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 Date: 10/04/2017 09:15:00 Produced by the JSE SENS Department. 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