Pan African Regulatory News (PAF)

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: PAF Share code on JSE: PAN ISIN: GB0004300496 ('Pan African' or the 'Company') Interim Results for the six months ended 31 December 20121. Key Features*Group

Revenue increased by 8.15% to ZAR668.14 million (2011: ZAR617.80 million).

Attributable profit decreased by 4.30% to ZAR166.62 million (2011: ZAR174.10million) mainly as a result of once-off transaction costs relating to theproposed acquisition of Evander Gold Mines Limited ('Evander').

Basic and Headline Earnings per share decreased by 4.64% to 11.50 cents (2011:12.06 cents).

Cash of ZAR661.24 million (30 June 2012: ZAR255.39 million) on hand at 31December 2012.

Mining Operations

Barberton Gold Mining Operations ('BGMO')

Gold sold decreased 4.26% to 44,926oz (2011: 46,927oz).

Underground gold production remained consistent at 42,808oz (2011: 43,355oz).

Tonnes milled from underground decreased by 7.53% to 135,000t (2011: 146,000t).

Head grade increased by 1.61% to 11.33g/t (2011: 11.15g/t).

Total cash cost of ZAR233,021/kg (2011: ZAR192,397/kg).

The Lost Time Injury Frequency rate ('LTIFR') improved to 2.16 (2011: 3.09).

Reportable Injury Frequency Rate ('RIFR') improved to 0.62 (2011: 1.03).

Phoenix Tailings Retreatment Plant ('Phoenix')**

First sale of 3,136oz of PGE 6E***.

Achieved a float head grade of 3.75g/t.

Total cash costs of USD861/oz PGE 6E.

Achieved a LTIFR of zero.Achieved a RIFR of zero.

Near Term Development Projects

Barberton Tailings Retreatment Project ('BTRP')

BTRP construction on schedule and within budget.

Commissioning planned for 30 June 2013.

Capital expenditure of ZAR83.14 million spent during the period under review('H1 2013').

Acquisition of Evander

Shareholders approved the proposed acquisition of Evander from Harmony GoldMines Limited ('Harmony').

Secured ZAR703 million through an oversubscribed rights offer ('Rights Offer')for purposes of settling a portion of the Evander purchase consideration.

Cash accrued until 31 December 2012 at Evander attributable to Pan African ofZAR237 million.

* To translate amounts in relation to the Statement of Comprehensive Income to£, an exchange rate of ZAR13.49 (2011: ZAR12.06) should be applied. Totranslate figures in relation to the Statement of Financial Position to £, anexchange rate of ZAR13.69 (30 June 2012: ZAR12.91), (31 December 2011:ZAR12.54) should be applied. See section 3 for further commentary on the effectof exchange rates.

** Phoenix is being reported without prior year comparable figures due to theplant being fully commissioned on 1 July 2012.

*** PGE 6E refers to the Platinum Group Elements

Commenting on the results, Jan Nelson, CEO said:

"The Group has delivered a solid performance in the first half in spite ofsevere cost pressures. We are encouraged by the progress made at BGMO, inparticular with the development of the tailings retreatment project which willadd a further 20,000oz per annum starting in June 2013. The Evandertransaction, a game changing project for the Group, is expected to conclude inthe coming weeks, on receipt of Section 11, and the integration of this projectis already well underway, with a view to doubling the Group's gold productionto 200,000oz in the next full financial year."Our focus in the next 6 months will be to deliver on volume and grade anddriving costs down. The Group intends to grow the profit margin and resume thedividend payment."Financial Summary: Six months ended Six months ended 31 December 2012 31 December 2011 (Unaudited) (Unaudited)Revenue (£) 49,528,638 51,229,660EBITDA (£) 19,220,142 24,166,658Attributable profit (£) 12,351,483 14,437,217EPS (pence) 0.85 1.00HEPS (pence) 0.85 1.00Weighted average number of shares in issue 1,449,371,057 1,444,225,674Net Asset Value 108,351,501 89,230,393 Six months ended Six months ended 31 December 2012 31 December 2011 (Unaudited) (Unaudited)Revenue (ZAR) 668,141,327 617,801,551EBITDA (ZAR) 259,279,715 291,436,617Attributable profit (ZAR) 166,621,505 174,104,904EPS (cents) 11.50 12.06HEPS (cents) 11.50 12.06Weighted average number of shares in issue 1,449,371,057 1,444,225,674Net Asset Value 1,341,978,735 1,162,321,7782. Nature of BusinessPan African is a South African based precious metals mining group ('Group')which produces approximately 95,000oz of gold and approximately 12,000oz of PGE6E per annum. The Company's strategic focus remains the exploitation ofhigh-grade ore-bodies that yield high margins with a low cash cost by skilledand experienced management teams. The Company has agreed to acquire Evanderfrom Harmony, a transaction that is expected to add approximately 100,000oz ofadditional gold production per annum and grow the total gold production base toapproximately 200,000oz per annum.BGMO is currently constructing a 1.2Mt per annum gold tailings retreatmentplant that will produce approximately 20,000 ounces of gold per annum whencommissioned in June 2013. The Group is currently unhedged and is able to fundall on-mine capital expenditure from internal cash flows generated by itsoperations. The Group remains one of the lowest cash cost producers of goldandPGE 6E in South Africa.3. Financial PerformancePan African is incorporated in England and Wales, its reporting currency ispound sterling (`£') and its functional currency is South African rand ('ZAR').All the subsidiary companies within the Group, with the exception of ExplorataLimitada ("Manica")****, are South African and their financial statements areprepared in ZAR. When subsidiary companies' financial statements are translatedinto pound sterling for the purpose of Group consolidation and reporting, theaverage and closing ZAR:£ exchange rates for the period have an effect on theGroup consolidated financial results.During the current period, the average ZAR:£ exchange rate was ZAR13.49 (2011:ZAR12.06) and the closing ZAR:£ exchange rate was ZAR13.69 (2011: ZAR12.54).The period-on-period average and closing ZAR:£ exchange rates increased by11.86% and 9.17%, respectively. The effect of exchange rate movements should betaken into account when comparing the period-on-period results on the Statementof Financial Position and Statement of Comprehensive Income.

Statement of Comprehensive Income

Gold Operations

Revenue from gold sales expressed in ZAR terms increased by 3.79% to ZAR641.24million (2011: ZAR617.80 million). The increase in gold revenue was largelyattributable to the average ZAR gold spot price received increasing by 8.42% toZAR458,898/kg (2011: ZAR423,276/kg).The cost of production increased by 15.95% to ZAR324.41 million (2011:ZAR279.79 million). The increase was primarily due to increases in electricitycosts of 19.46% to ZAR38.3 Million (2011: ZAR32.06 million) and labour costs by16.97% to ZAR153.74 million (2011: ZAR131.43 million). The significant increasein labour costs at BGMO is a result of a once off adjustment made by the groupto bring the pay scales in line with South African Chamber of Mine rates.Security costs decreased by 12.94% to ZAR13.12 million (2011: ZAR15.07million).Group profit margin decreased by 2.17% to ZAR225,877/kg (2011: ZAR230,879/kg).The total unit production cash cost increased by 21.11% to ZAR233,021/kg (2011:ZAR192,397/kg).Royalty costs decreased by 27.91% to ZAR17.51 million (2011:ZAR24.29 million) primarily as a result of increased capital expenditurerelated to the construction of the BTRP which also contributed to the Groupseffective ZAR tax rate decreasing to 29.98% (2011:36.76%).

**** On 11th January 2013 Manica was sold to Auroch Minerals NL, resulting inan effective holding of 38.01%.

PGE Treatment Operations

Revenue from PGE 6E sales expressed in ZAR amounted to ZAR26.90 million. Theeffective PGE 6E price achieved was ZAR8,470/oz, and the cash cost ofproduction achieved was ZAR7,293/oz PGE 6E.

Total cost of production amounted to ZAR23 million and comprised, inter alia,labour costs (ZAR6.79 million), consumables (ZAR4.77 million), refinery charges(ZAR2.80 million) and overhead costs (ZAR 2.50 million).

Group

Mining profit decreased by 8.28% to ZAR292.1 million (2011: ZAR318.46 million).

Earnings before interest, tax, depreciation and amortisation ('EBITDA')decreased by 11.03% to ZAR259.28 million (2011: ZAR291.44million) andattributable profit decreased by 4.30% to ZAR166.62 million (2011: ZAR174.10million). In £ terms the attributable profit decreased by 14.47% to £12.35million (2011: £14.44 million), primarily as a result of the average ZAR:£exchange rate depreciating by 11.86% during H1 2013.Other expenses increased 101.18% to ZAR42.75 million (2011: ZAR21.25 million)mainly as a result of once-off transaction costs relating to the Evanderacquisition of ZAR9.34 million (2011: Nil). Corporate and social investmentincreased by 21.61% to ZAR7.54 million (2011: ZAR6.20 million) which amountedto 4.92% (2011: 3.56%) of the Groups attributable profit.Income tax decreased by 29.49% to ZAR71.34 million (2011: ZAR101.18 million)primarily as a result of a significant increase in capital expenditure for theconstruction of the BTRP. The Group's effective tax rate in ZAR terms decreasedto 29.98% (2011:36.76%).

Basic and headline earnings per share decreased by 4.64% to 11.50 cents (2011:12.06 cents), in £ terms decreased by 15.00% to 0.85 pence (2011: 1.00 pence).

Statement of Financial Position

Movements in the Statement of Financial Position are calculated with referenceto the 30 June 2012 in ZAR terms, due to the functional currency of the Groupbeing ZAR. Accordingly, the closing ZAR:£ exchange rate utilised for conversionpurposes to £ would is ZAR13.69 (30 June 2012: ZAR12.91) to translate theamounts to £.Cash on hand increased significantly to ZAR661.24 million (2012: ZAR255.39million) mainly due to cash generated by the operations and key shareholderirrevocable deposits received in relation to the Rights Offer. The cash on handin relation to the shareholder irrevocable deposits was ZAR429.99 million andZAR231.25 million related to the Groups operational cash resources. Property,Plant and Equipment increased by 12.77% to ZAR908.65 million (2012: ZAR805.74million) mainly due to construction of the BTRP and on-mine capitalexpenditure. Trade and other payables increased by 440.02% to ZAR537.48 million(2012: ZAR99.53 million) mainly due to cash received in advance fromshareholders in relation to the Rights Offer and the accrual of the associatedcommitment fees payable. Trade and other receivables increased by 66.49% toZAR146.76 million (2012: ZAR88.15 million) due to increased quantities of goldbeing shipped on 31 December 2012 in comparison to 30 June 2012. Break feespaid to Harmony in relation to the acquisition of Evander contributed to theincrease in Trade and other receivables.4. Operational Review4.1 BGMOSafety & TrainingIt is with regret that BGMO reported one fatality for H1 2013. On 17 November2012 Mr G Fourie passed away when the truck he was driving left the road,overturned and rolled down a hill at Sheba mine. Fatality free shifts for H12013 totalled 105,888 (2011: 1,329,723) which decreased as result of theunfortunate fatality.The safety performance at BGMO for the first six months of the 2013 financialyear as measured by the All Injury Frequency Rate ('AIFR'), was 14.81 (2011:21.25), indicating that the total number of incidents decreased during H1 2013.The LTIFR improved to 2.16 (2011: 3.09) and RIFR to 0.62 (2011: 1.03).

Operating Performance

A total of 44,926oz (2011: 46,927oz) of gold was sold by BGMO (which comprisesthe Fairview, Sheba and New Consort sections), a decrease of 4.26% from theprevious period mainly as a result of lock-up in the Biox® plant. This lock-upis expected to be recovered in the third quarter.. Total underground productionremained relatively consistent at 42,808oz (2011: 43,355oz), whilst the totalsurface production increased to 783oz (2011: 264oz).Tonnes milled fromunderground operations decreased by 7.53% to 135,000t (2011: 146,000t) and wasmainly attributable to lower tonnages milled at the Sheba mine due to amechanical failure of the ZK winder bull gear and shaft refurbishment atFairview limiting hoisting capacity. Tonnes milled from surface operationsincreased by 162.50% to 21,000t (2011: 8,000t).The headgrade from underground operations increased by 1.61% to 11.33g/t (2011:11.15g/t).BGMO Production Summary 6 months ended 6 months ended 6 months ended 31-Dec-12 31-Dec-11 31-Dec-10 Tonnes Milled - Underground (t'000) 135 146 149Tonnes Milled - Surface (t'000) 21 8 -Tonnes Milled - Total (t'000) 156 155 149Headgrade - Underground (g/t) 11.33 11.15 10.55Headgrade - Surface (g/t) 1.65 1.65 -Recovered Grade (g/t) 8.95 9.44 9.57Overall Recovery (%) 90 89 91Production: Underground (oz) 42,808 43,355 45,209 Production: Surface/Calcine (oz) 783 264 -Gold Sold (oz) 44,926 46,927 46,655Average price: spot (US$/oz) 1,685 1,736 1,286Average price: spot (ZAR/KG) 458,898 423,276 295,281Total cash cost (US$/oz) 856 786 767Total cash cost (ZAR/KG) 233,021 192,397 176,199Total cost per ton (ZAR/t) 2,086 1,816 1,713EBITDA ZAR '000 281,038 291,437 144,752Depreciation ZAR '000 21,404 18,529 21,341Capital Expenditure ZAR '000 121,641 55,070 45,567Exchange rate - average ZAR/GBP 13.49 12.06 11.18Exchange rate - closing ZAR/GBP 13.69 12.54 10.28Exchange rate - average (R/US$) 8.47 7.58 7.14Exchange rate - closing (R/US$) 8.47 8.12 6.65 6 months ended 6 months ended 31-Dec-09 31-Dec-08Tonnes Milled - Underground (t'000) 153 160Tonnes Milled - Surface (t'000) - -Tonnes Milled - Total (t'000) 153 160Headgrade - Underground (g/t) 10.11 11.40Headgrade - Surface (g/t) - -Recovered Grade (g/t) 9.25 10.36Overall Recovery (%) 91 91Production: Underground (oz) 45,385 47,634Production: Surface/Calcine (oz) - 3,545Gold Sold (oz) 45,971 51,186Average price: spot (US$/oz) 1,032 824Average price: spot (ZAR/KG) 253,510 235,338Total cash cost (US$/oz) 670 451Total cash cost (ZAR/KG) 164,697 134,581Total cost per ton (ZAR/t) 1,543 1,340EBITDA ZAR '000 107,297 129,372Depreciation ZAR '000 17,157 16,122Capital Expenditure ZAR '000 27,449 34,517Exchange rate - average ZAR/GBP 12.48 15.13Exchange rate - closing ZAR/GBP 11.94 13.78Exchange rate - average (R/US$) 7.64 8.88Exchange rate - closing (R/US$) 7.39 9.55

Capital Expenditure - Growth Projects

% Completed Potential Project Metres/ % Equipping Completed of Budget Resource Comments (Progressive Oz YTD)Sheba Edwin The ThomasBray - Thomas ReefSections Structure was intersected and current development is focusing on determining the strike extent of this structure. Sampling of 70 116.7% 10,000 the structure has yielded results of 12g/t. The elevation of this reef drive is around 168m above the 7 level elevation. The mining configuration of this block is being finalised.Sheba Pillar PositiveDevelopment progress was made developing and equipping the area. 99.2 82.7% 9,000 Mining began in the ore resource blocks that were exposed during the first H1 2013.Consort 50 The shaft wasWest 1 sunk to 53Decline West level elevation, and equipping of the 52 level reef box will now be completed. This will be followed by the waste 73 104.3% 26,000 development on 52 level to expose the reef structure. Only once the reef structure has been exposed on 52 level, will development resume on 53 level.Consort 40 DevelopmentLevel isDevelopment progressing 137.4 114.5% 10,000 towards the serpentinite footwall contact.Consort MMR ThePillar explorationDevelopment drilling platform was completed and drilling commenced in January 2013. The team was moved up to 20 level where the Consort SI 2 86.8 86.8% 3,200 Shaft must be equipped for ore and a separate travelling way. Once this is complete, development will commence westward between the Consort Ivaura and MMR faults.Fairview 62 ExcellentLevel progress isdevelopment being made with this 278.8 116.2% 49,580 project, which will access additional high grade areas.Fairview 3# The shaft isDeepening and beingRefurbishment refurbished from 62 level to 64 level. The final track alignment is on-going. Development of the return 10 33.3% 344,920 airway from 64 level to 62 level commenced in December 2012. The return airway has been shotcreted from 64 level to the face position.Fairview 11 This projectLevel Royal isReef Only Equipping 100.0% 13,000 progressing well and on plan.Fairview 1# DevelopmentOpening Up is currently being done on 22 level in 80m of Development & Equipping 100.0% 24,000 order to expose the down-dip extension of the Fairview Geel reef. Totals 835.2 98.3% 489,700Maintenance Capital

The major capital expenditure per discipline is summarised as follows:

6 months 6 months ended 31 Dec ended 31 DecDescription 2012 2011 Impact on Production Cost ZAR'000 Cost ZAR'000Mining Capital 2,982 4,082 To

sustain current production levels

Engineering Capital 10,351 7,396 To

sustain current production levels

Metallurgical Plants and Biox © Capital 3,169 7,341 To sustain current production levels

Safety and Environment Capital 590 1,314 To

sustain current production levels

General Capital 1,365 5,204 To

sustain current production levels

Total 18,457 25,337Mineral Resources ManagementExploration DrillingDuring H1 2013 a total of 8,443.5m (2011: 7,740m) of exploration drilling wascompleted underground at BGMO and the following significant intersections arereported:Section Borehole Number Drill Width (cm) Grade (g/t) Description Fairview Bh 5899 100 7.02 Strike extension

to the North-East of the MRC 11 block at depth.

EBR 19 72 162.50 Free gold on Thomas Reef 36 ZK 990-02 87 28.47 Intersection on hanging wall of 990 Cross Fracture STOCK 07 71 27.02 Down-dip extension of Stock work body 22-480-01 118 22.04 Strike extension of current working in old area STOCK 07 90 21.54 Down-dip extension of Stock work body STOCK 07 65 18.28 Down-dip extension of Stock work body SW 07 52 14.21 Mineralisation in

the foot wall of the porphyry dyke in Sheba West area

33ZKH 12 61 7.73 Mineralisation on ZK Formation contact SW 06 100 12.85 Mineralisation in

the foot wall of the porphyry dyke in Sheba West area

Sheba 33ZKH 15 93 10.46 Mineralisation on ZK Formation contact 3#7-25 261 60.80 Confirming mineralized structure position for mining design 3#7-29 94 50.30 Confirming mineralized structure position for mining design 3#7-27 188 48.05 Confirming mineralized structure position for mining design 40L6 91 36.70 Footwall Lens

Mineralisation of the updip of the 45 body East of pegmatite

3#7-28 94 31.50 Confirming mineralised structure position for mining design 3#7-25 261 30.92 Confirming mineralised structure position for mining design 3#7-29 94 29.40 Confirming mineralised structure position for mining design 3#7-29 94 28.00 Confirming mineralised structure position for mining design 3#7-26 87 20.00 Confirming mineralised structure position for mining design 3#7-24 261 11.71 Confirming mineralised structure position for mining design 3#7-28 94 11.30 Confirming mineralised structure position for mining designNew Consort 3#7-26 87 10.00 Confirming mineralised structure position for mining designDevelopment results New Consort Fairview Sheba Metres g/t Metres g/t Metres g/tReef 261.9 3.43 437.6 10.99 547.9 4.07Stope Development 227.6 8.44 62.4 19.15 221.1 5.97Capital 288.4 - 438.9 - 167.0 -Waste working cost 355.7 - 246.8 - 597.1 -Waste Total 644.1 - 685.7 - 764.1 -Total 1,777.7 - 1871.4 - 2,297.2 -PhoenixThe chrome tailings retreatment plant ('CTRP') was designed to treat sulphidematerial from International Ferrous Metals Limited's ('IFM') Lesedi Mine. IFMinitially supplied Phoenix with sulphide-rich material from its Lesediunderground operations. However, IFM cut back drastically on operations atLesedi in January 2012 and started mining oxidised material from the open castsection. This resulted in oxidised tailings being blended into the Phoenixfeedstock.The metallurgy of oxidised tailings negatively affects recovery and concentrategrade in the CTRP. This in turn results in poor PGM concentrate production. Theoxide versus sulphide ratio has increased since beginning November 2012 and100% oxide material is now being mined by IFM. The Group is currentlyexpediting an additional Tailings Storage Facility ('TSF') that will allowmanagement at Phoenix to bypass oxidised tailings. The TSF will be completedwithin the next 7 months and the Group will expect recoveries and revenue toincrease significantly at this time.

Phoenix is currently implementing the following to address the issue ofoxidised feedstock:

increase of feed tonnages into the plant to increase PGE 6E content;

investigating methods to improve oxide material recoveries;

complete the new TSF to bypass oxide tailings; and

Focus on further operating cost reductions.

a. Safety & Training

Phoenix continues to achieve excellent safety targets with the LTIFR and RIFRremaining at zero. All employees were trained to ensure safety risk compliance.

b. Operating PerformanceA total of 3,136oz of PGE 6E were sold. The ounces produced are lower thananticipated due to a reduction in head grade of 16.67% to 3.75g/t versus thebudgeted head grade of 4.50g/t. Recoveries also reduced by 42.42% to 19% versusa budget of 33%. The oxidised tailings received from IFM is the maincontributing factor to this decrease.c. Phoenix Production Summary 6 Months Ended 31 Dec 2012Sales (ZAR) 26,904,459Oz Dispatched (oz) 3,136DMT Tonnages (t) 893Plant Recoveries (%) 19Head Grade (g/t) 3.75Float Feed Tonnes (t) 121,160Basket Price ($/oz) 1,013Exchange Rate ($/ZAR) 8.47Cost Per Plant Feed Ton ($/t) 19.60Cost Per PGE 6E ($/oz) 861Plant Feed Tonnes (t) 138,561Total Operating Cost (ZAR'000) 23Depreciation (ZAR'000) 6,024EBITDA (ZAR'000) 1,946Capital Expenditure (ZAR'000) 1,042d. Growth Projects % Completed Potential Amount Project of Budget Resource Spent Comments (Progressive Oz ZAR'000 YTD) The scoping document has been submitted according to the MineralTSF EIA 44% 0 and Petroleum Resources Developmentapplication 656 Act (MPRDA) and the National Environmental Development Act (NEMA).e. Maintenance Capital Cost CTRP Impact on production ZAR'000Re-mining enclosure 104 Safety and Health improvement.Construction works 66 Environmental compliance.Telescopic handler 778 MaintenanceBatch Float machine 81 To improve float recoveries.Laboratory equipment 14 To improve float recoveries.Total 1,043

5. Near-Term Development Projects

5.1 BTRP

Construction of the BTRP on a site adjoining the Bramber TSF began in April2012, and the following major construction milestones were achieved:

Construction UpdateCivils Construction

All civil work has been completed. The thickener, furnace room, change houseand offices are progressing according to schedule.

Structural, Mechanical Erection and Piping

Construction of the carbon in leach ('CIL') tanks has progressed well and allnine tanks have been constructed to their full height. Mechanical strengtheningremains to be completed.Electrical Installations

The substation design was finalised and documentation submitted for qualityreview. Quotations were received and orders placed to move the Eskom overheadlines that are currently running through the planned TSF area.

The forecast schedule of the BTRP Project is summarised below:

Description Date

Construction Completion 1 April 2013

Cold Commissioning 1 May 2013Wet Commissioning 1 June 2013Hot Commissioning 30 June 2013BTRP Capital Expenditure Historical Capital Forecasted Capital Prior Capital Full Financial Spent - 31 Capital Forecasted Project Date of Description Year December Spent Capital to Forecasted Final Capital 2012 to Date Complete Capital Completion Spent Costs ZAR'000 ZAR'000 ZAR'000 ZAR'000 ZAR'000Construction Septemberand 42,819 81,716 124,535 107,626 232,161 2013InfrastructureQuantity - 550 550 1,759 2,309 SeptemberSurveying 2013Environmental 503 223 726 237 963 February 2013BTRP Tailings OctoberStorage - 652 652 57,598 58,250 2013FacilityHarper Dumps 10,000 - 10,000 - 10,000 CompletedPurchasedTSF Land 2,095 - 2,095 - 2,095 CompletedPurchasedTotal 55,417 83,141 138,558 167,220 305,7786. Acquisition of EvanderPan African entered into an agreement in terms of which Emerald PantherInvestments 91 Proprietary Limited ("EP"), a wholly owned subsidiary of theCompany, will purchase all the shares of and claims against Evander fromHarmony for ZAR1.5 billion during May 2012 ("Evander Transaction"). TheEvander Transaction remains subject to the consent of the Minister of MineralResources in accordance with section 11 of the MPRDA. Once the EvanderTransaction becomes unconditional, EP will be required to pay the purchaseconsideration in cash to Harmony. The aggregate cash flows accumulated atEvander from April 2012 will be acquired by EP, and totalled ZAR237 million asat the end of December 2012.

Refer to Harmony's website for the most recent results of Evander at http://www.harmony.co.za/investors.

7. Disposal of ManicaPan African announced on 29 August 2012 that it had entered into an agreementto dispose of 100% of its Manica Gold Project ("Manica") to ASX quoted AurochMinerals Mozambique (Pty) Ltd, a wholly owned subsidiary of Auroch Minerals NL("Auroch), for a total potential purchase consideration of AUD 6 million (£4million / ZAR52.4 million) payable in cash and 96,666,668 shares in Auroch,subject to certain terms and conditions.On the 31 December 2012 all the conditions precedent to the agreement were metand as a result on 11 January 2013 20,900,000 Auroch ordinary shares wereissued to Pan African, and a further 4,100,000 Auroch ordinary shares areexpected to be issued to the Company in February 2013. Payment of the balanceof the purchase consideration in shares and cash is deferred until theachievement of certain milestones in accordance with the agreement betweenPanAfrican and Auroch.

On 11th January 2013 the Company held an effective holding of 38.01% in Auroch.

8. Capital Expenditure and Commitments

Capital expenditure at BGMO totalled £9.02 million (2011: £4.57 million) andcomprised, development capital of £1.49 million (2011: £2.47 million),maintenance capital of £1.39 million (2011: £2.10 million) and BTRP capital of£6,16 million (2011:Nil).

Capital expenditure on Phoenix totalled £0.08 million (2011:£4.57 million).

There was £24.43 million (2011: £0.57 million) of outstanding orders contractedfor capital commitments at the end of H1 2013 at BGMO and £Nil (2011: £0.5million) outstanding at Phoenix.

Operating lease commitments, which fall due within the next year, amounted to £0.038 million (2011: £0.179 million) as at 31 December 2013.

In ZAR terms the Capital Expenditure and Commitments were:

Capital expenditure at BGMO totalled ZAR121.64 million (2011: ZAR55.07 million)and comprised, development capital of ZAR20.04 million (2011:ZAR29.73 million), maintenance capital of ZAR18.46million (2011: ZAR25.34million) and BTRP capital of ZAR83.14 million (2011: Nil).

Capital expenditure on Phoenix totalled ZAR1.05 million (2011: ZAR55.11million).

There was ZAR334.5 million (2011: ZAR6.87 million) of outstanding orderscontracted for capital commitments at the end of H1 2013 at BGMO and ZAR Nil(2011: ZAR6.0million) outstanding at Phoenix.

Operating lease commitments, which fall due within the next year, amounted toZAR0.46 million (2011: ZAR2.16million) as at 31 December 2013.

9. Directorship Change

There were no directorship changes during H1 2013.

10. Shares IssuedDuring H1 2013 the Company announced the issue and allotment of 3,000,000 newordinary shares in respect of share options issued on 16 August 2007 which wereexercised at a price of 7p for a total consideration of £0.21 million.

Furthermore, the Company obtained approval from its shareholders to issue370,071,902 new Pan African ordinary shares in terms of the Rights Offer so asto raise funds for the settlement of a portion of the Evander Transactionpurchase consideration. The Rights Offer was successfully concluded duringJanuary 2013.

11. DividendThe Company has adopted a policy whereby dividends are considered and, ifdeemed appropriate by the board of directors of the Company ('Board'), declaredon an annual basis. Pan African will consider a final dividend subsequent tothe finalisation of financial year-end results. The consideration of anydividend will take account of cash flow requirements and growth plans, whilstrecognising that where possible, the payment of a dividend on a consistentbasis increases shareholder value.

During H1 2013 the Company has not declared a dividend as result of raisingequity capital to fund the Evander Transaction. The dividend for the previousfinancial year was 0.5135 pence per share totalling £7.42 million.

12. Going Concern

The Board is satisfied that the Group is a going concern for the foreseeablefuture, and have adopted the going-concern basis in preparing these interimresults

13. Accounting PoliciesThe accounting policies applied in compiling the interim results are in termsof International Financial Reporting Standards ('IFRS') and consistent withthose applied in preparing the Group's annual financial statements for theyearended 30 June 2012.

The financial information set out in this announcement does not constitute theCompany's statutory accounts for the half year ended 31 December 2012.

The interim results have been prepared and presented in accordance with, andcontaining the information required by IFRS on Interim Financial Reporting,International Accounting Standards ('IAS') 34. The financial informationincluded in the interim results has been prepared in accordance with therecognition and measurement criteria of IFRS. This announcement does not itselfcontain sufficient disclosure information to comply fully with IFRS.

The interim results have not been reviewed or reported on by the Company'sexternal auditors.

14. Johannesburg Stock Exchange listing

The Company has a dual primary listing on the main board of the JSE Limited('JSE') and the Alternative Investment Market ('AIM') of the London StockExchange.

The preliminary announcement has been prepared in accordance with the frameworkconcepts and the measurement and recognition requirements of IFRS, the AC 500standards as issued by the Accounting Practices Board and the information asrequired by IAS 34: Interim Financial Reporting.15. AIM Listing

The financial information for the period ended 31 December 2012 does notconstitute statutory accounts as defined in sections 435 (1) and (2) of theUnited Kingdom Companies Act 2006.

The Group announcement (the Group's financial statements) has been prepared inaccordance with IFRS and International Financial Reporting InterpretationCommittee interpretations adopted for use by the European Union, with thoseparts of the Companies Act 2006 applicable to companies reporting under IFRS.

16. Segmental ReportingA segment is a distinguishable component of the Group that is engaged inproviding products or services in a particular business sector (operatingsegment), which is subject to risk and rewards that are different to those ofother segments. The segments which the Group reviews the business activities ofare: Mining Operations, Near-Term Mining Operations and Development Projects.17. Directors' Dealings

No director dealings occurred during period under review other than certaindirectors of the Company disclosing their intention to deal in the Company'sshares for purposes of the Rights Offer.

The following directors' dealings were committed to during H1 2013 andsubsequently taken up after in January 2013 in respect of the Rights Offer:

On 14 January 2013 Mr. JAJ Loots was issued 16,575 shares at ZAR1.90 for atotal consideration of ZAR31,492.50.

On 14 January 2013 Mr. JP Nelson was issued 13,157 shares at ZAR1.90 for atotal consideration of ZAR24,998.30.

On 14 January 2013 Mr. RG Still was issued 510,000 shares at ZAR1.90 for atotal consideration of ZAR969,000.00.

On 14 January 2013 the Alexandra Trust of which Mr. RG Still is a trustee wasissued 3,169,880 shares at ZAR1.90 for a total consideration ofZAR6,022,772.10.

On 14 January 2013 Pangea Exploration (Pty) Ltd of which Mr. RG Still is adirector was issued 457,418 shares at ZAR1.90 for a total consideration ofZAR869,094.20.

On 16 January 2013 The Alexandra Family Trust of which Mr. RG Still is atrustee took up shares pursuant to the excess shares in terms of the Company'sR703 million rights offer. The trust was issued 72,836 shares at R1.90 for atotal consideration of R138,388.40.

Shanduka Gold (Pty) Ltd subscribed for 70,189,473 shares in the Rights offersresulting in a shareholding of 23.96% post the Right offer.

18. Significant events post the reporting period

Evander Transaction Funding

The Group completed the raising of ZAR703 million through the Rights Offer. PanAfrican implemented the Rights Offer through the issue of 370,071,902 new PanAfrican ordinary shares at a subscription price of ZAR1.90 or 14 pence perRights Offer share. The Rights Offer closed on Friday, 11 January 2013. PanAfrican received subscription applications for a total of 645,898,862 RightsShares, equating to 175% of the available Rights Shares.

Pan African has successfully agreed the terms for a new revolving creditfacility ("RCF") of ZAR600 million during January 2013 which shall replace theprevious RCF currently held at BGMO when the Evander Transaction becomesunconditional.

The Groups cash resources on hand at 31 December 2012 was ZAR231.25 million forthe Group excluding the shareholder irrevocable cash held, and Evander had afurther ZAR237 million on hand, of which ZAR150 million is planned to beutilised to settle a portion of the Evander Transaction purchase considerationdue to Harmony.Disposal of Manica

On 11th January 2013 Auroch issued 20,900,000 ordinary shares to the Company,resulting in an effective holding of 38.01%.

Jan Nelson was also appointed as a Non-Executive Director to Auroch on 11thJanuary 2013.

With effect from 11th January 2013, Auroch will be accounted for within theGroup as an investment in an associate.

19. The Future

Despite rising cost pressures and lower output mainly as a result of goldlock-up in the BIOX® plant at BGMO, a higher gold price and continued highgrades resulted in a solid performance from the Group. The Group continued tofund the construction of the BTRP from cash flow amounting to ZAR83 millionwith a further investment of ZAR38 million allocated to maintenance ofinfrastructure and finding new ore-bodies.

The Group successfully obtained shareholder approval for the Evandertransaction and secured irrevocable undertakings from key institutionalinvestors to fund part of the acquisition of Evander to a total of ZAR703million. In addition a RCF of ZAR600 million was signed with two South Africanbanks. Since 1 April 2012 Evander generated ZAR237 million in free cash flowattributable to Pan African. In addition the Group had a cash balance of ZAR661million as at the end of the reporting period. The Evander transaction willdouble Group gold production, significantly increase revenue and profits andimpact positively on market capitalisation.The Group furthermore divested of the Manica project to Auroch Minerals NL forcash and shares and the board believes that its shareholding in this projectwill add significant shareholder value in the future.

The focus in the coming six months will be to:

conclude the Evander transaction and successfully integrate the operation

complete the construction of the BTRP and commission the plant

The Group and Managements main focus will be on the safe delivery of productiontargets (volume and grade) and cost reductions.

Jan Nelson Neal Reynolds

Chief Executive Officer Acting Financial Director

13 February 201320. Consolidated Statement of Comprehensive Income for the period ended 31December 2012 Group 31 December 2012 31 December 2011 (Unaudited) (Unaudited) £ £RevenueGold sales 47,534,238 51,229,660Platinum Sales 1,994,400 -Realisation costs (89,012) (84,965)On - mine revenue 49,439,626 51,144,695Cost of production - Gold (24,048,124) (23,201,120) Cost of production - Platinum (1,705,022) -Depreciation (2,033,201) (1,536,448)Mining Profit 21,653,279 26,407,127Other expenses (3,168,636) (1,762,357)Royalty costs (1,297,702) (2,014,560)Net income before finance income and finance costs 17,186,941 22,630,210Finance income 547,668 223,324Finance costs (94,718) (26,069)Profit before taxation 17,639,891 22,827,465Taxation (5,288,408) (8,390,248)Profit after taxation 12,351,483 14,437,217Other comprehensive income:Foreign currency translation differences (4,501,247)

(8,533,732)

Total comprehensive income for the year 7,850,236 5,903,485Profit attributable to:Owners of the parent 12,351,483 14,437,217 12,351,483 14,437,217Earnings per share 0.85 1.00Diluted earnings per share 0.85 0.99Weighted average number of shares in issue 1,449,371,057

1,444,225,674

Diluted number of shares in issue 1,456,619,851 1,452,808,064Net Asset Value 108,351,501 89,230,393 Headline earnings per share is calculated : Basic earnings 12,351,483 14,437,217Adjustments: - -Headline earnings 12,351,483 14,437,217 Headline earnings per share 0.85

1.00

Diluted headline earnings per share 0.85 0.99

21. Consolidated Statement of Financial Position as at 31 December 2012

Group 31 December 2012 31 December 2011 30 June 2012 (Unaudited) (Unaudited) (Audited) £ £ £ASSETSNon-current assetsProperty, plant and equipment and mineral rights 66,373,510 59,516,827 62,411,655Other intangible assets - 13,332,945 -Goodwill 21,000,714 21,000,714 21,000,714Rehabilitation trust fund 2,574,825 2,669,022 2,662,934 89,949,049 96,519,508 86,075,303Current assetsInventories 2,023,413 1,487,066 1,868,735Trade and other receivables 10,720,089 7,000,352 6,828,047Cash and cash equivalents 48,301,167 4,994,854 19,782,179 61,044,669 13,482,272 28,478,961Assets held for sale 12,145,808 - 13,135,215TOTAL ASSETS 163,139,526 110,001,780 127,689,479EQUITY AND LIABILITIESCapital and reservesShare capital 14,512,623 14,449,643 14,482,623Share premium 48,940,879 50,982,790 51,149,299Translation reserve (6,438,756) (223,190) (1,937,509)Share option reserve 958,932 799,227 904,902Retained income 71,784,224 44,628,324 59,432,741Realisation of equity reserve (10,701,093) (10,701,093) (10,701,093)Merger reserve (10,705,308) (10,705,308) (10,705,308)Equity attributable to owners of the parent 108,351,501 89,230,393 102,625,655Total equity 108,351,501 89,230,393 102,625,655Non - Current liabilitiesLong term provisions 2,939,853 2,994,493 3,043,954Long term liabilities 652,356 237,357 868,881Deferred taxation 11,428,288 9,320,441 10,088,530 15,020,497 12,552,291 14,001,365Current liabilitiesTrade and other payables 39,260,503 6,947,074 7,709,729Current tax liability 507,025 1,272,022 3,352,730 39,767,528 8,219,096 11,062,459TOTAL EQUITY AND LIABILITIES 163,139,526 110,001,780 127,689,47922. Consolidated Cash flow Statement for the period ended 31 December 2012 Six months ended Six months ended 31 December 2012 31 December 2011 (Unaudited) (Unaudited) £ £Cash Generated by operations 15,500,905 23,585,992Taxation paid (5,675,218) (6,824,551)Royalty paid (1,187,205) (1,724,084)Dividends paid - (7,416,176)Net Finance Income 452,950 197,255Cash inflow from operating activities 9,091,432

7,818,436

Cash outflow from investing activities (9,104,868)

(9,140,205)

Cash inflow from financing activities 31,626,645

59,197

Net increase/(decrease) in cash equivalents 31,613,209 (1,262,572)

Cash at the beginning of period 19,782,179

10,123,822

Effect of foreign currency rate changes (3,094,221) (3,866,396)Cash at end of year 48,301,167 4,994,85423. Consolidated Statement of Changes in Equity for the period ended 31December 2012 Six months ended Six months ended 31 December 2012 31 December 2011 (Unaudited) (Unaudited) £ £

Shareholders' equity at start of period 102,625,655 90,746,110

Net Share (Costs)/Issues (2,178,420) 59,197Share Option Reserve 54,030 (62,223)Other Comprehensive Income (4,501,247) (8,533,732)Profit for the period 12,351,483 14,437,217Dividend - (7,416,176)Total Equity 108,351,501 89,230,393

24. Consolidated Segment Report for the period ended 31 December 2012

31 December 2012 BGMO Phoenix Corporate Group and Growth Projects £ £ £ £RevenueGold sales 47,534,238 - - 47,534,238Platinum Sales - 1,994,400 - 1,994,400Realisation costs (89,012) - - (89,012)On - mine revenue 47,445,226 1,994,400 - 49,439,626Cost of production gold (24,048,124) - - (24,048,124)Cost of production platinum - (1,705,022) - (1,705,022)Depreciation (1,586,655) (446,546) - (2,033,201)Mining Profit 21,810,447 (157,168) - 21,653,279Other expenses (1,266,372) (145,153) (1,757,111) (3,168,636)Royalty costs (1,297,702) - - (1,297,702)Net income before finance income and finance costs 19,246,373 (302,321) (1,757,111) 17,186,941Finance income 38,851 - 508,817 547,668Finance costs (94,718) - - (94,718)Profit before taxation 19,190,506 (302,321) (1,248,294) 17,639,891Taxation (5,336,644) 48,236 - (5,288,408)Profit after taxation 13,853,862 (254,085) (1,248,294) 12,351,483 31 December 2012Segmental Assets* 59,061,456 18,352,064 64,725,292 142,138,812Segmental Liabilities 20,881,848 62,098 33,844,079 54,788,025Goodwill - - - 21,000,714 Net Assets (excluding goodwill) 38,179,608 18,289,965 30,881,213 87,350,787Capital Expenditure 9,017,135 77,457 10,276 9,104,868 31 December 2011 BGMO Phoenix Corporate Group and Growth Projects £ £ £ £RevenueGold sales 51,229,660 - - 51,229,660Platinum Sales - - - -Realisation costs (84,965) - - (84,965)On - mine revenue 51,144,695 - - 51,144,695Cost of production gold (23,201,120) - - (23,201,120)Cost of production platinum - - - -Depreciation (1,536,448) - - (1,536,448)Mining Profit 26,407,127 - - 26,407,127Other expenses (1,203,656) (131,801) (426,900) (1,762,357)Royalty costs (2,014,560) - - (2,014,560)Net income before finance income and finance costs 23,188,911 (131,801) (426,900) 22,630,210Finance income 29,227 4,998 189,099 223,324Finance costs (26,069) - - (26,069)Profit before taxation 23,192,069 (126,803) (237,801) 22,827,465Taxation (8,392,325) 2,077 - (8,390,248)Profit after taxation 14,799,744 (124,726) (237,801) 14,437,217 30 June 2012Segmental Assets* 48,864,455 19,617,673 38,206,637 106,688,765Segmental Liabilities 23,552,791 275,378 1,235,655 25,063,824Goodwill - - - 21,000,714 Net Assets (excluding goodwill) 25,311,664 19,342,29536,970,982 81,624,941Capital Expenditure 10,739,237 6,672,468 13,202 17,424,906Appendix 1: Consolidated Statement of Comprehensive Income in ZAR terms for theperiod ended 31 December 2012 Group 31 December 2012 31 December 2011 (Unaudited) (Unaudited) ZAR ZARRevenueGold sales 641,236,871 617,801,551Platinum Sales 26,904,456 -Realisation costs (1,200,772) (1,024,631)On - mine revenue 666,940,555 616,776,920Cost of production - Gold (324,409,193) (279,792,759)Cost of production - Platinum (23,000,747) -Depreciation (27,427,881) (18,528,719)Mining Profit 292,102,734 318,455,442Other expenses (42,744,900) (21,253,057)Royalty costs (17,506,000) (24,294,487)Net income before finance income and finance costs 231,851,834 272,907,898Finance income 7,388,041 2,693,165Finance costs (1,277,746) (314,378)Profit before taxation 237,962,129 275,286,685Taxation (71,340,624) (101,181,781)Profit after taxation 166,621,505 174,104,904Other comprehensive income:Foreign currency translation differences (60,721,822)

(102,912,119)

Total comprehensive income for the year 105,899,683 71,192,785Profit attributable to:Owners of the parent 166,621,505 174,104,904 166,621,505 174,104,904Earnings per share 11.50 12.06Diluted earnings per share 11.44 11.98Weighted average number of shares in issue 1,449,371,057

1,444,225,674

Diluted number of shares in issue 1,456,619,851 1,452,808,064Net Asset Value 1,341,978,735 1,162,321,778 Headline earnings per share is calculated : Basic earnings 166,621,505 174,104,904Adjustments: - -Headline earnings 166,621,505 174,104,904 Headline earnings per share 11.50 12.06Diluted headline earnings per share 11.44 11.98 1. Contact DetailsPan African Resources

Jan Nelson, Chief Executive Officer

Office: +27 (0) 11 243 2900

Canaccord Genuity LimitedPeter Stewart

Office: +44 (0) 20 7523 8350

One Capital (Pty) Ltd

Sholto Simpson/Megan Young

Office: +27 (0) 11 550 5000

St James's Corporate Services Limited

Phil Dexter

Office: +44 (0) 20 7499 3916

Gable CommunicationsJustine James

Office: +44 (0)20 7193 7463

Mobile: +44 (0) 7525 324431

Vestor Media and Investor Relations

Louise BrugmanOffice: +27 (0) 11 787 30152. DisclaimerStatements in this presentation, other than historical facts, that address,without limitation, exploration activities, mining potential and future plansand objectives of Pan African Resources plc ("Pan African") are"forward-looking statements" and "forward looking information" that involvevarious risks. Assumptions and uncertainties are not statements of fact. Thedirectors and management of Pan African are of the belief that the expectationsexpressed in such forward-looking statements or forward-looking information arebased on reasonable assumptions, expectations, estimates and projections,however such statements should not be construed as being guarantees orwarranties (whether express or implied) of future performance.There can be no assurance that such statements will prove to be accurate andactual values, results and future events could differ materially from thoseanticipated in such statements. Important factors that could cause actualresults to differ materially from statements expressed in this presentationinclude, among others, the actual results of exploration activities, technicalanalysis, the lack of availability to Pan African of necessary capital onacceptable terms, general economic, business and financial market conditions,political risks, industry trends, competition, changes in governmentregulations, delays in obtaining governmental approvals, interest ratefluctuations, currency fluctuations, changes in business strategy ordevelopment plans and other risks. Although Pan African has attempted toidentify important factors that could cause actual results to differmaterially, there may be other factors that cause results not to be asanticipated, estimated or intended.Neither Pan African nor its directors, management and its affiliates representguarantee that the assumptions underlying such statements are free from errorsnor do they accept any responsibility for the future accuracy of the opinionsexpressed in this presentation. Any statements in this presentation speak onlyat the time of issue. Pan African does not undertake to update anyforward-looking statements that are included in this presentation, or reviseany changes in events, conditions or circumstances on which any such statementsare based, except in accordance with applicable securities laws and stockexchange requirements.No representation or warranty, expressed or implied, is made and no relianceshould be placed on the accuracy, actuality, fairness, or completeness of theinformation presented. None of Pan African or any of its affiliates, directors,officers, employees and advisers or any other person shall have any liabilitywhatsoever for any losses arising, directly or indirectly, from any informationcontained in the presentation. This presentation does not constitute an offeror invitation to purchase or subscribe for any shares of Pan African and nopart of this presentation shall form the basis of or be relied upon inconnection with any contract or commitment.By accepting this presentation the recipient acknowledges that it will besolely responsible for its own assessment of the market position of Pan Africanand that it will conduct its own analysis and be solely responsible for formingits own view of the potential future performance of Pan African.