PAN AFRICAN RESOURCES PLC - Update on Evander Gold Mining Proprietary Limited refurbishment and cost optimisation programme

Update on Evander Gold Mining Proprietary Limited refurbishment and cost optimisation programme

Pan African Resources PLC
(Incorporated and registered in England and Wales under Companies Act 1985 with registered number
3937466 on 25 February 2000)
AIM Code: PAF
JSE Code: PAN
ISIN: GB0004300496
(“Pan African” or the “Company”)

UPDATE ON EVANDER GOLD MINING PROPRIETARY LIMITED (“EVANDER MINES”) REFURBISHMENT AND
COST OPTIMISATION PROGRAMME

Evander Mines refurbishment programme

Shareholders are referred to the announcement of 20 February 2017, in which the Company
communicated the suspension of the Evander Mines underground mining operations to allow for
critical refurbishment and maintenance of Evander Mines’ 7 and 8 shaft infrastructure.

Pan African is pleased to advise that the refurbishment of the 7 and 8 shaft complex is progressing
according to schedule and is expected to be completed on 15 April 2017 within the original R40m
cost estimate. The refurbishment programme entailed, inter alia, the following:

  -   replacement of the 7 shaft pump columns support infrastructure;
  -   replacement of a damaged section of the main pump column at the 7 shaft;
  -   replacement of the water reticulation system between the 7 and 8 shafts (3 stage pump
      column);
  -   removal of redundant shaft steelwork at the 7A and 8 shafts;
  -   repairs to the 7 and 7A shaft bottoms; and
  -   an assessment of all other underground infrastructure critical to maintaining and sustaining
      production.

Evander Mines’ 7A shaft (which is utilised for rock hoisting) has also normalised hoisting speed to
13 metres per second (hoisting speed was reduced to 8 metres per second for the period in which
repairs were being effected).

During the refurbishment period, on-mine management also focused on the preparation of the
Evander Mines underground mining areas for re-commencement of mining, with an emphasis on:

  -   securing and opening up of stope entrances and traveling ways;
  -   opening and securing critical material and development drives;
  -   construction of additional underground dams to ensure adequate water storage capacity;
  -   improving ventilation system and infrastructure; and  
  -   retraining of all underground miners to ensure the implementation of a clean, safe and
      sustainable mining plan.

Underground mining operations at Evander Mines will recommence following the completion of the
refurbishment programme, which is expected on or about 15 April 2017, with the hoisting of
approximately 6,000 tonnes of mined ore currently stored within the Evander Mines underground
infrastructure. The processing of these tonnes will assist with the expeditious ramp-up of Evander
Mines’ underground production profile.

Evander Mines cost optimisation programme

Shareholders are referred to the announcement of 10 March 2017, in which the Company
communicated that Evander Mines had concluded a retrenchment agreement with the National
Union of Mineworkers on 10 March 2017, with the facilitation of the South African Commission for
Conciliation, Mediation and Arbitration. The retrenchment programme is currently being
implemented and is expected to be completed within the next month.

Johannesburg
10 April 2017

Contact information

Corporate Office                                Registered Office
The Firs Office Building                        Suite 31, Second Floor
1st Floor, Office 101                           107 Cheapside
Cnr. Cradock and Biermann Avenues               London
Rosebank, Johannesburg                          EC2V 6DN
South Africa                                    United Kingdom
Office: + 27 (0) 11 243 2900                    Office: + 44 (0) 207 796 8644
Facsimile: + 27 (0) 11 880 1240                 Facsimile: + 44 (0) 207 796 8645

Cobus Loots                                     Deon Louw
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                                     John Prior / Paul Gillam
St James's Corporate Services Limited           Numis Securities Limited
Company Secretary                               Nominated Adviser and Joint Broker
Office: + 44 (0) 207 796 8644                   Office: +44 (0) 20 7260 1000

Sholto Simpson                                  Matthew Armitt / Ross Allister
One Capital                                     Peel Hunt LLP
JSE Sponsor                                     Joint Broker
Office: + 27 (0) 11 550 5009                    Office: +44 (0) 207 418 8900

Julian Gwillim                                  Jeffrey Couch/Neil Haycock/Thomas Rider
Aprio Strategic Communications                  BMO Capital Markets Limited
Public & Investor Relations SA                  Joint Broker
Office: +27 (0)11 880 0037                      Office: +44 (0) 207 236 1010

Bobby Morse/Chris Judd
Buchanan Communications
Public & Investor Relations UK
Office: +44 (0) 207 466 5000

www.panafricanresources.com

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