Statement re Barberton Mines Resource Upgrade

31 May 2011

 

                           Pan African Resources PLC                           

                ('Pan African' or the 'Company' or the 'Group')                

Incorporated and registered in England and Wales under Companies Act 1985 with 
              the registered number: 3937466 on 25 February 2000               
                                                                               

                            Share Code on AIM: PAF                             
                            Share code on JSE: PAN                             
                              ISIN: GB0004300496                               

                                                                               

           Significant Reserve Upgrade at Barberton Mines (Pty) Ltd            

 

Pan African Resources PLC ('Pan African'), the African focused precious metals
producer, announces a significant increase in the resource and reserve for
Barberton Mines (Pty) Ltd ('Barberton Mines').

 

Highlights:
 

Barberton Mines - Mineral Resource and Reserve upgrade:


- Total mineral resource increased by 7% to 2,55Moz of gold (9,47Mt at 8,35g/t in
  situ)

- Measured and Indicated ('M&I') mineral resource increased by 4% to 1.9Moz of
  gold (6,96Mt at 8,48g/t in situ)

- Significant increase in total resource grade by 33% to 8,35g/t in situ (2010:
  6,29g/t in situ)

- Mineral reserve increased by 51% to 1Moz (3,83Mt at 8,12g/t in situ)

 

Jan Nelson, Chief Executive Officer of Pan African, commented: "These results
confirm that the Barberton ore-body is able to sustain current production rates
well into the future. The increase in the resource grade clearly demonstrates
that there are still significant high grade zones of mineralisation within the
mine boundary. In addition, the Company's ability to drive costs down has
allowed us to convert a significant portion of the resource to reserve. Our
attention is now focused on our prospecting permit where we have identified a
geophysical anomaly close to surface that has a geographic footprint equal in
size to the mining footprint at our Fairview Mine that has produced 4Moz."


 

Barberton Mines - Mineral Resource upgrade

 

Over the past three years an integrated Mineral Resource Management ('MRM')
programme has been implemented at Barberton Mines. The objectives of this
programme are to:

(a) increase the total resource;

(b) increase the reserve base to improve Life of Mine and mining flexibility; and

(c) grow the production profile.

 
This programme represents over 37,915m of drilling, 5494m of development and a
capital investment of approximately GBP6 million over three years.
 

All three objectives have now been achieved and are supported year-on-year by
the total resource increase by 7% to 2,55Moz (9,47Mt at 8,35g/t in situ), and
the M&I resource increased by 4% to 1,9Moz (6,96Mt at 8,47g/t in situ). The
reserve has been increased by 51% to 1Moz (3,83Mt @ 8,10g/t in situ).
 

Significant geophysical anomalies have been identified on the prospecting area
and southern extent of the Fairview Mining Authorization boundary. The combined
geographical extent of some of these anomalies are larger than the mining
footprint at the Fairview Mine where over 4Moz of gold has been mined to date.
The focus will now shift to drilling these targets and bringing them to
account.

 

Barberton Mines Mineral Inventory - 30 March 2011                                   
                                                                                    
                                                                                    
                                                                                    
Barbeton                                                                            
  Mines                                                                             
 Mineral  RESOURCE                              RESERVE                             
Inventory CATEGORY   MASS  GRADE CONTAINED GOLD CATEGORY  MASS  GRADE CONTAINED GOLD
  - 30                                                                              
  March                                                                             
  2011               (kt)  (g/t)  (kg)   (koz)            (kt)  (g/t)  (kg)   (koz) 
                                                                                    
                                                                                    
                                                                                    
          Measured   2 750  8,45  23 300    750 Proved    1 220  7,27   8 900    290
                                                                                    
          Indicated  4 210  8,49  35 700  1 150 Probable  2 610  8,48  22 200    710
                                                                                    
          Inferred   2 510  8,01  20 100    650                                     
                                                                                    
              Total  9 470  8,35  79 100  2 550                                     
                                                                                    
 Total Measured and                                                                 
  Indicated (Proved                                                                 
      and Probable)  6 960  8,48  59 000  1 900    Total  3 830  8,12  31 100  1 000
                                                                                    

 

- Please note differences may occur due to rounding.

- The table above is only with respect to Barberton Mines. 
  The Company is currently updating the Groups resource and this will be
  announced in due course.

- Frans Chadwick, a member of the South African Council for Professional and
  Technical Surveyors (PLATO) and an employee of Barberton Mines, has signed off
  on the above Mineral Inventory for Barberton Mines.

- The above resource is compliant with the South African Mineral Resources Code
  ('SAMREC').
 

Enquiries:
 

South Africa                            UK                                   
                                                                             
                                                                           
                                                                             
Pan African                             RBC Capital Markets                  
                                                                             
Jan Nelson, Chief Executive Officer     Martin Eales                         
                                                                             
[phone]                     [phone]                 
                                                                             
                                                                             
                                                                             
Pan African                             St James's Corporate Services Limited
                                                                             
Nicole Spruijt, Public Relations        Phil Dexter                          
                                                                             
[phone]                     [phone]                 
                                                                             
                                                                             
                                                                             
                                                                             
                                                                             
MacquarieFirst South Advisers (Pty) Ltd Gable Communications                 
                                                                             
Natalie Di-Sante/Melanie de Nysschen    Justine James                        
                                                                             
[phone]                     [phone]