Trading Statement & Dividend Guidance

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" or the "Group")                

                    TRADING STATEMENT AND DIVIDEND GUIDANCE                    

Pan African Resources PLC, the JSE and AIM listed gold mining company, provides
the following trading statement to shareholders.

The Company advises shareholders that it expects its 2014 full year earnings
per share ("EPS") in both South African Rand ("ZAR")and Pound Sterling ("GBP")
terms to be over 20 per cent lower than the EPS for the year ended 30 June
2013.

Pan African is incorporated in England and Wales under Companies Act 1985 and
accordingly its presentation currency is GBP.

In terms of paragraph 3.4(b) of the Listings Requirements of JSE Limited, a
listed company is required to publish a trading statement as soon as it is
satisfied that a reasonable degree of certainty exists that the financial
results for the period to be reported on next, will differ by at least 20 per
cent from those of the previous corresponding period.

Shareholders are reminded that the 2013 financial year EPS included an
exceptional gain related to the acquisition of Evander Mines (Proprietary)
Limited from Harmony Gold Limited and impairment charges/losses on disposal
related to Phoenix Platinum (Proprietary) Limited and Auroch Minerals NL. The
net effect of these once-off transactions was increased earnings of ZAR71.9
million (4.44 cents per share) or GBP7.4 million (0.46 pence per share) for
2013.

2014 EPS, denominated in GBP, are expected to be between 42 per cent and 47 per
cent lower than those of the previous corresponding period (2013: 2.63 pence
per share).

2014 EPS, calculated in ZAR, using the average ZAR: GBP exchange rate of 16.88
that prevailed for the year ended 30 June 2014 (2013: 13.84), are expected to
be between 26 per cent and 31 per cent lower than those of the previous
corresponding period (2013: 34.51 cents per share).

When adjusted for the 2013 exceptional items mentioned above, headline earnings
per share ("HEPS"), denominated in GBP, are expected to be between 30 per cent
and 35 per cent lower than those of the previous corresponding period (2013:
2.17 pence per share).

HEPS, calculated in ZAR, at the average ZAR:GBP exchange rate above, are
expected to be between 16 per cent and 21 per cent lower than those for the
previous corresponding period (2013: 30.07 cents per share).

The key exogenous factors behind the decrease in HEPS include the following:

  * The ZAR gold price received decreased in the current financial year by 1.7%
    to ZAR433,433/kg (2013: ZAR440,824/kg).
   
  * The gold price in GBP terms decreased by 19.4 per cent to GBP799/oz (2013:
    GBP991/oz).
   
  * The ZAR depreciated against GBP by 22 per cent, impacting GBP earnings per
    share values reported.
   
A key internal factor that negatively impacted HEPS in the 2014 financial year
was the current low grade mining cycle at Evander Mines, which was previously
communicated to the market. The low head grade has resulted in reduced profit
margins and net profits generated by Evander Mines when compared to the prior
year.

As previously announced, the low grade mining cycle at Evander Mines is
expected to continue until February 2015, and will therefore also impact group
results and earnings for the first six months of the 2015 financial year.
Measures implemented, or in progress, to mitigate the impact of the current and
future low grade cycles at Evander Mines include the following:

  * The construction of the Evander Tailing Retreatment Plant ("ETRP") will
    yield an estimated 10,000oz of gold a year with a life of mine of 17 years.
    The ETRP project is progressing well and expected to be in production by
    January 2015.
   
  * Surface sources throughput in the Evander plant has been increased from
    18,000 tons per month to approximately 30,000 tons per month. To maintain
    these tonnages for the full 2015 financial year, additional sources are
    being investigated.
   
  * Vamping (the mining of historical "leftovers" remaining after previous
    mining operations) at Evander No 7 Shaft has been expanded to include the
    15 Level return airway mud accumulation project. This will contribute
    additional ounces from July 2014, onwards.
   
  * Management is concentrating efforts to increase availability of conveyor
    belts in the Evander No 8 Shaft declines. A refurbishment program has been
    implemented to effect the necessary mechanical improvements and upgrades.
   
  * Management rescheduled mine planning and improved mining flexibility by
    increasing development rates on 25 and 25A Levels at Evander No 8 Shaft to
    access more stoping areas.
   
  * Management is also investigating long-term mining flexibility improvements
    that could potentially be achieved by extending the decline system down to
    26 Level. This will increase the Evander life of mine from 14 to 17 years.
   
2014 dividend guidance

The Board of Directors (the "Board") has reviewed the current cash position and
cashflow forecasts for the Group operations. The Board will only propose a
final dividend when the Group releases its financial results for the year ended
30 June 2014. As part of this trading statement, the Board can however commit
to shareholders that it will not propose a final dividend lower than that paid
in 2013 in ZAR terms. The 2013 dividend paid was ZAR240.3 million or GBP14.7
million (0.1314 cents per share or 0.8033 pence per share).

The financial information contained in this trading statement has neither been
reviewed nor audited by the Company`s auditors. Pan African is currently
finalising its audited results for the year ended 30 June 2014, which are
anticipated to be released on 16 September 2014.

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

29 August 2014

Contact Details

Corporate Office
The Firs Office Building
1st Floor, Office 101
Cnr. Cradock and Biermann Avenues
Rosebank, Johannesburg
South Africa
Office: + 27 (0) 11 243 2900
Facsmile: + 27 (0) 11 880 1240

Registered Office
Suite 31
Second Floor
107 Cheapside
London
EC2V 6DN
United Kingdom
Office: + 44 (0) 207 796 8644
Facsmile: + 44 (0) 207 796 8645

Ron Holding                             Cobus Loots                            
Pan African Resources PLC               Pan African Resources PLC              
Chief Executive Officer                 Financial Director                     
Office: + 27 (0) 11 243 2900            Office: + 27 (0) 11 243 2900           

Phil Dexter                             Neil Elliot/Peter Stewart            
St James's Corp Services Limited        Canaccord Genuity Limited              
Company Secretary                       Nominated Adviser                      
Office: + 44 (0) 207 499 3916           Office: [phone]            

Matthew Armitt / Ross Allister          Sholto Simpson                         
Peel Hunt LLP                           One Capital                            
Joint Broker                            JSE Sponsor                            
Office: [phone]             Office: + 27 (0) 11 550 5009           

Julian Gwillim                          Daniel Thöle                           
Aprio Strategic Communications          Bell Pottinger PR                      
Public & Investor Relations SA          Public & Investor Relations UK         
Office: [phone]              Office: + 44 (0) 203 772 2500          

www.panafricanresources.com