Approval for Barberton Tailings Project

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' or the `company')

Approval granted for Phase One of the Barberton Tailings Retreatment Project

and the acquisition of Harper Tailings Operations

Pan African is pleased to announce that the board of directors has approved
Phase One of the Barberton Tailings Retreatment Project ("BTRP") which will
recover gold from the retreatment of the gold tailings situated close to the
Barberton Gold Mining Operations ("Barberton"). It is anticipated that the BTRP
will increase the production profile at Barberton from 95,000oz to 120,000oz
per annum.

Highlights

- The BTRP comprises a total resource of ~654koz (13.7Mt @ 1.38g/t) and a
reserve of ~248koz (13.7Mt @ 0.56g/t)

- A Capital Cost Estimate ("Capex") of GBP27 million (ZAR325 million) has been
approved for Phase One of the BTRP in order to retreat 1.2Mt per annum of gold
tailings over a six year life, funded from internal cash flows

- Over the life of Phase One of the project, a total of 160koz will be
recovered (which includes 120koz from tailings and another 40koz from current
underground arisings to be retreated)

- At a gold price of ZAR400,000 per kilogram the project has a net present
value ("NPV") of GBP27 million (ZAR325 million)

- Phase One of the BTRP:

- will increase current production at Barberton by 26% to 120koz per annum

- is expected to produce gold at an operating cash cost of ZAR194,000 per
kilogram

- Commissioning of Phase One of the BTRP is expected to commence in April 2013
with full production being achieved during August 2013 (build -up phase)

- The remaining 129koz* of reserve will represent Phase Two of the project and
the phasing of this additional production is currently being finalised, which
would extend the BTRP from 6 to 12 years

- Harper Tailings Operations acquired for a total consideration of GBP830,000
(ZAR10 million)

*The 40koz resulting from the retreatment of current underground arisings after
gold reclaimed from the BTRP is not included in the BTRP reserve of 248koz.

Jan Nelson, Chief Executive Officer of Pan African commented: "This project
will be a further example of the tried and tested approach applied at the
Phoenix platinum group metals tailings retreatment project to enhance the
production profile at Barberton. The operating cash cost profile from
underground production at Barberton is currently below ZAR165,000 per kilogram
and this project will further increase the margins resulting in increased cash
flow. This should ensure that Pan African can increase its dividend as well as
pursue other accretive growth opportunities in the near term."

Project Concept & Locality

During 2010 the main tailings storage facility (referred to as the Bramber
tailings storage facility (`BTSF') at the Fairview section of Barberton reached
the end of its operational life. The BTSF was commissioned in 1987 and has been
the main storage facility for gold tailings from the Fairview section of
Barberton. In light of current gold prices and the volume of material the BTSF
represents, the Company decided to investigate the financial viability of
reclaiming recoverable gold from the BTSF.

The exploration programme to investigate the volume and grade of the BTSF
comprised a comprehensive auger drilling campaign on a 20 metre by 20 metre
grid which included 308 boreholes for a total of 6,074 metres.

Modelling and geological profiling of the boreholes confirmed two distinct
geographical populations across the BTSF. This is the result of historical
deposition that took place in two separate compartments, a higher grade BIOX®
tail section and a lower grade concentrator/flotation tail section.
Geostatistical modelling indicates 74,600oz (758kt @ 3.06g/t in situ) for the
BIOX® section and 72,900oz (2.369Mt @ 0.96g/t in situ) for the concentrator/
flotation section. This represents a total resource of 147,500oz (3.130Mt @
1.47g/t in situ) of which 24% by volume (51% by gold content) of the total
Mineral Resource, originated from the BIOX® process. The flotation process
produced the balance.

A total of 10 composite samples representative of the tailings material were
submitted for metallurgical recovery test work. Initial excess cyanide test
work indicated recoveries varying between 45% and 55%. Further Kinetic test
work confirmed recoveries of 52%.

The two adjacent Tailings Storage Facilities ("TSFs"), Harper North and Harper
South, both older than the BTSF and also originating from the Fairview Mining
operation, were subsequently investigated as an additional surface source that
could be reclaimed for gold. After successful test work the dumps were
purchased from Michael Harper on 15 December 2011 for an aggregate
consideration of ZAR10 million (GBP830,000). A total of 52 auger holes were
drilled (1,013.5m drilling) and 753 samples taken (composited at 3 metre
intervals to produce 463 samples). A total of five composites, representing the
dumps, were submitted for metallurgical test work. These resources are included
in the resource statement, as tabled below, and were also converted to reserve
after stringent metallurgical test work was performed on the material. The
Bramber TSF, Harper South TSF and Harper North TSF were included in the BTRP
Phase One business case study.

Furthermore, the Company has completed auger drilling on another 6.8Mt of
tailings at the New Consort section of Barberton, which has defined a further
4Mt of reserves (129koz) which would extend the BTRP from approximately 6 to 12
years, comprising Phase Two of the project. The auger holes drilled totalled 48
and equates to 790 metres. A total of 615 samples were taken at 1.5 metre
increments that was composited at 3 metre intervals, for a total of 405
combined samples submitted for gold content determination. A total of five
composites were submitted for metallurgical test work. Phase Two of the BTRP
project is estimated to require a further ZAR55 million (GBP4.6 million). in
capital and the phasing of production from this phase is being finalised.

Total Bramber Tailings Dam Resource and Reserve Statement as at 1 June 2011

Harper North and SouthSegalla/ Consort

Project  Resource  Mass    Grade  Mineral       Recovery Reserve  Mineral      
         Category  (kt)    (g/t)  Resource               Category Reserves     
                                                                               
                   (kt)    (g/t)  (kg)   (koz)                    (kg)   (koz) 
                                                                               
Bramber  Measured  3,130   1.47   4,600  148    51.2%    Probable 2,355  76    
Tailing                                                                        
Dam      Indicated                                                             
                                                                               
         Inferred                                                              
                                                                               
         Total     3,130   1.47   4,600  148    51.2%    Total    2,355  76    
                                                                               
         North     2,693   1.16   3,124  100    21.0%    Probable 656    21    
                                                                               
         South     1,083   1.65   1,787  57     39.7%    Probable 709    23    
                                                                               
         Total     3,776   1.30   4,911  158                      1,365  44    
         est.                                                                  
                                                                               
         Calcine   290     5.95   1,726  55     18.2%    Probable 314    10    
                                                                               
         Non -     6,591   1.38   9,096  292    40.9%    Probable 3,684  118   
         calcine                                                               
                                                                               
         Total     6,881   1.57   10,821 348                      3,998  129   
         est.                                                                  
                                                                               
Total Surface      13,787  1.47   20,332 654                      7,718  248   
Tailings                                                                       

Project Development Summary

The BTRP plant site will be located on the Barberton property and the planned
BTSF extension will be positioned adjacent to the current tailings dam on the
Farms Bramber South 349JU and Bramber Central 348JU which are owned by
Barberton.

The BTRP has been designed to treat 100,000 tons tailings per month through a
Carbon in Leach circuit using electro-winning and smelting to produce a
saleable product. Current tailings from the Fairview Concentrator and the
Fairview BIOX(R) plant totalling 14,000 tons per month will be routed via a
pipeline to the BTRP for treatment and 86,000 tons per month will be reclaimed
from the BTSF.

In October 2011, Basil Read-Matomo, which successfully constructed Pan African
Phoenix Chrome Tailings Retreatment Plant within budget and two months ahead of
schedule, completed the BTRP Feasibility Report and Capex. The total Capex for
the BTRP is estimated to be GBP27 million (ZAR325 million) of which GBP10
million (ZAR830,000) will be used to extend the current TSF used at the
Fairview operation for tailings disposal over the Life of project.

Basil Read-Matomo has been contracted to design, procure and construct the
BTRP. Long lead items that have been identified such as leach tanks and carbon
regeneration kiln and are currently being procured. Civil work of the BTRP is
planned to commence end March 2012 with mechanical construction commencing in
June 2012, and commissioning commencing in March 2013, with full production
being achieved during August 2013 (build-up phase). The electric power
requirement of 4,522kW to the BTRP will be supplied via an overhead 11kV line
from the South African electricity utility, Eskom.

At a gold price of ZAR400,000 per kilogram Phase One of the project indicates
an NPV of GBP27 million, at a total cash cost of ZAR194,000 per kilogram
(ZAR114 per ton) over the life of the project. Capex is estimated at GBP27
million (ZAR325 million) and a total of 160, 000oz of gold will be produced at
an average recovered grade of 0,54g/t. This would increase the annual
production profile at Barberton by approximately 20,000 oz per annum.

1 February 2012

Johannesburg

JSE Sponsor

Macquarie First South Capital (Pty) Limited

For further information on Pan African Resources plc, please visit the website
at www.panafricanresources.com

Enquiries

South Africa                            UK                                     
                                                                               
Pan African Resources                   RBC Capital Markets                    
                                                                               
Jan Nelson, Chief Executive Officer     Martin Eales / Peter Barrett-Lennard   
                                                                               
[phone]                     [phone]                   
                                                                               
Macquarie First South Capital (Pty)     St James's Corporate Services Limited  
Limited                                                                        
                                        Phil Dexter                            
Melanie de Nysschen / Annerie Britz /                                          
Yvette Labuschagne                      [phone]                   
                                                                               
[phone]                                                            
                                                                               
Vestor Investor Relations               Gable Communications                   
                                                                               
Louise Brugman                          Justine James                          
                                                                               
[phone]                     [phone]                   
                                                                               
                                        [phone]                     

Notes

The resource statement has been compiled in accordance with the South African
Code for Reporting of Exploration Results, Mineral Resources and Mineral
Reserves ("SAMREC").  The verification and validation of the data and the
information contained in this announcement was managed by Mr David Briggs (NHD
Pr.Sci.Nat), Director: Geologix MRC (Pty) Limited, who is accredited with the
South African Council for Natural Scientific Professions ("SACNASP"). He has
consented to the inclusion of the technical information in this announcement in
the form and context in which it appears.

The services of the following independent consultants and experts were secured
to assist and support this process:

- Sampling and Drilling:  Gold Mine Sand and Slime Dams Drillers CC

- Assaying, mineralogy and metallurgical test work: SGS Lakefield Resources
Africa (Pty) Limited.

- Geological modelling and data conversion for the resources:  Geologix MRC
(Pty) Limited, a South African Resources and Geological Consultancy.  Mr Briggs
is accredited with the South African Council for Natural Scientific Professions
(SACNASP).

- ENC Minerals: Eugene Nel is a Professional Engineering technologist
registered with the Engineering Council of South Africa (ECSA).