Update on Evander Mines refurbishment and cost optimisation programme and progress on Elikhulu financing 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 Resources” or “group” or “company”) UPDATE ON EVANDER GOLD MINING PROPRIETARY LIMITED (“EVANDER MINES”) REFURBISHMENT AND COST OPTIMISATION PROGRAMME AND PROGRESS ON ELIKHULU TAILING RETREATMENT PLANT (“ELIKHULU”) FINANCING Update on the Evander shaft refurbishment programme and cost optimisation 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 on no. 7 and no. 8 shaft infrastructure. The company is pleased to report that these repairs are progressing on schedule and are still expected to be completed within the 55 day period previously communicated. During the suspension of the underground mining operations the processing and tailings retreatment plants have utilised available plant capacity to continue processing tailings and additional surface sources. In conjunction with the refurbishment, Evander Mines management has implemented a number of initiatives to reduce the Evander Mines underground operation’s fixed cost base, once mining recommences. Following a productivity and human capital assessment, initiated some time ago, Evander Mines has concluded a retrenchment agreement (the “agreement”) with the National Union of Mineworkers on 10 March 2017, with the facilitation of the South African Commission for Conciliation, Mediation and Arbitration. In terms of this agreement, approximately 30 percent of Evander Mines employees will be retrenched at an estimated cost of approximately R54 million (US$4.1 million). These personnel were designated as redundant for Evander Mines to meet production targets. Pan African Resources wishes to express its gratitude to the parties involved for the responsible manner in which the retrenchment agreement was concluded. In order to minimise the number of job losses, Evander Mines will seek to re-engage a number of retrenched employees when site activities for Elikhulu commences. Progress on Elikhulu financing On 9 February 2017, the company confirmed the approval by shareholders to disapply statutory pre-emption rights to allow the company to carry out a general issue of ordinary shares for cash. Proceeds from any general issue may or maybe not be used for the construction of Elikhulu. The company can confirm that it has been seeking out investor support for raising equity to fund the remaining portion of capital required for the Elikhulu construction. The company is pleased with the interest it has had from investors and has built a book of demand that is in excess of the 291,480,983 shares it was given authority to issue at its shareholder meeting. In terms of the JSE Limited Listings Requirements, a company cannot issue shares at a price that is in excess of a 10% discount to the 30 day volume weighted average price, which is currently at a premium to the current share price in South African rand terms. Given current market conditions and market volatility, the company has elected not to complete an equity issuance at this time. The company will however continue to progress the Elikhulu development from cash and banking facilities, until the final Elikhulu funding package is secured. Johannesburg 10 March 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 Date: 10/03/2017 05:50:00 Produced by the JSE SENS Department. 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