PAM Share Placement

Battery and critical metals explorer and developer Pan Asia Metals Limited (ASX: PAM) (‘PAM’ or ‘the Company’) is pleased to announce that it has received firm commitments to raise A$1,450,000 (before costs) by way of a placement to new and existing sophisticated and institutional shareholders (Placement). The Company will issue 9,666,667 fully paid ordinary shares at $0.15 per share (Shares). The Shares will be issued within the Company’s existing 15% placement capacity under ASX Listing Rule 7.1. It is expected that the Shares will be issued on 31 October 2023. The success of the raise in a very challenging market reflects the quality of PAM’s assets, its underlying low cost mid stream processing strategy in Asia, and the strategic positioning of its assets in South America.

The funds raised will be focused towards:

• Advance RK Lithium Project Mineral Resource development and Feasibility
• Commencing exploration programs in Chile
• Progress Vietnam initiative, including discussions with OEMs
• General Working Capital Purposes

Pan Asia Metals Managing Director, Paul Lock, commenting on the Placement said: “Whilst it has been an extremely tough market for junior mining companies to raise capital, we are pleased to have completed a modest raising. This raising will allow the Company

to continue its value add through exploration and development activities and achieve several important milestones, as well as pursuing and delivering strategic partnerships. Despite the prevailing market conditions, the underlying EV thematic remain fundamentally robust with Bloomberg recently reporting that the crucial tipping point to mass adoption, which is 5% of EV sales to total sales, has now been reached in 23 countries, that the US has just passed the 1 million EV sales/year mark - with time to spare, and that the 2030 EV market is expected to be greater than $950 Billion. The prospects for PAM and other lithium companies remain very strong. The continued participation in equity raises by PAM’s management is a testament of our belief in PAM. We would like to thank our supportive shareholders, new investors and GBA Capital for their support, which also extends to GBA’s partners. The Company is in discussions with several potential strategic partners, which includes funding, and expects outcomes in the coming months.”

The Company has embarked on discussions with several strategic investor groups, including MOU partners, and the Company expects to announce outcomes of these discussions in the coming months, including potential capital injections. Despite the small dilution at the low placement price, the Company strongly believes that the longer term outlook and therefore its prospects remain very robust.

The Placement included participation by the Company’s Chairman and Managing Director, Paul Lock, and Technical Director and Chief Geologist, David Hobby. Mr Lock subscribed for $200,000, which was provided to the Company prior to and in anticipation to the Placement, and Mr Hobby subscribed for $40,000, which was also provided to the Company prior to and in anticipation to the Placement. The issue of Mr Lock’s and Mr Hobby’s Shares will be subject to Shareholder approval at an Extraordinary General Meeting, which is scheduled for late November.

The Company would like to thank GBA Capital for its efforts in this market, and extends thanks to those firms who worked with GBA Capital in the raise. It is noted that we are in one of the toughest markets in at least a decade and that GBA Capital put their best foot forward, which is commendable. We look forward to working with GBA Capital and associated firms in the future.

The Company would like to take this opportunity to emphasize that the Tama Atacama Lithium Project is primarily a lithium in brine project, with >1,000Km2, of the project’s surface area being lithium in brine prospects. As a result of the magnitude of the project, and the high grade surface assays related to the lithium in brine targets previously reported, the Company is fielding enquiries from potential strategic partners.

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