Update re the Acquisition of Evander Gold Mines...

About this update from Pan African Resources Plc

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 "Company") UPDATE REGARDING THE ACQUISITION OF EVANDER GOLD MINES LIMITED ("EVANDER") AND FURTHER CAUTIONARY ANNOUNCEMENT HIGHLIGHTS: * CIRCULAR POSTED TO SHAREHOLDERS AND AVAILABLE ON PAN AFRICAN'S WEBSITE TODAY * PRO FORMA FINANCIAL EFFECTS PERTAINING TO THE ACQUISITION OF EVANDER FINALISED * RIGHTS OFFER OF 25.5 NEW SHARES FOR EVERY 100 SHARES HELD TO RAISE R700 MILLION * EXTENSION OF FULFILMENT DATE OR RIGHT TO WAIVE CERTAIN CONDITIONS PRECEDENT * NEW DEBT FACILITY EXPECTED TO BE AVAILABLE BY CLOSING DATE Commenting on the successful developments on the Evander acquisition, Jan Nelson, CEO of Pan African Resources said: "Evander continues to prove its worth as a quality asset and game changer for Pan African. The pro forma financial effects highlight the impressive fundamentals of the project and the significant benefit the project will contribute improving Pan African's current earnings per share by 163% to 5.32 pence per share after the rights offer from 2.02 per share as reported for Pan African's financial year ended 30 June 2012. Production improvements at Evander were also highlighted in Harmony's quarterly results reported today. The Evander operations reported an 18% increase in gold production and a 14% improvement in cash operating costs at R259 613/kg, which resulted in an operating profit of R141 million. Gold production for the quarter at Evander increased to 817kg, due to a net increase of 8% in tonnes milled at 159 000t as well as an increased grade to 5.14g/t. The Rights Offer is expected to open to all entitled shareholders in early December and will run until mid-January 2013, pending shareholder and regulatory approval. We are in a strong cash position of some R500 million, including a R200 million contribution from Evander since 1 April 2012 and a further available R270 million as documented at 31 October 2012. We are excited at the prospect of the imminent conclusion of this deal and are of the opinion that the Company has secured a combination of sufficient funding to settle the purchase price in full. The Board would like to thank shareholders for their ongoing support and we look forward to a successful outcome at...

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