FLAGSHIP MINERALS LIMITED — Capital/Financing Update 2021

Aug 15, 2021

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ASX Announcement | August 16, 2021

Drilling Update Reung Kiet Lithium Prospect, Thailand

HIGHLIGHTS

• Positive assay results for another three holes completed at the Reung Kiet Lithium Project in southern Thailand.

• Results include:

• RKDD013: 8.5m @ 0.51% Li2O from 137.7m and 10.2m @ 0.41% Li2O from 159.9m;

• o RKDD014: 11.8m 0.84% Li2O from 133.2m, incl. 5.1m @ 1.11% Li2O from 135.9m; o RKDD015: 18m @ 0.62% Li2O from 127.0m, incl. 9.3m @ 0.86% from 127m

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

• Dyke-vein swarm up to 100m wide, contains numerous pegmatites up to 13m wide.

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

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

• Tin and tantalum mineralisation occur in association with lithium as well as rubidium and cesium, all potentially valuable by-products.

• Drilling is ongoing at Reung Kiet.

• Assay results for another six holes (RKDD016-022) expected within one month.

• Mineral Resources and Exploration Targets anticipated in 2nd half of 2021.

Specialty metals explorer and developer Pan Asia Metals Limited (ASX: PAM) (‘PAM’ or ‘the Company’) is pleased to report assay results from three more holes completed at the Reung Kiet lithium prospect.

Pan Asia Metals Managing Director Paul Lock said: “Our drilling activities at Reung Kiet continue to deliver positive results. As reported in mid July PAM moved to double shift to accelerate the infill and extensional drilling required to estimate a Mineral Resource in accordance with the JORC Code 2012 - which we anticipate later this year. We have also started preparatory work for a Scoping Study, which we are aiming to complete soon after reporting Mineral Resources. The lithium market is buoyant, and

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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PAM is looking to add to its lithium exploration portfolio with several target exploration blocks identified. Our objective is to identify and develop projects which have the potential to be placed at or near the bottom of the cost curve and which provide PAM the option to move past the mine gate and value add. The drilling results at Reung Kiet suggest such goals are realistic.”

The Reung Kiet Lithium Project (RKLP) is one of PAM’s key assets. RKLP is a hard rock lithium project with demonstrated potential for 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 later this year. 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.

The drilling results at RKLP are highly encouraging; PAM’s Management made the decision to move to a double shift (24hr/day drilling) in mid July to accelerate the program with the objective of estimating a Mineral Resource in accordance with the JORC Code 2012 later this year.

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. Mining of the weathered pegmatites extended up to 25m below surface, to the top of hard rock. Pan Asia has identified a prospective zone at least 1km long in association with extensive lithium values in trenching, rock-chips and soil anomalies, now supported by drilling results along the whole trend, which remains open to the north and south (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 now completed twenty (20) diamond core drill holes at RK for a total of 3,115m. 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 have now been received for three (3) additional drill holes (RKDD013015). As outlined below, all of these holes have returned significant zones of lithium mineralisation associated with lepidolite rich pegmatites and adjacent altered siltstone.

Drilling is ongoing with holes RKDD016-025 now completed. All holes have intersected pegmatites. Assay results for RKDD016-022 are expected in about 3 weeks. PAM has completed close spaced spot hhXRF analysis of holes RKDD016-022. This has identified lithium indicator elements rubidium (Rb), caesium (Cs) and manganese (Mn) occurring in close association with observed pegmatites and varying 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.

Previously completed drill holes RKDD006-010 were re-entered and extended. Most of the extension holes intersected pegmatite dykes and veins at depth, which are now being sampled. Additional infill and extensional sampling has also been undertaken in sections of previously drilled and sampled holes. This is due to the presence of lithium mineralisation occurring in altered siltstone adjacent to the lithium rich pegmatite dykes, as well as some previously un-sampled pegmatites..

Collar details are provided in Table 1 - Reung Kiet Drill hole Collars, located in Appendix 1. Assay results (Li only) are reported in Table 2 - RK Drilling Assay Results, located in Appendix 1. Further technical details are provided in Appendix 2, being JORC Table 1.

Technical Discussion

The pegmatite swarm is interpreted to be controlled in a structural zone dipping about 65 degrees to the south-east. From west to east this zone is up to 100m wide, possibly wider (see Figure 2). Inside this corridor the pegmatites form a multidirectional swarm with main trends dipping around 60-65 degrees and 25-30 degrees to the southeast. This 1km long zone remains open to the north, south and down dip. 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 at Reung Kiet by year end.

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In the discussion below every drilled section, from Section A to Section I is presented and the results discussed. These cross sections are at 50m or 100m spacings as shown in Figure 2.

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

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On Section A, at the extreme southern end of the prospect, RKDD009 intersected numerous pegmatites, the bulk of which contain lithium mineralisation (see Figure 3). RKDD009 was extended from 122m to 165m. Only minor pegmatite was intersected in the hole extension.

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Figure 3. Section A showing RKDD009 and RKDD016.

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RKDD016 intersected numerous weathered pegmatites from 2.8m to 58m, supporting the current interpretation of the western margin of the pegmatite swarm. This section remains open to the south and down dip of RKDD009.

On Section B, RKDD023 intersected almost 40m of composite pegmatite width from 73-157m (see Figure 4), with many sections containing lepidolite (see Photo 1).

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Figure 4. Section b showing RKDD023.

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Photo 1. RKDD023 from 113.2m to 123m, showing lepidolite rich pegmatite and variably altered siltstone

On Section C, RKDD008 returned a 30.15m composite width of mineralisation at 0.72% Li2O (see Figure 5). The hole was extended from 112m to 163m, with only minor pegmatite veins intersected. RKDD015 intersected several zones of lepidolite rich pegmatite. The zone from 113m to 145m returned a composite intersection of 18m @ 0.72% Li2O (see Figure 5). Additional infill and extensional sampling is required throughout this zone and the hole more broadly.

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RKDD017 intersected numerous zones of weathered pegmatite from surface to 47m. Spot hhXRF analysis has identified elevated Rb, Cs and Mn in many of the pegmatites.

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Figure 5. Section C showing RKDD008, RKDD015 and RKDD017

On Section D both RKDD024 and RKDD025 intersected the pegmatite dyke-vein swarm (see Figure 6) with lepidolite identified at various locations in both drill holes, with a typical example in RKDD024 (see Photo 2).

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Figure 6. Section D showing RKDD024 and RKDD025.

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Photo 2. RKDD024 from 111.3m to 123.7m, showing lepidolite rich pegmatite and variably altered siltstone

On Section E lithium rich pegmatites in RKDD007, extend down dip into RKDD014, where lepidolite rich pegmatites have been intersected (see Figure 7). RKDD007 was extended from 95m to 195m. The extension hole intersected several narrow zones of

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pegmatite. RKDD018 intersected the dyke swarm in the weathered zone up-dip of RKDD007.

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Figure 7. Section E showing RKDD007, RKDD014 and RKDD018.

Spot hhXRF of the weathered pegmatites in RKDD018 returned elevated lithium indicator elements Rb, Cs and Mn.

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On Section F RKDD006 returned 34.15 composite metres of mineralisation @ 0.63% Li2O from 24m-101m (see Figure 8).

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Figure 8. Section F showing RKDD006, RKDD013 and RKDD019

These zones are interpreted to extend down dip into RKDD013 which intersected 51 composite metres of pegmatite, containing varying amounts of lepidolite. RKDD006

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was re-entered and extended from 110m to 170.7m. A thick pegmatite was intersected from 149m to 157.9m which contained varying amounts of lepidolite.

On Section G, RKDD010 was re-entered and extended from 92m to 178.8m, with numerous narrow pegmatites being intersected, with variable amounts of lepidolite (see Figure 9).

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Figure 9. Section G showing RKDD010, RKDD012 and RKDD020.

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RKDD020 was drilled up-dip of RKDD010 and intersected numerous narrow pegmatite dykes and veins (see Figure 9).

On Section H, RKDD021 intersected the western side of the pegmatite swarm up-dip of hole RKDD011 (see Figure 10). Spot hhXRF of the pegmatites in RKDD021 indicates elevated concentrations of lithium indicator elements Rb, Cs and Mn. The pegmatites contain variable amounts of lepidolite.

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Figure 10. Section H showing RKDD011 and RKDD021

Section I is located approximately in the middle portion of the old RK pit, as shown in Figure 11.

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Figure 11. Reung Kiet North Prospect, drill collars, sections and surface geochemistry

RKDD002 was drilled in 2019 prior to PAM’s listing. This hole intersected 15.6m @ 0.82% Li2O in association with lepidolite pegmatite. RKDD022 was drilled to test for down-dip extensions to this mineralized zone (see Figure 12).

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Figure 12. Section I showing RKDD002 and RKDD022

RKDD022 intersected numerous zones of pegmatite containing locally abundant lepidolite within the Main zone intersected from approximately 107-139m (see Photo 3).

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Photo 3. RKDD022 from 132.4m to 141.6m, showing lepidolite rich pegmatite and variably altered siltstone

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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 the aim of defining Mineral Resources and Exploration Targets in the second half of 2021.

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

Ends

Authorised by: Board of Directors

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About the Reung Kiet Lithium Project

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

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Figure 10: 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				Azimuth		T_Depth (m)
	East	North	Dip		mASL
				(mag)
RKDD013	433433	918163	-65	307	29	272
RKDD014	433362	918094	-55	310	28	205
RKDD015	433303	918026	-55	310	25	249.3
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
RKDD023	433243	918008	-60	310	48	175
RKDD024	433308	918080	-60	310	60	204
RKDD025	433236	918131	-60	310	40	110
RKDD026	In progress

Table 2 – RK Drilling Assay Results

Hole ID	From (m)
		To (m)	Interval (m)	Li2O (%)
RKDD013	109.30	111.50	2.20	0.23
RKDD013	137.70	145.80	8.50	0.51
Incl.	141.20	145.00	3.80	0.68
RKDD013	159.90	170.10	10.20	0.41
RKDD013	184.60	187.60	3.00	0.30
RKDD013	203.50	205.50	2.00	0.22
RKDD013	247.00	250.40	3.40	0.23
RKDD014	73.80	75.20	1.40	0.87

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Hole ID
	From (m)	To (m)	Interval (m)	Li2O (%)
RKDD014	79.70	80.35	0.65	0.72
RKDD014	88.50	89.50	1.00	0.82
RKDD014	100.70	101.30	0.60	0.90
RKDD014	107.70	108.80	1.10	0.51
RKDD014	111.00	112.20	1.20	0.72
RKDD014	119.00	120.10	1.10	0.23
RKDD014	126.00	127.00	1.00	0.26
RKDD014	133.20	145.00	11.80	0.84
Incl.	135.90	141.00	5.10	1.11
RKDD014	153.40	160.00	6.60	0.57
RKDD015	84.70	85.30	0.60	0.27
RKDD015	88.20	88.90	0.70	0.86
RKDD015	102.2	104.2	2.00	0.80
RKDD015	113.00	117.15	4.15	0.57
RKDD015	127	145	18.00	0.62
incl.	127.00	136.30	9.30	0.86
incl.	138.70	140.00	1.30	0.39
incl.	141.75	145.00	3.25	0.65
RKDD015	153.90	154.90	1.00	1.04
RKDD015	160.00	162.00	2.00	0.79
RKDD015	165.00	166.00	1.00	0.25

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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
		average sample weight 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	maximising sample recovery especially in the weathered zone.
	occurred due to preferential loss/gain of fine/coarse
	material?	Sample recovery through the mineralised zones
		averages 96%, so little bias would be anticipated.
Logging	Have core/chip samples been	.
	geologically/geotechnically logged to a level of detail	The drill core was geologically logged at sufficient
	to support appropriate resource estimation, mining	detail. Geotechnical logging was limited to contact
	studies and metallurgical studies.	zones and major structures.
	Is logging qualitative or quantitative in nature. Core (or	The logging is mostly qualitative in nature, with some
	costean, channel, etc) photography.	quantitative data recorded. Photographs of each core
	The total length and percentage of the relevant intersections logged.	tray wet and dry, and of wet cut core were taken. The total length of core logged..
Sub-	If core, cut or sawn and whether quarter, half or all core	All core for sampling was cut in half with a diamond
sampling	taken.	saw. Some samples were cut as ¼ core from the
techniques and sample	If non-core, riffled, tube sampled etc and sampled wet or dry?	original half core, for QA/QC. The sample preparation technique is industry standard, fine crush to 70% less than 2mm. A sub-
	For all sample types, nature, quality and appropriateness of sample preparation technique.	sample of 0.5-1kg or 100% of sample weight if less than 1kg is obtained via rotary splitting. This sample is pulverised to 85% passing 75 microns. The laboratory
		reportsQA/QCparticle size analysis for crushed and

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Criteria	JORC Code explanation		Commentary
	QAQC procedures for all sub-sampling stages to		pulverised samples. The laboratory also reports
	maximise representivity of samples.		results for internal standards, duplicates, prep
	Measures taken to ensure sampling is representative of the material collected, e.g. results for field duplicate/second-half sampling.		duplicates and blanks. Pan Asia has collected ¼ core pairs. Comparison of results indicate excellent agreement between Li2O grades from each ¼ pair.
	Whether sample sizes are appropriate to the grain size of the material being sampled.		The sample weights average 2.6kg. This is considered appropriate for the material being sampled.
Quality of	Nature, quality and appropriateness of the assaying		The initial assaying procedure used is 4 acid digestion
assay data	and laboratory procedures used;	whether the	followed by ICP-AES analysis. Some pulps also have
and	technique is considered partial or total.		sodium peroxide digestion with ICP finish, all by ALS
laboratory tests	For geophysical tools, spectrometers, handheld XRF instruments etc, parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied, their		Chemex in Vancouver or Perth. Both methods are considered a total technique. Multielement analysis is done by sodium peroxide digestion with ICP-MS finish with 49 elements reported, (ALS method ME-MS89L)
	derivation, etc.		The laboratoryreports results for internal standards,
	Nature of QAQC procedures adopted (eg standards,		duplicates, prep duplicates and blanks. PAM has
	blanks, duplicates, external laboratory checks);		conducted ¼ sampling and re-analysis of sample
	whether acceptable accuracy levels (ie	lack of bias) /	pulps utilising different digestion and assay methods,
	precision established.		Pan Asia inserts its own internal Li “standards” as
			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
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 compositingwas not applied
Orientation		Does the orientation of sampling achieve unbiased	The sampling of half core and ¼ core supports the
of data	in	sampling of possible structures; extent to which this is	unbiased nature of the sampling.
relation	to	known/understood.
geological structure		If relationship between drilling orientation and orientation of mineralised structures has introduced a	The drill holes reported are drilled normal or near normal to the strike of the mineralised zone.
		sampling bias, this should be assessed and reported
		if material.
Sample		The measures taken to ensure sample security.	Samples are securely packaged and transported by by
security			company personnel or reputable carrier to the Thai-
			Laos border, where ALS laboratory personnel 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 toThai company Siam Industrial Metals
status		overriding royalties, native title interests, historical		Co. Ltd. (SIM). Pan Asia Metals holds 100% of SIM
		sites, wilderness or national park and environmental		located 60km north of Phuket in southern Thailand.
		settings.		The tenure is secure and there are no known
		The security of the tenure held at the time of reporting along with any known impediments to		impediments to obtaining a licence to operate, aside from normal considerations.
		obtaining a licence to operate in the	area.
Exploration		Acknowledgment and appraisal of	exploration by	The Institute of Geological Sciences, a precursor of
done by other		other parties.		the British Geological Survey (BGS) in the late
parties				1960’s conducted geological mapping, documenting
				old workings, surface geochemical sampling, mill
				concentrates and tailings sampling and metallurgical
				test work on the pegmatite then being mined at
				Reung Kiet. This work appears to be of high quality
				and is in general agreement with Pan Asia’s work.
				In 2014 ECR Minerals reported Li results for rock
				samples collected in Reung Kiet project area. The
				locations and other details of the samples were not
				reported. But the samples showed elevated Li
				contents.
Geology		Deposit type, geological setting	and style of	The project is located in the Western Province of the
		mineralisation.		South-East Asia Tin Tungsten Belt. The Reung
				project area sits adjacent and sub-parallel to the
				regionally extensive NE trending Phangnga fault.
				The Cretaceous age Khao Po granite intrudes into
				Palaeozoic age Phuket Groupsediments alongthe

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Criteria		JORC Code explanation	Commentary
			fault zone, Tertiary aged LCT pegmatite dyke
			swarms intrude parallel to the fault zone.
Drillhole		A summary of information material to the	Drillhole information and intersections are reported in
Information		understanding of the exploration results including a	tabulated from within the public report.
		tabulation for all Material drill holes of:
		• easting and northing of the drill hole collar
		• elevation or RL (Reduced Level – elevation above
		sea level in meters) of the drill hole collar
		• dip and azimuth of the hole
		• downhole length and interception depth
		• hole length.
		If exclusion of this information is not Material, the
		Competent Person should clearly explain why this is
		the case.
Data		Weighting averaging techniques, maximum/	Intersections are reported at > 0.2% Li2O, and may
aggregation		minimum grade cutting and cut-off grades are	rarely, allow for internal dilution of < 0.2% Li2O. No
methods		Material and should be stated.	top cut has been applied.
		Where compositing short lengths of high grade results and longer lengths of low grade results, compositing procedure to be stated; typical	Higher grade zones within the bulk lower grade zones are reported, where material.
		examples of such aggregations to be shown in detail.
		Assumptions for metal equivalent values to be clearly
		stated.
Relationship		These relationships are particularly important in the	Intercept lengths are reported as downhole length.
between		reporting of Exploration Results.
mineralisation
widths intercept	and	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 70- 85% 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.
		both low and high grades and/or widths should be
		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 trends at RK are potentially 1km or more
			long.
			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.

29

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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	maximising sample recovery especially in the weathered zone.
	occurred due to preferential loss/gain of fine/coarse
	material?	Sample recovery through the mineralised zones
		averages 96%, so little bias would be anticipated.
Logging	Have core/chip samples been	.
	geologically/geotechnically logged to a level of detail	The drill core was geologically logged at sufficient
	to support appropriate resource estimation, mining	detail. Geotechnical logging was limited to contact
	studies and metallurgical studies.	zones and major structures.
	Is logging qualitative or quantitative in nature. Core (or	The logging is mostly qualitative in nature, with some
	costean, channel, etc) photography.	quantitative data recorded. Photographs of each core
	The total length and percentage of the relevant intersections logged.	tray wet and dry, and of wet cut core were taken. The total length of core logged..
Sub-	If core, cut or sawn and whether quarter, half or all core	All core for sampling was cut in half with a diamond
sampling	taken.	saw. Some samples were cut as ¼ core from the
techniques and sample	If non-core, riffled, tube sampled etc and sampled wet or dry?	original half core, for QA/QC. The sample preparation technique is industry standard, fine crush to 70% less than 2mm. A sub-
	For all sample types, nature, quality and appropriateness of sample preparation technique.	sample of 0.5-1kg or 100% of sample weight if less than 1kg is obtained via rotary splitting. This sample is pulverised to 85% passing 75 microns. The laboratory
	QAQC procedures for all sub-sampling stages to	reports QA/QC particle size analysis for crushed and
	maximise representivity of samples.	pulverised samples. The laboratory also reports
		results for internal standards, duplicates, prep
		duplicates and blanks. Pan Asia has collected ¼ core

30

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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	The initial assaying procedure used is 4 acid digestion
assay data	and laboratory procedures used; whether the	followed by ICP-AES analysis. Some pulps also had
and	technique is considered partial or total.	sodium peroxide digestion with ICP finish, all by ALS
laboratory tests	For geophysical tools, spectrometers, handheld XRF instruments etc, parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied, their	Chemex in Vancouver or Perth. Both methods are considered a total technique. Multielement analysis is done by sodium peroxide digestion with ICP-MS finish with 49 elements reported, (ALS method ME-MS89L)
	derivation, etc.	The laboratory reports results for internal standards,
	Nature of QAQC procedures adopted (eg standards,	duplicates, prep duplicates and blanks. PAM has
	blanks, duplicates, external laboratory checks);	conducted ¼ sampling and re-analysis of sample
	whether acceptable accuracy levels (ie lack of bias) /	pulps utilising different digestion and assay methods,
	precision established.	Pan Asia inserts its own internal Li “standards” as
		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..
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
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.

31

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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.

Section 2 Reporting of Exploration Results

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

32

==> picture [47 x 47] intentionally omitted <==

Criteria		JORC Code explanation	Commentary
		If exclusion of this information is not Material, the
		Competent Person should clearly explain why this is
		the case.
Data		Weighting averaging techniques, maximum/	Intersections are reported at > 0.2% Li2O, and may
aggregation		minimum grade cutting and cut-off grades are	rarely, allow for internal diliution of < 0.3% Li2O. No
methods		Material and should be stated.	top cut has been applied. Sn, Ta, Rb and Cs are
		Where compositing short lengths of high grade	reported in the same intersections of Li2O.
		results and longer lengths of low grade results, compositing procedure to be stated; typical examples of such aggregations to be shown in detail.	Higher grade zones within the bulk lower grade zones are reported, where material.
		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 intercept	and	If mineralisation geometry with respect to the drillhole angle is known, its nature should be reported.	The mineralised zones dip around 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 70- 80% 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.
		both low and high grades and/or widths should be
		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 an old open cut. Soil, rock-
exploration		geological observations; geophysical survey results;	chip and trench sampling by Pan Asia indicate
data		geochemical survey results; bulk samples – size and	additional mineralisation is present along trend to the
		method of treatment; metallurgical test results; bulk	south, where drillholes are also reported Weaker
		density, groundwater, geotechnical and rock	surface Li anomalism is also present immediately
		characteristics; potential deleterious or	north of the pit. The whole mineralised trends at RK
		contaminating substances.	and BIT are potentially 1km or more long.
			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.
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).

33