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Pan African Resources PLC (PAF)

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Tuesday 29 November, 2011

Pan African Resources PLC

First production at Phoenix


29 November 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
                registered number 3937466 on 25 February 2000)                 

                       Share code on AIM: PAF / JSE: PAN                       

                              ISIN: GB0004300496                               

                   First Platinum Production at Phoenix and                    

sale of PGM concentrate agreement signed with Lonmin's Western Platinum Limited

Pan African, the African focused precious metals producer, is pleased to
announce it has successfully commissioned the Phoenix platinum project
(`Phoenix') Chrome Tailings Retreatment Plant (`CTRP') and signed a sale of
Platinum Group Metal (`PGM') concentrate agreement with Lonmin plc's operating
subsidiary in South Africa, Western Platinum Limited (`WPL').

Summary

  * Phoenix has concluded a sale of PGM concentrate agreement with WPL for a
    five year period
   
  * The CTRP produced its first PGM concentrate two months ahead of schedule
   
  * Planned production for Q3/Q4 (FYE 30 June 2012), taking into consideration
    a build-up phase, is estimated to be 4,500 ounces of PGM's
   
  * Planned production on an annualised basis is estimated to be 12,200 ounces
    of PGM's (240,000 tonnes per annum at an average feed grade of 3.15 g/t)
   
  * The CTRP has a project life of 17 years
   
Jan Nelson, Chief Executive Officer of Pan African commented; "We are extremely
pleased to announce the production of first concentrate from Phoenix, two
months ahead of schedule. Being our first major capital project it was
imperative that we achieved our milestones on schedule and budget, a testament
to the effort of the team and I would like to thank them. The conclusion of the
five year sale of PGM concentrate agreement with WPL and the early production
of PGM concentrates, will provide the Company with a platinum revenue stream
commencing towards the end of the third quarter of this financial year. We have
now completed our transition into a producer of both gold and platinum group
metals"

Enquiries

South Africa                       UK                          
                                                               
Pan African Resources              RBC Capital Markets         
                                                               
Jan Nelson, Chief Executive        Martin Eales / James Kelly  
Officer                                                        
                                   +44 (0) 20 7653 4000        
+27 (0) 11 243 2900                                            
                                                               
Macquarie First South Capital      St James's Corporate        
(Pty) Limited                      Services Limited            
                                                               
Melanie de Nysschen / Annerie      Phil Dexter                 
Britz /                                                        
Yvette Labuschagne                 +44 (0) 20 7499 3916        
                                                               
+27 (0) 11 583 2000                                            
                                                               
                                   Gable Communications        
                                                               
                                   Justine James               
                                                               
                                   +44 (0) 20 7193 7463        

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