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Pan African Resources PLC (PAF)

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Tuesday 18 May, 2010

Pan African Resources PLC

Further re RK1 Consortium


18 May 2010

                           Pan African Resources PLC                           

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

(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                               

  Update on conditional acquisition of a 25% stake in the RK1 Consortium and   
                     withdrawal of cautionary announcement                     

Shareholders are referred to the announcement released on, 31 March 2010, in
which Pan African advised that it had signed a conditional Sale and Purchase
Agreement with Ivanhoe Nickel and Platinum Limited to acquire a 25% interest in
the RK1 Consortium (`RK1') (the `Transaction'). RK1 owns a Chromite Tailings
Retreatment Plant ('CTRP') situated at Kroondal on the Western Limb of the
Bushveld Complex in the North West Province of South Africa, which produces
Platinum Group Metals concentrate.

The Transaction was subject to, inter alia, the successful completion of a
technical and financial due diligence investigation (`Due Diligence') by Pan
African. Subsequent to the completion of the Due Diligence, the Company has
elected not to proceed with the Transaction.

This decision will not affect the interim Exclusivity and Agreed Terms
Agreement (the `Agreement`) entered into on 17 February 2010 between Pan
African, its wholly-owned subsidiary Phoenix Platinum Mining (Pty) Limited
(`Phoenix`) and International Ferro Metals SA (Pty) Ltd (`IFM`) which relates
to the siting and construction of the Phoenix CTRP on the IFM Mine Property.
This is progressing ahead of schedule and first production is still planned for
September 2011.

Withdrawal of cautionary announcement

Shareholders are referred to the cautionary announcement first released on 31
March 2010 and subsequently renewed on 30 April 2010, and in terms of the
Listings Requirements of JSE Limited are advised that, as the company has
elected not to proceed with the Transaction, caution is no longer required to
be exercised when dealing in the Company`s securities.

                                     ENDS                                      

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

Enquiries:                                                                     
                                                                               
Pan African Resources                                                          
                                                                               
Jan Nelson, Chief Executive Officer                                            
                                                                               
+27 (0) 11 243 2900                                                            
                                                                               
Nicole Spruijt, Public Relations                                               
                                                                               
+27 (0) 11 243 2900                                                            
                                                                               
RBC Capital Markets                                                            
                                                                               
Martin Eales / Brett Jacobs                                                    
                                                                               
+44 (0) 20 7029 7881                                                           
                                                                               
Macquarie First South Advisers (Pty) Limited                                   
                                                                               
Melanie de Nysschen                                                            
                                                                               
+27 (0) 11 583 2000                                                            
                                                                               
St James's Corporate Services Limited                                          
                                                                               
Phil Dexter                                                                    
                                                                               
+44 (0) 20 7499 3916                                                           
                                                                               
Nedbank Capital                                                                
                                                                               
Reg Demana                                                                     
                                                                               
+27 (0) 11 294 1586