FLAGSHIP MINERALS LIMITED — Capital/Financing Update 2021

Jun 28, 2021

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ASX Announcement | June 29, 2021

Drilling Update Reung Kiet Lithium Prospect, Thailand

HIGHLIGHTS

• PAM has received assay results for 13 diamond core holes completed at the Reung Kiet Lithium Project in southern Thailand.

• Extensive pegmatite dyke-vein swarms contain lithium mineralisation associated with lepidolite (lithium mica).

• Dyke-vein swarms up to 100m wide containing pegmatites from 0.1-10m wide downhole.

• Results include:

11.3m @ 0.74% Li2O from 19.2m (BTDD005);

10.7m @ 0.98% Li2O from 81.8m (BTDD006);

13m @ 0.72% Li2O from 49.5m (RKDD007);

4.2m @ 1.30% Li2O from 31.9m; (RKDD008);

6m @ 1.08% Li2O from 38.5m (RKDD009); and

4.5m @ 1.44% Li2O from 47.6m (RKDD009).

• Tin and tantalum mineralisation occur in association with lithium as well as

• rubidium and cesium, all potentially valuable by-products.

• Results warrant the addition of a second drilling shift to accelerate anticipated delivery of Mineral Resource.

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

Specialty metals explorer and developer Pan Asia Metals Limited (ASX: PAM) (‘PAM’ or ‘the Company’) is pleased report positive assay results for 13 holes so far completed at the Bang I Tum and Reung Kiet lithium prospects.

Pan Asia Metals Managing Director Paul Lock said: “We are pleased with the drilling results, the intersection widths and lithium grades at both prospects position the Company well, warranting the required investment to drill out to a JORC Mineral Resource. We will be moving to a double drilling shift to expedite this process.

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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Using the global peer group of lithium projects as a guide, lepidolite is the only style of lithium mineralisation with an extensive suite of by-products. Peer group studies indicate that these by-products can reduce the overall cost of lithium carbonate and or lithium hydroxide manufacturing, so much so that they can place lepidolite style projects at the bottom of the operating cost curve. This is Pan Asia Metal's objective, 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 Bang I Tum and Reung Kiet lithium prospects form part of the Reung Kiet Lithium Project (RKLP), 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, muscovite and lepidolite, 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 has made the decision to move to a double shift (24hr/day drilling) with the objective of estimating a Mineral Resource in accordance with the JORC Code 2012. Subject to success the Mineral Resource estimates are anticipated 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. The current round of drilling is being undertaken at RK South which extends south-east of the RK Pit (see Figure 1).

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Figure 1. Reung Kiet South Prospect, drill collars, sections and surface geochemistry

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Reung Kiet South Prospect - Drilling

Pan Asia Metals has completed eleven (11) diamond core drill holes (RKDD006-016) at RK South for a total of 1707.8m. Collar details are provided in Table 1 - Reung Kiet South Drillhole Collars, located in Appendix 1. Assay results (Li only) have been received for seven (7) of these holes. Assay intersections are reported in Table 2 - RK South Drilling Assay Results, located in Appendix 1.

A further four (4) holes (RKDD013-016) have been completed with results expected by late July. Drilling is ongoing. Further technical details are provided in Appendix 2, being JORC Table 1.

The current drilling program at RK South has been undertaken on six ~100m spaced sections (see Figure 1) with holes up 100m apart on the sections. The six cross sections (CX) with available lithium results are shown in Figures 3-8, running from south to north through the prospect. Subsequent drillholes (RKDD0013-016) are also shown and generally indicate down dip continuation of pegmatite dykes.

The drilling has identified an extensive pegmatite dyke/vein swarm. Assay results indicate that almost all pegmatites intersected contain lithium mineralisation related to lepidolite mica observed in the drill core. Lithium mineralisation is also present in some of the altered meta-sediments in contact with the pegmatite, leading to the requirement for additional sampling to be undertaken.

The pegmatites are interpreted to be controlled in a structural zone dipping about 70 degrees to the south-east. From west to east this zone is up to 100m wide, possibly wider. Inside this corridor the pegmatites form a multi-directional swarm with main trends dipping around 70 degrees and 25 degrees. The zone remains open to the south, down dip and to the east.

Additional drilling is planned to define the western and eastern margins of the pegmatite swarm.

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Figure 2. Section A showing RKDD009 and RKDD016.

RKDD009 (see Figure 2) intersected numerous pegmatites, the bulk of which contain lithium mineralisation. From 33.8m to 111m the composite width of mineralisation returned 35m @ 0.76% Li2O. This represents nearly 50% of the downhole interval.

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RKDD016 (see Figure 2) has intersected numerous weathered pegmatites from 2.8m to 58m and supports the current interpretation of the western margin of the pegmatite swarm.

This section remains open to the south and down dip of RKDD009.

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Figure 3. Section B showing RKDD008, RKDD015 and RKDD017 (in progress)

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From 21m-92m, RKDD008 retuned a 30.15m composite width of mineralisation at 0.72% Li2O (see Figure 3).

RKDD015 (see Figure 3) has intersected several zones of lepidolite rich pegmatite, part of which is shown in Photo 1.

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Photo 1. RKDD015. Lepidolite rich pegmatite from 127.8m to 137.95m.

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Figure 4. Section C showing RKDD007 and 014

The section in Figure 4 above shows lithium rich pegmatites in RKDD007, which likely extend down dip into RKDD014 where pegmatites have been intersected. Many of these pegmatites contain lepidolite, as shown on Photo 2.

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Photo 2. RKDD014. Lepidolite rich pegmatite from 135.9m 143.6m.

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Figure 5. Section D showing RKDD006 and 013

RKDD006 contained 34.15 composite metres of mineralisation @ 0.63% Li2O from 24m-101m (see Figure 5). These zones are interpreted to extend down dip into RKDD013 which intersected 51 composite metres of pegmatite, containing varying amounts of lepidolite, a section of which is shown in Photo 3.

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Photo 3. RKDD013. Variable lepidolite pegmatite from 159.8m-169.1m.

Sections E and F below (Figures 7 and 8) show the pegmatite and zones of mineralisation in holes RKDD010, RKDD011 and RKDD012.

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Figure 6. Section E showing RKDD010 and 012

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Figure 7. Section F showing RKDD011

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Bang I Tum Lithium Prospect (BIT)

The Bang I Tum prospect was a relatively large open cut tin mine. The old pit is about 650m long and up to 125m wide. Mining of the weathered pegmatites extended up to 30m below surface, to the top of hard rock.

The pit is now water filled, with water depths to a maximum 15m. Additional smaller scale mining extended further along strike to the southwest. Soil and rock-chip sampling has defined the Main trend and an Eastern trend. The prospective Main trend is about 1.5km long. Rock chip sampling has yielded 14 of 24 samples >0.5% Li2O, with an average grade of 1.23% Li2O plus up to 0.19% Sn and tantalum. Most of the lithium enriched samples are from Lepidolite Hill and areas to the south. The Eastern trend is about 1.5km long, located approximately 350m east of, and parallel to, the Main trend.

A lepidolite rich pegmatite dyke swarm can be observed on “Lepidolite Hill” about 500m along strike southwest of the pit (see Figure 8).

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Figure 8: The Bang I Tum Lithium Prospect with proposed drill hole locations

Bang I Tum Prospect - Drilling

The drilling program at Bang I Tum was designed to test beneath the old open cut pit and also along strike to the southwest in the vicinity of ‘Lepidolite Hill’ (see Figure 8). The program comprised six (6) HQ3 diamond core holes (BTDD001 to 006) for a total

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of 963m. Collar details are provided in Table 3 - Bang I Tum Drillhole Collars, located in Appendix 1.

Additional technical data is provided in Appendix 2, being JORC Table 1. Further details are also provided in ASX announcement dated 23-3-2021 and titled Drilling Update – Bang I Tum prospect.

Drillholes BTDD001, 002 and 003 were drilled at relatively wide spacing’s beneath the old Bang I Tum open pit. Each of these holes intersected an extensive swarm of pegmatite dykes, veins and stringers. All of the pegmatites intersected contain quartz, feldspar, local tourmaline and varying amounts of fine grained to clotty muscovite. The observed muscovite is visually estimated to vary between 5% and 25% of the pegmatite. Only rare lepidolite was observed.

Assay results from these holes indicate generally isolated narrow zones of lithium enrichment are contained within the more extensive pegmatite swarm, and that observed muscovite in the core does not contain significant lithium. The lithium rich zones also contain Sn, Ta, Rb and Cs. Assay intersections are shown in Table 4 – Bang I Tim Drilling Assays, located in Appendix 1.

Drill holes BTDD004, 005 and 006 were drilled approximately 500m along strike southwest of the Bang I Tum pit (see Figure 8). All holes intersected a steeply dipping pegmatite dyke-vein swarm. Varying amounts of lepidolite was observed throughout much of the pegmatite. Assay results indicate extensive lithium enrichment in most of the pegmatites (see Figure 9). Accessory levels of Sn, Ta, Rb and Cs are also present.

The main zone of pegmatite is interpreted to extend from surface to a depth of 150m where it remains open below hole BTDD004, and where it appears to be thickening. The whole of this zone also remains open to the north towards Lepidolite Hill where lithium rich dykes have been mapped and sampled, and to the south where a lithium in soil anomaly, supported by lithium in rock-chips is situated. The interpreted length of this prospective zone is at least 800m as shown in Figure 8. Additional drilling is planned in this area.

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Figure 9. Cross Section BTDD004, 005, 006

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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 RK and BIT, 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 South Drillhole collars

Hole ID	East	North		Az		T_Depth
			Dip		mASL
RKDD006	433349	918217	-65	310	45	110
RKDD007	433276	918164	-65	310	51	95
RKDD008	433220	918092	-65	310	40	112
RKDD009	433162	918003	-65	310	19	121
RKDD010	433402	918314	-65	310	20	92
RKDD011	433451	918389	-60	310	21	168
RKDD012	433476	918245	-65	310	25	202.5
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

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Table 2 – RK South Drilling Assay Results

Hole ID
	From (m)	To (m)	Interval (m)	Li2O (%)
RKDD006	24.20	24.6	0.40	1.01
RKDD006	26.10	28.75	2.65	1.48
RKDD006	36.80	37.3	0.50	0.97
RKDD006	41.60	42.7	1.10	1.22
RKDD006	49.00	49.7	0.70	0.34
RKDD006	54.50	58	3.50	0.38
RKDD006	60.85	64.6	3.75	0.80
RKDD006	67.50	81.5	14.0	0.55
RKDD006	69.80	73.8	4	1.00
RKDD006	84.65	85.2	0.55	0.72
RKDD006	86.90	87.2	0.30	0.32
RKDD006	91.00	93.65	2.65	0.46
RKDD006	95.35	99.15	3.80	0.32
RKDD006	101.00	101.25	0.25	0.32
RKDD007	17.80	20.4	2.6	0.38
RKDD007	30.50	33.4	2.9	0.33
RKDD007	36.00	37	1.0	1.04
RKDD007	40.40	41.3	0.9	1.11
RKDD007	45.00	46	1.0	0.76
RKDD007	49.50	62.5	13.0	0.72
RKDD007	54.8	62.5	7.7	0.92
RKDD007	64.50	70.1	5.6	0.61
RKDD007	66.1	67.4	1.3	1.24
RKDD007	75.00	81.6	6.6	0.27
RKDD008	21	23	2.0	1.15
RKDD008	31.9	36.1	4.2	1.30
RKDD008	39	40.3	1.3	1.57

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Hole ID
	From (m)	To (m)	Interval (m)	Li2O (%)
RKDD008	42.3	43.1	0.8	1.05
RKDD008	53.3	55.6	2.3	1.47
RKDD008	64.5	66.6	2.1	0.33
RKDD008	69.4	72.4	3.0	0.26
RKDD008	75	86.3	11.3	0.47
RKDD008	76.6	80.5	3.9	0.75
RKDD008	88.85	92	3.15	0.27
RKDD009	33.80	34.80	1.00	0.96
RKDD009	38.50	44.50	6.00	1.08
RKDD009	47.60	52.10	4.50	1.44
RKDD009	55.00	56.10	1.10	0.26
RKDD009	59.50	62.10	2.60	0.77
RKDD009	65.70	67.50	1.80	1.29
RKDD009	70.40	70.90	0.50	0.34
RKDD009	73.30	74.50	1.20	0.33
RKDD009	75.50	76.10	0.60	0.22
RKDD009	77.05	84.30	7.25	0.45
RKDD009	91.50	92.60	1.10	0.99
RKDD009	99.80	102.30	2.50	0.37
RKDD009	106.15	111.00	4.85	0.44
RKDD010	40.50	42.20	1.60	1.34
RKDD010	46.40	46.70	0.40	1.13
RKDD010	47.10	47.60	0.50	1.73
RKDD010	47.95	48.65	0.70	0.31
RKDD010	50.60	51.35	0.75	1.38
RKDD010	55.95	56.70	0.75	0.81
RKDD010	67.90	70.00	2.10	1.18
RKDD010	79.00	79.85	0.85	0.28
RKDD010	87.00	87.35	0.35	0.40

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Hole ID
	From (m)	To (m)	Interval (m)	Li2O (%)
RKDD011	26.90	29.50	2.60	0.85
RKDD011	32.50	34.50	2.00	0.59
RKDD011	50.40	50.80	0.40	0.42
RKDD011	52.40	54.00	1.60	0.84
RKDD011	56.20	56.60	0.40	0.26
RKDD011	63.10	63.50	0.40	0.35
RKDD011	74.20	79.30	5.10	0.50
RKDD011	85.50	87.90	2.40	0.60
RKDD011	94.10	94.85	0.75	0.43
RKDD011	107.10	108.00	0.90	0.36
RKDD011	121.00	122.20	1.20	0.25
RKDD011	133.75	134.15	0.40	0.45
RKDD011	137.00	142.00	5.00	0.44
RKDD011	155.00	155.90	0.90	0.53
RKDD012	84.90	86.40	1.50	0.23
RKDD012	138.10	139.30	1.20	1.09
RKDD012	144.10	144.75	0.65	0.79
RKDD012	146.70	147.20	0.50	0.37
RKDD012	166.60	168.80	2.20	0.78
RKDD012	187.50	189.50	2.00	0.30

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Table 3 - Bang I Tum Drillhole Collars

Hole ID	East	North		Az		T_Depth
			Dip		mASL
BTDD001	436372	926545	-60	310	50	171
BTDD002	436417	926593	-62	330	50	190
BTDD003	436624	926819	-60	305	62	190
BTDD004	435814	926148	-65	330	45	196
BTDD005	435761	926206	-55	330	46	106
BTDD006	435796	926188	-60	330	45	110

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Table 4 – Bang I Tum Drilling Assay Results

Hole ID	From	To	Interval	Li2O	Sn	Ta2O5	Cs	Rb
	(m)	(m)	(m)	(%)	(ppm)	(ppm)	(ppm)	(ppm)
BTDD001	142	145	3.0	0.34	2717	39	238	2300
BTDD002	80.3	81.0	0.7	0.23	263	6	249	1040
BTDD002	110.5	111.5	1.0	1.16	166	11	381	5260
BTDD002	157.0	157.9	0.9	1.13	332	45	291	4100
BTDD003				No Significant Assays
BTDD004	8	10.4	2.4	1.24	719	90	280	3690
BTDD004	24.4	26.4	2.0	1.09	825	98	226	3585
BTDD004	41.3	41.9	0.6	0.42	1240	140	126	2370
BTDD004	94	100	6.0	0.31	832	144	184	2353
BTDD004	123	126	3.0	0.40	387	96	231	1700
BTDD004	140	141.5	1.5	0.55	475	34	320	2500
BTDD004	146.1	154	7.9	0.44	985	82	149	2305
BTDD004	156	160.25	4.25	0.48	1080	100	154	2400
BTDD004	163.6	171.6	8.0	0.37	1413	96	148	2540
BTDD005	4.5	6.6	2.1	1.07	780	250	650	4200
BTDD005	19.2	30.5	11.3	0.74	580	98	292	2600
BTDD005	33.3	34.5	1.2	0.77	696	85	230	2840
BTDD005	38.3	39.1	0.8	0.89	1020	75	254	3810
BTDD005	39.7	41	1.3	0.83	739	170	296	3230
BTDD006	14.1	15.9	1.8	0.74	639	195	302	3355
BTDD006	47.1	48.8	1.7	0.60	897	120	230	2980
BTDD006	69.6	70.1	0.5	0.70	787	156	281	2950
BTDD006	81.8	92.5	10.7	0.98	897	116	256	3361
BTDD006	84.6	92.5	7.9	1.06	990	125	234	3544

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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	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
	Measures taken to ensure sampling is representative of the material collected, e.g. results for field duplicate/second-half sampling.	results for internal standards, duplicates, prep duplicates and blanks. Pan Asia has collected ¼ core pairs. Comparison of results indicate excellent agreement between Li2O grades from each ¼ pair.

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Criteria	JORC Code explanation	Commentary
	Whether sample sizes are appropriate to the grain size	The sample weights average 2.6kg. This is considered
	of the material being sampled.	appropriate for the material being sampled.
Quality of	Nature, quality and appropriateness of the assaying	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.
	sampling bias, this should be assessed and reported
	if material.

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Criteria		JORC Code explanation	Commentary
Sample		The measures taken to ensure sample security.	Samples are securely packaged and transported by 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.
		If exclusion of this information is not Material,		the
		Competent Person should clearly explain why this is
		the case.

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Criteria		JORC Code explanation	Commentary
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).

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