PAN AFRICAN RESOURCES PLC

Legal Proceedings Report • Aug 27, 2015

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PAN AFRICAN RESOURCES PLC - Response to IFM announcement re business rescue

PR Newswire

London, August 27

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 http://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

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