Pan Asia Metals : Reung Kiet Lithium Project Exploration Target

For personal use only

ASX Announcement | July 27, 2022

Bang I Tum Prospect - Exploration Target

Reung Kiet Lithium Project, Thailand

Specialty metals explorer and developer Pan Asia Metals Limited (ASX: PAM) ('PAM' or 'the Company') is pleased to report that it has defined an Exploration Target of 8 to 14 million tonnes at a grade ranging between 0.5% to 0.8% Li2O in accordance with the JORC Code 2012 at the Bang I Tum Lithium Prospect located in southern Thailand.

The potential quantity and grade of the Exploration Target are conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Exploration Target: 8.0 - 14.0Mt @ 0.80% - 0.50% Li2O (JORC Code 2012)

This Exploration Target lies within the Bang I Tum Lithium Prospect (Bang I Tum or BIT), which is located about 8km north-east of the Reung Kiet Lithium Prospect in southern Thailand. Pan Asia Metals retains a 100% interest in the project via Special Prospecting Licence 1 (JSPL1/2562). Grades have also been estimated for Sn, Ta2O5, Rb, Cs and K, see Table 1.

Table 1. RKLP - Bang I Tum Prospect - Exploration Target, 27 July, 2022

			Million				Li2O %			Sn %				Ta2O5				Rb %				Cs			K (%)
			Tonnes									(ppm)							(ppm)
Lower		8.0			0.80		0.09			120			0.30			250		2.80
Upper		14.0			0.50		0.07			95			0.24			210		2.40

The Exploration Target is based on the current geological interpretation of the mineralisation geometry, geochemistry and geology. This is provided by surface soil and rock-chip sampling, associated geological observations and the results from 3 (three) diamond drill holes as reported in the Company's ASX announcement dated 29 June, 2021, and titled 'Drilling Update - Reung Kiet Lithium Prospect, Thailand' (see Figures 1 and 2).

PAN ASIA METALS LIMITED

Level 3, 77 Robinson Road, Singapore, 068896

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

www.panasiametals.com

For personal use only

Figure 1 Bang I Tum Lithium Prospect - Exploration Target Zones

The Exploration Target is reported in advance of a drilling program which is expected to commence at Bang I Tum in approximately two (2) months.

The Exploration Target, being conceptual in nature, does not account for potential geological complexity, possible mining methods or metallurgical recovery factors. The Exploration Target was estimated in order to provide an assessment of the potential

2

For personal use only

scale of the mineralisation intersected in drilling and supported by results and observations along the trend.

Figure 2. Cross Section BTDD004, 005, 006

3

For personal use only

The Exploration Target is defined by using:

Polygonal/cross sectional end area extrapolation of the drilling results supported by surface geochemistry and geological observations. From the drill hole results, polygons were constructed using a >0.1% Li2O cut-off with average grades for Li2O, Sn, Ta2O5, Rb, Cs and K then calculated. Average grades were also calculated using a > 0.4% Li2O cut off. No top cut was applied. The polygons were extended 210m down dip from surface (see Figure 2 above). Volumes of the polygonal blocks were then calculated as polygon area x strike length of 900m being approximately 450m either side of the drill section. Tonnage was estimated using a density of 2.6t/m3, and then rounded to the nearest 1 million tonnes. The upper tonnage and grades represent 100% of the polygon tonnage and contained average grades. The lower tonnage estimate represents approximately 55% of the upper tonnage. This was based on the ratio of sample values greater than 0.4% Li2O versus the number of samples greater than 0.1% Li2O.

PAM intends to test the Exploration Target with further drilling which is expected to commence in the next 2 months. A metallurgical test work program is also planned to evaluate potential metallurgical performance of the mineralisation.

PAM will also test other areas of potential that are not included in the Exploration Target estimate.

Pan Asia Metals Managing Director Paul Lock said: "We recently reported a Mineral Resource of 10.4Mt containing about 113,000t LCE at the Reung Kiet Lithium Prospect, which is located about 8km south-west of the Bang I Tum Lithium Prospect. The drilling results and subsequent Mineral Resource at Reung Kiet, and the fact that the Bang I Tum Exploration Target is drill supported, gives us a higher degree of confidence in the quantum of the Exploration Target. Our objective is to generate an Ore Reserve sufficient to meet our initial production target of 10,000tpa LCE for minimum 10 years. We are on track to achieve this and once achieved our objective is to add to it."

Ends

Authorised by:

Board of Directors

4

For personal use only

About the Reung Kiet Lithium Project

The Reung Kiet Lithium Project is a lepidolite style lithium project located about 70km north-east of Phuket in the Phang Nga Province in southern Thailand. Pan Asia holds a 100% interest in 3 contiguous Special Prospecting Licenses (SPL) and 1 Exclusive Prospecting License Application covering about 40km².

Regional map: Location of Phang Nga and the Reung Kiet Lithium Project

5