REG-Pan African Resources PLC: Update on Phoenix and IFMSA Business Rescue <Origin Href="QuoteRef">PAFR.L</Origin>

Pan African ResourcesAnnouncement

19/07/2016 11:00

Pan African Resources PLC
(Incorporated and registered in England and Wales under Companies Act 1985
with registered number 3937466 on 25 February 2000)
AIM Code: PAF
JSE Code: PAN
ISIN: GB0004300496
(“Pan African” or the “Company”)

UPDATE ON PHOENIX PLATINUM AND IFMSA BUSINESS RESCUE PROCEEDINGS

Pan African shareholders are referred to the announcement published by the
Company on 27 August 2015, informing shareholders that International Ferro
Metals Limited announced that as a result of deteriorating business
conditions, its South African subsidiary, International Ferro Metals (SA) Pty
Limited (“IFMSA”), had entered into Business Rescue.  Business Rescue is
a statutory means of enabling a financially distressed company to continue
business, under the supervision of a Business Rescue Practitioner, protected
from its creditors.

Pan African’s wholly-owned subsidiary, Phoenix Platinum Mining (Proprietary)
Limited (“Phoenix”), is situated on the IFMSA property, and a portion of
the feedstock for the Phoenix operation was obtained from IFMSA’s processing
activities.  Phoenix also sources electricity, water and certain other
services from IFMSA.  The relationship between Phoenix and IFMSA was governed
by a tailings treatment agreement (“TTA”) entered into by Pan African,
Phoenix and IFMSA.

Although Phoenix was not solely reliant on material from IFMSA, the Business
Rescue proceedings created a number of uncertainties and operating
difficulties for Phoenix.

In terms of the Business Rescue proceedings, Samancor Chrome Limited
(“Samancor”) was selected as the successful bidder to acquire the business
and assets of IFMSA. Samancor subsequently nominated its subsidiary TC
Smelters Proprietary Limited (“TC Smelters”) as the acquirer of the IFMSA
business and assets.

Pan African is now pleased to announce that it has reached an agreement (the
“Agreement”) with TC Smelters.  The Agreement allows, inter alia, for the
assignment of the TTA to TC Smelters.  The Agreement further clarifies a
number of the provisions contained in the TTA, and will become effective at
the same time as the IFMSA and TC Smelters sale of business agreement.

Even though the Agreement does not guarantee current arising feedstock to
Phoenix (this will be dependent on the manner in which TC Smelters utilises
the IFMSA assets), it places Phoenix in a position where it will continue
operations under similar conditions as those that existed prior to the
Business Rescue proceedings. It also ensures that Phoenix’s operations and
interests are safeguarded.  As previously stated, Phoenix also has
alternative sources of feedstock, which it processed during the Business
Rescue proceedings.

For further information on Pan African, please visit the Company's website at
www.panafricanresources.com

19 July 2016

CONTACT INFORMATION

Corporate Office
The Firs Office Building
1st Floor, Office 101
Cnr. Cradock and Biermann Avenues
Rosebank, Johannesburg
South Africa

Office: +27 (0) 11 243 2900
Facsimile: +27 (0) 11 880 1240

Registered Office
Suite 31
Second Floor
107 Cheapside
London
EC2V 6DN
United Kingdom

Office: +44 (0) 20 7796 8644
Facsimile: +44 (0) 20 7796 8645

Cobus
Loots                                                         
Deon Louw
Pan African Resources
PLC                                    Pan
African Resources PLC
Chief Executive Officer                                    
      Financial Director
Office: +27 (0)11 243
2900                                     
Office: +27 (0) 11 243 2900

Phil
Dexter                                                           
John Prior / Paul Gillam / James Black
St James's Corporate Services Limited                    Numis
Securities Limited
Company
Secretary                                               
Nominated Adviser & Joint Broker
Office: +44 (0)20 7796
8644                                   
Office: +44 (0)20 7260 1000

Sholto
Simpson                                                    
Matthew Armitt / Ross Allister
One
Capital                                                          
Peel Hunt LLP
JSE Sponsor                                            
            Joint Broker
Office: +27 (0)11 550
5009                                     
Office: +44 (0)020 7418 8900

Julian
Gwillim                                                        
Daniel Thöle/Aarti Iyer
Aprio Strategic
Communications                              Bell
Pottinger PR     
Public & Investor Relations SA                
               Public & Investor Relations UK
Office: +27 (0)11 880
0037                                     
Office: +44 (0)20 3772 2500

Jeffrey Couch / Neil Haycock / Thomas Rider
BMO Capital Markets Limited
Joint Broker
Office: +44 (0)20 7236 1010

www.panafricanresources.com



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