Trading Statement

Pan African Resources PLC                           

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

(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 ETRP UPDATE                       

In terms of paragraph 3.4(b) of the Listings Requirements of the 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 under the Companies Act 1985
and accordingly its presentation currency is Pounds Sterling ("GBP").

The average ZAR:GBP exchange rates affect reporting of results in GBP. For the
six month interim reporting period ended 31 December 2014, the average
prevailing ZAR:GBP exchange rate of 17.87:1 (31 December 2013: 15.94:1) was
used to translate earnings per share ("EPS") and headline earnings per share
("HEPS") from ZAR to GBP. This 12.1% year-on-year change in the average
exchange rate should be taken into account for the purposes of a comparison
with the prior period.

Pan African advises shareholders that its Group EPS and HEPS for the six month
period ended 31 December 2014, calculated in ZAR, are expected to be between 60
per cent and 80 per cent lower than the 15.11 cents EPS and HEPS for the period
ended 31 December 2013. Calculated in ZAR, EPS and HEPS are therefore expected
to be between 3.02 cents and 6.04 cents. EPS and HEPS denominated in GBP are
expected to be between 63 per cent and 83 per cent lower than the 0.95 pence
EPS and HEPS reported for the period ended 31 December 2013. In GBP, EPS and
HEPS are therefore expected to be between 0.16 pence and 0.35 pence.

The primary reasons for the decrease in EPS and HEPS are as follows:

Low grade mining cycle at Evander Gold Mines (Pty) Ltd ("Evander Mines")

The Group has previously communicated that Evander Mines is currently in a low
grade mining cycle. This low grade mining cycle has impacted gold production
and resulted in reduced profit margins and net profits generated by Evander
Mines, in comparison to the previous corresponding reporting period.

The low grade mining cycle at Evander Mines is expected to continue until
February 2015, where after the operation should return to higher grade mining.
The operation is implementing measures to ensure that the impact of future
lower grade mining cycles will be less pronounced. These measures include
advancing the lower section of the mine downwards from 25 level to 26 level. In
addition to increasing Evander Mines' life of mine, this development will
create additional stoping areas and therefore alleviate the mining flexibility
constraints currently being experienced.

Section 54 notice of orders at both Barberton Mines (Pty) Ltd ("Barberton
Mines") and Evander Mines

On 21 November 2014 Pan African announced to shareholders that Section 54
notice of orders were issued by the South African Department of Mineral
Resources ("DMR") to Barberton Mines and Evander Mines. These notices were
issued after deviations were identified by the DMR's Mine Health and Safety
Inspectorate in respect of certain operating procedures and administrative
processes pertaining to the mining operations' lamp room, self-rescuers and gas
monitors. The stoppages resulted in 5 days lost production at Barberton Mines
and 3 days lost production at Evander Mines.

The Group together with the operations' Safety and Health Committees have since
corrected the deviations and action plans were presented to the DMR.

Barberton Mines' Biox® plant update

As previously reported, Barberton Mines' Biox® plant was subject to oil
contamination from a breakdown at the Fairview primary crusher. This set-back
continued to impact operations during the current six month reporting period,
however the Biox® plant recoveries had improved to approximately 96% by
December 2014 (historically recoveries have been between 96% and 97%).

Power supply interruptions

During the interim reporting period ended 31 December 2014, the operations at
both Barberton Mines and Evander Mines were impacted by power supply
interruptions as a result of load shedding by the South African power utility,
Eskom. The South African electricity supply is expected to remain constrained
in the next year.

Update on the construction of the Evander Tailings Retreatment Plant ("ETRP")

The company is pleased to advise shareholders that the commissioning of the
ETRP is on schedule and on budget, with 1st gold production expected during
January 2015. The ETRP is expected to add an additional 10,000oz of gold
production per annum at Evander Mines.

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 unaudited interim results for the period ended 31 December 2014,
which is anticipated to be released on or about 27 February 2014.

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

12 January 2015

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

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 Limited Canaccord Genuity Limited

Company Secretary Nominated Adviser

Office: + 44 (0)207 796 8644 Office: [phone]

Sholto Simpson Matthew Armitt / Ross Allister

One Capital Peel Hunt LLP

JSE Sponsor Joint Broker

Office: + 27 (0)11 550 5009 Office: [phone]

Julian Gwillim Daniel Thole

Aprio Strategic Communications Bell Pottinger PR

Public & Investor Relations SA Public & Investor Relations UK

Office: [phone] Office: + 44 (0)203 772 2500

www.panafricanresources.com


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