Cautionary Announcement

Pan African Resources plc

(Incorporated and registered in England and Wales under Companies Act 1985 with
registered number 3937466 on 25 February 2000)

Share code on AIM: PAF

Share code on JSE: PAN

ISIN: GB0004300496

(`Pan African' or the `company')

CAUTIONARY ANNOUNCEMENT

Shareholders are advised that Pan African has entered into negotiations, which
if successfully concluded may have a material effect on the price of the
securities of the companies. Accordingly, shareholders are advised to exercise
caution when dealing in the Company's securities, until a full announcement has
been made.

Rosebank

17 November 2010

JSE Sponsor

Macquarie First South Capital (Pty) Limited

Enquiries

South Africa                               UK                                
                                                                             
Pan African Resources                      RBC Capital Markets               
                                                                             
Jan Nelson, Chief Executive Officer        Martin Eales / James Kelly        
                                                                             
[phone]                        [phone]              
                                                                             
Macquarie First South Capital (Pty)        St James's Corporate Services     
Limited                                    Limited                           
                                                                             
Melanie de Nysschen / Annerie Britz /      Phil Dexter                       
Yvette Labuschagne                                                           
                                           [phone]              
[phone]                                                          
                                           Gable Communications              
                                                                             
                                           Justine James                     
                                                                             
                                           [phone]              
                                                                             

For further information on Pan African, please visit the website at 
www.panafricanresources.com