Evander Fatality & Shaft Refurbishment Programme

PAN AFRICAN RESOURCES PLC - Evander Fatality & Shaft Refurbishment Programme

PR Newswire

London, February 20

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: PAFShare code on JSE: PANISIN: GB0004300496(“Pan African” or the “Company”)

EVANDER GOLD MINING PROPRIETARY LIMITED (“EVANDER”) FATALITY AND SHAFT REFURBISHMENT PROGRAMME

FATALITY

It is with deep regret that Pan African reports that a mining accident occurred at the Evander 7 shaft complex on 15 February 2017. Mr Velile Chaplin Kapa (54), an Engineering Assistant employed by the operation, sustained a fatal head injury when a section of the main shaft pump column failed whilst he was working in the shaft bottom area. Pan African’s management and board express their sincere condolences to the family, friends and colleagues of Mr Kapa.

SHAFT REFURBISHMENT PROGRAMME

Shareholders are referred to the Trading Update, released on 5 December 2016, in which Pan African, inter-alia, disclosed details of the refurbishment programme being conducted at Evander’s 7A shaft.

In conjunction with the 7A shaft refurbishment programme, Evander’s management initiated a number of independent and internal engineering studies to assess the condition of Evander’s underground mining infrastructure (both Evander 7 and 8 shafts). These studies identified critical infrastructure issues requiring remedial action, to ensure safe and sustainable operation of these shafts.

The nature of these refurbishments require a suspension of Evander’s underground mining operations for a period of up to 55 days, during which critical infrastructure issues will be addressed. Evander’s tailings and surface operations will be unaffected by the underground mining suspension.

The cost of the shaft refurbishment programmes is expected to be approximately R40 million, which will be funded from the Company’s existing banking facilities.

In light of these recent developments, Pan African has revised its gold production guidance for the financial year ending 30 June 2017 from 195 000 ounces to approximately 181,000 ounces.

Pan African’s interim results for the period ended 31 December 2016 will be released on 22 February 2017. Further detail on the Evander underground refurbishment programme will be made available as part of this interim presentation.

20 February 2017

CONTACT INFORMATION

Corporate OfficeThe Firs Office Building1st Floor, Office 101Cnr. Cradock and Biermann AvenuesRosebank, JohannesburgSouth AfricaOffice: + 27 (0) 11 243 2900Facsimile: + 27 (0) 11 880 1240

Registered OfficeSuite 31Second Floor107 CheapsideLondonEC2V 6DNUnited KingdomOffice: + 44 (0) 207 796 8644Facsimile: + 44 (0) 207 796 8645

Jeffrey Couch/Neil Haycock/Thomas RiderBMO Capital Markets LimitedJoint BrokerOffice: +44 (0) 207 236 1010

www.panafricanresources.com