The Company - Strategic Partnerships

The Metorex Connection

Metorex Limited is a mid-tier mining group specialising in identifying, developing and profitably managing mining projects. Current activities include a diversified range of gold, industrial minerals and base-metal mine portfolios.

Since the Barberton Mines Acquisition, completed on 31 July 2007, Metorex is a 55% shareholder in Pan African Resources.

The transaction has:
enabled the Company to fast track the development of current projects by applying the full range of proven
...technical capability from metallurgical, engineering through to mining skills;
allowed Pan African to unlock previously unrealised value at Barberton Mines through the application of its
...geological expertise;
established Pan African as a gold producer and therefore provide Pan African with cash flow to fund its ongoing
...exploration activities;
positioned Pan African such that additional acquisition opportunities can be realised;
provided necessary momentum for the Company’s regional exploration ambitions in Ghana; and
added additional premium exploration potential close to the mines being acquired.

www.metorexgroup.com

The Pangea Connection

Pangea Exploration (Pty) Ltd is an African focused exploration company, which has previously successfully identified and developed the following mineral resource projects in sub-Saharan Africa.

Post the acquisition of 74% of Barberton Mines Pangea Exploration is a 6,2% shareholder, holding 66,000,000 ordinary shares.

Their track record includes the development of the following projects:
Rhombus vanadium – the world’s largest vanadium operation - (Xstrata ~ $43m)
Pangea Goldfields Inc – portfolio of gold deposits in Tanzania - (Barrick ~ C$207m)
Corridor Sands – world’s largest titanium resource - (Western Mining ~ $114m)
Burnstone Gold – 16 m ounce greenfields project - (Great Basin Gold ~ $50m)
Manica Gold – vended in by Pangea – the first stage in creation of new gold portfolio

Pan African has the first right of refusal on any gold project discovered by Pangea. Pangea advises Pan African on all exploration matters on both a corporate and project level.

The Shanduka Connection

The Shanduka Group was formed in November 2000 in response to the need within South Africa for Black Economic Empowerment (BEE) partners, as a measure to facilitate the change and transformation of the New South Africa.

Shanduka operates in various investment areas, namely; Resources, Financial Services, Property, Energy and Strategic Investments. This diverse cross-section of South African business makes Shanduka a powerful and notable strategic partner to Pan African Resources.

Shanduka may, in the future, vend gold projects into Pan African Resources Shanduka holds the remaining 26% shareholding in Barberton Mines and has the right to convert this shareholding into 14% of Pan African Resources. It has a further right to acquire another 6% in Pan African at market value.

www.shanduka.co.za


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