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 UPDATE ON GROUP NET DEBT

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. In the event that the listed company does not have reasonable certainty to provide guidance in terms of a specific percentage and number, or a range thereof (with said range not exceeding 20%), the listed company may provide only a minimum percentage and number difference in the anticipated financial results, together with relevant information available at the time.

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 the reporting of results in GBP. For the six month interim reporting period ending 31 December 2015 (“current interim reporting period”), the average prevailing ZAR:GBP exchange rate will be used to translate earnings per share (“EPS”) and headline earnings per share (“HEPS”) from ZAR to GBP.  For the interim reporting period ended
31 December 2014 (“prior interim reporting period”), the average ZAR:GBP exchange rate was 17.87:1. For the 4-month period ended 31 October 2015, the ZAR had depreciated against the GBP, with an average exchange rate of 20.26:1. This year-on-year change in the average exchange rate should be taken into account for the purposes of a comparison with the prior interim reporting period.

Pan African’s next interim reporting period only concludes on 31 December 2015, and financial results for this period will be affected by market, operational and other factors in the intervening period which may impact on the Group’s final interim results. Pan African advises shareholders that its EPS and HEPS for the current interim reporting period are expected to be a minimum of 10.37 cents per share, which represents an increase of at least:

1. 85% relative to the HEPS of 5.61 cents reported for the prior interim reporting period; and

2. 91% relative to the EPS of 5.42 cents reported for the prior interim reporting period.

   Included in the prior interim reporting period earnings were hedging profits amounting to ZAR44.8m or 2.4 cents per share.

   The reasons for the increased earnings include an improved operating performance from both Barberton Mines and Evander Mines, as well as an increase in the ZAR gold price received by the operations during the first five months of the current interim reporting period.

   Using the average ZAR:GBP exchange rate of 20.26:1 that prevailed for the first four-months of the current interim reporting period, the Group’s EPS and HEPS for the current interim reporting period is expected to be a minimum of 0.51 pence per share, which represents an increase of at least:

3. 65% relative to the HEPS of 0.31 pence reported for the prior interim reporting period; and

4. 70% relative to the EPS of 0.30 pence reported for the prior interim reporting period.

   In the current reporting period, the Group’s cash flows have been robust and excellent progress has been made in redeeming debt.  At present, the Group’s net debt position is ZAR70m, relative to net debt of ZAR321m reported at 30 June 2015. The Group is able to draw on its revolving credit facility to the extent of ZAR800m, which adequately provides for the payment of the proposed dividend of ZAR210m in December 2015.

   The financial information contained in this trading statement has neither been reviewed nor audited by the Company`s auditors. Pan African anticipates that it will release its unaudited interim results for the period ending
   31 December 2015 on or about 25 February 2016.

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

   26 November 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

Cobus Loots                             Deon Louw
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                            John Prior / Paul Gillam
St James's Corporate Services Limited   Numis Securities Limited
Company Secretary                      Nominated Adviser and Joint Broker
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