Issue of Equity

Pan African Resources PLC ("Pan African" or the "Group" or the "Company") (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 ISSUE OF SHARES: EXERCISE OF OPTIONS Pan African announces that the following issue of Pan African ordinary sharesof 1p each ("Shares") has been made following the exercise of share optionsgranted in 2007 under the Company's share option plan: * 3,000,000 Shares at a price of R0.83 per Share, for a total consideration of R2,490,000.00 Application will be made to the AIM market of the London Stock Exchange ("AIM")and to the Main Board of JSE Limited ("JSE") for 3,000,000 Shares to beadmitted to trading on AIM and for listing on the JSE, with admission totrading and listing on both markets expected to occur on Monday, 9 September2013. Following the above issue, the total issued share capital of the Companycomprises 1,825,834,263 Shares. 2 September 2013 Sponsor One Capital Enquiries UK South Africa Pan African Canaccord Genuity Limited - Nomad and Joint BrokerRon Holding or Cobus Loots, JointInterim CEO's Andrew Chubb/ Peter Stewart/ Joe Weaving +27 (0) 11 243 2900 +44 (0) 20 7523 8350 One Capital - Sponsor finnCap Limited - Joint Broker Sholto Simpson Elizabeth Johnson / Joanna Weaving 27 (0) 11 550 5000 +44 (0) 20 7220 0500 Vestor Investor Relations St James's Corporate Services Limited Louise Brugman Phil Dexter +27 (0) 11 787 3015 +44 (0) 20 7796 8647 Gable Communications Justine James +44 (0) 20 7193 7463 / +44 (0) 7525 324431 For further information on Pan African, please visit the website atwww.panafricanresources.com