Trading Statement

20 August 2013

                           Pan African Resources PLC                           

                ("Pan African" or the "Group" or the "Company")                

(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                               

                   TRADING STATEMENT AND OPERATIONAL UPDATE                    

 Pan African predicts increased earnings for full year results to 30 June 2013 

In terms of paragraph 3.4(b) of the Listings Requirements of JSE Limited, a
listed company is required to publish a trading statement as soon as it is
satisfied that a reasonable degree of certainty exists that the financial
results for the period to be reported on next, will differ by at least 20 per
cent from those of the previous corresponding period.

Pan African is incorporated in England and Wales, and its reporting currency is
pounds sterling ("GBP") whilst all its subsidiaries are incorporated in South
Africa and their functional and reporting currency is South African Rand
("ZAR") as their primary operational economic environment is within South
Africa.

The annual average ZAR: GBP exchange rates affect results. For the current
financial year, the average prevailing ZAR: GBP exchange rate of 13.84:1 (2012:
12.27:1) was used to translate earnings per share ("EPS") and headline earnings
per share ("HEPS") from ZAR to GBP. This 12.80% year-on-year change in the
average exchange rate should be taken into account for the purposes of
comparison with the prior year.

Trading Statement

Pan African is pleased to advise shareholders that:

  * EPS for the financial year ended 30 June 2013, calculated in ZAR, is
    expected to be between 34 per cent and 44 per cent higher than the 24.83
    cents per share generated for the financial year ended 30 June 2012.
   
  * EPS denominated in GBP is expected to be between 25 per cent and 35 per
    cent higher than the 2.02 pence per share generated for the financial year
    ended 30 June 2012.
   
  * HEPS for the financial year ended 30 June 2013, calculated in ZAR, is
    expected to be between 16 per cent and 26 per cent higher than the 24.89
    cents per share reported for the financial year ended 30 June 2012.
   
  * HEPS denominated in GBP is expected to be between 3 per cent and 13 per
    cent higher than the 2.03 pence per share reported for the financial year
    ended 30 June 2012.
   
Based on preliminary analysis, EPS and HEPS is expected to differ for the
current year due to the bargain purchase consideration relating to the
acquisition of the Evander Gold Mines Limited ("Evander") (calculated in
accordance with the provisional purchase price allocation exercise ("PPA")
pursuant to IFRS3) and impairment charges, arising from the impairments of the
Company's Phoenix Platinum Mining (Pty) Limited ("Phoenix") and Auroch Minerals
NL investments, which are adjusted for when calculating the HEPS. The PPA
valued the assets and liabilities of Evander at their respective fair values in
relation to Evander's net asset value. The net adjustment amount between HEPS
and EPS is expected to be approximately ZAR 70.0 million (GBP 5.1 million). The
impairments arose as a result of, inter alia, lower precious metal price
forecasts and exploration and mining challenges in the current depressed mining
environment.

The financial information contained in this trading statement has neither been
reviewed nor audited by the Company`s auditors. Pan African is currently
finalising its audited results for the year ended 30 June 2013, which is
anticipated to be released on 17 September 2013.

Operational Update

Production at Barberton Gold Mines Operations ("BGMO") improved over the last
six months, compared to the first six months of the financial year ended 30
June 2013. This resulted in total gold production at BGMO increasing to 96 296
ounces for the financial year ended 30 June 2013, compared to 94 449 ounces
produced for the financial year ended 30 June 2012.

Pan African completed the acquisition of Evander on the 28 February 2013. The
mine contributed 34 197 ounces of gold to the Group for the 4 months ended 30
June 2013, bringing total Group gold production for the year to 130 493 ounces.

Production commenced at the Barberton Tailings Retreatment Plant, achieving its
first gold pour on 28 June 2013.

Phoenix produced 6 480 ounces 6PGE for the financial year ended 30 June 2013.
Production remains constrained due to the supply of oxide tailings by
ferrochrome producer International Ferro Metals Limited.

Ron Holding, Joint Interim CEO of Pan African commented: "These achievements
demonstrate the company's ability to continue to successfully deliver a strong
operational performance, despite a tough mining environment."

Enquiries                            UK                                        
                                                                               
South Africa                                                                   
                                                                               
Pan African                          Canaccord Genuity Limited - Nomad and     
                                     Joint Broker                              
Ron Holding or Cobus Loots, Joint                                              
Interim CEO's                        Andrew Chubb/ Peter Stewart/ Joe Weaving  
                                                                               
[phone]                  [phone]                      
                                                                               
One Capital - Sponsor                finnCap Limited - Joint Broker            
                                                                               
Sholto Simpson                       Elizabeth Johnson / Joanna Weaving        
                                                                               
27 (0) 11 550 5000                   [phone]                      
                                                                               
Vestor Investor Relations            St James's Corporate Services Limited     
                                                                               
Louise Brugman                       Phil Dexter                               
                                                                               
[phone]                  [phone]                      
                                                                               
                                     Gable Communications                      
                                                                               
                                     Justine James                             
                                                                               
                                     [phone] / [phone]

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