Pan Asia Metals : Drilling Update - Reung Kiet Lithium Prospect

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ASX Announcement | December 03, 2021

Drilling Update

Reung Kiet Lithium Prospect, Thailand

HIGHLIGHTS

• Positive assay results from another four (4) holes completed at the Reung Kiet Lithium Project in southern Thailand.
• Results include:

1. RKDD023: from 72.95m to 121.4m hosts 27.9m of composite mineralisation @ 0.70% Li2O
   Incl. 14.15m @ 0.81% Li2O, 590ppm Sn, 117ppm Ta2O5,, 305ppm Cs, 0.28% Rb and 2.75% K from 107.25m-121.4m.

1. RKDD024: from 65.15m to 122.65m hosts 38.05m of composite mineralisation

@ 0.56% Li2O

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

1. RKDD025: from 19.15m to 67.4m hosts 27.75m of composite mineralisation @ 0.54% Li2O
   Incl. 6.45m @ 0.84% Li2O, 460ppm Sn, 66ppm Ta2O5, 307ppm Cs, 0.27% Rb and 2.18% K from 28.05m to 34.5m.

• 1. RKDD026: from 11.95m to 50.45m hosts 22.8m of composite mineralisation @ 0.84% Li2O
     Incl. 10.50m @ 0.93% Li2O, 340ppm Sn, 98ppm Ta2O5, 455ppm Cs, 0.27% Rb and 2.97% K from 35.5m to 46m.
• Results confirm extensive lithium mineralised zone with robust thickness and grades.
• Intersected Li2O grades are in-line with other lithium mica projects in the global peer group.
• Tin, tantalum rubidium, cesium and potassium mineralisation occur in association with lithium, and are all potentially valuable by-products. Intersected grades are in line with global peer group.
• Drilling is ongoing at Reung Kiet.

PAN ASIA METALS LIMITED

Level 3, 8 Robinson Road, ASO Building, Singapore, 048544

Level 23, 52 Thaniya Plaza, Silom Road, Bangrak, Bangkok, 10500

www.panasiametals.com

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• Assay results for holes RKDD027-030 are expected shortly and will be reported as they become available.
• Assay results for holes RKDD031-035 are expected by year end.
• Samples from holes RKDD036-042 have recently been dispatched to the laboratory.
• Mineral Resources and Exploration Targets anticipated 1st Quarter, 2022, followed by a Scoping Study.

Specialty metals explorer and developer Pan Asia Metals Limited (ASX: PAM) ('PAM' or 'the Company') is pleased to provide an update for four (4) more drill holes completed at the Reung Kiet lithium prospect in southwest Thailand. These new holes and the results from previously reported holes continue to support the geological model of extensive lithium mineralisation hosted in lepidolite rich pegmatite dykes- veins and adjacent metasediments. The mineralised zone is currently defined over a strike length of 1km, which remains open along strike to the north and south, and at depth on many sections

Pan Asia Metals Managing Director Paul Lock said: "We continue to be very satisfied with the assay results we are seeing. Our infill and extensional drilling continues to reward us with great success and the prospective zone at Reung Kiet Prospect still remains open to the north and south and at depth on many sections. The assay results we have received compare favourably with the lithium mica peer group and we are on track to deliver a Mineral Resource in 1st Quarter 2022. Our drilling results suggest that a 10,000 tonne per annum lithium chemical plant is a realistic objective."

The Reung Kiet Lithium Project (RKLP) is one of PAM's key assets. RKLP is a hard rock lithium project with lithium hosted in lepidolite/mica rich pegmatites chiefly composed of quartz, albite, lepidolite and muscovite, with minor cassiterite and tantalite as well as other accessory minerals including some rare earths. Previous open pit mining extracting tin from the weathered pegmatites was conducted into the early 1970's.

PAM's objective is to continue drilling with the aim of reporting a Mineral Resource in accordance with the JORC Code 2012. The Mineral Resource will be used as part of a Scoping Study that plans to consider initial production of up to 10,000tpa of LCE and associated by-products. PAM is focusing on lepidolite as a source of lithium as peer group studies indicate that lithium carbonate and lithium hydroxide projects using lepidolite as their plant feedstock have the potential to be placed at the bottom of

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the cost curve. Lepidolite has also been demonstrated to have a lower carbon emission intensity than other lithium sources.

Reung Kiet Prospect (RK)

The RK Prospect was a relatively large open cut tin mine. The old pit is about 500m long and up to 125m wide (see Figure 1).

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

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Mining of the weathered pegmatites extended up to 25m below surface, to the top of hard rock. Pan Asia has identified a prospective zone at least 1km long in association with extensive surface indications of lithium in trenching, rock-chips and soil anomalies, which are now supported by drilling results along the whole of the trend. Lithium mineralisation remains open to the north and south and at depth on many sections (see Figure 1).

Reung Kiet Prospect - Drilling

Pan Asia Metals has been drilling at the Reung Kiet Lithium prospect since mid-March, 2021. PAM has recently received assay results for drillholes RKDD023 to RKDD026.

Collar details for these and other relevant holes are provided in Table 1 - Reung Kiet Drill hole Collars, located in Appendix 1. Further technical details are provided in Appendix 2, being JORC Table 1. Appropriate plans and sections are provided throughout this report.

Assay results for holes RKDD006-012 were previously reported in PAM ASX Announcement dated June 29 and titled "Drilling Update Reung Kiet Lithium Prospect, Thailand". Assay results for holes RKDD013-015 were reported in PAM ASX Announcement dated August 16 and titled "Drilling Update Reung Kiet Lithium Prospect, Thailand". Assay results from drillholes RKDD016-022 were reported in PAM ASX Announcement on Sept. 14 titled Drilling Update-Reung Kiet Lithium Prospect.

As outlined in those announcements, all holes have returned zones of lithium mineralisation associated with lepidolite rich pegmatite dykes and veins and adjacent altered siltstone.

Technical Discussion

The RK pegmatite trend is divided into two main parts, RK North and RK South, each about 500m long (see Figure 1). RK North includes the old open cut and immediate surrounds. RK South extends along strike to the southeast and encompasses a prominent knoll.

At RK North the pegmatite dykes and veins dip at 65-70 degrees to the south-east. The Main dyke intersected in drilling beneath the pit can be up to 30m wide, narrower dykes and veins also occur, particularly to the east. At RK South the pegmatites form a dyke and vein swarm that dips at angles of 60 to 30 degrees. The pegmatite dykes and veins at RK South are typically more numerous when compared to RK North. The dykes and veins host the bulk of the lithium mineralisation however, it is relatively

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common for adjacent and intercalated meta-siltstone to contain lithium above the cut-off grade selected.

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

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

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