Response to International Ferro Metals Limited announcement regarding Business Rescue Pan African Resources PLC ("Pan African") (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 27 August 2015 RESPONSE TO INTERNATIONAL FERRO METALS LIMITED ANNOUNCEMENT REGARDING BUSINESS RESCUE Pan African shareholders are referred to the regulatory announcement published on 26 August 2015 by International Ferro Metals Limited (“IFL”), whereby IFL announced that as a result of deteriorating business conditions, its South African subsidiary, International Ferro Metals (SA) Pty Limited (“IFMSA”), has entered into Business Rescue. Business Rescue is a statutory means of enabling a financially distressed company to continue business, under the supervision of a Business Rescue Practitioner, protected from its creditors. Pan African’s wholly-owned subsidiary, Phoenix Platinum Mining (Proprietary) Limited (“Phoenix”), is situated on the IFMSA property, and a portion of the feedstock for the Phoenix operation (currently approximately 20%) is obtained from tailings arising from IFMSA’s current processing activities. Phoenix is not solely reliant on material from IFMSA, and has alternative sources of feedstock. Phoenix also sources electricity, water and certain other services from IFMSA. At this stage, Phoenix is not in a position to fully assess the impact of the Business Rescue proceedings referred to above on Phoenix’s operations. Phoenix and Pan African will work closely with the IFMSA Business Rescue Practitioner to ensure that the operations and interests of Phoenix are safeguarded, which includes the services currently provided by IFMSA. All stakeholders will be kept informed as these discussions progress. For the half year ended December 2014, Phoenix contributed approximately 7% to Pan African’s profit after tax. For further information on Pan African Resources plc, please visit the Company’s website at www.panafricanresources.com 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 1 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 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 / James Black 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)207 260 1000 Nigel Gordon Sholto Simpson Fasken Martineau LLP One Capital Solicitors in the UK JSE Sponsor Office: +44 (0)207 917 8500 Office: + 27 (0)11 550 5009 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 Matthew Armitt / Ross Allister Peel Hunt LLP Joint Broker Office: +44 (0)020 7418 8900 www.panafricanresources.com 2 Date: 27/08/2015 09:30:00 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.