Wage Negotiations Concluded

27 July 2011

                           Pan African Resources PLC                           

                (`Pan African' or the 'Company' or the `Group')                

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

                            Share Code on AIM: PAF                             

                            Share code on JSE: PAN                             

                              ISIN: GB0004300496                               

                Wage Negotiations Concluded at Barberton Mines                 

Pan African announces that it has successfully negotiated with the National
Union of Mineworkers (`NUM') on wages and other conditions of employment for
the 2011/2012 financial year.

A one-year agreement has been concluded with employees represented by the NUM
and amounts to an average increase of 11% across the board.

The NUM employees will furthermore receive an increase to their housing
allowance from ZAR1,100 per month to ZAR1,300 per month. These increases are
effective from 1 July 2011.

Pan African is not a member of the Chamber of Mines and as it has successfully
concluded the wage negotiations will not be affected by any strike action by
the NUM.

Enquiries:

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