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 Resources" or "group" or "company")               

          UPDATE ON EVANDER GOLD MINING PROPRIETARY LIMITED ("EVANDER MINES")      
    REFURBISHMENT AND COST OPTIMISATION PROGRAMME AND PROGRESS ON ELIKHULU TAILING 
                       RETREATMENT PLANT ("ELIKHULU") FINANCING                    

    Update on the Evander shaft refurbishment programme and cost optimisation
    programme

    Shareholders are referred to the announcement of 20 February 2017, in which the
    company communicated the suspension of the Evander Mines underground mining
    operations to allow for critical refurbishment and maintenance on no. 7 and no.
    8 shaft infrastructure. The company is pleased to report that these repairs are
    progressing on schedule and are still expected to be completed within the 55
    day period previously communicated.  During the suspension of the underground
    mining operations the processing and tailings retreatment plants have utilised
    available plant capacity to continue processing tailings and additional surface
    sources.

    In conjunction with the refurbishment, Evander Mines management has implemented
    a number of initiatives to reduce the Evander Mines underground operation's
    fixed cost base, once mining recommences.

    Following a productivity and human capital assessment, initiated some time ago,
    Evander Mines has concluded a retrenchment agreement (the "agreement") with the
    National Union of Mineworkers on 10 March 2017, with the facilitation of the
    South African Commission for Conciliation, Mediation and Arbitration.  In terms
    of this agreement, approximately 30 percent of Evander Mines employees will be
    retrenched at an estimated cost of approximately R54 million (US$4.1 million).
     These personnel were designated as redundant for Evander Mines to meet
    production targets. Pan African Resources wishes to express its gratitude to
    the parties involved for the responsible manner in which the retrenchment
    agreement was concluded.

    In order to minimise the number of job losses, Evander Mines will seek to
    re-engage a number of retrenched employees when site activities for Elikhulu
    commences.

    Progress on Elikhulu financing

    On 9 February 2017, the company confirmed the approval by shareholders to
    disapply statutory pre-emption rights to allow the company to carry out a
    general issue of ordinary shares for cash.  Proceeds from any general issue may
    or maybe not be used for the construction of Elikhulu. The company can confirm
    that it has been seeking out investor support for raising equity to fund the
    remaining portion of capital required for the Elikhulu construction.

    The company is pleased with the interest it has had from investors and has
    built a book of demand that is in excess of the 291,480,983 shares it was given
    authority to issue at its shareholder meeting. In terms of the JSE Limited
    Listings Requirements, a company cannot issue shares at a price that is in
    excess of a 10% discount to the 30 day volume weighted average price, which is
    currently at a premium to the current share price in South African rand terms.
    Given current market conditions and market volatility, the company has elected
    not to complete an equity issuance at this time. The company will however
    continue to progress the Elikhulu development from cash and banking facilities,
    until the final Elikhulu funding package is secured.

    Johannesburg

    10 March 2017

    Contact information                                                        
                                                                               
                                                                               
    Corporate Office                      Registered Office                    
    The Firs Office Building              Suite 31, Second Floor               
    1st Floor, Office 101                 107 Cheapside                        
    Cnr. Cradock and Biermann Avenues     London                               
    Rosebank, Johannesburg                EC2V 6DN                             
    South Africa                          United Kingdom                       
    Office:   + 27 (0) 11 243 2900        Office:   + 44 (0) 207 796 8644      
    Facsimile: + 27 (0) 11 880 1240       Facsimile: + 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             
    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) 20 7260 1000         
                                                                               
                                                                               
    Sholto Simpson                        Matthew Armitt / Ross Allister       
    One Capital                           Peel Hunt LLP                        
    JSE Sponsor                           Joint Broker                         
    Office: + 27 (0) 11 550 5009          Office: +44 (0) 207 418 8900         
                                                                               
                                                                               
    Julian Gwillim                        Jeffrey Couch/Neil Haycock/Thomas    
    Aprio Strategic Communications        Rider                                
    Public & Investor Relations SA        BMO Capital Markets Limited          
    Office: +27 (0)11 880                 Joint Broker                         
    0037                                  Office: +44 (0) 207 236 1010         
                                                                               
                                                                               
    Bobby Morse/Chris Judd                                                     
    Buchanan Communications                                                    
    Public & Investor Relations UK                                             
    Office: +44 (0) 207 466 5000                                               

    http://www.panafricanresources.com/