FLAGSHIP MINERALS LIMITED — Capital/Financing Update 2021

Sep 27, 2021

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ASX Announcement | September 28, 2021

More thick pegmatites intersected Reung Kiet Lithium Prospect, Thailand

HIGHLIGHTS

• Drilling continues to intersect pegmatite dykes and vein swarms

• Results include:

• RKDD034: 71.55m of composite pegmatite thickness, the bulk of which comprises:

  • § 24.8m of composite pegmatite thickness in 28.7m from 173.5m-202.3m, and

  • § 39.55m of composite pegmatite thickness in 46.8m from 238.5m-285.3m.

• RKDD033: 31.4m of composite pegmatite thickness in 68m from 25.15m-93.15m

• o RKDD032: 6.65m of composite pegmatite thickness in 9.1m from 98.6m-107.7m

• New thick pegmatite dykes in hole RKDD034 indicate a coalescing and thickening of pegmatites at depth

• Spot hand-held XRF analysis of RKDD034 drill core has identified lithium indicator elements Rb, Cs and Mn as well as elevated levels on Sn and Ta in much of the pegmatite

• Pegmatite intersected in RKD032 remains open north of the pit and at depth

• Pegmatite intersected in RKDD033 remains open at depth

• Lithium associated with lepidolite (lithium mica) in pegmatite dykes and veins

• Pegmatite trend is ~1km long, and remains open to the north, south and at depth

• Drillholes being processed and samples being readied for dispatch

• Drillhole samples for holes RKDD023-RKDD030 now at the laboratory

• Drilling is ongoing at Reung Kiet, will soon progress to Bang I Tum lithium prospect

• Mineral Resource estimates and Scoping Study expected in 1[st] Quarter 2022

• Pan Asia is initially targeting low cost production of up to 10,000tpa LCE, plus byproducts, with a minimum 10 year mine life

Specialty metals explorer and developer Pan Asia Metals Limited (ASX: PAM) (‘PAM’ or ‘the Company’) is pleased to provide an update for three more drill holes completed at the Reung Kiet lithium prospect in southwest Thailand. These new holes

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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and the results from previously reported holes continue to support the geological model of extensive lithium mineralisation hosted in lepidolite rich pegmatite dykes and veins currently defined over a strike length of 1km, which remains open.

Pan Asia Metals Managing Director Paul Lock said: “We are quite satisfied with these drilling results and we are looking forward to receiving the assays, particularly so with the large intersections of visible cassiterite in hole RKDD034. The prospective zone at the Reung Kiet Prospect, which is at least 1km long, is now supported by drilling results along the whole trend and the lithium mineralisation remains open to the north and south and at depth on many sections. Our drilling success in conjunction with our recent capital raise led to our decision to target an increased Mineral Resource to supply a 10,000 tonne per annum lithium hydroxide or lithium carbonate plant for 10 plus years. This is double our earlier target. We are drilling more meters to deliver a larger inaugural Mineral Resource to support a larger Scoping Study, and we plan to deliver both in the 1[st] Quarter of CY22. Peer feasibility studies suggest that lepidolite is potentially the lowest cost source of lithium, and our location in Southeast Asia provides added advantages, including our lower cost environment, proximity to all required process inputs and a large selection of established and emerging lithium chemical consumers.”

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.

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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 Prospect, showing drilling, surface geochemistry and old pit.

Mining of the weathered pegmatites extended up to 30m below surface, to the top of hard rock. Pan Asia has identified a prospective zone at least 1km long in

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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 now completed thirty four (34) diamond core drill holes at RK for a total of 4,856m. Drilling is ongoing with holes RKDD032-034 now completed and being reported in this announcement.

Collar details for the holes being reported 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 the report.

These holes are currently being logged and sampled and will be dispatched for analysis when completed.

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 for holes RKDD016-022 were reported in PAM ASX Announcement dated September 14 and titled “Drilling Update – Reung Kiet Lithium Prospect”. Visual results for holes RKDD023-031 were reported in PAM ASX Announcement dated September 7 and titled “Thick pegmatites intersected 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.

PAM routinely conducts spot hhXRF analysis of pegmatites intersected and has identified lithium indicator elements rubidium (Rb), caesium (Cs) and manganese (Mn) occurring in close association with concentrations of lepidolite. Rb, Cs and Mn are known to occur within the crystal lattice of lepidolite, and it is Mn (manganese) that gives lepidolite it’s characteristic purple colour. The hhXRF results support observed lepidolite along with the presence of Sn and Ta in the pegmatites.

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

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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 65 to 30 degrees. The pegmatite dykes and veins at RK South are typically narrow but more numerous when compared to RK North. However, recent results from hole RKDD034 potentially indicating a thickening of pegmatite dykes at depth.

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

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 early2022.

In the discussion below, drillholes RKDD032-034 are discussed and cross sections are presented as shown in Figure 2. Photographs of some of the pegmatites intersected are also provided.

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

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Figure 3. Section K showing RKDD034 and other holes

On Section K, RKDD034 intersected significant zones of thick pegmatite dykes from 173.5m to 285.3m. In this 111.8m length of the hole a total of 71.55m of composite pegmatite thickness was intersected (see Figure 3). Most of the pegmatite occurred in two zones. The upper zone extends from 173.5m to 202.3m and contained 24.8m of pegmatite. Spot hhXRF of the pegmatites in the upper zone returned highly elevated Rb, Cs and Mn commonly associated with visible lepidolite. Elevated levels of Sn and

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Ta were also present and disseminated cassiterite was observed. A section of the lepidolite rich zones is shown Photo 1.

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Photo 1. RKDD034 from 174.9m to 189.3m, showing part of upper pegmatite

The lower zone contained 39.55m of composite pegmatite thickness from 238.5285.3m. Spot hhXRF of pegmatites in this zone contained only locally elevated lithium indicator elements Rb, Cs and Mn. The pegmatite also contains zones of fine-coarse grained disseminated cassiterite throughout much of the intersection with highly elevated Sn and Ta observed in spot hhXRF analysis. Lepidolite was only rarely observed throughout the lower zone. A ‘type’ section of the pegmatite is shown in Photo 2.

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Photo 2. RKDD034 from 238.5m to 265.1m, showing part of lower pegmatite

The results from hole RKDD034 indicate a significant thickening of the pegmatites extending down-dip of the intersections in hole RKDD011 (see Figure 4). This likely indicates a coalescing of separate dykes into larger individual dykes and potentially an overall thickening of the pegmatites at depth, as RKDD034 is the deepest intersection of pegmatite to date.

On Section L, RKDD033 was drilled to infill a gap in the drill pattern. The hole intersected an aggregate thickness of 31.4m of pegmatite over a 68m downhole interval from 25.15m. The Main Zone of pegmatite occurred from 66.1m to 93.15m and contained 17.3m of composite pegmatite thickness which is interpreted to extend down-dip from the old open cut (see Figure 4).

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Spot hhXRF is yet to be conducted on this hole. However, lepidolite is present in many sections of the hole (see Photo 3). The dykes intersected remain open down dip.

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Figure 4. Section L showing RKDD033.

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Photo 3. RKDD033 from 78.2m to 92.6m, showing pegmatite swarm with lepidolite.

On Section T, RKDD032 was drilled to test for pegmatite extensions at the northern end of the old pit (see Figure 2). The hole intersected 6.65m of composite pegmatite thickness in 9.1m from 98.6m-107.7m (see Figure 5). The pegmatites in the hole contain local zones of pale lepidolite (see Photo 4). Spot hhXRF is yet to be undertaken on this hole.

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Figure 5. Section T showing RKDD032.

The results from RKDD032 support an interpretation that the Main pegmatite either tapers out at its northern end, or alternatively it is offset by a fault. The pegmatite intersected in RKDD032 is in a position west of the interpreted Main Zone position (see Figure 2). This pegmatite is either a new pegmatite or the Main pegmatite which has been faulted into a new position. The new position occurs in the NW corner of the old pit and remains open to the north. Interestingly there is a Li-Rb in soil anomaly

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along strike of the pegmatite to the north of the pit (see Figure 2). This anomaly remains untested.

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Photo 4. RKDD032 from 97.4m to 108.2m, showing pegmatite swarm with pale lepidolite.

Government support

In late 2020 PAM was invited by the Chief Executive Officer of the Phang Nga Provincial Administrative Organisation (PAO), a Phang Nga Provincial Government coordinating body, to present PAM and the Reung Kiet Lithium Project. The meeting was called to assist the Phang Nga Provincial Government with their considerations for the potential establishment of mining and industrial development areas. Also present was the Chairman of the Phang Nga New Town Planning Committee, who conveyed the Committee’s support for the Reung Kiet Lithium Project. The PAO stated that it wants to ensure that the requirements of the Reung Kiet Lithium Project are incorporated into the Phang Nga New Town Planning Committee’s zoning plans to ensure that the project can progress should exploration and feasibility results prove positive. See PAM’s ASX announcement dated 21[st] October, 2020, and titled ‘Positive

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Discussions regarding Reung Kiet Lithium Project with Phang Nga Provincial Government’.

Forward planning

PAM has further drill holes planned at both the Reung Kiet and Bang I Tum lithium prospects, with a maiden Mineral Resource estimate and Scoping Study expected in 1st Quarter 2022.

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 40 km².

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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	Dip	Azimuth (mag)	mASL	Tot.Depth (m)
RKDD032	433675	918796	-60	299	10	120
RKDD033	433434	918442	-55	325	26	100
RKDD034	433530	918334	-65	310	24	292

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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 and 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 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
		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 (i.e. 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
		Fluorescence analyser in Geochem3_extra mode,
		with analysis for 30 seconds. Li cannot be analysed by
		hhXRF. However, Rb, Cs, Mn,K 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 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.

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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 70-100m 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
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 Pogranite intrudes into

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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 > 0.15% Li2O, and may
aggregation		minimum grade cutting and cut-off grades are	rarely, allow for internal dilution of < 0.15% 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 65-70 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
			substances have 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
	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.

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Criteria	JORC Code explanation	Commentary
	Whether sample sizes are appropriate to the grain size	The sample weights average 2.6kg. This is considered
	of the material being sampled.	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 (i.e. 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.

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Criteria		JORC Code explanation	Commentary
Sample		The measures taken to ensure sample security.	Samples are securely packaged and transported 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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