Pan African Regulatory News (PAF)

PAN AFRICAN RESOURCES PLC - UK shareholder register & dividends withholding tax

PR Newswire

London, January 20

Pan African Resources PLC“Pan African Resources” 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: PAFShare code on JSE: PANISIN: GB0004300496

UNITED KINGDOM (“UK”) SHAREHOLDER REGISTER AND ASSOCIATED DIVIDENDS WITHHOLDING TAXATION (“DIVIDEND TAX”)

Pan African Resources has recently received enquiries from UK shareholders regarding the deduction of South African Dividends Tax from the dividend payment made on 24 December 2015. The following information should assist to provide guidance and clarification with respect to a reduced Dividends Tax for qualifying UK shareholders.

The standard rate of Dividends Tax levied in South Africa is 15% of the dividend declared. A reduced rate may apply, in terms of a Double Taxation Agreement (“DTA”) between South Africa and the country in which the shareholder is a tax resident, in which case the rate may be reduced to a lesser amount.

Dividends Tax is levied on dividends paid by all South African companies and foreign companies listed on the exchange operated by the JSE Limited.

Dividends Tax is a withholding tax and is remitted by the dividend paying company or the “regulated intermediary” in South Africa to the South African Revenue Service.

In terms of the DTA between South Africa and the UK, a reduced Dividend Tax rate of 10% may be applicable to qualifying shareholders who are tax resident in the UK. In order for qualifying UK shareholders to apply for the lower dividend tax rate, shareholders will need to complete a Dividends Tax – Non-South African Tax Resident Beneficial Owner Declaration of Status Form (“Declaration Form”).

The Declaration Form is available on our website (http://www.panafricanresources.com/wp-content/uploads/Non-SA_Dividend_Declaration_Form.pdf) and will also be distributed by Capita Asset Services. The completed Declaration Forms need to be submitted to Capita Asset Services by mail and the Company by email, where possible:

The RegistrarCapita Asset ServicesThe Registry34 Beckenham RoadBeckenhamKent BR3 4TU

Email address: dividends@paf.co.za

On receipt of a correctly completed Declaration Form, Pan African Resources will reimburse UK shareholders the 5% differential between the South African and UK dividends tax rates, to UK shareholders whom have completed and submitted their Declaration Forms to the above address of Capita Asset Services, by no later than the following dates:

No reimbursements in respect of the dividend paid on 24 December 2015 will be made to shareholders whose Declaration Forms are received after 26 February 2016. However, the Declaration Forms will be processed and the reduced taxation rate will be applied to any future dividends declared by the Company.

For the avoidance of doubt, shareholders should seek advice from their personal tax adviser or relevant tax authority.

20 January 2015

Johannesburg

CONTACT INFORMATION

Corporate OfficeThe Firs Office Building1st Floor, Office 101Cnr. Cradock and Biermann AvenuesRosebank, JohannesburgSouth AfricaOffice: + 27 (0) 11 243 2900Facsimile: + 27 (0) 11 880 1240

Registered OfficeSuite 31Second Floor107 CheapsideLondonEC2V 6DNUnited Kingdom

Office: + 44 (0) 207 796 8644Facsimile: + 44 (0) 207 796 8645

www.panafricanresources.com