Pan Asia Metals : Drilling Update - Reung Kiet Lithium Project

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ASX Announcement | July 11, 2022

Drilling Update

Reung Kiet Lithium Project, Thailand

HIGHLIGHTS

• Assay results for a further ten (10) holes (RKDD047-57) completed at the Reung Kiet Lithium Project in southern Thailand have been received.
• Results demonstrate extensions at depth and along strike of the existing Mineral Resource.
• Infill drilling results support and enhance the existing Mineral Resource.
• Drilling results include:

Hole ID	from (m)	to (m)	int (m)	Li2O (%)	Sn (ppm)	Ta2O5 (ppm)	Rb (%)	Cs (ppm)	K (%)
RKDD047	83.60	87.65	4.05	0.78	501	168	0.35	297	3.61
RKDD049	126.85	133.90	7.05	0.68	685	88	0.33	197	2.21
RKDD052	107.40	120.55	13.15	0.74	343	104	0.24	370	2.47
RKDD052	107.40	112.90	5.50	1.16	613	142	0.39	425	2.66
RKDD053	91.30	96.40	5.10	0.57	439	68	0.20	308	2.64
RKDD053	99.25	108.50	9.25	0.79	601	106	0.30	343	2.68
RKDD053	125.70	132.95	7.25	0.57	215	114	0.20	451	2.50
RKDD054	72.20	81.80	9.60	0.58	322	72	0.20	322	2.60
RKDD054	87.70	117.65	29.95	0.55	327	67	0.19	312	2.46
RKDD054	102.10	110.90	8.80	1.00	643	116	0.35	369	2.84
RKDD055	58.20	81.20	23.00	0.37	200	62	0.16	267	2.70
RKDD055	83.90	104.40	20.50	0.60	309	77	0.22	332	3.00
RKDD055	86.30	94.55	8.25	0.98	534	120	0.34	308	2.91
RKDD056	57.20	62.80	5.60	1.18	717	115	0.44	377	3.23
RKDD056	92.20	107.10	14.90	0.59	314	70	0.20	334	2.74
RKDD057	18.90	44.40	25.50	0.71	288	106	0.21	447	1.98
RKDD057	22.50	28.70	6.20	1.02	414	147	0.32	453	2.17
RKDD057	63.00	80.90	17.90	0.43	172	77	0.15	436	2.69

• Tin, tantalum and other prospective by-products such as rubidium, cesium and potassium compounds potentially add to the revenue of any future operation.
• Infill and extensional drilling is ongoing at the Reung Kiet lithium prospect.
• Mineral Resource upgrade and Scoping Study expected later this year.
• Drilling planned at the Bang I Tum lithium prospect 10km to the north of Reung Kiet.

PAN ASIA METALS LIMITED

Level 3, 77 Robinson Road, Singapore, 068896

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

www.panasiametals.com

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Specialty metals explorer and developer Pan Asia Metals Limited (ASX: PAM) ('PAM' or 'the Company') is pleased to provide an update for a further ten (10) drill holes completed at the Reung Kiet lithium prospect. Results 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 and remains open along strike to the north and south, and at depth on many sections.

Pan Asia recently reported an Inferred Mineral Resource estimate for the Reung Kiet lithium prospect as shown in Table 1. Please refer to PAM's ASX Announcement titled "Inaugural Mineral Resource Estimate Reung Kiet Lithium" and dated June 28, 2022.

Table 1. RKLP Inferred Mineral Resource

		Million			Li2O %			Sn %				Ta2O5 %				Rb %				Cs %				LCE (t)
		Tonnes
Oxide &	3.2		0.49		0.03			0.009			0.15			0.02			38,611
Transitional
Fresh	7.2		0.42		0.04			0.009			0.16			0.02			74,416
Total	10.4		0.44		0.04			0.009			0.16			0.02			113,027

Mineral Resource reported above 0.25% Li2O% cut-off. Appropriate rounding applied.

Ongoing drilling at the Reung Kiet lithium prospect aims to increase the Mineral Resource tonnage and upgrade portions of the Mineral Resource from Inferred to Indicated and Measured classifications.

Pan Asia Metals Managing Director Paul Lock said: "Assay results continue to please and we are happy to report that the mineralised zones remain open along strike to the north and south and down dip. We recently reported a Mineral Resource of 10.4Mt containing about 113,000t LCE. This was based on drill holes RKDD001-046. We are reporting results for drill holes RKDD047-057 and we are currently drilling holes RKDD074 and 075, with 20 or so additional holes planned. This is a combination of infill and extensional drilling, our aim is to add additional tonnes to the Mineral Resource as well as upgrade the Mineral Resource from the Inferred category to the Indicated and Measured categories."

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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. Open pit mining extracting tin from the weathered pegmatites was conducted into the early 1970s.

PAM's objective is to continue drilling with the aim of increasing and upgrading the existing Mineral Resource. 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 near the bottom of the LCE cost curve. Lepidolite has also been demonstrated to have a lower carbon emission intensity than other lithium sources.

Reung Kiet Lithium Prospect (Reung Kiet)

The Reung Kiet lithium 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 30m below surface, to the top of hard rock. PAM has identified a prospective zone at least 1km long for which a maiden Mineral Resource has been reported. Lithium mineralisation remains open to the north and south and at depth on many sections (see Figure 1).

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

Reung Kiet Prospect - Drilling

Pan Asia Metals has been conducting diamond core drilling at the Reung Kiet lithium prospect since March 2021. PAM has recently received assay results for drillholes RKDD047 to RKDD057, excluding RKDD050.

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Collar details for these holes are provided in Table 2 - Reung Kiet Drill Hole Collars, located in Appendix 1. Assay intersections for these holes are reported in Table 3 - Reung Kiet Drilling Assay Results. Further technical details are provided in Appendix 2, being JORC Table 1. Appropriate plans and sections are provided throughout this report.

Technical Discussion

The Reung Kiet 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 pegmatite dykes and veins host the bulk of the lithium mineralisation. However, it is relatively common for adjacent and intercalated meta-siltstone to contain elevated lithium values in the order of 0.1-0.3% Li2O.

From west to east the pegmatite swarm at RK South occurs in a zone approximately 100m wide, although it may taper slightly to the northeast as RK North is approached.

The whole 1km long trend remains open along strike to the north and south, and down dip on many sections. Additional infill and extensional drilling is ongoing with drillholes RKDD074 and 075 currently in progress. The recently reported maiden Mineral Resource estimate was based on drillholes RKDD001 - 046. The additional infill and extensional holes will be used to update the Mineral Resource later in the year.

In this report assay results for drillholes RKDD047-RKDD057 are discussed, with relevant plans and cross sections presented.

New results RKDD047-057

On Section U located 60m north of the old pit, drillhole RKDD047 was designed as an extensional hole to test for mineralisation north of RKDD032 along the trend associated with a Li in soil anomaly. Results from RKDDD047 included numerous narrow zones of Sn-Ta mineralisation from 19-69m. Lithium mineralisation occurs in several zones from 71.6m-102.4m, the best being 4.05m @ 0.78% Li2O, 0.05% Sn and

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