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Operational update for the six months ended 31 December 2020
Pan African Resources PLC

(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

ADR ticker code: PAFRY

(Pan African or the Company or the Group)
OPERATIONAL UPDATE FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
Pan African is pleased to provide shareholders with an operational update for the six months ended

31 December 2020 (Current Reporting Period).
Key Operational Results for the Current Reporting Period
    •   Industry leading safety performance maintained with improvements in reportable rates

        across all Group operations

    •   Group gold production increased by 5.9% to 98,386oz (2019: 92,941oz)

    •   Gold production from Barberton Mines for the period was 52,354oz, while Elikhulu and

        Evander Mines produced 26,863oz and 19,169oz respectively

    •   Operations have continued to implement and maintain stringent policies and protocols to

        mitigate the effects of the ongoing COVID-19 pandemic on employees and production

    •   ESG projects, including the 10MW renewable energy solar photovoltaic plant at Evander

        Mines and large-scale agriculture projects in Barberton Mines, are on track for

        commissioning in Q3 2021

    •   Group net debt decreased by 47.3% to US$65.2 million (2019: US$123.7million)

    •   Pan African is on track to deliver its full year production guidance of approximately

        190,000oz
Pan African CEO Cobus Loots commented:
“Pan African’s financial results and increase in gold production for the first six months of the year

demonstrates a commendable operational and safety performance, amidst the challenges of the

ongoing COVID-19 pandemic.
Barberton Mine’s gold production of 52,354oz for the Current Reporting Period deserves recognition

and demonstrates the excellent progress that this flagship asset and its operating team have made

in reserve development and infrastructure optimisation.
Group net debt decreased by 47.3% to US$65.2 million relative to the six months ended 31 December

2019 (Corresponding Reporting Period), notwithstanding a record final Rand dividend distribution

for the June 2020 financial year, paid in December 2020.
We expect operations at the Evander Mines’ 8 Shaft pillar to deliver a much-improved performance

during the remainder of the 2021 financial year, as the pillar mining activities gather momentum.
We have now commenced with early preparation work and limited capital expenditure for the

execution phase of the Egoli project. We expect to finalise the debt funding package within the first

quarter of the 2021 calendar year. This organic growth project will contribute considerably to our

future gold production.

The construction of the solar photovoltaic plant at Evander Mines will commence during the first

quarter of the 2021 calendar year, with first power expected to be generated during the third quarter

of the 2021 calendar year. This plant will be one of the first of its kind in the South African mining

sector and demonstrates our commitment to ESG initiatives. In conjunction with several other

projects, it also underpins the Group’s profitability and sustainability.
The Group remains on track to produce 190,000 oz of gold for the financial year ending 30 June 2021,

and we are committed to continue creating value for our stakeholders by positioning Pan African as

a sustainable, safe, high-margin and long-life gold producer. We look forward to presenting our

interim results on 16 February 2021.”
Safety
The Group continued to maintain an industry-leading safety performance with a focus on new safety

initiatives and interventions in its pursuit of a zero-harm working environment.
    •    The lost-time injury frequency rate (‘LTIFR’) improved to 1.64 (2019: 1.69) per million man

         hours

    •    The reportable injury frequency rate (‘RIFR’) improved to 0.65 (2019: 0.85) per million man

         hours

    •    Regrettably, the Group experienced one fatality at Barberton Mines (2019: Zero) during July

         2020. The details of the fatal accident were discussed in the year end results announcement

         released on 16 September 2020

    •    Evander Gold Mine achieved an excellent RIFR of 1.01 (2019:3.71) per million man hours

    •    Elikhulu experienced no lost-time and reportable injuries during the past 6 months,

         contributing to the Group’s commendable safety performance
Barberton Mines
Barberton Mines’ production increased by 10.6% to 52,354oz (2019: 47,356oz) for the Current

Reporting Period. Underground production increased by 15.3% to 42,350oz (2019: 36,737oz) and

Barberton Tailings Retreatment Plant (BTRP) production remained stable at 10,004oz (2019:

10,619oz) for the Current Reporting Period.
The increased production from Barberton Mines is principally due to:
    •    Improved mining flexibility and available face length with the establishment of three high

         grade platforms at the Fairview mine, as well as the extension of the strike length on the 256

         and 257 platforms through active delineation drilling and systematic development. Fairview

         mine has now established concurrent multiple platform availability.

    •    Improved recoveries at BTRP following the implementation of an oxygen Carbon-in-leach

         (CIL) addition project, resulting in the feed sources achieving a higher recovery than

         previously estimated.

    •    The high-grade section at New Consort’s Prince Consort (PC) Shaft 42 Level being successfully

         extracted, this orebody remains continuous along the planned strike length and up-dip to 41

         Level.
Elikhulu tailings retreatment plant (Elikhulu)
Gold production from Elikhulu decreased by 8.3% to 26,863oz (2019: 29,301oz) during the Current

Reporting Period, as a result of:
    •   Lower gold recoveries from the re-mining activities on Kinross Dam 1 and 2 during the

        Current Reporting Period. As per the mine plan, re-mining activities have subsequently

        moved to Kinross Dam 3, and Kinross Dam 3’s material indicates an improvement in

        recoveries of approximately 5-10%, albeit at a lower head grade, relative to Dam 1 and 2

        recoveries.

    •   Plant throughput was constrained by preventative maintenance and improvement work to

        sections of the lower Elikhulu tailings storage facility compartment and the installation of

        elevated drains. This work will be complete in February 2021, where after tonnage

        throughput will again be increased.
Gold production from Elikhulu is expected to increase in the second half of the 2021 financial year.
Evander Mines’ 8 Shaft Pillar project (8 Shaft Pillar) and surface sources
Production from the Evander Mines operations increased by 17.7% to 19,169oz (2019: 16,284oz).
Underground production increased by 9.1% to 12,607oz (2019: 11,553oz). The ramp-up in

production of the 8 Shaft Pillar was slower than expected during the Current Reporting Period, as a

result of:
    •   Difficulties encountered with the initial installation of underground support pseudo-packs,

        which have now been resolved following the introduction of dry tailings and additional grout

        ranges for filler use.

    •   Production delays due to fracturing of the shaft lining following the establishment of the

        pillar mining in the vicinity of the shaft.
Production from the 8 Shaft Pillar is expected to further improve during the second half of the 2021

financial year.
The increased production from surface sources of 6,562oz (2019: 4,731oz) also contributed

positively to the Group’s production for the Current Reporting Period.
Evander Mines Egoli Project (Egoli)
Early works and preparation for the execution phase of the Egoli project has commenced. Finalisation

of the legal agreements for the implementation of Egoli’s debt funding package is also currently

underway. Inception of the project’s construction is expected in the next month, with phase -1

construction and development expected to be completed in 18 months, followed by phase-2

development and equipping in the next 18 months thereafter. First gold is expected to be produced

within 20 months from the project’s inception.
Group net debt

The Group’s net debt decreased by 47.3% to US$65.2 million (2019: US$123.7 million). Relative to

the 30 June 2020 financial year-end, Group net debt decreased by 14.7% from US$76.4 million to

US$65.2 million. The Group’s debt is denominated in South African Rand and, in US Dollar terms,

the decline in net debt compared to the 30 June 2020 financial year-end, was impacted by the

strengthening of the Rand relative to the US Dollar at a closing rate of US$/ZAR14.70 compared to

US$/ZAR17.33 as at 30 June 2020.
The reduction in the net debt was achieved notwithstanding the cash outflow associated with the

record net Rand dividend payment to shareholders in December 2020 of US$18.4 million (2019:

US$2.9 million).
Interim results for the six months ended 31 December 2020
Pan African will announce its interim results on 16 February 2021.
The information contained in this update is the responsibility of the Pan African board of directors

and has not been reviewed or reported on by the Group’s external auditors.
Rosebank
22 January 2021
This announcement contains inside information.
For further information on Pan African and its ESG initiatives, please visit the Company’s website at

www.panafricanresources.com
Contact information
Corporate Office                                               Registered Office
The Firs Office Building                                       Suite 31
2nd Floor, Office 204                                          Second Floor
Cnr. Cradock and Biermann Avenues                              107 Cheapside
Rosebank, Johannesburg                                         London
South Africa                                                   EC2V 6DN
Office: + 27 (0)11 243 2900                                    United Kingdom
info@paf.co.za                                                 Office: + 44 (0)20 7796 8644
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/Jane Kirton                                        Ross Allister/David McKeown
St James’s Corporate Services Limited                          Peel Hunt LLP
Company Secretary                                              Nominated Adviser and Joint Broker
Office: + 44 (0)20 7796 8644                                   Office: +44 (0)20 7418 8900
Ciska Kloppers                                                 Thomas Rider
Questco Corporate Advisory Proprietary Limited                 BMO Capital Markets Limited
JSE Sponsor                                                    Joint Broker
Office: + 27 (0)11 011 9200                                    Office: +44 (0)20 7236 1010
Hethen Hira                                                    Website: www.panafricanresources.com

Pan African Resources PLC

Head: Investor Relations

Tel: + 27 (0)11 243 2900

E-mail: hhira@paf.co.za
Date: 22-01-2021 09:00:00

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You won’t spot many 70-series Toyota Land Cruisers on UK roads, but venture beyond Europe’s borders and this tough-as-old-boots workhorse is the go-to machine for those operating in harsh environments.

Australasia is one of the strongholds, along with South Africa, the Middle East and South America, where it can be found working anywhere from a farm to an oil field.

Key features are a V8-diesel engine that develops up to 268hp, a five-speed manual transmission, part-time four-wheel drive system with locking front and rear axle diffs, a 3.5t towing capacity and 1.4t payload.

See also: Tips for buying a second-hand pickup: Toyota Hilux

Tight UK emissions rules mean it isn’t available to buy here, save for a few examples that have been brought in by keen individuals willing to put in the effort.

However, thanks to a tie-up between a Land Cruiser importer and an overland vehicle specialist in Wiltshire, the process of buying and running one has been made considerably simpler.

Rowlands and Hordon Automotive Solutions takes on the job of sourcing the vehicle and getting it into the country, while RH and IR Cradock prepares it for UK roads, carries out any modifications the customer wants and maintains it in the future.

Watch a short clip of the Land Cruiser in action and read the rest of the report below.

What is available?

The 70 series is available as a five-door station wagon, three-door troop carrier and single- or double-cab pickup.

Each variant has its own series number, with the station wagons referred to as the 76 series, the troop carrier as the 78 series and the pickups as the 79 series.

The double-cab pickups are available in two standard specifications, starting with the simple Workmate that features steel wheels and rudimentary dash.

GXL versions are blessed with a few more trinkets, such as a rev counter, alloy wheels, flared wheel arches, front and rear axle diff-locks and occasionally a front winch bumper.

If that’s still a little basic for your liking, there’s a vast array of aftermarket equipment available to get the spec just so.

Prices vary according to exchange rates and import duty, but as a rough guide, single-cab pickups range from £36,000-£40,000 in left-hand drive and £45,000-£55,000 in right-hand drive.

Double cabs are a little pricier, ranging from £37,000-£41,000 in left-hand drive and £48,000-£58,000 in right-hand drive.

All pickup models are classed as commercial vehicles, which means they’re subject to the flat road tax rate of £265/year.

© Benjy Cradock

The fact the trucks are grey imports means they don’t come with a manufacturer warranty.

However, RH and IR Cradock can source all of the parts and carry out any work that is required.

For those looking to spend less, it is possible to import and modify used trucks.

Buyers that are happy with a standard vehicle can approach either Rowlands and Hordon Automotive Solutions or RH and IR Cradock and the price will be the same.

However, those that are looking for upgrades and ongoing support are best going through the Cradock business, which is run by Ian, Joanne, Benjy and Ashley Cradock.

Once the vehicle arrives in the country, it is adapted to meet UK road regulations and goes through UK Individual Vehicle Approval (IVA) testing before a V5 registration certificate is issued.

The Cradocks will then carry out any modifications that are required.

This can be as simple as waxing the chassis to protect against corrosion, through to major component upgrades.

Modified pickup

The pickup pictured was commissioned by Hertfordshire-based Pursley Plant Hire and started out as a standard truck imported from Dubai, before receiving extensive modifications.

At the front, the stock suspension was replaced with Ironman coils and large-bore shock absorbers that give a 2in lift.

The original rear leaf springs were also upgraded to smoother-riding Terrain Tamer parabolic springs, which were teamed with Boss air bags to help correct the ride height when carrying or towing heavy loads.

To give some extra load space, the stock rear tub was removed and a custom aluminium tray conversion with drop sides and underslung toolboxes added.

One of the toolboxes was fitted with a 12V twin air compressor plumbed into a 2gal tank with gauges and a switch for the rear air bags.

A stainless-steel 3in custom exhaust system was also fabricated to the customer’s design.

All of these parts were built or sourced by Benjy Cradock under his own brand NBF Bespoke.

Final exterior touches include an Ironman 4×4 winch bumper with LED spotlights and alloy wheels shod with Cooper STT Pro mud terrain tyres.

A Tunit chip was also fitted to boost power by 45hp and improve the torque curve.

Interior

As for the interior, the original bench was replaced with a pair of leather Recaro sports seats and the rears were reupholstered to match.

© Benjy Cradock

A centre cubby box, overhead roof storage and door pockets with speaker pods were also added.

These were all Cruiser Consoles products, which were specially imported from Australia.

Finally, it was treated to some upgraded speakers and an Apple Car Play head unit.

The Eastern Cape government has ramped up oxygen provision to its smaller hospitals and clinics as a second Covid-19 outbreak tears through the province. (Photo: Gallo Images)