Director Shareholding

Pan Andean Resources PLC
26 September 2001

Pan Andean Resources announces that at a board meeting held on 25
September2001, the following options to acquire ordinary 1p shares were
granted to directors of the Company:

                                        No. of              Exercise
                                        Options              Price

John Teeling                            400,000               8.5p
James Finn                              400,000               8.5p
David Horgan                            400,000               8.5p
Mauricio Gonzalez                       400,000               8.5p


The options were granted for nil consideration and can be exercised at any
time up to 25 September 2008.