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Pan African Resource (PAF)

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Tuesday 14 November, 2006

Pan African Resource

Manica: independent valuation

Pan African Resources PLC
14 November 2006

14th  November

                           Pan African Resources PLC

                        ('Pan African' or 'the Company')

  Results of Independent Mining Valuation on Surface Mine at Manica project -

Pan African Resources PLC (AIM : PAF), the African based gold exploration
company, announces the results of an independent mining evaluation of the Fair
Bride deposit on its Manica gold project in Mozambique.

Highlights of the evaluation are:

•        Life of mine (LOM) average production of 84,000 ounces of gold per

•        Open pit mine life of 8.5 years

•        Life of mine average cash operating cost of US$387 / ounce

•        IRR of 31%

•        An ungeared, pre-tax and royalty project NPV of US$39 million at a gold
         price of US$600/oz and a discount rate of 12%


The Fair Bride prospect represents only one of several prospects within the
Manica project. Work to date has been directed at evaluating the economic
viability of mineralization at the Fair Bride prospect. Until recently only 12%
of the mineralized strike-length had been explored. Pan African has been
focusing its exploration activity on delineating drill targets within the other
prospective areas. Based on the results from the mining evaluation it is the
company's intent to complete its drill target delineation by year-end and
commence drilling in Q1 of 2007. The focus of the drilling programme will be to
identify and prove-up additional mineralized zones to Fair Bride.

About the Study

Mining and Engineering firm, Turgis Consulting (Pty) Ltd ('Turgis') has
completed an independent mining evaluation on the company's Manica gold project
in Mozambique and has concluded that the Manica project has definite economic
potential considering the economic input parameters.

Jan Nelson, CEO, Pan African, commented: 'The company is very pleased with the
results from the independent mining evaluation completed by Turgis, which shows
the deposit to be commercially viable under current economic conditions. There
is still room for improvement on capital and working cost estimates, sulphide
recoveries and the life of mine, and we are currently addressing these factors.

'Furthermore, the results from the recent bulk sampling at Fair Bride indicate a
significantly higher sulphide grade of 3.73g/t in situ as opposed to a resource
estimated sulphide grade of 2.61g/t in situ used in the Turgis study. This is an
increase of over 1.12g/t and could significantly improve the current NPV of the
project if validated. Work is currently underway to produce independent
validation of these results after which Turgis will revisit their evaluation.'

The independent mining evaluation is conceptual in nature and the current
numbers are being finalised to pre-feasibility accuracy levels as part of
pre-feasibility study to be completed before year-end. The economic potential of
the deposit was determined by using Whittle software to optimise the open pit
design. Input parameters from mining evaluation are:

Gold price:                   US$600/oz

Production rate:              100,000 tonnes / month

Oxide recoveries:             90.12%

Sulphide recoveries:          86%

Mining recovery:              100%

Mining dilution:              5%

Mining operating cost:        US$2/t mined (average over LOM)

Oxide processing cost:        US$7/t (average over LOM)

Sulphide processing cost:     US$11.25/t (average over LOM)

Capital cost:                 US$68 million

About the Resource / Mining / Metallurgical estimates used in the study

The resource used in the mining evaluation study has been independently verified
by ExplorMine which acts as Competent Person to the company. Resource estimates
were calculated by independent geological and resource firm Geologix MRC.

Turgis has reviewed all technical information relevant to the mining study.

Metallurgical recoveries and capital cost estimates used in the mining
evaluation were taken from an independent report compiled by Mr. Jan van
Niekerk, Senior Metallurgical Consultant (Refractory Ores) for Gold Fields BIOX

Geologix MRC has verified the results from the metallurgical bulk sampling
exercise and confirm that the grade from the sulphide zone from the bulk
sampling exercise is 1.12g/t higher than the resource estimate for the sulphide
zone. Sulphide grade from bulk sampling is 3.73g/t as opposed to a resource
estimated grade of 2.61g/t. This is a difference of 1.12g/t.


For further information on Pan African Resources please visit the website at A copy of the Mining Valuation report  will be
posted on the website.


Pan African Resources       Ambrian Partners            Parkgreen Communications
Jan Nelson, CEO             Richard Brown               Justine Howarth /
+27 11 886 1211             +44 (0) 207 776 6400        Victoria Thomas
Colin Bird, Chairman                                    +44 (0) 20 7493 3713
+44 (0) 20 7584 2155


About the Consultants

Turgis Consulting was established in 1990 as a specialist technical consulting
firm serving the mining industry.  The company has worked with mining companies
in South Africa, Zimbabwe, Ghana, Botswana, Madagascar, Chile, Brazil,
Australia, Zambia, Ukraine, Norway and in the United Kingdom.  Turgis
specialises in all aspects of design and operation of mining, mechanical,
electrical and logistic systems for surface and underground mines.

Turgis is committed to developing and applying integrated mine designs that
result in projects that work practically and within design parameters.  This is
achieved by using experienced practitioners and professionals who have worked in
both production and engineering disciplines on mines.

Turgis's independence is ensured by the fact that its ownership rests solely
with its staff and that they have no ownership interests, either directly or
indirectly, with any equipment supply company.

•         ExplorMine Gold Consultants (Pty) Ltd is a South African based
Resource & Geological Consultancy - the principle directors and geologists of
the company are Graham Gavine and Garth Mitchell, who personally oversaw the

•         Geologix MRC is a South African based Resource and Geological
Consultancy -  Deon van den Heever was responsible for the resource estimate.

•         Both companies' geologists are SACNASP accredited and members in
good standing of their respective professional societies.  The resource
statement is SAMREC compliant and this announcement has been verified by both

•         SACNASP - South African Council for Natural Scientific Professions.

•         SAMREC - South African Mineral Resource Code (A recognised reporting
Code under the Resources Guidelines of the London Stock Exchange, May 2006).

                      This information is provided by RNS
            The company news service from the London Stock Exchange