Pan Asia Metals : Drilling Update- Reung Kiet Lithium Prospect

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ASX Announcement | March 02, 2022

Drilling Update

Reung Kiet Lithium Prospect, Thailand

HIGHLIGHTS

• Assay results for further seven (7) holes (RKDD036-042) completed at the Reung Kiet Lithium Project in southern Thailand have been received.
• Results continue to demonstrate numerous zones of lithium-tin-tantalum mineralisation associated with pegmatite dykes and veins.
• Drilling results include:
  o RKDD036: 17.75m @ 0.53% Li2O, 0.03% Sn and 63ppm Ta2O5 from 97.95m and 7.35m @ 0.49% Li2O, 0.10% Sn and 103ppm Ta2O5 from 124.65m.
  o RKDD037: 8.05m @ 0.55% Li2O, 0.02% Sn and 53ppm Ta2O5 from 48.85m, 13.6m
• • 0.59% Li2O, 0.03% Sn and 63ppm Ta2O5 from 60.9m and 11.15m @ 0.47% Li2O, 0.02% Sn and 68ppm Ta2O5 from 77.55m.

1. RKDD038: 6.3m @ 0.53% Li2O, 0.03% Sn and 126ppm Ta2O5 from 30.1m and 30.05m @ 0.53% Li2O, 0.02% Sn and 60ppm Ta2O5 from 46.2m.

1. RKDD039: 6.5m @ 0.63% Li2O, 0.12% Sn and 78ppm Ta2O5 from 112.5m and 5.85m @ 0.71% Li2O, 0.04% Sn and 93ppm Ta2O5 from 122.5m and 8.55m @

0.54% Li2O, 0.03% Sn and 103ppm Ta2O5 from 130.7m.

1. RKDD040: 8.15m @ 0.29% Li2O, 0.12% Sn and 78ppm Ta2O5 from 115.85m and

13.25m @ 0.27% Li2O, 0.14% Sn and 89ppm Ta2O5 from 143.85m.

1. RKDD041: 5.15m @ 0.36% Li2O, 0.10% Sn and 93ppm Ta2O5 from 110.7m and

4.55m @ 0.56% Li2O, 0.12% Sn and 123ppm Ta2O5 from 135.2m

• o RKDD042: 30.25m @ 0.76% Li2O, 0.03% Sn and 103ppm Ta2O5 from 26.5m

• Tin, tantalum and other prospective by-products such rubidium, cesium and potassium compounds potentially add to the economics of any future operation.
• Infill and extensional drilling is ongoing at Reung Kiet and will transition to the Bang I Tum prospect 10km to the north.
• Mineral Resources and Exploration Targets anticipated at Quarter end followed by a Scoping Study later in 2022.

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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Specialty metals explorer and developer Pan Asia Metals Limited (ASX: PAM) ('PAM' or 'the Company') is pleased to provide an update for seven (7) more drill holes completed at the Reung Kiet (RKDD036-042). 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 Metals Managing Director Paul Lock said: "PAM is rapidly progressing to an inaugural Mineral Resource. Holes RKDD036-041were designed to test for down dip extensions, with success achieved in all holes. Hole RKDD042 was an infill hole and was also successful. The results have been good, with Li, Sn and Ta, and Cs, Rb and K results being in line or better than PAM's direct peers. We are also seeing many intersections better than 0.10% Sn and these intersections are commonly associated with Ta2O5 values higher than 100ppm. Both Sn and Ta have the potential to be valuable by-productcredits during beneficiation, especially in the current price environment. We are also seeing very good Cs, Rb and K grades."

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

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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).

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

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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 RKDD036 to RKDD042.

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

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 pegmatite 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 of 0.2% Li2O.

From west to east the pegmatite swarm at RK South occurs in a zone approximately 100m wide, but may taper slightly to the northeast as RK North is approached (see Figure 2).

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.

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In this report assay results for drillholes RKDD036-RKDD042 are discussed, with relevant plans and cross sections presented.

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

New results RKDD036-042

On Section B at the RK South (see Figure 3), drillhole RKDD042 was designed to infill between 100m spaced sections A and C and to test the mineralised zone up-dip of RKDD023. In RKDD042 the pegmatite dyke/vein swarm was intersected between

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