Pan African Resources Final Results

Highlights and Key Matters

• Final dividend of £7.4 million proposed (2010: £5.4 million dividend paid).
• Proposed dividend increased by 37.93% to of 0.5135p per share (2010: Final dividend of 0.3723p declared).

Group

• Gross revenue for gold sales increased by 15.62% to £79.2 million (2010: £68.5 million).
• Earnings Before Interest, Taxation, Depreciation and Amortisation (‘EBITDA’) increased by 14.00% to £28.5 million (2010: £25.0 million).
• Attributable profit increased by 20.28% to £17.2 million (2010: £14.3 million).
• Earnings per share (‘EPS’) increased by 15.38% to 1.20p (2010: 1.04p).
• Headline earnings per share (‘HEPS’) increased by 12.15% to 1.20p (2010:1.07p).
• Profit margin increased by 30.36% to US$ 584/oz (2010: US$ 448/oz).
• Resource inventory increased by 22.46% to 5.67 Moz (2010: 4.63 Moz).
• Reserve inventory increased by 51.29% to 1.0 Moz (2010: 661 Koz).
• The Group’s cash balance was £10.1 million (2010: £12.8 million) at year-end.
• Increased Group capital expenditure by 255.93% to £21.0 million (2010: £5.9 million).

Mining Operations - Barberton Mines (Pty) Ltd ('Barberton Mines')

• Gold sold decreased by 6.01% to 92,197oz (2010: 98,091oz), mainly due to a reduction in tonnes mined at Barberton.
• Sustaining and increasing production profile at Barberton Mines through continued capital investment of £6.8 million (2010: £5.9 million).
• Safety performance showed a significant improvement with Lost Time Injury Frequency Rate (‘LTIFR’) improving by 47.62% to 2.2 (2010: 4.2) and Serious Injury Frequency Rate (‘SIFR’) by 40.00% to 0.66 (2010: 1.1).
• Achieved one million fatality-free shifts over a 15-month period post financial year.
• Increase in total cost of production, in South African Rands, contained to 4.09%, which is below the South African rate of inflation.
• Increase of the Barberton Mines Life of Mine (‘LOM’) from 10 to 17 years.

 Near Term Production Projects - Phoenix Platinum Mining (Pty) Ltd ('Phoenix mPlatinum') and the Bramber Tailings Project ('Bramber')

• Completing construction of Phoenix Platinum Chrome Tailings Retreatment Plant (‘CTRP’), which will generate revenue from Platinum Group Metals (‘PGM’s’): mPlatinum, Palladium, Rhodium and Gold. Production forecast to commence in December 2011.
• Defined a total indicated resource of 147,500oz (3.130Mt @ 1.47g/t in situ) at indicated recoveries of 52.00% for the Bramber Tailings Project at Barberton Mines.

Growth Projects -Manica Gold Project

• Announced intention to list Manica as a stand-alone entity in order to unlock shareholder value and fast-track development.

The Company remains unhedged and debt free, which means the Group has total leverage to the gold price and the ability to fund all on-mine capital expenditure internally. In addition, the Group has access to a £13.7 million revolving credit facility.

The Company's strategy of targeting low cost, high margin projects, which are either near or at production stage, enables it to consistently improve not only its resource base but also its profit margins.  This also enables the Group to pay a dividend and ensures continued growth in shareholder value.

Pan African Outlook  - The Future
The Group will continue to drive profitable, sustainable, stakeholder growth. We have laid a solid foundation in terms of our mining and project development skillset and we have grown the strength of our cashflows and Statement of Financial Position. This will allow us to allocate significant resources in building an organic pipe-line of projects at Barberton Mines which:

• Have cost structures of less than US$450/oz
• Have profit margins in excess of 35%
• Should be producing within 12 to 24 months

The Cheif Executive Jan Nelson stated: "These projects will significantly grow our Group's Statement of comprehensive income during a period that should continue to see high commodity prices. The timing of this growth could not be more opportune. We have started building our precious metals mining house - still small, but highly profitable and focused. We have developed a sound business model and philosophy that have now been tried and tested. Together with our strategic partners and stakeholders we will leverage this to our competitive advantage."