FLAGSHIP MINERALS LIMITED — Capital/Financing Update 2021

Sep 13, 2021

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ASX Announcement | September 14, 2021

Drilling Update Reung Kiet Lithium Prospect, Thailand

HIGHLIGHTS

• Positive assay results for another seven (7) holes completed at the Reung Kiet Lithium Project in southern Thailand.

• Results include:

• RKDD016: 13.5m @ 0.85% Li2O, 519ppm Cs, 2.31% K, 0.34% Rb, 571ppm Sn and 201ppm Ta2O from 2.8m

• RKDD017: from 0m to 47.7m, 10.85m of aggregate pegmatite thickness @ 1.23% Li2O, 562ppm Cs, 0.41% Rb, 2.70% K, 588ppm Sn and 193ppm Ta2O5

• RKDD018: from 1.5m to 44.8m, 14.0m of aggregate pegmatite thickness @ 0.84% Li2O, 335ppm Cs, 0.28% Rb, 2.16% K, 522ppm Sn and 197ppm Ta2O5

• RKDD019: from 2.8m to 29.3m, 7.65m of aggregate pegmatite thickness @ 1.61% Li2O, 587ppm Cs, 3.57% K, 0.55% Rb, 618ppm Sn and 201ppm Ta2O5

• RKDD022: 13.3m @ 0.53% Li2O, 186ppm Cs, 3.23% K, 0.32% Rb, 1103ppm Sn and 93ppm Ta2O5 from 126.5m

• Drilling has defined extensive pegmatite dyke-vein swarms containing lithium mineralisation associated with lepidolite (lithium mica).

• Swarm is up to 100m wide and contains numerous pegmatite veins and dykes up to 18m wide.

• Mineralised trend is approximately 1km long, remains open to the north, south and at depth.

• 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.

• Assay results for new holes RKDD023 and onwards will continue to be reported as

• they become available.

• Assay results for diamond tails on holes RKDD006-010 as well as infill and extensional sampling of those holes will also be reported when available.

• Mineral Resources and Exploration Targets anticipated in Quarter 1, 2022.

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 seven (7) 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 dykes and veins currently defined over a strike length of 1km, which remains open.

Pan Asia Metals Managing Director Paul Lock said: “We are very pleased with the assay results for drill holes RKDD016-022, with 5 of the 6 drill holes on the western side of the dyke swarm at RK South, confirming the trend’s continuation, and drill hole RKDD022 under RKDD002, which was drilled under the historical tin mining pit by PAM in 2019, confirming the continuation of the pegmatites at depth. In preparation for a Scoping Study to be delivered in Quarter 1, 2022, we are also measuring and reporting caesium (Cs), potassium (K), rubidium (Rb), tin (Sn) and tantalum (Ta2O5), all potentially valuable by-products. Not only have we seen Li2O grades up to 2.09% in these assays, but we have Cs grades at just under 1,000ppm, Rb up to 0.63%, Sn up to 1,408ppm and Ta2O5 up to 490ppm. This is all very encouraging when considered in the context of the broader peer group.”

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 Lithium Carbonate Equivalents (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 and the proximity of the Reung Kiet project to installed hydro electric power and the expected short transport routes may see the RKLP’s carbon intensity lower still.

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

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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).

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Figure 1. Reung Kiet South 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. PAM has received assay results for drillholes RKDD016 to RKDD022.

Collar details for these holes are provided in Table 1 - Reung Kiet Drill hole Collars, located in Appendix 1, and assay results are provided in Table 2 - RK Drilling Assay Results, also 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.

Assay results for holes RKDD006-012 were previously reported in PAM ASX Announcement dated June 29, 2021, and titled “Drilling Update Reung Kiet Lithium Prospect, Thailand”. Assay results for holes RKDD013-015 were reported in PAM ASX Announcement dated August 16, 2021 and titled “Drilling Update Reung Kiet Lithium Prospect, Thailand”. 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 65 to 30 degrees. The pegmatite dykes and veins at RK South are typically narrow but more numerous when compared to RK North.

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 a Scoping Study in Quarter 1, 2022.

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In the discussion below, drillholes RKDD016-RKDD022 are discussed and cross sections are presented as shown in Figure 2 and for RKDD022 in Figure 9.

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

On Section A, at the extreme southern end of the prospect, RKDD016 was drilled to test the western edge of the pegmatite swarm up-dip of hole RKDD009.

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RKDD016 intersected numerous pegmatites from 2.8m-58m, the bulk of which contain lithium mineralisation (see Figure 3). The near surface zone from 2.8m to 16.3m intersected 13.5m @ 0.85% Li2O, including 5.3m @ 1.18% Li2O from 11m (see Table 2, Appendix 1). The 13.5m wide zone also averaged 519ppm Cs, 2.31% K, 0.34% Rb, 571ppm Sn and 201ppm Ta2O5. Elevated Li2O throughout the rest of the hole is also associated with higher levels Cs, Rb, K, Sn and Ta mineralisation.

RKDD016 supports the current interpretation of the western margin of the pegmatite swarm. Importantly this section remains open to the south and would appear to extend into PAM’s Exploration Prospecting Licence Application 2/2564 (see Figure 2).

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Figure 3. Section A showing RKDD009 and RKDD016.

On Section C, RKDD017 was drilled to test the near surface western edge of the pegmatite dyke swarm up-dip of drillhole RKDD008 (see Figure 4).

RKDD017 intersected numerous zones of weathered pegmatite from surface to 78m. From 0m to 47.7m the hole contained 10.85m of aggregate pegmatite thickness with an average grade of 1.23% Li2O, 562ppm Cs, 0.41% Rb, 2.70% K, 588ppm Sn and 193ppm Ta2O5 (see Table 2, Appendix 1).

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Figure 4. Section C showing RKDD008, RKDD017 and RKDD015

On Section E, RKDD018 tested the near surface western boundary of the pegmatite swarm up-dip of hole RKDD007 (see Figure 5). From 1.5m to 44.8m RKDD018 intersected an aggregate thickness of 14.0m of mineralisation with an average grade of 0.84% Li2O, 335ppm Cs, 0.28% Rb, 2.16% K, 522ppm Sn and 197ppm Ta2O5.

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Figure 5. Section E showing, RKDD007, RKDD014 and RKDD018

On Section G drillhole RKDD019 tested the near surface western edge of the pegmatite swarm. Pegmatite dyke and veins were intersected from 2.8 to 92.1m (see Figure 6). The main part of the dyke swarm was intersected from 2.8m to 29.3m, with the aggregate width of pegmatite being 7.65m. This zone returned average grades of 1.61% Li2O, 587ppm Cs, 3.57% K, 0.55% Rb, 618ppm Sn and 201ppm Ta2O5 (see Table 2, Appendix 1). Additional pegmatite veins were intersected from 31m to 92m. These were generally narrow with isolated Li2O values.

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Figure 6. Section G showing RKDD006, RKDD013 and RKDD019

On Section I, RKDD020 was drilled on the western side of the pegmatite swarm, updip of RKDD010 (see Figure 7). RKDD020 intersected numerous narrow pegmatite veins and dykes from 2m to 60m. From 2-22.5m an aggregate width of 4.1m of weathered mineralized pegmatite returned an average grade of 0.53% Li2O, 402ppm Cs, 2.51% K, 0.14% Rb, 582ppm Sn and 257ppm Ta2O5.

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Figure 7. Section I showing RKDD010, RKDD012 and RKDD020.

On Section K, RKDD021 targeted the western side of the pegmatite swarm up-dip of hole RKDD011 (see Figure 8). RKDD021 intersected the pegmatite swarm from 22m to 43.5m which contained 8.1m of aggregate pegmatite thickness Assay results generally indicate broad zones of low to anomalous values of Li2O and related mineralisation, with the best intercept returning 3m @ 0.38% Li2O, 217ppm Cs, 2.85% K, 0.23% Rb, 314ppm Sn and 54ppm Ta2O5. (see Table 2, Appendix 1).

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Figure 8. Section K showing RKDD011 and RKDD021

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Figure 9. Reung Kiet North Prospect, drill collars, sections and surface geochemistry

Section O is located approximately in the middle portion of the old RK pit, as shown in Figure 9. RKDD022 was drilled to test for down-dip extensions to this mineralized zone in hole RKDD002 which was drilled in 2019 prior to PAM’s listing (see Figure 10). RKDD002 intersected 15.6m @ 0.82% Li2O in association with lepidolite pegmatite. RKDD022 intersected numerous pegmatites from 15.1m to 139.8m. The Main pegmatite occurred in several dykes from 107.5m to 139.8m (see Figure 10). A zone

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from 126.5m to 139.8m returned an intersection of 13.3m @ 0.53% Li2O, 186ppm Cs, 3.23% K, 0.32% Rb, 1103ppm Sn and 93ppm Ta2O5.

Numerous other intersections from 0.4m to 4m wide were also recorded. As well as lithium the pegmatites contain Cs, K, Rb, Sn and Ta, all of which are potentially valuable by-products (see Table 2, Appendix 1).

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Figure 10. Section I showing RKDD002 and RKDD022

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Government support

In October 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 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 Mineral Resources and Exploration Targets anticipated in Quarter 1, 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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Figure 11: 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 specialty metals explorer and developer focused on the identification and development of projects in South East 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 two tungsten projects and two lithium projects. Three of the four 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 in South East Asia 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 valueaccretive 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 Managing Director paul.lock@panasiametals.com

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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)
RKDD016	433107	918031	-65	290	10	81
RKDD017	433184	918143	-60	310	66	85
RKDD018	433239	918186	-55	310	78	97
RKDD019	433291	918259	-65	310	75	96
RKDD020	433358	918344	-65	310	53	75
RKDD021	433386	918441	-65	310	42	66
RKDD022	433565	918569	-55	310	17	157

Table 2 – RK Drilling Assay Results

Hole ID	from	to	interval	Li2O	Cs	K	Rb	Sn	Ta2O5
	(m)	(m)	(m)	(%)	(ppm)	(%)	(ppm)	(ppm)	(ppm)
RKDD016	2.80	16.30	13.50	0.85	519	2.31	0.34	571	201
RKDD016
	2.80	6.00	3.20	0.85	383	2.34	0.30	664	133
RKDD016
	6.85	8.80	1.95	1.31	550	2.78	0.43	549	214
RKDD016
	11.00	16.30	5.30	1.18	740	2.79	0.46	704	234
RKDD016	19.95	21.00	1.05	0.86	566	2.69	0.30	518	225
RKDD016	28.05	29.25	1.20	0.80	404	3.07	0.29	762	142
RKDD016	31.10	31.60	0.50	0.24	332	3.31	0.21	324	151
RKDD016	45.30	45.60	0.30	0.84	615	4.40	0.48	503	252
RKDD016	55.70	58.10	2.40	1.27	970	3.10	0.50	498	348
RKDD017	0.00	4.00	4.00	1.27	473	2.45	0.40	496	110
RKDD017	11.70	13.00	1.30	1.19	868	2.60	0.43	518	272
RKDD017	20.70	21.90	1.20	1.68	812	3.36	0.59	768	237
RKDD017	23.40	24.60	1.20	1.57	525	3.26	0.52	772	95
RKDD017	26.30	26.90	0.60	1.22	495	2.68	0.42	714	126

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Hole ID	from	to	interval	Li2O	Cs	K	Rb	Sn	Ta2O5
	(m)	(m)	(m)	(%)	(ppm)	(%)	(ppm)	(ppm)	(ppm)
RKDD017	27.75	28.00	0.25	0.80	405	1.90	0.28	797	411
RKDD017	37.20	37.50	0.30	0.21	220	2.17	0.16	843	208
RKDD017	45.70	47.70	2.00	0.92	504	2.73	0.27	499	330
RKDD017	52.00	53.50	1.50	0.23	445	2.70	0.10	181	57
RKDD017	75.65	77.50	1.85	0.11	248	3.02	0.19	362	297
RKDD017	82.00	85.00	3.00	0.04	98	2.62	0.05	77	3
RKDD018	1.50	2.10	0.60	1.67	520	3.42	0.61	468	139
RKDD018	5.90	7.50	1.60	1.05	357	2.18	0.32	369	110
RKDD018	11.00	13.50	2.50	0.67	1.9	0.23	0.04	158	222
RKDD018	25.20	26.00	0.80	0.14	89.1	1.16	0.11	713	214
RKDD018	26.80	27.40	0.60	0.11	60.8	1.09	0.09	893	204
RKDD018	29.60	31.00	1.40	0.97	372	2.86	0.31	455	169
RKDD018	33.30	34.50	1.20	0.59	253	2.35	0.27	949	227
RKDD018	35.40	38.10	2.70	0.87	485	2.87	0.35	511	172
RKDD018
	37.00	38.10	1.10	1.29	500	3.28	0.43	621	168
RKDD018	43.30	44.80	1.50	1.22	672	2.95	0.43	735	323
RKDD019	5.60	7.10	1.50	1.77	425	4.24	0.55	774	154
RKDD019	15.90	18.20	2.70	1.59	650	3.27	0.59	506	219
RKDD019	20.50	21.05	0.55	2.09	827	3.79	0.63	629	187
RKDD019	22.50	24.00	1.50	1.33	567	3.39	0.42	587	222
RKDD019	27.90	29.30	1.40	1.57	565	3.52	0.58	694	203
RKDD019	36.65	37.00	0.35	0.07	107	3.17	0.09	233	252
RKDD019	40.00	41.20	1.20	0.24	402	2.48	0.09	77	33
RKDD019	43.20	43.50	0.30	0.06	184	5.72	0.16	919	465
RKDD019	54.50	55.50	1.00	0.21	861	3.47	0.23	164	188
RKDD019	58.10	59.50	1.40	0.11	404	2.91	0.08	132	100
RKDD019	67.75	68.00	0.25	0.05	133	4.38	0.15	221	134
RKDD020	2.00	2.70	0.70	1.33	503	3.13	0.45	657	206
RKDD020	12.50	13.00	0.50	0.60	438	2.09	0.23	416	260

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Hole ID	from	to	interval	Li2O	Cs	K	Rb	Sn	Ta2O5
	(m)	(m)	(m)	(%)	(ppm)	(%)	(ppm)	(ppm)	(ppm)
RKDD020	15.60	16.00	0.40	0.79	680	2.35	0.34	534	491
RKDD020	17.20	19.00	1.80	0.29	349	2.18	0.16	307	234
RKDD020	21.80	22.50	0.70	0.14	252	3.12	0.16	1360	230
RKDD020	24.50	25.00	0.50	0.08	175	3.70	0.18	717	203
RKDD020	26.20	27.20	1.00	0.16	359	3.34	0.16	210	164
RKDD020	40.50	43.00	2.50	0.07	99	2.33	0.06	193	34
RKDD020	45.50	48.00	2.50	0.47	213	2.53	0.17	317	50
RKDD020
	46.20	47.40	1.20	0.83	250	2.45	0.31	624	103
RKDD020	59.50	62.80	3.30	0.04	66	2.40	0.13	510	103
RKDD021	22.00	28.70	4.70	0.07	80	2.82	0.15	556	137
RKDD021
	23.00	24.00	1.00	0.17	138	2.37	0.20	589	208
RKDD021	35.00	41.00	6.00	0.23	146	2.87	0.16	273	51
RKDD021
	37.00	40.00	3.00	0.38	217	2.85	0.23	314	54
RKDD021	42.00	44.00	2.00	0.27	139	2.31	0.13	230	48
RKDD021
	42.80	43.40	0.60	0.59	193	2.80	0.26	621	134
RKDD022	15.10	15.50	0.40	0.40	170	2.10	0.22	789	245
RKDD022	17.00	17.40	0.40	0.24	237	1.49	0.17	226	198
RKDD022	45.00	48.00	3.00	0.11	200	3.10	0.18	1408	260
RKDD022	49.50	57.00	7.50	0.15	192	3.35	0.21	433	184
RKDD022
	49.50	50.20	0.70	0.21	519	2.72	0.22	88	17
RKDD022
	53.00	57.00	4.00	0.22	175	2.58	0.21	489	107
RKDD022	67.00	69.00	2.00	0.02	81	3.27	0.13	1070	126
RKDD022	73.00	74.00	1.00	0.16	121	2.94	0.23	648	83
RKDD022	77.80	78..8	1.00	0.61	262	2.88	0.28	560	94
RKDD022	90.30	91.30	1.00	0.68	215	2.39	0.34	1270	101
RKDD022	94.80	97.50	2.70	0.36	260	2.74	0.19	890	50
RKDD022	107.50	111.50	4.00	0.43	150	2.97	0.30	1398	87
RKDD022	118.40	120.85	2.45	0.02	58	2.28	0.13	1149	67
RKDD022	126.50	139.80	13.30	0.53	183	3.28	0.31	1179	93

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Hole ID	from (m)	to (m)	interval (m)	Li2O (%)	Cs (ppm)	K (%)	Rb (ppm)	Sn (ppm)	Ta2O5 (ppm)
RKDD022	135.50	138.50	3.00	0.88	255	2.74	0.36	717	134

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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 (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,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 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
		results for internal standards, duplicates, prep
		duplicates and blanks. Pan Asia has collected ¼ core

27

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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	isconsidered 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.

29