Statement re Metorex Disposes of stake in Pan A...

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")                        

           METOREX LIMITED ("METOREX")DISPOSES OF STAKE IN PAN AFRICAN            

 1. INTRODUCTION
   
Pan African has been informed that its controlling shareholder, Metorex, has
been engaged in a bookbuilding exercise in order to dispose of its
approximately 53.4% shareholding in Pan African ("the Metorex Bookbuild"). The
results of the Metorex Bookbuild were announced by Metorex on SENS earlier
today and notified in writing to the Company.

The Metorex Bookbuild was conducted exclusively in regard to the shares held by
Metorex in Pan African and did not involve the issue of or subscription for any
new Pan African shares. The Metorex Bookbuild is expected to significantly
increase the liquidity of trading in Pan African shares as a consequence of the
introduction of more institutional and retail shareholders to Pan African and
the removal of Metorex as the controlling shareholder of Pan African.

Shanduka Gold (Proprietary) Limited ("Shanduka Gold") has, in addition to the
share exchange ("the Shanduka Share Exchange") detailed in the announcement
dated 19 June 2009 ("the Share Exchange Announcement"), increased its
shareholding in Pan African through the purchase of an additional 5% of the
enlarged share capital of Pan African post the Share Exchange, subject to the
terms and conditions set out in paragraph 4 below.

 2. RESULTS OF THE BOOK BUILD
   
Pan African is pleased to note that the Metorex Bookbuild was oversubscribed.
The price at which Metorex disposed of its Pan African shares through the
Metorex Bookbuild was ZAR 0.65 per Pan African ordinary share (approximately
4.9 pence).

Pan African has been informed that the following entities acquired Pan African
shares through the Metorex Bookbuild:

                                                          PreShanduka  
                                                         Share Exchange
                                                                       
Acquired by                             No of Shares        % of Pan   
                                                            African    
                                                                       
Coronation Fund Managers Limited         244,400,000         21.97%    
                                                                       
Allan Gray Limited                       107,000,000         9.62%     
                                                                       
Shanduka Gold 1                          70,417,036          6.33%     
                                                                       
JP Morgan Securities (United             60,000,000          5.39%     
Kingdom)                                                               
                                                                       
Investec Limited                         50,000,000          4.49%     
                                                                       
Other purchasers                         61,923,440          5.57%     
                                                                       
Total                                    593,740,476         53.37%    
                                                                       
Note 1: Subject to the suspensive conditions set out in paragraph 4    
below.                                                                 
                                                                       

 3. BLACK ECONOMIC EMPOWERMENT
   
Shareholders are referred to the Share Exchange Announcement. Shanduka has
purchased an additional 70,417,036 shares in Pan African through the Metorex
Bookbuild ("the Additional Shanduka Acquisition"), thereby raising its
shareholding in Pan African to 26% of the share capital of Pan African as
enlarged by the Shanduka Share Exchange, but subject to the conditions set out
in paragraph 4 below.

Upon implementation of the Shanduka Share Exchange and the Additional Shanduka
Acquisition, Pan African and all of its operations will be fully empowered.

The Shanduka Share Exchange remains subject to the conditions precedent
detailed in the Share Exchange Announcement.

 4. CONDITIONS PRECEDENT TO THE ADDITIONAL SHANDUKA ACQUISITION
   
The Additional Shanduka Acquisition is subject to the following conditions
precedent:

  * to the extent required, the South African Securities Regulation Panel
    ("SRP") ruling that the Additional Shanduka Acquisition is not an "affected
    transaction" as defined in the Securities Regulation Code on Take-overs and
    Mergers and the Rules of the SRP and that Shanduka Gold shall accordingly
    not have any obligation to make a mandatory offer to the shareholders of
    PAR;
   
  * Metorex delivering to Shanduka written confirmation from the United Kingdom
    Panel on Takeovers and Mergers confirming that the provisions of the City
    Code on Takeovers and Mergers shall not apply to the Additional Shanduka
    Acquisition; and
   
  * Metorex obtaining a fairness opinion from an independent expert to the
    effect that the terms and conditions of the Additional Shanduka Acquisition
    are fair to Metorex shareholders.
   
 5. OTHER
   
Upon implementation of the Additional Shanduka Acquisition, Metorex will no
longer hold a disclosable interest in the Company. Prior to the Share Exchange,
the new shareholders with a disclosable interest in the Company are as follows:

Subscribers                           No of Shares        % of Pan    
                                                           African    
                                                                      
Coronation Fund Managers Limited       244,400,000         21.97%     
                                                                      
Allan Gray Limited                     107,000,000          9.62%     
                                                                      
Shanduka / Metorex 1                   70,417,036           6.33%     
                                                                      
JP Morgan Securities (United           60,000,000           5.39%     
Kingdom)                                                              
                                                                      
Investec Limited                       50,000,000           4.49%     

Note 1: Subject to implementation of the Additional Shanduka Acquisition.

 6. PROPOSED TERMINATION OF THE METOREX MANAGEMENT CONTRACT IN RESPECT OF
    BARBERTON MINES
   
Metorex currently has a management contract in respect of Barberton Mines
(Proprietary) Limited ("Barberton Mines")("the Metorex Contract"). Pan African
and Metorex are in the process of negotiating an earlier termination of the
Metorex Contract and full details of the termination terms and conditions will
be announced as soon as the parties reach an agreement. The termination of the
Metorex Contract will be executed in an orderly fashion and will not disrupt
operations at Barberton Mines.

 7. PROPOSED CHANGES TO THE PAN AFRICAN BOARD OF DIRECTORS
   
Following implementation of the Shanduka Share Exchange Agreement and the
Additional Shanduka Acquisition, the board of directors of Pan African intends
to invite Mr Cyril Ramaphosa and Mr Rowan Smith from Shanduka Gold to join the
Pan African board. The Pan African board of directors has indicated that it
would seek to elect Mr Ramaphosa as non-executive chair.

Furthermore, Mr Charles Needham, representing Metorex, has resigned from the
Pan African board with immediate effect. In the interest of effecting a smooth
exit and not to disrupt the affairs of Pan African, Mr Maritz Smith, currently
the finance director of Pan African and also a Metorex representative, will
tender his resignation as a director of Pan African as soon as Pan African
appoints a new finance director.

Jan Nelson, Chief Executive Officer of Pan African, stated:

"We are pleased thatShanduka has become the long term empowerment partner for
the entire Pan African Group at holding company levelupon implementation of the
Shanduka transactions. We believe that the newly diversified shareholder base
and the introduction of Shandukaat holding company levelwill reap further
rewards for all our stakeholders."

Rowan Smith, Managing Director of Shanduka Resources (Pty) Ltd, said:

"Shanduka has maintained a successful working relationship with Pan African for
the last twoyears and is looking forward to developing this relationship in the
future. The ShandukaGrouphas illustrated its confidence in Pan African through
the acquisition of a further stake in the companyduring the Metorex Book
building exercise."

Date:

25 June 2009

Corporate Adviser to Pan African and sole bookrunner on the Metorex Bookbuild: 
                                                                               
Barnard Jacobs Mellet Corporate Finance (Pty) Limited                          
                                                                               
Sponsor to Pan African:                                                        
                                                                               
Macquarie First South Advisers (Pty) Limited                                   
                                                                               
Nominated Adviser to Pan African:                                              
                                                                               
RBC Capital Markets                                                            
                                                                               
Martin Eales [phone]