Exploration Update

Embargoed: 0700hrs, 26 January 2005

                           Pan African Resources Plc                           

                                (the "Company")                                

                              Exploration Update                               

  * Significant exploration results from Ghana including 8 metres @ 5.26 g/t Au
    and 7 metres @ 5.90 g/t Au.
   
  * Reverse circulation drill programme suggests a duplication of the
    mineralized zone at West Fair Bride prospect in Mozambique.
   
  * Acquisition of new projects being investigated.
   
Further to its announcement on 25 November 2004, Pan African Resources Plc is
pleased to update shareholders on the two drilling programmes it is currently
engaged in at the Company's exploration projects in Ghana (the Wa Gold Project)
and Mozambique (the Manica Gold Project):

The Company's targets in Ghana and Mozambique could each produce a resource in
excess of 1,000,000 ounces of gold.

The Wa Gold Project, Ghana.

The Company is currently undertaking a 6,000 metre reverse circulation drilling
programme at the project which is designed to further test and extend the known
gold mineralization of the Julie Prospect (current inferred resource of over
300,000 ounces of gold to only a shallow depth) both along strike and at depth
and to increase the quality of the resource estimate.

To date 1709 metres of reverse circulation drilling have been completed on the
western end of the Julie Prospect. Initial results from drill holes completed
by the end of 2004 are now available and the following table details some of
the more significant intersections.

Drill Hole   Intersection           To        Width        Grade
                     From                                       
                                                (m)     (Au g/t)
                                                                
JRC 58                  2            3            1         1.65
                                                                
                       14           15            1         1.04
                                                                
                       40           41            1         1.31
                                                                
JRC 59                  2            3            1         1.69
                                                                
                        6            7            1         3.24
                                                                
                       13           21            8         5.26
                                                                
                             Including            4         8.10
                                                                
JRC 61                 28           29            1         1.94
                                                                
                       50           53            3         1.01
                                                                
JRC 62                 57           60            3         1.08
                                                                
JRC 64                  4            6            2         6.16
                                                                
JRC 87                 43           45            2         1.70
                                                                
JRC 88                 20           27            7         5.90
                                                                
                             Including            3        10.30

All holes were drilled at an inclination of -50 degrees.

The current drill programme will also further test the potential of the highly
prospective Collette Prospect.

In addition to this drill programme the Company continues to reassess all of
the extensive work completed by Kenor SA and conduct follow up exploration
programmes both in the licence areas and regionally. A further drill programme
designed to test these other targets is planned for later in 2005.

The Wa Gold Project is located in the Upper West Region of Ghana, approximately
50 km east of the regional capital, Wa and comprises three exploration
licences, Julie, Collette and Josephine, totalling 304 square kilometres.

The project is situated in an area of Birimian greenstones and granites in an
acurate belt, which represents the junction between the north-south trending
Lawra Belt and the north-east trending Bole-Navrongo Belt.

The geological setting of the project and the range of mineralization styles
identified to date are comparable to the major Birimian hosted gold deposits in
the south of Ghana and elsewhere in West Africa.

The Manica Gold Project, Mozambique.

A 2004 drill programme on the Andrada (Dot's Luck - Fair Bride) zone at West
Fair Bride demonstrated that mineralization is hosted by a package of chlorite
schists up to 50 metres wide. Significant intersections (previously reported)
were encountered over a 660 metre strike length to depths of 120 metres below
surface.

The Company is currently funding a follow up 2000 metre reverse circulation
drill programme designed to further test the West Fair Bride area and other
drill targets (Dot's Luck, Boa Esperanca, Vinganca and Palhada) within the
exploration licence.

To date some 824 metres of reverse circulation drilling have been completed and
samples submitted for assay. At this time no assay results have been received,
however, interpretation of the drill hole logs suggests a duplication of the
current mineralization in the form of a series of stacked mineralized lenses to
the north east of the previously drilled mineralization. Results will be
reported as received.

The Manica Project is situated at Manica, Mozambique on the east end of the
Odzi-Mutare-Manica Greenstone Belt. The belt is part of the Archean Zimbabwe
Shield and has produced more than 80 tonnes of gold to date. Manica is situated
on the Beira-Harare Corridor between Mozambique and Zimbabwe, with excellent
infrastructure, rail, power and communications.

The project area comprises a large exploration licence covering the 10
kilometre Mutambarico shear zone and the 7 kilometre Andrada zone of banded
iron formations. Both zones contain several old mines and workings.

The Manica Project is managed by Pangea Exploration with whom the Company has a
"right of first refusal" for all Pangea generated African gold projects. Pangea
Exploration has an enviable reputation for discovering and developing mineral
resource projects

New Projects

The Company is currently assessing a number of opportunities to add one or more
significant gold projects to its existing portfolio following its policy to
become a major African based gold exploration and development company.
Shareholders will be updated at the appropriate time.

Roger Craddock, Managing Director, commented,

"These results confirm the attractiveness of our prospects in Ghana where we
have seen some significant intersections of high grade mineralization. Our next
step will be to process results from Mozambique and further results from Ghana
before we are able to better determine the increase in our assets but I am most
encouraged by what we have seen so far. Furthermore we are currently
investigating a number of interesting gold projects with a view to adding them
to our existing portfolio."

                                    -Ends-                                     

For further information please contact,

Roger Craddock

Managing Director, Pan African Resources Plc

Tel. [phone]

Ben Simons

Hansard Communications

Tel. [phone]