Group Operational Update

Pan African Resources PLC

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

AIM Code: PAF

JSE Code: PAN

ISIN: GB0004300496

("Pan African" or "the Company")

 

GROUP OPERATIONAL UPDATE

 

Following the recent successful acquisition of a 100% interest in Evander Gold
Mines Limited ("Evander"), Pan African is pleased to issue an update in respect
of its group operations.

 

Barberton Gold Mine Operations ("BGMO") and Evander

 

Production highlights for the quarter ended 31 March 2013 at BGMO and Evander
are as follows:

 

                                      Evander                       BGMO           
                                                                                  
                             1st      2nd      3rd       1st      2nd      3rd     
Description   Unit           Quarter  Quarter  Quarter   Quarter  Quarter  Quarter 
                             FY 2013  FY 2013  FY 2013   FY 2013  FY 2013  FY 2013 
                                                    **                                   
                                                                                  
Tonnes Milled (tonnes '000)      159      141      143        80       76       76
                                                                                  
Gold Sold     (oz)            24,853   20,737   25,592    23,200   21,726   25,881
                                                                                  

**The purchase of Evander was completed on 28 February 2013. Gold sold
attributable to the Pan African group from Evander was 10,325oz for March 2013.

Both BGMO and Evander achieved good results in this last quarter in terms of
recovered grades and gold produced and sold. The overall average recovered
grade for the last quarter of the 2013 financial year is expected to be 9.7 g/t
for BGMO and 4.6 g/t for Evander. The underground recovered grade, excluding
surface sources, for the upcoming quarter is expected to be 10.7 g/t for BGMO
and 6.5 g/t for Evander.

 

Evander

 

A key short to medium-term objective at Evander is to identify, evaluate and
advance organic growth projects. The mine has begun to equip the No 7 Shaft
area to retrieve additional ounces from previously mined areas. Further
optimisation opportunities have also been identified in low grade surface rock
dumps.

 

Evander's results will be consolidated into the Pan African group results with
effect from 1 March 2013.

 

Barberton Tailings Retreatment Project ("BTRP")

 

The BTRP remains on target and within budget to commence production in the
first quarter of FY 2014. 

 

The project is expected to retreat 1,200,000 tonnes of gold tailings per annum,
with a total life of project production of 160,000oz of gold at an average
recovered grade of 0.54 g/t. The BTRP is anticipated to increase the annual
production profile at BGMO by approximately 20,000oz per annum.

 

The necessary Eskom supply agreements have been concluded and the two overhead
lines for the required 4,000 MVA have been installed. The environmental impact
assessment for the Tailings Storage Facility ("TSF") has been approved. In line
with the planned schedule, Stefanutti Stocks has begun construction of the TSF,
and phase 1 is anticipated to be completed by July 2013. The project has
invoiced ZAR 194.2 million since the start of construction in April 2012 and
has a projected project value of ZAR 305.8 million.

 

Phoenix Platinum Mining ("Phoenix")

 

Phoenix produced 1,463oz 6E PGE for the quarter under review. Production at the
plant remained constrained due to the supply of oxide tailings by ferrochrome
producer International Ferro Metals Limited, which negatively affects the
flotation recovery.

 

The Company continues to explore options to ameliorate the impact of this oxide
feed material. These options include:

increasing feed tonnages into the plant;

additional test work to be carried out on the chemical reagent suite; and

expediting deliverables for the new TSF project.

 

Ron Holding, Joint Interim CEO of Pan African commented:

"The acquisition of Evander has propelled Pan African into a new phase of
growth. Our current emphasis is the successful integration of the asset into
the group. This integration is progressing well and is in line with our
expectations. We will continue our efforts to create and maintain a safe
working environment, achieve our stated production targets and control costs at
all of our operations."

 
Johannesburg
7 May 2013

 
JSE Sponsor                                                                             
One Capital                                                                             
                                                                                        
PAN AFRICAN ENQUIRIES                                                             
                                                                                  
                                                                                  
                                                                                  
South Africa                                   UK                                 
                                                                                  
Pan African Resources                          Canaccord Genuity Limited - Nomad  
                                               and Joint Broker                   
Mr Cobus Loots                                                                    
                                               Andrew Chubb / Peter Stewart / Joe 
Non-executive director and Joint Interim Chief Weaving                            
Executive Officer                              [phone]               
[phone]                                                               
                                                                                  
Mr Ron Holding                                                                    
Chief Operating Officer and Joint Interim                                         
Chief Executive Officer                                                           
[phone]                                                               
                                                                                  
                                                                                  
                                                                                  
One Capital                                    finnCap Limited - Joint Broker     
Sholto Simpson / Megan Young                   Elizabeth Johnson / Joanna Weaving 
[phone]                            [phone]               
                                                                                  
                                                                                  
                                                                                  
Vestor Investor Relations                      St James's Corporate Services      
                                               Limited                            
Louise Brugman                                 Phil Dexter                        
[phone]                            [phone]               
[phone]                                                                   
                                                                                  
                                                                                  
                                               Gable Communications               
                                               Justine James                      
                                               [phone] / [phone]                             
                                                                                  

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