Share Placing for Funds to Finance Drilling

Pan Andean Resources PLC
5 November 1999

Pan Andean announces that it is currently in discussions with potential
investors with a view to arranging a firm placing of ordinary shares to raise
funding to enable Pan Andean to participate in the consortium which will
finance the drilling of the next well site, details of which were contained in
the preliminary announcement on 29 September 1999.  It is expected that shares
will be placed at 22p, the market price at the time when initial indications
of interest were received by the Company.  Existing shareholders will be given
the opportunity to participate in the fundraising via an open offer, details
of which will be sent to shareholders in due course.