Director Shareholding

Pan Andean Resources PLC 26 September 2001 Pan Andean Resources announces that at a board meeting held on 25 September2001, the following options to acquire ordinary 1p shares were granted to directors of the Company: No. of Exercise Options Price John Teeling 400,000 8.5p James Finn 400,000 8.5p David Horgan 400,000 8.5p Mauricio Gonzalez 400,000 8.5p The options were granted for nil consideration and can be exercised at any time up to 25 September 2008.