Response to IFM announcement re business rescue

Pan African Resources PLC
("Pan African")
(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

27 August 2015

RESPONSE TO INTERNATIONAL FERRO METALS LIMITED ANNOUNCEMENT REGARDING BUSINESS RESCUE

Pan African shareholders are referred to the regulatory announcement published on 26 August 2015 by International Ferro Metals Limited (“IFL”), whereby IFL announced that as a result of deteriorating business conditions, its South African subsidiary, International Ferro Metals (SA) Pty Limited (“IFMSA”), has 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 (currently approximately 20%) is obtained from tailings arising from IFMSA’s current processing activities. Phoenix is not solely reliant on material from IFMSA, and has alternative sources of feedstock.

Phoenix also sources electricity, water and certain other services from IFMSA.

At this stage, Phoenix is not in a position to fully assess the impact of the Business Rescue proceedings referred to above on Phoenix’s operations. Phoenix and Pan African will work closely with the IFMSA Business Rescue Practitioner to ensure that the operations and interests of Phoenix are safeguarded, which includes the services currently provided by IFMSA.  All stakeholders will be kept informed as these discussions progress.

For the half year ended December 2014, Phoenix contributed approximately 7% to Pan African’s profit after tax.

For further information on Pan African Resources plc, please visit the Company’s website at http://www.panafricanresources.com/

Contact Details

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
Facsmile: + 27 (0) 11 880 1240

Registered Office
Suite 31
Second Floor
107 Cheapside
London
EC2V 6DN
United Kingdom
Office:   + 44 (0) 207 796 8644
Facsmile: + 44 (0) 207 796 8645

Matthew Armitt / Ross Allister
Peel Hunt LLP
Joint Broker
Office: +44 (0)020 7418 8900

www.panafricanresources.com