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PAN AFRICAN RESOURCES PLC - Operational update

Release Date: 02/03/2018 09:00
Code(s): PAN     PDF:  
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Operational update

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”)

OPERATIONAL UPDATE

Further to the operational update released on 1 February 2018, Pan African is pleased to provide
further information on progress at the Fairview 11-block Main Reef Complex (“MRC”) orebody and
the Barberton Tailings Retreatment Plant (“BTRP”), as well as updated guidance on the
commencement of production from the Elikhulu Tailings Retreatment Plant (“Elikhulu”).

Barberton Mines - Fairview 11-block MRC orebody grades

The average head grade for the Barberton Mines complex, which includes the Fairview, Sheba and
Consort mines, has risen from an average of 8.7g/t during July to December 2017 to 11.5g/t which
was recorded in the February 2018 production month. This 32% increase in head grade is
predominantly as a result of mining high-grade ore at the 272 platform since January 2018. The latest
on-reef development samples taken in the 272 platform, recorded an average grade of 99.2g/t
(ranging from 2.2g/t to 1,320g/t) over a mineralised width of 3.36m along a strike length of 24m. This
confirms that the high-grade areas of this mining block are now in production. This high-grade core of
the 11-block MRC orebody is encapsulated within a 75m mineralised envelope with the remainder of
the mineralisation retrieving an average grade of 10.5g/t.

Furthermore, face sampling of the on-reef development, taken of the mineralised 11-block MRC
orebody at the 358 platform, resulted in an average grade of 45.7g/t over a mineralised width of 2m,
confirming that the on-reef development has reached the high-grade section of this mining block. It is
envisaged that the strike length of the MRC orebody on the 358 platform will be 75m with a high-
grade core of 40m, extrapolated from the 272 platform above.

These platforms underpin Fairview’s high-grade production and mining flexibility, particularly for ore
haulage, development waste disposal and improving the mining face availability for the next two
years, during which development of the next platform below the 358 will be completed. Production
from 11-block MRC orebody will be further enhanced with the completion of the sub-vertical shaft in
two years’ time.

BTRP regrind mill construction update

The construction of the regrind mill is proceeding according to schedule with commissioning
anticipated in the last week of April 2018. On commissioning of the regrind mill, production at the
BTRP is expected to increase to approximately 21,000 ounces per annum.

Elikhulu construction update

Construction is progressing ahead of schedule with first gold expected in August 2018. Ramp up to full
production of approximately 55,000 ounces per annum is expected to take no longer than two
months, after which Elikhulu is estimated to produce gold at an all-in sustaining cost of production of
below $650/oz, at the prevailing USD:ZAR exchange rate. In conjunction with the Evander Tailings
Retreatment Plant, these two operations are expected to produce more than 70,000 ounces per
annum.

Evander Mines labour consultation process

As previously announced on 27 February 2018, Evander Mines is currently in a consultation process
with its labour in terms of section 189 of the South African Labour Relations Act, 66 of 1995. Further
announcements will be made in due course.

Commenting on the operational update, Cobus Loots, CEO, stated:

“Pan African is focused on sustainable lower cost gold production from our asset portfolio. After a
challenging period at Barberton Mines we have successfully dealt with the key underground challenges
at Fairview’s 11-block and we are on track to re-establish BTRP’s production profile at approximately
21,000 ounces per annum. Mining over the past two months at the 272 platform and the development
into the 358 platform confirms the geological continuity of Fairview’s 11-block high-grade orebody.
These developments, along with progress at the BTRP and Elikhulu, provide Pan African with far
greater certainty of high quality gold ounce production.”

The information contained in this announcement has not been reviewed or reported on by Pan
African’s auditors and is the responsibility of the Directors of Pan African.



Johannesburg

2 March 2018

Contact information
Corporate Office                                            Registered Office
The Firs Office Building                                    Suite 31
1st Floor, Office 101                                       Second Floor
Cnr. Cradock and Biermann Avenues                           107 Cheapside
Rosebank, Johannesburg                                      London
South Africa                                                EC2V 6DN
Office: + 27 (0) 11 243 2900                                United Kingdom
Facsimile: + 27 (0) 11 880 1240                             Office: + 44 (0) 207 796 8644
                                                            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, Joint Broker
Office: + 44 (0) 207 796 8644                               Office: +44 (0) 20 7260 1000

Sholto Simpson                                              Ross Allister / James Bavister
One Capital                                                 Peel Hunt LLP
JSE Sponsor                                                 Joint Broker
Office: + 27 (0) 11 550 5009                                Office: +44 (0) 207 418 8900

Jeffrey Couch/Neil Haycock/Thomas Rider                     Bobby Morse/Chris Judd
BMO Capital Markets Limited                                 Buchanan Communications
Joint Broker                                                Public & Investor Relations UK
Office: +44 (0) 207 236 1010                                Office: + 44 (0) 207 466 5000

Julian Gwillim
Aprio Strategic Communications
Public & Investor Relations SA
Office: +27 (0)11 880 0037

www.panafricanresources.com

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