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PAN - Pan African - Conditional acquisition and renewal of cautionary

Release Date: 30/04/2010 15:48
Code(s): PAN
Wrap Text

PAN - Pan African - Conditional acquisition and renewal of cautionary announcement 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`) DATE EXTENDED FOR PAN AFRICAN TO COMPLETE DUE DILIGENCE INVESTIGATIONS IN RESPECT OF ITS CONDITIONAL ACQUISITION OF A 25% STAKE IN THE RK1 CONSORTIUM, AND RENEWAL OF CAUTIONARY ANNOUNCEMENT Shareholders are referred to the announcement released on Wednesday, 31 March 2010 in which Pan African advised that it had signed a conditional Sale and Purchase Agreement to acquire a 25% interest in the RK1 Consortium (`RK1`) (the `Transaction`). RK1 owns a Chromite Tailings Retreatment Plant (`CTRP`) situated at Kroondal on the Western Limb of the Bushveld Complex in the North West Province of South Africa, which produces Platinum Group Metals (`PGM`) concentrate. The Transaction, if completed, is expected to provide Pan African with access to low cost attributable PGM ounces and further strengthen the Company`s earnings and operating cash flows. The Transaction is subject to, inter alia, the successful completion of a technical and financial due diligence investigation (`Due Diligence`) by Pan African, which was anticipated to have been completed by the Company by the end of April 2010. Shareholders are advised that the parties to the Sale and Purchase Agreement have agreed to extend the period for the completion of the Due Diligence to Monday, 17 May 2010. RENEWAL OF CAUTIONARY ANNOUNCEMENT Shareholders are referred to the cautionary announcement released on Wednesday, 31 March 2010, and are advised that the pro forma financial effects of the Transaction are still being determined and may have a material effect on the price of the securities of the Company. Accordingly, shareholders are advised to continue exercising caution when dealing in the securities of the Company until the pro forma financial effects of the Transaction have been announced on the JSE Limited Securities Exchange News Service and the London Stock Exchange Regulatory News Service. Rosebank 30 April 2010 JSE Sponsor MACQUARIE FIRST SOUTH ADVISERS (PTY) LIMITED ENQUIRIES Pan African Resources Jan Nelson (CEO) +27 (0) 11 243 2900 Nicole Spruijt (Public Relations) +27 (0) 11 243 2900 RBC Capital Markets Martin Eales /Brett Jacobs +44 (0) 20 7029 7881
Macquarie First South Advisers Melanie de Nysschen /Thembeka Mgoduso +27 (0) 11 583 2000 St James`s Corporate Services Limited Phil Dexter +44 (0) 20 7499 3916 Nedbank Capital (Transaction Advisers) Jan Geenen +27 (0) 11 294 1586 Date: 30/04/2010 15:48:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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