Pan African Regulatory News (PAF)

20 August 2013 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 TRADING STATEMENT AND OPERATIONAL UPDATE Pan African predicts increased earnings for full year results to 30 June 2013 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. Pan African is incorporated in England and Wales, and its reporting currency ispounds sterling ("GBP") whilst all its subsidiaries are incorporated in SouthAfrica and their functional and reporting currency is South African Rand("ZAR") as their primary operational economic environment is within SouthAfrica. The annual average ZAR: GBP exchange rates affect results. For the currentfinancial year, the average prevailing ZAR: GBP exchange rate of 13.84:1 (2012:12.27:1) was used to translate earnings per share ("EPS") and headline earningsper share ("HEPS") from ZAR to GBP. This 12.80% year-on-year change in theaverage exchange rate should be taken into account for the purposes ofcomparison with the prior year. Trading Statement Pan African is pleased to advise shareholders that: * EPS for the financial year ended 30 June 2013, calculated in ZAR, is expected to be between 34 per cent and 44 per cent higher than the 24.83 cents per share generated for the financial year ended 30 June 2012. * EPS denominated in GBP is expected to be between 25 per cent and 35 per cent higher than the 2.02 pence per share generated for the financial year ended 30 June 2012. * HEPS for the financial year ended 30 June 2013, calculated in ZAR, is expected to be between 16 per cent and 26 per cent higher than the 24.89 cents per share reported for the financial year ended 30 June 2012. * HEPS denominated in GBP is expected to be between 3 per cent and 13 per cent higher than the 2.03 pence per share reported for the financial year ended 30 June 2012. Based on preliminary analysis, EPS and HEPS is expected to differ for thecurrent year due to the bargain purchase consideration relating to theacquisition of the Evander Gold Mines Limited ("Evander") (calculated inaccordance with the provisional purchase price allocation exercise ("PPA")pursuant to IFRS3) and impairment charges, arising from the impairments of theCompany's Phoenix Platinum Mining (Pty) Limited ("Phoenix") and Auroch MineralsNL investments, which are adjusted for when calculating the HEPS. The PPAvalued the assets and liabilities of Evander at their respective fair values inrelation to Evander's net asset value. The net adjustment amount between HEPSand EPS is expected to be approximately ZAR 70.0 million (GBP 5.1 million). Theimpairments arose as a result of, inter alia, lower precious metal priceforecasts and exploration and mining challenges in the current depressed miningenvironment. 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 2013, which isanticipated to be released on 17 September 2013. Operational Update Production at Barberton Gold Mines Operations ("BGMO") improved over the lastsix months, compared to the first six months of the financial year ended 30June 2013. This resulted in total gold production at BGMO increasing to 96 296ounces for the financial year ended 30 June 2013, compared to 94 449 ouncesproduced for the financial year ended 30 June 2012. Pan African completed the acquisition of Evander on the 28 February 2013. Themine contributed 34 197 ounces of gold to the Group for the 4 months ended 30June 2013, bringing total Group gold production for the year to 130 493 ounces. Production commenced at the Barberton Tailings Retreatment Plant, achieving itsfirst gold pour on 28 June 2013. Phoenix produced 6 480 ounces 6PGE for the financial year ended 30 June 2013.Production remains constrained due to the supply of oxide tailings byferrochrome producer International Ferro Metals Limited. Ron Holding, Joint Interim CEO of Pan African commented: "These achievementsdemonstrate the company's ability to continue to successfully deliver a strongoperational performance, despite a tough mining environment." 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 7499 3916 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