Pan Asia Metals : DrillingUpdate - Reung Kiet Lithium Prospect

For personal use only

ASX Announcement | December 07, 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. RKDD027: from 6.9m to 64m hosts 26.35m of composite mineralisation @ 0.84% Li2O.
   Incl. 6.40m @ 0.51% Li2O, 406ppm Sn, 263ppm Ta2O5, 821ppm Cs, 0.39% Rb and 2.90% K from 55.80m to 64.20m,
   and 10.6m @ 1.24% Li2O, 540ppm Sn, 144ppm Ta2O5, 400ppm Cs, 0.43% Rb and 3.21% K from 28.3m-38.9m.

1. RKDD028: from 66m to 68m @ 0.51% Li2O, 667ppm Sn, 70ppm Ta2O5, 127ppm Cs, 0.22% Rb and 2.61% K.

1. RKDD029: from 61m to 73.2m hosts 12.2m @ 0.66% Li2O, 970ppm Sn, 117ppm Ta2O5, 209ppm Cs, 0.31% Rb and 3.03% K.

• 1. RKDD030: from 11.0m to 83.8m hosts 35.35m of composite mineralisation @ 0.65% Li2O.
     Incl. 20.7m @ 0.66% Li2O, 1149ppm Sn, 128ppm Ta2O5, 216ppm Cs, 0.35% Rb and 2.66% K from 46.2m to 66.9m,
     and 8.25m @ 0.52% Li2O, 981ppm Sn, 98ppm Ta2O5, 186ppm Cs, 0.28% Rb and 2.76% K from 72m to 80.25m.
• Tin, tantalum rubidium, cesium and potassium mineralisation occur in association with lithium, and are identified as lithium indicator elements in spot hand-held XRF analysis of drill core.
• Drilling is ongoing at Reung Kiet.
• 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.

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

For personal use only

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: "As per our recent release we continue to be very satisfied with the results we are seeing, which compare very favourably with the lithium mica peer group. We remain 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. Once delivered we of course will be seeking to expand on this with further targets identified in the Reung Kiet blocks as well as in our nearby Kata Thong blocks which are currently under application."

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

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

Reung Kiet Prospect (RK)

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

Mining of the weathered pegmatites 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

2

For personal use only

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).

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

3

For personal use only

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 RKDD027 to RKDD030.

Collar details for these and other relevant holes are provided in Table 1 - Reung Kiet Drillhole Collars, located in Appendix 1. Assay intersections are presented in Table 2. 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". Assay results for drillholes RKDD023-026 were reported in recent PAM ASX Announcement on December 3rd titled "Drilling Update-Reung Kiet Lithium Prospect".

As outlined in those announcements, many drillholes have returned zones of lithium mineralisation associated with a swarm of 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 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).

4

For personal use only

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

The whole 1km long trend remains open to the north, south and down dip on many sections. Additional infill and extensional drilling are being undertaken. Drill spacings are designed with the aim of estimating Mineral Resources. With continued success PAM expects to report Mineral Resources in 1st Quarter, 2022.

5