Pan African Resources 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" or the "Group") TRADING STATEMENT AND DIVIDEND GUIDANCE Pan African Resources PLC, the JSE and AIM listed gold mining company, providesthe following trading statement to shareholders. The Company advises shareholders that it expects its 2014 full year earningsper share ("EPS") in both South African Rand ("ZAR")and Pound Sterling ("GBP")terms to be over 20 per cent lower than the EPS for the year ended 30 June2013. Pan African is incorporated in England and Wales under Companies Act 1985 andaccordingly its presentation currency is GBP. In terms of paragraph 3.4(b) of the Listings Requirements of JSE Limited, alisted company is required to publish a trading statement as soon as it issatisfied that a reasonable degree of certainty exists that the financialresults for the period to be reported on next, will differ by at least 20 percent from those of the previous corresponding period. Shareholders are reminded that the 2013 financial year EPS included anexceptional gain related to the acquisition of Evander Mines (Proprietary)Limited from Harmony Gold Limited and impairment charges/losses on disposalrelated to Phoenix Platinum (Proprietary) Limited and Auroch Minerals NL. Thenet effect of these once-off transactions was increased earnings of ZAR71.9million (4.44 cents per share) or GBP7.4 million (0.46 pence per share) for2013. 2014 EPS, denominated in GBP, are expected to be between 42 per cent and 47 percent lower than those of the previous corresponding period (2013: 2.63 penceper share). 2014 EPS, calculated in ZAR, using the average ZAR: GBP exchange rate of 16.88that prevailed for the year ended 30 June 2014 (2013: 13.84), are expected tobe between 26 per cent and 31 per cent lower than those of the previouscorresponding period (2013: 34.51 cents per share). When adjusted for the 2013 exceptional items mentioned above, headline earningsper share ("HEPS"), denominated in GBP, are expected to be between 30 per centand 35 per cent lower than those of the previous corresponding period (2013:2.17 pence per share). HEPS, calculated in ZAR, at the average ZAR:GBP exchange rate above, areexpected to be between 16 per cent and 21 per cent lower than those for theprevious corresponding period (2013: 30.07 cents per share). The key exogenous factors behind the decrease in HEPS include the following: * The ZAR gold price received decreased in the current financial year by 1.7% to ZAR433,433/kg (2013: ZAR440,824/kg). * The gold price in GBP terms decreased by 19.4 per cent to GBP799/oz (2013: GBP991/oz). * The ZAR depreciated against GBP by 22 per cent, impacting GBP earnings per share values reported. A key internal factor that negatively impacted HEPS in the 2014 financial yearwas the current low grade mining cycle at Evander Mines, which was previouslycommunicated to the market. The low head grade has resulted in reduced profitmargins and net profits generated by Evander Mines when compared to the prioryear. As previously announced, the low grade mining cycle at Evander Mines isexpected to continue until February 2015, and will therefore also impact groupresults and earnings for the first six months of the 2015 financial year.Measures implemented, or in progress, to mitigate the impact of the current andfuture low grade cycles at Evander Mines include the following: * The construction of the Evander Tailing Retreatment Plant ("ETRP") will yield an estimated 10,000oz of gold a year with a life of mine of 17 years. The ETRP project is progressing well and expected to be in production by January 2015. * Surface sources throughput in the Evander plant has been increased from 18,000 tons per month to approximately 30,000 tons per month. To maintain these tonnages for the full 2015 financial year, additional sources are being investigated. * Vamping (the mining of historical "leftovers" remaining after previous mining operations) at Evander No 7 Shaft has been expanded to include the 15 Level return airway mud accumulation project. This will contribute additional ounces from July 2014, onwards. * Management is concentrating efforts to increase availability of conveyor belts in the Evander No 8 Shaft declines. A refurbishment program has been implemented to effect the necessary mechanical improvements and upgrades. * Management rescheduled mine planning and improved mining flexibility by increasing development rates on 25 and 25A Levels at Evander No 8 Shaft to access more stoping areas. * Management is also investigating long-term mining flexibility improvements that could potentially be achieved by extending the decline system down to 26 Level. This will increase the Evander life of mine from 14 to 17 years. 2014 dividend guidance The Board of Directors (the "Board") has reviewed the current cash position andcashflow forecasts for the Group operations. The Board will only propose afinal dividend when the Group releases its financial results for the year ended30 June 2014. As part of this trading statement, the Board can however committo shareholders that it will not propose a final dividend lower than that paidin 2013 in ZAR terms. The 2013 dividend paid was ZAR240.3 million or GBP14.7million (0.1314 cents per share or 0.8033 pence per share). The financial information contained in this trading statement has neither beenreviewed nor audited by the Company`s auditors. Pan African is currentlyfinalising its audited results for the year ended 30 June 2014, which areanticipated to be released on 16 September 2014. For further information on Pan African Resources plc, please visit the websiteat www.panafricanresources.com 29 August 2014 Contact Details Corporate OfficeThe Firs Office Building1st Floor, Office 101Cnr. Cradock and Biermann AvenuesRosebank, JohannesburgSouth AfricaOffice: + 27 (0) 11 243 2900Facsmile: + 27 (0) 11 880 1240 Registered OfficeSuite 31Second Floor107 CheapsideLondonEC2V 6DNUnited KingdomOffice: + 44 (0) 207 796 8644Facsmile: + 44 (0) 207 796 8645 Ron Holding Cobus LootsPan African Resources PLC Pan African Resources PLCChief Executive Officer Financial DirectorOffice: + 27 (0) 11 243 2900 Office: + 27 (0) 11 243 2900 Phil Dexter Neil Elliot/Peter StewartSt James's Corp Services Limited Canaccord Genuity LimitedCompany Secretary Nominated AdviserOffice: + 44 (0) 207 499 3916 Office: +44 (0)207 523 8350 Matthew Armitt / Ross Allister Sholto SimpsonPeel Hunt LLP One CapitalJoint Broker JSE SponsorOffice: +44 (0)020 741 8900 Office: + 27 (0) 11 550 5009 Julian Gwillim Daniel ThöleAprio Strategic Communications Bell Pottinger PRPublic & Investor Relations SA Public & Investor Relations UKOffice: +27 (0)11 880 0037 Office: + 44 (0) 203 772 2500

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