🕐07.05.13 - 13:54 Uhr

PAN AFRICAN RESOURCES ANNOUNCEMENT: GROUP OPERATIONAL UPDATE



Pan African Group operational update
7th May 2013
Following the recent successful acquisition of a 100% interest in Evander Gold Mines Limited ("Evander"), Pan African is pleased to issue an update in respect of its group operations.
Barberton Gold Mine Operations ("BGMO") and Evander
Production highlights for the quarter ended 31 March 2013 at BGMO and Evander are as follows:
Evander BGMO
Description Unit 1st Quarter FY 2013 2nd Quarter FY 2013 3rd Quarter FY 2013** 1st Quarter FY 2013 2nd Quarter FY 2013 3rd Quarter FY 2013
Tonnes Milled (tonnes 000) 159 141 143 80 76 76
Gold Sold (oz) 24,853 20,737 25,592 23,200 21,726 25,881
** The purchase of Evander was completed on 28 February 2013.

Gold sold attributable to the Pan African group from Evander was 10,325oz for March 2013.
Both BGMO and Evander achieved good results in this last quarter in terms of recovered grades and gold produced and sold.

The overall average recovered grade for the last quarter of the 2013 financial year is expected to be 9.7 g/t for BGMO and 4.6 g/t for Evander.

The underground recovered grade, excluding surface sources, for the upcoming quarter is expected to be 10.7 g/t for BGMO and 6.5 g/t for Evander.


Evander
A key short to medium-term objective at Evander is to identify, evaluate and advance organic growth projects.

The mine has begun to equip the No 7 Shaft area to retrieve additional ounces from previously mined areas.

Further optimisation opportunities have also been identified in low grade surface rock dumps.


Evanders results will be consolidated into the Pan African group results with effect from 1 March 2013.


Barberton Tailings Retreatment Project ("BTRP")
The BTRP remains on target and within budget to commence production in the first quarter of FY 2014.


The project is expected to retreat 1,200,000 tonnes of gold tailings per annum, with a total life of project production of 160,000oz of gold at an average recovered grade of 0.54 g/t.

The BTRP is anticipated to increase the annual production profile at BGMO by approximately 20,000oz per annum.
The necessary Eskom supply agreements have been concluded and the two overhead lines for the required 4,000 MVA have been installed.

The environmental impact assessment for the Tailings Storage Facility ("TSF") has been approved.

In line with the planned schedule, Stefanutti Stocks has begun construction of the TSF, and phase 1 is anticipated to be completed by July 2013.

The project has invoiced ZAR 194.2 million since the start of construction in April 2012 and has a projected project value of ZAR 305.8 million.


Phoenix Platinum Mining ("Phoenix")
Phoenix produced 1,463oz 6E PGE for the quarter under review.

Production at the plant remained constrained due to the supply of oxide tailings by ferrochrome producer International Ferro Metals Limited, which negatively affects the flotation recovery.
The Company continues to explore options to ameliorate the impact of this oxide feed material.

These options include: .

increasing feed tonnages into the plant; .

additional test work to be carried out on the chemical reagent suite; and .

expediting deliverables for the new TSF project.
Ron Holding, Joint Interim CEO of Pan African commented: "The acquisition of Evander has propelled Pan African into a new phase of growth.

Our current emphasis is the successful integration of the asset into the group.

This integration is progressing well and is in line with our expectations.

We will continue our efforts to create and maintain a safe working environment, achieve our stated production targets and control costs at all of our operations."
ENDS
Contacts
Interim CEO Ron Holding 011 243 2900
Logo_sharper02 media & investor relations
louise brugman managing director Tel: +27 (0) 11 787 3015 Cell: +27 (0) 83 504 1186 skype louise.brugman Email: Web: www.vestor.co.za
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