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

    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 and Joint Broker        
                                                                                           
    Office: + 44 (0)207 796 8644                 Office: +44 (0)207 260 1000               

       

    Nigel Gordon                                 Sholto Simpson                            
                                                                                           
    Fasken Martineau LLP                         One Capital                               
                                                                                           
    Solicitors in the UK                         JSE Sponsor                               
                                                                                           
    Office: +44 (0)207 917 8500                  Office: + 27 (0)11 550 5009               

       

    Julian Gwillim                               Daniel Thole                              
                                                                                           
    Aprio Strategic Communications               Bell Pottinger PR                         
                                                                                           
    Public & Investor Relations SA               Public & Investor Relations UK            
                                                                                           
    Office: +27 (0)11 880 0037                    Office: + 44 (0)203 772 2500             

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

    www.panafricanresources.com