Pan African Resources Regulatory News (PAF)

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 Share code on JSE: PAN ISIN: GB0004300496 TRADING STATEMENT AND ETRP UPDATE In terms of paragraph 3.4(b) of the Listings Requirements of the 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. Pan African is incorporated in England and Wales under the Companies Act 1985and accordingly its presentation currency is Pounds Sterling ("GBP"). The average ZAR:GBP exchange rates affect reporting of results in GBP. For thesix month interim reporting period ended 31 December 2014, the averageprevailing ZAR:GBP exchange rate of 17.87:1 (31 December 2013: 15.94:1) wasused to translate earnings per share ("EPS") and headline earnings per share("HEPS") from ZAR to GBP. This 12.1% year-on-year change in the averageexchange rate should be taken into account for the purposes of a comparisonwith the prior period. Pan African advises shareholders that its Group EPS and HEPS for the six monthperiod ended 31 December 2014, calculated in ZAR, are expected to be between 60per cent and 80 per cent lower than the 15.11 cents EPS and HEPS for the periodended 31 December 2013. Calculated in ZAR, EPS and HEPS are therefore expectedto be between 3.02 cents and 6.04 cents. EPS and HEPS denominated in GBP areexpected to be between 63 per cent and 83 per cent lower than the 0.95 penceEPS and HEPS reported for the period ended 31 December 2013. In GBP, EPS andHEPS are therefore expected to be between 0.16 pence and 0.35 pence. The primary reasons for the decrease in EPS and HEPS are as follows: Low grade mining cycle at Evander Gold Mines (Pty) Ltd ("Evander Mines") The Group has previously communicated that Evander Mines is currently in a lowgrade mining cycle. This low grade mining cycle has impacted gold productionand resulted in reduced profit margins and net profits generated by EvanderMines, in comparison to the previous corresponding reporting period. The low grade mining cycle at Evander Mines is expected to continue untilFebruary 2015, where after the operation should return to higher grade mining.The operation is implementing measures to ensure that the impact of futurelower grade mining cycles will be less pronounced. These measures includeadvancing the lower section of the mine downwards from 25 level to 26 level. Inaddition to increasing Evander Mines' life of mine, this development willcreate additional stoping areas and therefore alleviate the mining flexibilityconstraints currently being experienced. Section 54 notice of orders at both Barberton Mines (Pty) Ltd ("BarbertonMines") and Evander Mines On 21 November 2014 Pan African announced to shareholders that Section 54notice of orders were issued by the South African Department of MineralResources ("DMR") to Barberton Mines and Evander Mines. These notices wereissued after deviations were identified by the DMR's Mine Health and SafetyInspectorate in respect of certain operating procedures and administrativeprocesses pertaining to the mining operations' lamp room, self-rescuers and gasmonitors. The stoppages resulted in 5 days lost production at Barberton Minesand 3 days lost production at Evander Mines. The Group together with the operations' Safety and Health Committees have sincecorrected the deviations and action plans were presented to the DMR. Barberton Mines' Biox® plant update As previously reported, Barberton Mines' Biox® plant was subject to oilcontamination from a breakdown at the Fairview primary crusher. This set-backcontinued to impact operations during the current six month reporting period,however the Biox® plant recoveries had improved to approximately 96% byDecember 2014 (historically recoveries have been between 96% and 97%). Power supply interruptions During the interim reporting period ended 31 December 2014, the operations atboth Barberton Mines and Evander Mines were impacted by power supplyinterruptions as a result of load shedding by the South African power utility,Eskom. The South African electricity supply is expected to remain constrainedin the next year. Update on the construction of the Evander Tailings Retreatment Plant ("ETRP") The company is pleased to advise shareholders that the commissioning of theETRP is on schedule and on budget, with 1st gold production expected duringJanuary 2015. The ETRP is expected to add an additional 10,000oz of goldproduction per annum at Evander Mines. The financial information contained in this trading statement has neither beenreviewed nor audited by the Company`s auditors. Pan African is currentlyfinalising its unaudited interim results for the period ended 31 December 2014,which is anticipated to be released on or about 27 February 2014. For further information on Pan African, please visit the Company's website atwww.panafricanresources.com 12 January 2015 Contact Details Corporate Office The Firs Office Building 1st Floor, Office 101 Cnr. Cradock and Biermann Avenues Rosebank, Johannesburg South Africa Office: + 27 (0) 11 243 2900 Facsmile: + 27 (0) 11 880 1240 Registered Office Suite 31 Second Floor 107 Cheapside London EC2V 6DN United Kingdom Office: + 44 (0) 207 796 8644 Facsmile: + 44 (0) 207 796 8645 Ron Holding Cobus Loots Pan African Resources PLC Pan African Resources PLC Chief Executive Officer Financial Director Office: + 27 (0)11 243 2900 Office: + 27 (0) 11 243 2900 Phil Dexter Neil Elliot/Peter Stewart St James's Corporate Services Limited Canaccord Genuity Limited Company Secretary Nominated Adviser Office: + 44 (0)207 796 8644 Office: +44 (0)207 523 8000 Sholto Simpson Matthew Armitt / Ross Allister One Capital Peel Hunt LLP JSE Sponsor Joint Broker Office: + 27 (0)11 550 5009 Office: +44 (0)020 7418 8900 Julian Gwillim Daniel Thole Aprio Strategic Communications Bell Pottinger PR Public & Investor Relations SA Public & Investor Relations UK Office: +27 (0)11 880 0037 Office: + 44 (0)203 772 2500

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