2014 Abridged Mineral Resource & Mineral Re...

3 September 2014 Pan African Resources PLC (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 ("Pan African Resources" or the "Company" or the "Group") 2014 Abridged Mineral Resource & Mineral Reserve Report Pan African Resources PLC (AIM: PAF, JSE: PAN), the African focused precious metals producer, is pleased to announce that the 2014 Abridged Mineral Resource and Mineral Reserve Report ("MR&MR") has now been published and is available on the Company's website at www.panafricanresources.com. A summary of the report including the Group mineral resource and reserve statement as at 30 June 2014 has been provided below. Overview * 0.9Moz or 9.8% gross annual increase in Group gold reserves to 10.1Moz (2013: 9.2Moz) * 1.6Moz or 4.5% decrease in Group gold resources to 33.5Moz (2013: 35.1Moz) * 0.2Moz or 67% increase in Group PGE reserves to 0.5Moz (2013: 0.3Moz) * 0.1Moz or 14% decrease in Group PGE resource to 0.6Moz (2013: 0.7Moz) * Exploration drilling and work to increase access and development of orebodies at the Group's key projects progressed and has added incremental resource ounces * Ongoing conversion of resources to reserves expected to continue to increase life of mine production profiles Gold Group Gold Mineral Resources The Group's attributable gold Mineral Resources decreased from 35.1 million ounces ("Moz") in June 2013 to 33.5Moz in June 2014, equating to an annual decrease of 1.6Moz, or 4.5%. Of this variance, a decrease of 1.9Moz can be attributed to Evander Mines and an increase of 0.3Moz to Barberton Mines. As at 30 June 2014 Tonnes Grade Contained gold Category (million) (g/t) Kg Moz Mineral Resource Measured 6.3 10.67 66 958 2.1 Indicated 277.3 2.23 645 929 20.8 Inferred 42.7 7.74 330 126 10.6 Pan African Total 326.3 3.20 1 043 015 33.5 Resources The decrease in Mineral Resources can be attributed to a lower gold price and inflationary cost drivers in the reporting of the 2014 Mineral Resources. The 0.3Moz positive variance in contained gold at Barberton Mines was a result of adding new surface resources and extending the MRC orebody on Fairview Mine. Group Gold Mineral Reserves The Group's attributable Mineral Reserves increased from 9.2Moz in June 2013 to 10.1Moz in June 2014 - an annual increase of 0.9Moz, or 9.8%. Of this variance, 0.6Moz increase can be attributed to Barberton Mines and a 0.3Moz increase to Evander Mines. As at 30 June 2014 Tonnes Grade Contained gold Category (million) (g/t) Kg Moz Mineral Reserve Proved 3.8 7.38 27 826 0.9 Probable 83.6 3.41 286 103 9.2 Pan African Total 87.6 3.58 313 929 10.1 Resources The total increase in the Mineral Reserves can be attributed to the conversion of Mineral Resources of Evander No. 8 - 26 level and at Barberton the Fairview Mine extension of MRC orebody and the inclusion of New Consort and Sheba Mine tailings dams. Platinum Group Elements ("PGE") Group PGE Mineral Resources The Group's attributable PGE Mineral Resources decreased from 0.7Moz in June 2013 to 0.6Moz in June 2014 - an annual decrease of 0.1Moz or 14%. This decrease can be attributed to a lower Mineral Resource declared from the IFM Lesedi Mine (current arisings) and the treatment of the Buffelsfontein dumps. As at 30 June 2014 Tonnes Grade Contained PGE's Category (million) (g/t) Kg Moz Mineral Resource Measured 1.8 2.58 4 559 0.1 Indicated 3.3 3.56 11 574 0.4 Inferred 0.9 3.05 2 833 0.1 Pan African Total 6.0 3.19 18 966 0.6 Resources Group PGE Mineral Reserves The Group's attributable PGE Mineral Reserves increased from 0.3Moz in June 2013 to 0.5Moz in June 2014 - an annual increase of 0.2Moz or 67%. This significant increase can be attributed to the re-stating of the modifying factors in the Mineral Reserve of Phoenix Platinum. As at 30 June 2014 Tonnes Grade Contained PGE's Category (million) (g/t) Kg Moz Mineral Reserve Proved 1.8 2.58 4 559 0.1 Probable 3.2 3.56 11 574 0.4 Pan African Total 5.0 3.21 16 133 0.5 Resources Group organic growth Current exploration drilling as well as accessing and developing of the orebody were maintained during the year. The strategy of converting Mineral Resource to Mineral Reserve was progressed by moving organic projects further up the mining value chain towards commissioning. The tables below reflect the progress of near-mine growth projects that have contributed ounces to the Mineral Resource for the year. Group: Exploring the orebody - exploration drilling Operation Total No. of Average No. of Average Total metres grade boreholes channel Intersections expenditure width above cut-off (cm) (g/t) (Rm) Barberton Mines 11 993 150 121 93 24.52 7.9 Evander Mines 732 22 22 0 14.65 0.54 Phoenix Platinum - - - - - - Group: Accessing the orebody - on-reef development Operation Total on-reef development (metres) Average grade (g/t) Barberton Mines 1 656 4.31 Evander Mines 1 015 43.11 Phoenix Platinum - - Barberton Mines: Developing the orebody - capital ore reserve projects Project 2014 2013 2012 Potential resource target (metres) (metres) (metres) (oz) Sheba - pillar development 351 317 2 006 Sheba - Edwin Bray to Thomas and 171 102 303 13 286 Joe's Luck area Fairview - 11 Level Royal Reef Equipping 0.1 17 000 Fairview - 1# ore reserve opening 154 179 14 821 Fairview - 3 Shaft deepening 0 228 109 1 600 Fairview - 62 Level 295 601 552 253 New Consort - 40 Level 193 252 267 10 000 New Consort - 50 Level Decline west 0 150 197 26 000 New Consort - MMR pillar development 173 129 (new target area) New Consort - 3 Shaft 253 900 Sheba Western Cross 71 44 263 Evander Mines: Capital ore reserve projects Project 2014 2013 2012 Potential resource target (metres) (metres) (metres) (oz) 2 Decline 24 - 25 Level 686 554 778 1 200 000 25 A block ventilation 925 124 0 Reporting in compliance with SAMREC Code To meet the requirement of the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves ("SAMREC Code") that the material reported as a Mineral Resource should have "reasonable and realistic prospects for eventual economic extraction", Pan African Resources has determined an appropriate cut-off grade which has been applied to the quantified mineralised body. In determining the cut-off grade, Pan African Resources uses a gold price of R500 000/kg. At our underground mines, the optimal cut-off is defined as the lowest grade at which an orebody can be mined such that the total profits, under a specified set of mining parameters, are maximised. The Mineral Resource optimiser tool that was accordingly developed in-house was applied to the Mineral Resource inventory. The optimiser programme requires the following inputs to convert the Mineral Resource to the Mineral Reserve: * the database inventory of all mineral resource blocks * an assumed gold price - ZAR400 000/kg * planned production rates for each mine * mine call factor (MCF) * plant recovery factors and * planned cash operating costs and other efficiency factors, which are calculated using historical achievements as a baseline. The Mineral Reserves represent that portion of the Measured and Indicated Mineral Resources above cut-off in the LOM plan, and have been estimated after consideration of the modifying factors affecting extraction. A range of disciplines has been involved at each mine in the LOM planning process including geology, surveying, planning, mining engineering, rock engineering, metallurgy, financial management, human resources management and environmental management. Phoenix Platinum, BTRP and the ETRP are optimised on a 100% extraction plan on their Mineral Reserves. No selectivity was applied on tonnages and thus no cut-off grades were determined. Note: Mineral Resources are inclusive of the Mineral Reserve, unless otherwise stated. Rounding of numbers contained in this announcement may result in minor computational discrepancies. Competent Person The competent person for Pan African Resources, Mr Barry Naicker, the group Mineral Resource Manager, signs off the MR&MR for the Group and has reviewed and approved the information contained in this announcement in writing. He is a member of the South African Council for Scientific Professions (400234/10). Mr Naicker has 13 years of experience in economic geology and mineral resource management. He is based at 1st Floor, The Firs, cnr. Cradock and Biermann Avenues, Rosebank, 2196, Gauteng. Pan African Resources Enquiries Ron Holding Cobus Loots 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 Neil Elliot / Peter Stewart St James's Corporate Services Canaccord Genuity Limited Limited Company Secretary Nominated Adviser and Joint Broker Office: + 44 (0) 207 499 3916 Office: +44 (0)207 523 8350 Matthew Armitt / Ross Allister Sholto Simpson Peel Hunt LLP One Capital Joint Broker JSE Sponsor Office: +44 (0)020 741 8900 Office: + 27 (0) 11 550 5009 Julian Gwillim Daniel ThÃ¶le 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 For further information on Pan African Resources, please visit the website at www.panafricanresources.com