Statement re Clarification of Rights Offer

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 ISIN for Nil Paid Rights: GB00B85FJG40 (JSE Code: PANN) ISIN for Fully Paid Rights: GB00B8RCBP62 ("Pan African" or "Company") CLARIFICATION ANNOUNCEMENT WITH RESPECT TO A STATEMENT CONTAINED IN THE DOCUMENT PERTAINING TO THE PAN AFRICAN RIGHTS OFFER ("RIGHTS OFFER") Pan African shareholders ("Shareholders") are referred to the prospectus (as required by the U.K. Prospectus Rules) and pre-listing statement (as envisaged in the JSE Limited Listings Requirements) of the Company prepared in respect of the Company's Rights Offer, which was published on 3 December 2012 (the " Document"). Shareholders are advised that the third sentence of section 2 of Part 1, entitled "Rationale for the Evander Acquisition", included on page 37 of the Document, should read as follows: "Upon completion of the Transaction, the Group will increase its reserves from 1.16 Moz (11.34 Mt @ 3.18 g/t) to 8.82 Moz (39.55 Mt @ 6.94 g/t) and its resources from 2.95 Moz (17.15 Mt @ 5.35 g/t) to 31.66 Moz (126.7 Mt @ 7.77 g/ t), excluding, in both instances, all surface sources at Evander." Similarly, Shareholders are advised that the data contained in the table included under section 7 of Part 2, entitled "Summary of the Enlarged Group's gold resources and reserves statements", included on page 46 of the Document excludes all surface sources at Evander. 10 December 2012 Transaction Sponsor to the Rights Offer One Capital Independent Sponsor to the Rights Offer Nedbank Capital Enquiries South Africa UK Pan African Resources Canaccord Genuity Limited - Nomad and Joint Broker Jan Nelson, Chief Executive Officer Rob Collins / Peter Stewart / Sebastian Jones / Joe Weaving +27 (0) 11 243 2900 +44 (0) 20 7523 8350 One Capital finnCap Limited - Joint Broker Sholto Simpson / Megan Young Elizabeth Johnson / Joanna Weaving +27 (0) 11 550 5000 +44 (0) 20 7220 0500 Vestor Investor Relations St James's Corporate Services Limited Louise Brugman Phil Dexter +27 (0) 11 787 3015 +44 (0) 20 7499 3916 +27 83 504 1186 Gable Communications Justine James +44 (0) 20 7193 7463 / +44 (0) 7525 324431 For further information on Pan African, please visit the website at www.panafricanresources.com Canaccord Genuity Limited, which is regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Pan African Resources PLC, as nominated adviser and broker to Pan African Resources PLC, and for no one else in connection with the matters referred to in this announcement. Canaccord Genuity Limited will not be responsible to anyone other than Pan African Resources PLC for providing the protections afforded to customers of Canaccord Genuity Limited or for providing advice in relation to the matters referred to herein.