First production at Phoenix

29th Nov 2011 07:11

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 extremelypleased to announce the production of first concentrate from Phoenix, twomonths ahead of schedule. Being our first major capital project it wasimperative that we achieved our milestones on schedule and budget, a testamentto the effort of the team and I would like to thank them. The conclusion of thefive year sale of PGM concentrate agreement with WPL and the early productionof PGM concentrates, will provide the Company with a platinum revenue streamcommencing towards the end of the third quarter of this financial year. We havenow completed our transition into a producer of both gold and platinum groupmetals"EnquiriesSouth 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 1

XLON

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