PANEX PROJECTS TUNGSTEN DEPOSITS IN PORTUGAL PanEx is investigating a number of tungsten-tin deposits in Portugal and has acquired the Borralha and Villa Verde deposits as part of a greater tungsten portfolio. The Borralha Project is the most advanced being a near term low cost producer due to low capital and operating cost within a beneficial social and environmental location. Competent local professional persons, who will take the project through the initial phases to production, compliment the PanEx team. BORRALA TUNGSTEN PanEx’s Borralha tungsten project is located in Portugal, 80 km east of Porto, within an historical mining area with with excellent infrastructure. PanEx proposes to mine by open pit a breccia body containing coarse wolframite recoverable by simple crushing and gravity methods. Completed drilling shows that the deposit has the potential to become one of the lowest cost tungsten producers.

Wolframite mineralisation is hosted in a 25 Mt pipe-like breccia body drilled to 130m below surface outcropping on the side of a hill. The breccia has also been intersected near and on surface by adits from previous mining during the mid 1900`s. The mineralised zone within the breccia appears to be between 40 to 90 m wide. Current grade is estimated at 0.16 % W03, but PanEx wishes to drill more and apply a cut-off to achieve a target of 11 Mt at 0.2 % WO3 at low strip ratio.

A program is underway for the completion of resource drilling and the intent to commission a 1,200,000 tpa mine to produce more than 1500 tpa wolframite concentrate. This phase is to complete drilling for grade distribution, mine planning and to acquire bulk samples for metallurgical work for plant design. A quantity of wolframite concentrate for potential off-takers will also be produced. The base case using a grade of 0.2% WO3, 80% recovery, a 1:1 strip ratio, sales price of 290 USD/MTU, and $14 million USD Capex, shows attractive returns.

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PanEx has the right to earn 90% by spending CAD$ 5 million or by taking the project to feasibility study, with a possibility to acquire the remaining 10 %. Besides Borralha, within the portfolio there are a number of other wolframite deposits at Vila Verde 50 km to the south that could be part of a longer-term strategy to become a significant tungsten producer. China is the World’s largest producer of tungsten but also the largest consumer of tungsten. Due to its shrinking production and increase in use of tungsten China is expected to become a net importer by mid 2020’s. By 2020 Europe will still produce less than half of its own tungsten requirement of around 16000 tpa WO3. At Borralha PanEx proposes to produce around 1% of world production and 10% of European consumption. VILLA VERDE TUNGSTEN Several Sn-W mineralised systems are found on the 75 square kilometre Vila Verde Permit where historic Mining has been carried out in three areas:

The old Vale Das Gatas Mine which is a vein deposit where more than 3000t wolframite was recovered at a grade of 0,35% WO3. This was an underground mine and has potential for more ore but is not being investigated at present and

Prainelas where current drilling returned 12m @ 0.19% WO3 and has open pit potential also to be investigated in future

Justes, our main focus where eluvial wolframite has been mined over an area of 2000m x 500m indicating the presence of a large mineralising system. Drilling is in progress, some results are show below: