PAR Gold is Pan African Resources’ primary BEE shareholder, with its sole assets being a 22.5% interest (post conclusion of the Shanduka Gold transaction in Pan African Resources’ issued share capital and a notional vendor loan of R558 million to its BEE shareholder, the Mabindu Trust, as at 30 June 2016). Following a merger between Shanduka Group Proprietary Limited and the Pembani Group Proprietary Limited in December 2015, Pan African Resources engaged Shanduka Gold shareholders and concluded an agreement to preserve the group’s BEE ownership in a meaningful and mutually beneficial manner by means of an acquisition of their respective interests in Shanduka Gold. Prior to the transaction with Pan African, Shanduka Gold’s shareholders were Standard Bank of South Africa Limited (“Standard Bank”) (16.9%), Jadeite Limited (33.6%) and the Mabindu Business Development Trust (49.5%). As part of the transaction Pan African Resources acquired Standard Bank’s 16.9% and Jadeite Limited’s 33.6% interest in Shanduka Gold for R182.5 million and R364.4 million, respectively. Approximately 0.6% of the Shanduka Gold shares acquired from Jadeite Limited have been retained by Jadeite Limited for sale, at a future date, to an independent third party nominated by Pan African Resources. Pursuant to the transactions, Pan African Resources acquired a 49.9% direct interest in Shanduka Gold but consolidates the full interest in Shanduka Gold for accounting purposes.