AGM Statement

Pan Andean Resources PLC 16 October 2002 PAN ANDEAN RESOURCES PLC At the company's AGM held today, the chairman John Teeling confirmed that the company is debt free, cash generating and producing the equivalent of 1,000 barrels of oil a day. Further, the company's US assets are performing well. Work carried out on the company's Hi Island 52 and 68 blocks in the Gulf of Mexico has identified a number of drill targets where estimates of potential gas reserves run to 100 billion cubic feet of which Pan Andean holds a 40 per cent. interest. The current economic gloom in Brazil makes it unlikely that the Company will obtain a sales contract for the El Dorado gas field in Boliva for the time being and while the Monteagudo field in Boliva continues to produce oil and gas, changing taxation policies are likely to have a negative impact on cashflow. The board is currently examining three investment opportunities, two of which are in Latin America. All three are at an early stage of evaluation. For further information please contact: John Teeling +353 87 653 6153 David Horgan +353 87 292 3500 Ken Rees 0117 3317 9477 or 07802 466 567 This information is provided by RNS The company news service from the London Stock Exchange

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