REG-Pan African Resources Plc: Further update re Covid-19 National Lockdown

Pan African ResourcesAnnouncement

14/04/2020 09:05

Pan African Resources PLC

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

Share code on AIM: PAF

Share code on JSE: PAN

ISIN: GB0004300496

("Pan African Resources" or "the Company" or "the Group")

FURTHER UPDATE REGARDING THE COVID-19 NATIONAL LOCKDOWN AND STATUS OF GROUP
OPERATIONS

Shareholders are referred to the Company's announcements of 24 and 30 March
2020, following the regulations announced by President Cyril Ramaphosa on
Monday 23 March 2020, and enacted in terms of the South African Disaster
Management Act ("the Regulations"), which required a 21-day national lockdown,
effective midnight 26 March 2020 to midnight 16 April 2020 (“the National
Lockdown”), in an effort to contain the spread of the COVID-19 (coronavirus)
pandemic.

On 9 April 2020, following 14 days of the initial lockdown period, President
Ramaphosa announced that the country’s National Coronavirus Command Council
has decided to extend the lockdown period by a further two weeks beyond the
initial 21-days, resulting in the existing lockdown measures remaining in
force until 30 April 2020.

Pan African Resources remains committed to all government efforts to contain
the spread of COVID-19. The Group will continue with preventative measures for
the spread and detection of COVID-19 at all its operations, while continuing
to undertake essential services during the National Lockdown, as detailed in
the Group’s announcement of 30 March 2020.

As part of these essential services, the Group has obtained authorisation from
the South African Department of Mineral Resources and Energy to conduct
surface re-mining and processing activities on a reduced scale, subject to
compliance with and adherence to all relevant Regulations and applicable
legislation. This includes the Group’s Elikhulu Tailings Retreatment Plant
and at its Barberton Tailings Retreatment Plant (collectively, the "Group
surface operations"), and limited underground mining operations at Barberton
Mines.

The Group surface operations are currently operating at approximately 70 per
cent of normal production capacity, but with a much reduced workforce.
Operating with such a reduced workforce is possible, for a limited time, as a
result of the highly automated nature of the surface operations. Barberton
Mines is currently also able to produce the required minimum feed for its BIOX
® processing plant, thus ensuring the continued integrity of this system. Of
the Group's total staff and contractor complement, only 26 per cent (excluding
security staff) are involved in rendering essential services at these
operations. Updated guidance for the 2020 financial year will be communicated
to shareholders after the National Lockdown has terminated, and once the Group
is in a position to quantify the extent and duration of the operational
disruptions during this time.

As previously communicated in the Company’s announcement dated 24 March
2020, the Group’s liquidity position remains robust. Credit approval from
Rand Merchant Bank has been obtained to defer the last three tranches of the
existing gold loan’s redemption, constituting 5,000 ounces (equivalent to
U$7.8m), to the first quarter of the 2021 financial year. The Group’s
banking consortium has also confirmed its support for the Company should
further liquidity be required.

The COVID-19 pandemic has had a severe adverse economic and social impact on
stakeholders involved in the Group's operations and throughout the country.
The Group has commenced with support programmes, in addition to its existing
community initiatives, to assist stakeholders to alleviate hardships in the
areas around its operations. These support programmes include food hampers and
hygiene products for employees and specific communities. As a further
initiative, potable water will be distributed by the mine’s water tankers to
affected communities in Barberton, in collaboration with the local
municipality, for the duration of the National Lockdown.

Cobus Loots, CEO of Pan African Resources, commented as follows: "We are fully
supportive of the actions announced by President Cyril Ramaphosa to reduce the
impact of the COVID-19 pandemic, while at the same time implementing support
measures to assist stakeholders around our operations. The health and
well-being of our employees and communities remains our number one priority,
and the measures that we have implemented enable essential services and
operations to be maintained.”

Pan African Resources will continue to provide shareholders with regular
updates regarding developments at Group operations during this time.

Rosebank

14 April 2020

For further information on Pan African Resources, please visit the Company's
website at

www.panafricanresources.com

 Contact information                                                                                                                                                                                                                                                                                  
 Corporate Office The Firs Office Building 2nd Floor, Office 204 Cnr. Cradock and Biermann Avenues Rosebank, Johannesburg South Africa Office: + 27 (0)11 243 2900 info@paf.co.za  Registered Office Suite 31 Second Floor 107 Cheapside London EC2V 6DN United Kingdom Office: + 44 (0)20 7796 8644  
 Cobus Loots Pan African Resources PLC Chief Executive Officer Office: + 27 (0)11 243 2900                                                                                         Deon Louw Pan African Resources PLC Financial Director Office: + 27 (0)11 243 2900                                 
 Phil Dexter/Jane Kirton St James's Corporate Services Limited Company Secretary Office: + 44 (0)20 7796 8644                                                                      John Prior Numis Securities Limited Nominated Adviser and Joint Broker Office: +44 (0)20 7260 1000                 
 Ciska Kloppers Questco Corporate Advisory Proprietary Limited JSE Sponsor Office: + 27 (0)11 011 9200                                                                             Ross Allister/David McKeown Peel Hunt LLP Joint Broker Office: +44 (0)20 7418 8900                                 
 Investor Relations Hethen Hira Tel: + 27 11 243 2900 E-mail: hhira@paf.co.za                                                                                                      Thomas Rider/Neil Elliot BMO Capital Markets Limited Joint Broker Office: +44 (0)20 7236 1010                      
 Website: www.panafricanresources.com                                                                                                                                                                                                                                                                 



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