FLAGSHIP MINERALS LIMITED — Capital/Financing Update 2021

Dec 2, 2021

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ASX Announcement | December 03, 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:

• RKDD023: from 72.95m to 121.4m hosts 27.9m of composite mineralisation @ 0.70% Li2O

Incl. 14.15m @ 0.81% Li2O , 590ppm Sn, 117ppm Ta2O5,, 305ppm Cs, 0.28% Rb and 2.75% K from 107.25m-121.4m.

• RKDD024: from 65.15m to 122.65m hosts 38.05m of composite mineralisation @ 0.56% Li2O

• Incl. 10.15m @ 0.93% Li2O , 741ppm Sn, 105ppm Ta2O5, 309ppm Cs, 0.32% Rb and 2.71% K from 112.5m to 122.65m.

• RKDD025: from 19.15m to 67.4m hosts 27.75m of composite mineralisation @ 0.54% Li2O

• Incl. 6.45m @ 0.84% Li2O , 460ppm Sn, 66ppm Ta2O5, 307ppm Cs, 0.27% Rb and 2.18% K from 28.05m to 34.5m.

• RKDD026: from 11.95m to 50.45m hosts 22.8m of composite mineralisation @ 0.84% Li2O

Incl. 10.50m @ 0.93% Li2O , 340ppm Sn, 98ppm Ta2O5, 455ppm Cs, 0.27% Rb and 2.97% K from 35.5m to 46m.

• Results confirm extensive lithium mineralised zone with robust thickness and grades.

• Intersected Li2O grades are in-line with other lithium mica projects in the global peer group.

• Tin, tantalum rubidium, cesium and potassium mineralisation occur in association with lithium, and are all potentially valuable by-products. Intersected grades are in line with global peer group.

• Drilling is ongoing at Reung Kiet.

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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• Assay results for holes RKDD027-030 are expected shortly and will be reported as they become available.

• 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.

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: “We continue to be very satisfied with the assay results we are seeing. Our infill and extensional drilling continues to reward us with great success and the prospective zone at Reung Kiet Prospect still remains open to the north and south and at depth on many sections. The assay results we have received compare favourably with the lithium mica peer group and we are 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.”

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

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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).

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

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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 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).

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 RKDD023 to RKDD026.

Collar details for these and other relevant holes are provided in Table 1 - Reung Kiet Drill hole Collars, located in Appendix 1. 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.

As outlined in those announcements, all holes have returned zones of lithium mineralisation associated with 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

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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 South Prospect, drill collars, sections and surface geochemistry

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The whole 1km long trend remains open to the north, south and down dip on many sections. Additional infill and extensional drilling is 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.

In this report drillholes RKDD023-RKDD026 are discussed, and cross sections are presented as shown in Figure 2. Other drillholes that have been drilled on these sections, but for which assay results are awaited are also discussed.

On Section B, at the southern end of the prospect, RKDD023 was drilled to test and infill the drill spacing in between drillholes RKDD009 and RKDD015 (see Figure 2).

RKDD023 intersected numerous pegmatites from 19m-170.4m. The bulk of lithium containing pegmatites occurred in a swarm from 72.95 to 149.3m (see Figure 3). Individual pegmatites range up to 9.4m wide. In the zone from 72.95m to 121.4m a composite width of 27.9m of mineralisation averaging 0.70% Li2O was intersected. Better intersections include 7.9m @ 0.70% Li2O from 83m and 14.15m @ 0.81% Li2O from 107.25m including 8.4m @ 1.16% Li2O from 113m (see Table 2). Lithium mineralisation occurs in association with accessory Sn, Ta, Cs, Rb and K (see Table 2). These are all potential by-products.

Drillhole RKDD042 was drilled up-dip of RKDD023 and serves as a nearer surface infill hole. RKDD042 intersected the dyke swarm from 4.9m to 105.45m, with the main part of the swarm from 27.5m to 56m in which 14.7m of composite mineralisation was intersected. Individual dykes range up to 4.6m wide (see Figure 3). The mineralisation is weathered, with lepidolite visible in many sections of pegmatite. Additional narrow pegmatites also occur up and downhole from the central part of the dyke swarm (see Figure 3)

This drilled section supports the current interpretation of the pegmatite swarm. Importantly mineralisation remains open beneath the intersections in RKDD023.

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Figure 3. Section B showing RKDD023 and RKDD042.

On Section D, RKDD024 and 25 were drilled as infill holes between previous 100m spaced sections (see Figure 2). Both holes intersected the extensive pegmatite dyke and vein swarm containing lithium mineralisation and associated accessory elements, with lower grade mineralisation extending into adjacent meta-siltstone (see Table 2). The two drillholes define a zone approximately 70m wide which contains numerous sub-zones of higher grade mineralisation (see Figure 4).

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Figure 4. Section D showing RKDD024 RKDD025

The mineralized zone remains open down dip of RKDD024 where the best intersection returned 10.15m @ 0.93% Li2O. A deeper hole is planned to test the mineralisation further down-dip.

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On Section F, RKDD026 was drilled as a near surface infill hole. The hole intersected numerous zones of mineralisation from 5.9m to 74.35m (see Table 2). The best intersection was 10.5m @0.93% Li2O from 35.5m (see Figure 5).

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Figure 5. Section F showing RKDD026, RKDD038 and RKDD039.

Additional drillholes RKDD038 and 039 have since been drilled on this section in order to test and extend the mineralised zone down dip and provide infill for holes drilled

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to north and south (see Figure 2). Assays are awaited for holes 038 and 039, however, both holes intersected extensive pegmatite dyke and vein swarm (see Figure 5). The deepest hole, RKDD039, intersected three (3) main zones of pegmatite. From 112.5m to 232.1m a total of 44.95m of composite pegmatite thickness was recorded in these three zones. Lepidolite occurs in varying concentrations within the pegmatites.. Spot handheld XRF conducted on the drill core, has identified lithium indicator elements rubidium and cesium as well as tantalum and tin in identified zones of lepidolite mineralisation.

On this section and others at RK South it appears that pegmatite thickness and overall swarm density maybe increasing with depth. Further drilling is required to test this model.

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.

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 (mag)	Tot.Depth (m)
RKDD023	433237	918007	19.6	-60	310	175
RKDD024	433307	918080	30.6	-60	310	204
RKDD025	433235	918131	43.4	-60	310	110
RKDD026	433293	918215	44.6	-55	308	98
RKDD038	433328	918190	40.1	-60	310	156
RKDD039	433372	918148	49	-65	310	240
RKDD042	433184	918068	35	-65	290	110

Table 2 – RK Drilling Assay Results

Hole ID	from	to	interval	Li2O	Sn	Ta2O5	Cs	Rb	K
	(m)	(m)	(m)	(%)	(ppm)	(ppm)	(ppm)	(%)	(%)
RKDD023
	44.20	44.90	0.70	0.62	520	71	165	0.27	3.12
RKDD023
	72.95	76.00	3.05	0.61	820	136	184	0.30	3.12
RKDD023
	83.00	90.90	7.90	0.70	440	110	309	0.24	2.97
RKDD023
	83.00	87.25	4.25	1.05	815	121	326	0.36	2.78
RKDD023
	97.00	98.00	1.00	0.24	125	21	427	0.10	2.57
RKDD023
	99.20	101.00	1.80	0.21	65	18	361	0.07	2.37
RKDD023
	107.25	121.40	14.15	0.81	590	117	305	0.28	2.75
RKDD023
	113.00	121.40	8.40	1.16	840	140	355	0.40	2.97
RKDD023
	124.50	125.90	1.40	0.51	610	132	192	0.27	3.34
RKDD023
	130.10	130.35	0.25	0.66	770	280	418	0.44	2.41
RKDD023
	148.10	149.30	1.20	0.50	530	342	402	0.30	3.27
RKDD024
	44.55	45.50	0.95	0.74	610	125	214	0.32	2.67
RKDD024
	65.15	65.55	0.40	0.37	1490	220	219	0.3	3.07
RKDD024
	70.00	71.10	1.10	0.56	688	80	272	0.26	2.81
RKDD024
	75.00	75.60	0.60	0.27	155	89	221	0.11	3.12

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Hole ID	from	to	interval	Li2O	Sn	Ta2O5	Cs	Rb	K
	(m)	(m)	(m)	(%)	(ppm)	(ppm)	(ppm)	(%)	(%)
RKDD024
	78.35	84.40	6.05	0.50	365	54	209	0.18	2.6
RKDD024
	89.50	102.00	12.50	0.41	211	39	230	0.14	2.36
RKDD024
	104.00	109.80	5.80	0.47	327	54	353	0.18	2.61
RKDD024
	104.85	106.30	1.45	0.90	725	115	427	0.33	2.86
RKDD024
	112.50	122.65	10.15	0.93	741	105	309	0.32	2.71
RKDD024
	129.70	132.15	2.45	0.30	499	98	279	0.18	3.1
RKDD024
	133.70	134.90	1.20	0.21	524	210	485	0.14	2.98
RKDD024
	143.50	145.70	2.20	1.11	510	223	580	0.35	2.61
RKDD024
	147.80	148.20	0.40	0.87	523	280	455	0.39	3.56
RKDD024
	179.45	180.85	1.40	0.58	689	110	175	0.29	3.06
RKDD024
	186.25	187.00	0.75	0.41	178	23	442	0.32	3.00
RKDD024
	199.75	200.70	0.95	0.39	664	111	155	0.23	2.77
RKDD025
	1.00	5.90	4.90	0.37	135	84	185	0.15	1.14
RKDD025
	9.00	9.90	0.90	1.05	321	182	503	0.39	2.5
RKDD025
	19.15	24.05	4.90	0.69	471	146	384	0.27	1.86
RKDD025
	28.05	34.50	6.00	0.84	460	66	307	0.27	2.18
RKDD025
	44.25	51.20	6.95	0.47	372	100	329	0.24	3.22
RKDD025
	45.70	48.60	2.90	0.82	482	141	399	0.35	3.24
RKDD025
	55.90	65.10	9.20	0.31	230	86	270	0.15	2.98
RKDD025
	66.70	67.40	0.70	0.51	273	151	265	0.22	2.42
RKDD025
	70.40	72.30	1.90	0.48	167	61	206	0.14	2.87
RKDD025
	74.00	79.00	5.00	0.36	105	54	403	0.15	3.01
RKDD026
	5.90	6.55	0.65	0.30	659	396	184	0.14	1.3
RKDD026
	11.95	13.00	1.05	1.08	917	234	415	0.47	3.02
RKDD026
	15.20	16.30	1.10	0.81	748	199	378	0.32	2.29
RKDD026
	18.60	19.40	0.80	1.16	594	287	658	0.39	2.61
RKDD026
	21.00	24.10	3.10	0.81	549	85	272	0.23	83
RKDD026
	26.40	29.90	3.50	0.45	260	81	261	0.15	1.69
RKDD026
	35.50	46.00	10.50	0.93	340	98	455	0.27	2.97

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Hole ID	from	to	interval (m)	Li2O (%)	Sn (ppm)	Ta2O5 (ppm)	Cs (ppm)	Rb	K
	(m)	(m)						(%)	(%)
RKDD026			6.45	1.25	460	131	513
	36.45	42.90						0.37	3.16
RKDD026			2.75	0.87	340	143	546
	47.70	50.45						0.28	2.34
RKDD026			3.90	0.21	25	7	223
	54.00	57.90						0.05	2.44
RKDD026			1.10	0.42	410	155	666
	63.00	64.10						0.22	3.77
RKDD026			0.70	0.30	100	88	400
	67.40	68.10						0.07	3.88
RKDD026			0.55	0.32	92	121	594
	68.75	69.30						0.10	3.73
RKDD026			3.85	0.24	990	125	363
	70.50	74.35						0.10	2.94

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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
		reportsQA/QCparticle size analysis for crushed and

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Criteria	JORC Code explanation	Commentary
	QAQC procedures for all sub-sampling stages to	pulverised samples. The laboratory also reports
	maximise representivity of samples.	results for internal standards, duplicates, prep
	Measures taken to ensure sampling is representative of the material collected, e.g. results for field duplicate/second-half sampling.	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.	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 ageKhaoPo graniteintrudesinto

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Criteria		JORC Code explanation	Commentary
			Palaeozoic age Phuket Group sediments along the
			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.

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Criteria	JORC Code explanation	Commentary
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
	Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas (if not	grade mineralisation. This may later lead to deeper/step out drilling should geological controls on higher grade zones be identified.
	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
		results for internal standards, duplicates, prep
		duplicates and blanks. Pan Asiahas collected ¼ core

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Criteria	JORC Code explanation	Commentary
	Measures taken to ensure sampling is representative	pairs. Comparison of results indicate excellent
	of the material collected, e.g. results for field	agreement between Li2O grades from each ¼ pair.
	duplicate/second-half sampling.	The sample weights average 2.6kg. This is considered
	Whether sample sizes are appropriate to the grain size	appropriate for the material being sampled.
	of 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.

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Criteria		JORC Code explanation	Commentary
		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
			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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