PVW Resources reported positive initial results from its maiden Reverse Circulation (RC) drilling program at the Tanami Heavy Rare Earth and Gold Project in Western Australia. Initial results have confirmed the potential of the project to host significant rare earth mineralisation, with both shallow and deeper mineralisation encountered at both prospects tested to date (Castella and Watts Rise). Thirteen of the 35 RC holes for which assay results have been received have returned assays of 1m @ 0.15% TREO or more The RC component of the program is now complete with 132 holes drilled for 10,727m while regional air-core (AC) drilling is continuing with 91 holes completed so far for 2,817m.

Rare earth assay results have so far been received from 35 RC holes (of 132 completed RC holes). The RC drilling was designed to test highly elevated surface rare earth mineralisation at both the Castella and Watts Rise prospects, while the AC drilling is currently testing the broader Watts Rise Surface sampling at Castella has shown that rare earth mineralisation occurs within conglomerates and sandstones of the Pargee Sandstone at the unconformity with the Killi Killi Formation and in structures within the Killi Killi Formation. These hosts have now been tested at Castella with the first systematic exploration drilling program.

Initial results from 35 holes have been positive in confirming the presence of elevated rare earths in each of the target styles. With a peak value of 9,500 ppm TREO within the conglomerates of the Pargee Sandstone at the unconformity this is a priority for follow-up and in-fill drilling. The mineralised conglomerate unit is strongly hematitic, silicified and brecciated at depth.

The unconformity, when intersected at depth, is often marked by a completely oxidised interval, dominated by clay and iron oxides. This may be related to a paleo-surface at the unconformity or an in-situ saprolitic regolith feature. The breccia style targets that are predominantly hosted in the Killi Killi Formation and that form part of the Castella and Regional REE targeting have produced several very encouraging results.

With results up to 6,200 ppm TREO achieved within deeper intersections in drilling, the Company intends to target down-dip and along strike on prospective structures as well as the regional unconformity. The results and initial interpretation show that controls on mineralisation are both structural and lithological. While there are similarities between mineralisation styles intersected in the Pargee Sandstone at the unconformity and in the deeper breccia zones, there are also important differences.

For example, the breccia zones are more enriched in the light rare earths - notably neodymium and praseodymium - which becomes stronger at depth in the Killi Killi Formation. In comparison, the unconformity as previously highlighted in rock chip samples is more elevated in the heavy rare earths such as dysprosium and terbium, which provides another important relationship for regional exploration targeting. the location of completed Castella RC drilling and the results for assays returned to date.

For drill holes for which assays have yet to be received, the maximum pXRF yttrium values - Y2O3 (ppm) are shown for readings above 250 ppm. It should be noted that pXRF readings do not necessarily relate directly to expected TREO values and are used in the process to select samples for assay The pXRF yttrium readings are only an indication of the expected order of magnitude for the yttrium final analysis. The first drilling program at Watts Rise has intersected significant yttrium anomalism as measured by a portable XRF.

The size and consistency of the new zone intersected is very encouraging, currently delineated over a strike length of over 380m. A consistent zone of elevated yttrium and strontium intersected by the current RC drilling has now been sampled for REE and Gold with REE assays expected in 4-6 weeks. The anomalous zone defined with pXRF readings of >100 ppm yttrium and /or >1,000 ppm strontium displays a north-east plunge in the same orientation as previously reported gold mineralisation The current drilling is predominantly extensional to the historical (2010 - 2012) RC drilling that was designed to test for mineralised Pargee Sandstone beneath an elevated REE surface anomaly.

While the historical drilling targeted REE, it also intersected significant gold mineralisation with minor REE mineralisation.