Statement re Resource Upgrade for Phoenix

20 May 2010

                          Pan African Resources PLC

                       (`Pan African' or the `Company')

      (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

                         Resource Upgrade for Phoenix

Pan African Resources PLC (AIM: PAF, JSE: PAN) is pleased to
announce the results of a resource statement compiled for its Phoenix Platinum
Project (`Phoenix Project'), situated in the Bushveld Complex in South Africa.

Highlights

- Total resource increased by 15.8% to 469,000 ounces 4E Platinum
Group Metals (`PGM 4E's')

- In situ grade increased by 2.6% to 3.15g/t PGM 4E's

The Phoenix Project

The Phoenix Project is 100% owned by Phoenix Platinum Mining (Pty)
Limited (`Phoenix'), a wholly owned subsidiary of Pan African.

Phoenix concluded an exclusivity agreement with International Ferro
Metals SA (Pty) Limited (`IFM') on 18 February 2010, which agreement sets out
the terms and conditions under which Phoenix may construct a Chromite Tailings
Retreatment Plant (`CTRP') on the IFM property. The site position for the CTRP
was agreed on 31 March 2010 and the detailed engineering design of the CTRP is
ahead of schedule. Construction is anticipated to commence during the first
quarter of 2011 while first production is planned for September 2011.

Metallicon Process Consulting (Pty) Limited was appointed by Pan
African to validate and verify all procedures relating to the resource
estimate. The estimation process was carried out through a comprehensive
drilling, sampling and assaying programme that underpins the resource
calculation.

The process resulted in the metal content increasing by 15.8% from
405,000 ounces PGM 4E's reported in the Company's unaudited interim results
for the six months ended 31 December 2009, to 469,000 ounces PGM 4E's. The
grade increased by 2.6% from 3.07g/t PGM 4E's to 3.15g/t PGM 4E's. The
resource is summarised below:

Phoenix Resource Estimation
 
SURFACE TAILINGS RESOURCE - 100% Attributable to Pan African

               Category  Volume (m²)      Tonnes Grade(4E) g/t* Kilos* Ounces*
Dumps and Pits Measured      774 000   1 627 000           2.54  4 130 133 000
Dumps and Pits Indicated      83 000     175 000           2.03    355  11 000
Dumps and Pits Inferred       77 000     162 000           2.00    324  10 000
         Total               934 000   1 964 000           2.45  4 809 154 000

CURRENT ARISINGS RESOURCE - 100% Attributable to Pan African

                 Category  Volume (m²)     Tonnes Grade(4E) g/t* Kilos* Ounces*
Current Arisings Measured      761 000  1 597 000           3.66  5 845 188 000
                 Indicated     211 000    443 000           3.66  1 622  52 000
                 Inferred      305 000    642 000           3.66  2 348  75 000
           Total             1 277 000  2 682 000           3.66  9 815 315 000
 
             TOTAL RESOURCE - 100% Attributable to Pan African

Area      Category  Volume (m²)     Tonnes Grade(4E) g/t* Kilos* Ounces*
All       Measured    1 535 000  3 224 000           3.09  9 975 321 000
All       Indicated     294 000    618 000           3.20  1 977  63 000
All       Inferred      382 000    804 000           3.33  2 672  85 000
Total                 2 211 000  4 646 000           3.15 14 624 469 000
 
Jan Nelson, CEO of Pan African, commented:

"The increase in the total resources, assuming a 50% recovery,
extends the life of the Phoenix Project from 13 years to approximately 16
years, based on a production rate of 15,000 ounces PGM 4E's per annum. In
addition, the drilling programme underpins the high quality of the asset and
will further enhance the operating margin of the project and increase the
value to Pan African's bottom line".

                                     ENDS

For further information on Pan African Resources and a presentation
providing more detail on the Phoenix acquisition, please visit the website at
www.panafricanresources.com

Notes to the Editor:

The resource estimate has been compiled in accordance with the
South African Code for Reporting of Exploration Results, Mineral Resources and
Mineral Reserves (`SAMREC'). The verification and validation of the data and
the information contained in this announcement was managed by Martin
Bevelander, Group Consulting Geologist for Pan African, who is accredited with
the South African Council for Natural Scientific Professions (`SACNASP'). He
has consented to the inclusion of the technical information in this
announcement in the form and context in which it appears.

The services of additional independent consultants and experts were
also secured to assist and support this process.

- Sampling and Drilling: Plat-Tau Mining Services, Gold Mine Sand
and Slime Dams Drillers CC and Dump & Dune;

- Assaying, mineralogy and metallurgical testwork: Mintek and SGS
Lakefield Resources Africa (Pty) Limited;

- Geological modelling and data conversion for the resource
estimate: Geologix MRC (Pty) Limited, a South African Resources and Geological
Consultancy: Deon van den Heever is accredited with the SACNASP. He has
consented to the inclusion of the technical information in this announcement
in the form and context in which it appears.

- Michael Valenta of Metallicon Process Consulting (Pty) Ltd is a
professional engineer with the Engineering Council of South Africa (`ECSA')
and on the International Register of Professional Engineers as specified under
the Washington Accord. He has consented to the inclusion of the technical
information in this announcement in the form and context in which it appears.

Enquiries:
 
Pan African Resources
 
Jan Nelson, Chief Executive Officer
 
[phone]
 
Nicole Spruijt, Public Relations
 
[phone]
 
RBC Capital Markets
 
Martin Eales / Brett Jacobs
 
[phone]
 
Macquarie First South (Pty) Ltd
 
Melanie de Nysschen
 
[phone]
 
St James's Corporate Services Limited
 
Phil Dexter
 
[phone]