PAN AFRICAN RESOURCES PLC - Update on Phoenix Platinum and IFMSA business rescue proceedings

Update on Phoenix Platinum and IFMSA business rescue proceedings

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 PHOENIX PLATINUM AND IFMSA BUSINESS RESCUE PROCEEDINGS

Pan African shareholders are referred to the announcement published by the Company on
27 August 2015, informing shareholders that International Ferro Metals Limited announced that as a
result of deteriorating business conditions, its South African subsidiary, International Ferro Metals (SA)
Pty Limited (“IFMSA”), had 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 was obtained
from IFMSA’s processing activities. Phoenix also sources electricity, water and certain other services
from IFMSA. The relationship between Phoenix and IFMSA was governed by a tailings treatment
agreement (“TTA”) entered into by Pan African, Phoenix and IFMSA.

Although Phoenix was not solely reliant on material from IFMSA, the Business Rescue proceedings
created a number of uncertainties and operating difficulties for Phoenix.

In terms of the Business Rescue proceedings, Samancor Chrome Limited (“Samancor”) was selected
as the successful bidder to acquire the business and assets of IFMSA. Samancor subsequently
nominated its subsidiary TC Smelters Proprietary Limited (“TC Smelters”) as the acquirer of the IFMSA
business and assets.

Pan African is now pleased to announce that it has reached an agreement (the “Agreement”) with TC
Smelters. The Agreement allows, inter alia, for the assignment of the TTA to TC Smelters. The
Agreement further clarifies a number of the provisions contained in the TTA, and will become effective
at the same time as the IFMSA and TC Smelters sale of business agreement.

Even though the Agreement does not guarantee current arising feedstock to Phoenix (this will be
dependent on the manner in which TC Smelters utilises the IFMSA assets), it places Phoenix in a
position where it will continue operations under similar conditions as those that existed prior to the
Business Rescue proceedings. It also ensures that Phoenix’s operations and interests are safeguarded.
As previously stated, Phoenix also has alternative sources of feedstock, which it processed during the
Business Rescue proceedings.

For further information on Pan African, please visit the Company's website at www.panafricanresources.com


19 July 2016


CONTACT INFORMATION

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
Facsimile: +27 (0) 11 880 1240


Registered Office
Suite 31
Second Floor
107 Cheapside
London
EC2V 6DN
United Kingdom

Office: +44 (0) 20 7796 8644
Facsimile: +44 (0) 20 7796 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 & Joint Broker
Office: +44 (0)20 7796 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)020 7418 8900

Julian Gwillim                                Daniel Thöle/Aarti Iyer
Aprio Strategic Communications                Bell Pottinger PR
Public & Investor Relations SA                Public & Investor Relations UK
Office: +27 (0)11 880 0037                    Office: +44 (0)20 3772 2500


Jeffrey Couch / Neil Haycock / Thomas Rider
BMO Capital Markets Limited
Joint Broker
Office: +44 (0)20 7236 1010


www.panafricanresources.com

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