drilling.
	Specification of grid system used.	All locations reported are UTM WGS84 Zone 47N.
	Quality and adequacy of topographic control.	Topographic locations interpreted from Thai base
		topographyin conjunction with GPS results.
Data	Data spacing for reporting of Exploration Results.	The drilling was conducted on variably spaced
spacing and distribution	Is data spacing and distribution sufficient to establish degree of geological and grade continuity appropriate for Resource / Reserve estimation procedure(s) and	sections with holes 50-100m apart on section, with two holes on many sections giving down-dip separations of about 70-100m between holes.
	classifications applied?	Resources or reserves are not being reported.
	Whether sample compositing has been applied.
		Sample compositingwas not applied
Orientation	Does the orientation of sampling achieve unbiased	The sampling of half core and ¼ core supports the
of data in	sampling of possible structures; extent to which this is	unbiased nature of the sampling.
relation to	known/understood.
geological structure	If relationship between drilling orientation and orientation of mineralised structures has introduced a	The drill holes reported are drilled normal or near normal to the strike of the mineralised zone.
	sampling bias, this should be assessed and reported
	if material.
Sample	The measures taken to ensure sample security.	Samples are securely packaged and transported by by
security		company personnel or reputable carrier to the Thai-
		Laos border,where ALS laboratory personnel took

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Criteria		JORC Code explanation	Commentary
			delivery or the samples are on forwarded to ALS Laos.
			Pulp samples for analysis are then air freighted to
			Vancouver or Perth in accordance with laboratory
			protocols.
Audits	or	The results of any audits or reviews of sampling	No formal audits conducted at this stage of the
reviews		techniques and data.	exploration program.

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