Pan African Resources PLC
(Incorporated and registered in England and Wales under the Companies Act 1985 with registered
number 3937466 on 25 February 2000)
Share code on AIM: PAF
Share code on JSE: PAN
ISIN: GB0004300496
ADR ticker code: PAFRY
(“Pan African” or the “Company” or the “Group”)


PAN AFRICAN CLOSES TRANSACTION TO ACQUIRE MINTAILS SA ASSETS

Pan African is pleased to inform shareholders that the Company has closed the transaction to acquire
the total share capital and claims of Mogale Gold Proprietary Limited (Mogale Gold) and Mintails SA
Soweto Cluster Proprietary Limited (MSC), (collectively, the Sale Transaction). Both Mogale Gold and
MSC are 100% owned by Mintails Mining SA Proprietary Limited (Mintails SA), which was placed in
provisional liquidation during 2018.

The Sale Transaction aggregate cash consideration of ZAR50.0 million (approximately US$2.8 million
at an exchange rate of US$/ZAR:18.00) was settled on closing.

The details of the Sale Transaction, Mineral Resources potential and strategic rationale for the
acquisition were outlined in the Company’s announcement of 6 November 2020.

Pan African completed a definitive feasibility study (DFS) on the Mogale Gold tailings storage facilities
(TSFs) (the Project) and announced the results of this study on 30 June 2022 (the Study). The Study
demonstrated compelling economics and the potential to significantly increase Group gold production
(an increase in excess of 25% compared to current Group annual production) over an initial life of
mine (LOM) of 13 years. Re-mining of the MSC TSFs has the potential to add further production upside
and extend the LOM to 21 years.

Envisaged Project financing

The Group has agreed a credit approved and underwritten term sheet with FirstRand Bank Limited,
acting through its Rand Merchant Bank division, for US$80 million of senior debt for part funding of
the Project’s construction. The Group is in the process of evaluating a number of additional funding
options for the balance of the capital budget requirement.

Way forward and envisaged Project execution timeline

Following the completion of the DFS, Pan African commenced detailed engineering optimisation
studies and the impact assessments required for the environmental authorisation process,
stakeholder engagements and permitting. Commencement of construction is currently anticipated in
2023 with an estimated Project timeline as per below.

Activity                                 Estimated date
Detailed engineering optimisation        September 2022 – March 2023
Funding package finalised                March 2023
Environmental approvals                  March 2023
Construction commences                   April 2023
Commissioning                            July 2024 – December 2024

Cobus Loots, CEO of Pan African, commented: “Pan African is pleased to have finally closed the Sale
Transaction. Our studies have demonstrated robust operational and financial economics, with the
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Project having the potential to further increase our high-margin, long-life production from tailings
retreatment operations.

The area where Mintails is situated presents a number of environmental and social challenges. We will
require the assistance of the government and all the other legitimate stakeholders to successfully
address those challenges, remediate the site and develop a world-class project. We look forward to
continue to work with those stakeholders in this regard.”

Rosebank

6 October 2022

For further information on Pan African, please visit the Company's website at

www.panafricanresources.com

 Corporate information

 Corporate Office                                    Registered Office
 The Firs Office Building                            2nd Floor
 2nd Floor, Office 204                               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)20 7796 8644
 info@paf.co.za
 Chief Executive Officer                             Financial Director

 Cobus Loots                                         Deon Louw

 Office: + 27 (0)11 243 2900                         Office: + 27 (0)11 243 2900

 Head: Investor Relations                            Website: www.panafricanresources.com
 Hethen Hira
 Tel: + 27 (0)11 243 2900
 E-mail: hhira@paf.co.za

 Company Secretary                                   Nominated Adviser and Joint Broker

 Phil Dexter/Jane Kirton                             Ross Allister/David McKeown

 St James's Corporate Services Limited               Peel Hunt LLP

 Office: + 44 (0)20 7796 8644                        Office: +44 (0)20 7418 8900

 JSE Sponsor                                         Joint Broker

 Ciska Kloppers                                      Thomas Rider/Nick Macann

 Questco Corporate Advisory Proprietary Limited      BMO Capital Markets Limited


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Office: + 27 (0)11 011 9200   Office: +44 (0)20 7236 1010

                              Joint Broker

                              Matthew Armitt/Jennifer Lee

                              Joh. Berenberg, Gossler & Co KG (Berenberg)

                              Office: +44 (0)20 3207 7800




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