mineral resources and mineral reserves report

S TA K E H O L D E R S • G ROW T H • P RO F I TA B L E • S U S TA I N A B L E

MINERAL RESOURCES AND MINERAL RESERVES REPORT FOR THE YEAR ENDED 30 JUNE 2015

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SCOPE OF REPORTThis abridged version of the Pan African Resources

Mineral Resources and Mineral Reserves Report

2015 (MR&MR) conforms to the standards

determined by the South African Code for the

Reporting of Exploration Results, Mineral Resource

and Mineral Reserve (the SAMREC Code, 2007

edition) and forms part of Pan African Resources’

Integrated Annual Report including the annual

fi nancial statements for the year ended 30 June 2015.

The other major document in this suite of reports

is the Sustainable Development Report 2015. The

entire suite of documents will be available in full on

www.panafricanresources.com in due course,

following publication of Pan African Resources’

annual fi nancial statements including a full MR&MR.

The mineral resource is inclusive of the mineral

reserve component, unless otherwise stated.

Information is presented either by operation, mine

or project, as indicated. The tables and graphs used

to illustrate developments across the operations of

Pan African Resources in FY15 include:

• Mineral resources tables by group and commodity

• Mineral reserves modifying factors

ABOUT THIS REPORT

• Mineral reserves tables by group and commodity

• Development sampling results and ore reserve

projects

• Appointed competent persons.

Matters on which detail is provided in this

abridged version include regional geology, location,

exploration drilling and organic ore reserve projects.

Note, rounding of numbers in this document may

result in minor computational discrepancies.

REPORTING CODEThe guiding principle in the MR&MR is to ensure

integrity, transparency and materiality in informing

all stakeholders on the status of the group’s

mineral asset base. Pan African Resources uses the

SAMREC Code which sets out the internationally

recognised procedures and standards for reporting

Mineral Resources and Mineral Reserves in South

Africa, developed by the South African Institute

of Mining and Metallurgy as the recommended

guideline for reserve and resource reporting for

JSE-listed companies. Distinct effort has also been

made to comply with AIM Rules for Mining and Oil

and Gas Companies of the London Stock Exchange.

GOLDRelationship between exploration results, mineral resources and mineral reserves showing Pan African

Resources attributable resources and reserves as at 30 June 2015.

PGEsRelationship between exploration results, mineral resources and mineral reserves showing Pan African

Resources’ attributable resources and reserves as at 30 June 2015.

RESOURCES

Total 31.9Moz Au

Inferred

9.2Moz Au

Indicated

20.5Moz Au

Measured

2.2Moz Au

EXPLORATION RESULTS

RESERVES

Total 10.4Moz Au

Probable

9.4Moz Au

Proved

0.9Moz Au

EXPLORATION RESULTS

RESOURCES

Total 0.6Moz PGEs

Inferred

0.1Moz PGEs

Indicated

0.4Moz PGEs

Measured

0.1Moz PGEs

RESERVES

Total 0.5Moz PGEs

Probable

0.4Moz PGEs

Proved

0.1Moz PGEs

CONTENTSOur vision and

investment case 2

Highlights 3

Who we are 4

Our business model 6

Operating assets 8

Group strategy 10

Group mineral resources

and mineral reserves 12

Group organic growth 14

Barberton Mines 16

Evander Mines 32

Phoenix Platinum 50

Glossary 59

Company information ibc

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1 Pan African Resources

Mineral Resources and Mineral Reserves Report 2015

• Mine call factor (MCF)

• Plant recovery factors

• Planned cash operating costs and other

effi ciency factors, which are calculated using

historical achievements as a baseline.

The mineral reserves represent that portion of

the Measured and Indicated Mineral Resources

above cut-off in the life of mine plan, and have been

estimated after consideration of the modifying

factors affecting extraction. A range of disciplines

has been involved at each mine in the life of mine

planning process including geology, surveying,

planning, mining engineering, rock engineering,

metallurgy, fi nancial management, human resources

management and environmental management.

The competent person for Pan African Resources,

Mr Barry Naicker, the group mineral resource

manager, signs off the MR&MR for the group. He is a

member of the South African Council for Scientifi c

Professions (400234/10). Mr Naicker has 14 years

of experience in economic geology and mineral

resource management. He is based at 1st Floor,

The Firs, cnr. Cradock and Biermann Avenues,

Rosebank 2196, Gauteng.

PAN AFRICAN RESOURCES’ REPORTING IN COMPLIANCE WITH THE SAMREC CODETo meet the requirement of the SAMREC Code that

the material reported as a Mineral Resource should

have “reasonable and realistic prospects for eventual

economic extraction”, Pan African Resources has

determined an appropriate cut-off grade which has

been applied to the quantifi ed mineralised body.

In determining the mineral resource cut-off grade,

Pan African Resources uses a gold price of

R500,000/kg. At our underground mines, the

optimal cut-off is defi ned as the lowest grade at

which an orebody can be mined such that the total

profi ts, under a specifi ed set of mining parameters,

are maximised. The mineral resources optimiser

tool that was accordingly developed in-house was

applied to the mineral resource inventory.

The optimiser programme requires the following

inputs to convert the mineral resources to the

mineral reserves:

• The database inventory of all mineral resource

blocks

• An assumed gold price – ZAR400,000/kg

• Planned production rates for each mine

The guiding principle in the

MR&MR is to ensure integrity,

transparency and materiality in

informing all stakeholders on the

status of the group’s mineral

asset base.

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INVESTMENT CASEPan African Resources is a mid-tier African-focused

precious metals producer.

OUR VISIONTo continue to build a precious metals business in Africa

by remaining focused on our four strategic pillars.

Proven business model, committed to low-cost production and optimising extraction effi ciency

• Culture of delivery – Barberton Mines’

BTRP and Evander Mines’ ETRP

• Quality assets delivering good returns

• Focused on strong and sustainable margins

• Total mineral resources gold of 31.9Moz

and 0.6Moz of platinum group elements

• People focused

Preferred gold investment

• Profi table production growth from

long life assets

• Signifi cant resource and reserve base

• Ability to conclude further value accretive acquisitions

• Strong track record of replenishing

mineral reserves by targeting exploration and

development to increase the life of mine

Delivering consistent returns

• Attractive dividend yield

• High margin assets allow for dividend

to be maintained

• Robust statement of fi nancial position

Disciplined approach to capital management

• Management team that continues

to drive shareholder value

Committed to sustainability

• Focused on achieving zero harm

• Legacy of environmentally responsible

mining

• Strong relationships with labour,

government and communities

People Fostering relationships through

action, integrity and honesty

ActionLeadership, planning and control

ResultsDelivering on all our targets without compromise

Maximise sustainable gold

Positive impact on earnings




HIGHLIGHTSin context of our four strategic pillars

LIFE OF MINE

BARBERTON MINES 20 YEARS

EVANDER MINES 16 YEARS

PHOENIX PLATINUM 28 YEARS

BTRP 15 YEARS

ETRP 16 YEARS

PROFITABLE

GROWTH

SUSTAINABLE

STAKEHOLDERS

Stakeholder ENGAGEMENT

Local ECONOMIC

DEVELOPMENT

MINERAL TENURE

LONGEVITY in operations

Organised LABOUR

Barberton Mines: 10.9g/t

Evander Mines: 4.6g/t

Phoenix Platinum: 3.3g/t (headgrade – g/t)

HIGH GRADE/

LOW COST producer

ETRP performing as anticipated

BTRP at steady state production

MINERAL RESERVES

Gold 10.1Moz UP 3.0%

PGEs 0.5Moz DOWN 3.9%

ETRP in PRODUCTION

Life of mine INCREASED

ORGANIC GROWTH PROJECTS

BARBERTON MINES – MRC OREBODY EXTENSION,

CLUTHA MINE AND EVANDER SHAFT 8 – 26 LEVEL

BROWNFIELD PROJECTS EVANDER SOUTH, ELIKHULU (TAILINGS PLANT),

POPLAR AND ROLSPRUIT

MINERAL RESOURCES

Gold 31.9MOZ

PGEs 0.6MOZ




WHO WE ARE

ORGANISATIONAL STRUCTURE

Note 1: During the year, Pan African Resources announced the acquisition of the Uitkomst Colliery from Shanduka (related party) and its joint venture operating partner. This acquisition is

subject to suspensive conditions typical for a transaction of this nature.

Emerald Panther Investment 91 Pty

Ltd (Incorporated in South Africa)

Dormant

Evander Gold Mines Ltd

(Incorporated in South Africa)

PT Sands Pty Ltd


Dormant

Evander Gold Mining Pty Ltd


Evander Mining Operations

Barberton Mines Pty Ltd


Barberton Mining Operations

Phoenix Platinum Mining Pty Ltd


Phoenix Platinum, Chrome Tailings

Retreatment Project

Pan African Resources Management

Services Company Pty Ltd


Management services company that

provides management services to

operations

Pan African Resources Funding

Company Pty Ltd (Incorporated in

South Africa)

Group treasury company

100%

100%

100%

100%

100%

100%

100%

100%

OUR HISTORY

Exploration phase

Admitted to

AIM in May

Incorporated

as Viking

Internet PLC

in February

Acquired 74% of

Barberton Mines from

Metorex Limited

Acquired the remaining

26% of Barberton

Mines from Shanduka in

exchange for 295.7 million

shares in the company

Commissioned

Barberton Tailings

Retreatment Plant

Finalised the acquisition of

100% of the share capital of

Evander Mines for a total

net purchase consideration

of ZAR1.3 billion

Exercised the option to

acquire 100% of Phoenix

Platinum from Metorex

for cash in May

Commissioned

Evander Tailings

Retreatment Plant

20002007

2009

2013

20152001 – 2006




OUR OPERATIONS Barberton Mines is a low cost,

high grade, greenstone belt

producing operation which has

contributed signifi cantly to Pan

African Resources’ successful track

record. Barberton Mines production

capacity is 95,000oz Au from

underground and 20,000oz from

Barberton Tailings Retreatment

Plant (BTRP) per annum

1

The acquisition of Evander Mines in 2013 was transformational for

Pan African Resources as it paved

the way for the company to

become a mid-tier gold producer

with a strong, long-term project

pipeline. Evander Mines production

capacity from underground

operations is 95,000oz per annum

and from the ETRP 10,000oz

per annum

2

Phoenix Platinum is a tailings

retreatment plant designed to

extract 10,000oz of platinum group

metals per annum from chrome

tailings

3

Pan African Resources is a

mid-tier African focused precious

metals producer with quality

assets in South Africa

Towns and cities on main roads

Provinces

Neighbouring country

Towns close to project locations

Kruger

National

Park

Nelspruit

BarbertonMiddelburgPretoria

Johannesburg

Zeerust

Rustenburg

Potchefstroom

Klerksdorp

TaungKuruman

Vryburg

Witbank

Secunda Ermelo

NORTH WEST PROVINCE

GAUTENG

MPUMALANGA

3

2

1

LIMPOPO

BOTSWANA

FREE STATENORTHERN CAPE

KWAZULU-NATAL

For further information on our operations and operating assets refer to pages 8 and 18.

KEY FEATURES

African mid-tier precious metals business

• Quality assets producing approximately 215,000oz of gold

per annum

• Focused on maintaining and increasing profi table production

ounces

Dual listed on London’s AIM and South Africa’s JSE

• Market capitalisation at 30 June 2015 of ZAR3.3 billion

• Diversifi ed shareholder base, major South African and

international institutions

• Shanduka Resources as empowerment partner with 23.83%

direct shareholding, equating to an effective 26.2% black

economic empowerment (BEE) ownership for the purposes

of the Mineral and Petroleum Resources Development Act

(MPRDA). More detail on this transaction can be found

in our sustainable development report on the

group website www.panafricanresources.com

Cash fl ow generative and dividend paying

• Progressive dividend policy and track record of sector leading

dividend payouts

• Historic dividend yield in excess of 6%

• Low level of gearing with strong balance sheet

• Access to funding facilities of ZAR1.2 billion

Signifi cant growth projects

• Resources base in excess of 31Moz




BARBERTON MINES AND BARBERTON

TAILINGS RETREATMENT PLANT (BTRP)

• Fairview, Sheba and Consort mines produce

~95koz of gold per annum

• Average tonnages milled ~300kt in excess

of 10g/t• BTRP produces ~20koz of gold per annum

• BTRP processing capacity of 1.2 million tonnes per annum at a headgrade of 1.4g/t

OUR BUSINESS MODEL

O

UR

IN

PU

TS

OU

R A

CT

IVIT

IES AND OUTPUTS

FINANCIAL CAPITAL

ZAR1.2 billionin available funding facilities

MANUFACTURED CAPITAL

Property, plant and equipment of

ZAR3.5 billion

PAN AFRICAN RESOURCES USES THE

SIX FORMS OF CAPITAL IN ITS BUSINESS

ACTIVITIES TO CREATE STAKEHOLDER

VALUE

HUMAN CAPITAL

4,326 employeesand 1,095 contractors

INTELLECTUAL CAPITAL

Barberton and Evander Mines mining and

prospecting licences, key personnel for

managing the BIOX® process

SOCIAL AND RELATIONSHIP

CAPITAL ZAR20.8 millioninvested in communities

NATURAL CAPITAL

1,376,815Gj of electricity and

12,249m2 of water used by

group operations

EVANDER MINES AND EVANDER

TAILINGS RETREATMENT PLANT (ETRP)

• 8 Shaft produces ~95koz of gold per annum

• Average 8 Shaft tonnages

milled ~400kt at between 5g/t – 7g/t

• ETRP produces 10koz of gold per annum from

tailings processing

• ETRP processing capacity of 2.4 million tonnes per annum

at a headgrade of 0.3g/t

PHOENIX PLATINUM CHROME

TAILINGS RETREATMENT PLANT (CTRP)

• CTRP produces ~10koz of PGE per annum

• CTRP processing capacity ~300kt per annum

OTHER ACTIVITIES

• Growing the business through

organic and acquisitive opportunities such as:

– Evander South Project– Elikhulu Tailing Retreatment

Project– Uitkomst Colliery

PRODUCES

~10kozof PGEs

per annum

EXTERNAL ENVIRONMENT Gold market

Capital and foreign exchangemarkets

PRODUCES in excess of

215kozof gold

per annum




O

UR

OU

TC

OM

ES

OUR IMPACTS

THERE ARE SOME IMPACTS

ON HUMAN AND

NATURAL CAPITAL THAT

ARE INHERENT TO MINING

ACTIVITIES

ONE FATALITY ACCIDENT RATES PER

MILLION MAN HOURS

TRIFR 11.14 LTIFR 2.29RIFR 1.11

1,376,815Gj OF ELECTRICITY USED

12,249m3 OF WATER

USED

CARBON EMISSIONS

OF 0.1tCO2e/tMILLED

REVENUE GENERATED ZAR2,539.4 million

– ZAR2,441.0 million gold revenue

– ZAR98.4 million PGE revenue

VALUE DISTRIBUTION

EMPLOYEES

ZAR910.8 million

SHAREHOLDERS

dividends paid in

December 2014

ZAR258 million

GOVERNMENT

ZAR282.3 million

including income tax, royalty,

skills development levy, PAYE

CSI and SED spend of

ZAR20.8 million

REINVESTED in infrastructure

ZAR352 million

Regulatoryenvironment

Energyconstraints

Labour and communities




OPERATING ASSETSPan African Resources is a mid-tier African-focused precious metals producer

with a production capacity of 215,000oz gold and 10,000oz PGEs per annum. The group’s assets include:

• BARBERTON MINES: three gold mines and the BTRP in Mpumalanga

• EVANDER MINES: a gold mine in Mpumalanga, ETRP and several

brownfi eld projects

• PHOENIX PLATINUM: the CTRP in the North West province

BA

RB

ER

TO

N

Ownership Life of mine Location

100% 20 yearsNew Consort Mine

Sheba MineFairview Mine

National roads

Mining licence

Number of employees: 1,826

Number of contractors: 422

BA

RB

ER

TO

N T

AIL

ING

S

RET

REA

TM

EN

T P

LA

NT

(BT

RP)

100% 15 yearsNew Consort Mine

Sheba MineFairview Mine

National roads

Mining licence

EV

AN

DER

TA

ILIN

GS

RET

REA

TM

EN

T P

LA

NT

(ET

RP)

100% 16 years

Secunda

Kinross

Leandra

Elikhulu

Evander 7 shaft

Rolspruit

Evander South

Poplar

Evander 8 shaft

ETRP

National roads

Mining licence

PH

OEN

IX P

LA

TIN

UM

100% 28 years

N4

Buffelspoort dam

Hartbeespoort dam

Bapong

Buffelsfontein dams

Middelkraal dam

Elandskraal dumpsand pits

g

Mooinooi

IFM

Kroondal dump

Xstrata Kroondal Mine

National roads

Mining licence

EV

AN

DER

MIN

ES

Secunda

Kinross

Leandra

Elikhulu

Evander 7 shaft

Rolspruit

Evander South

Poplar

Evander 8 shaft

ETRP

National roads

Mining licence

100% 16 years

Number of employees: 56


Number of employees: 2,415









Description

Located in a greenstone belt, this is a low

cost, high grade operation comprising three

mines: Fairview, Sheba and New Consort

and a recently commissioned tailings

retreatment plant (BTRP).

Mining Charter rating: 3

MINERAL RESERVES (Moz)MINERAL RESOURCES (Moz)

Measured Indicated Inferred Proved Probable

0.5

0.1

0.4

0.6

0.1

0.4

0.1

10.4

1.0

9.4

Resources and Reserves

Resources: 9.0Mt @ 10.7g/t (3.0Moz)

Reserves: 4.3Mt @ 10.1g/t (1.4Moz)

Exploration: Ongoing

Cash cost: USD840oz

Operational statistics

Production (tonnes milled): 260,749

Produced (oz/annum): 81,493

Capacity: 95,000oz of Au per annum

Tonnage (capacity): 300,000

Headgrade: 10.0g/t – 11.0g/t

Plant feed grade: 10.7g/t

Sustainable capital per annum: ZAR115 million

Acquired: 74% from Metorex 2007: remaining

26% from Shanduka 2009

Located at Barberton Mines, the

R320 million gold tailings retreatment

plant commenced construction in April

2012, was completed on schedule and

within budget, and achieved its inaugural

gold pour in June 2013.





Cash cost: USD480oz




Tonnage (capacity): 1.2 million

Headgrade: 1.4g/t



Developed: Steady-state production commenced in 2013

A tailings retreatment project which will

exploit historically generated gold tailings

deposited in the Kinross tailings storage

facility and surface sources.





Cash cost: USD688oz




Tonnage (capacity): 2.4 million

Headgrade: Tailings: 0.32g/t

Surface feedstock: 1.0g/t – 1.75g/t




Phoenix is a tailings plant which extracts

platinum group metals from chrome tailings.





Cash cost: USD578oz



Capacity: 12,000oz of PGEs per annum


Headgrade: 3.7g/t




31.9

20.5

2.2

9.2

Gold GoldPGEs PGEs

Located in the Witwatersrand basin,

current operations comprise No. 8 Shaft,

several potential development projects

– Poplar, Evander South, Rolspruit and

Elikhulu (a surface tailings retreatment

project), the Kinross metallurgical

processing plant and tailings storage facility.





Cash cost: USD1,291oz





Headgrade: 5.0g/t – 7.5g/t (includes

development waste tonnes)



Acquired: 100% from Harmony in March 2013




STAKEHOLDERS

PROFITABLE

GROWTH

SUSTAINABLE

• Mineral tenure secured

• Compliance with all relevant

South African labour legislation

• Compliance with MPRDA,

Mining Charter and

implementation of social and

labour plans

• Proactive, strong

relationships with regulators,

organised labour and

communities

• Mineral Resource

Gold 31.9Moz, PGEs 0.6Moz

• Organic growth projects:

Evander Shaft 8 – 26 level,

Fairview Mine – MRC

orebody

• Brownfi eld projects:

Elikhulu, Evander South, Poplar,

Rolspruit

• Accretive acquisitions

• Mineral Reserve

Gold 10.4Moz, PGEs 0.5Moz

• Cash-generative

• Attractive dividend

• Continual low cash cost

gold production

• Life of mine (LOM)

– years:

Barberton Mines – 20

Evander Mines – 16

Phoenix Platinum – 28

BTRP – 15

ETRP – 16

• High grade/low cost

producer

Barberton Mines: 10.9

Evander Mines: 4.6

Phoenix Platinum: 3.3

(Headgrade – g/t)

• Attributable profi t

• Earnings per share

Pan African Resources has an exceptional asset base and attractive growth

opportunities, in both established projects and brownfi eld exploration prospects.

Strategy in this regard is based on global best practice in mineral resource

management (MRM) to aggressively explore and develop projects that will become

next generation long-term business units.

This strategy includes:

• Improving the conversion of mineral resources to mineral reserves by accessing, developing and

exploiting underground orebodies and surface assets

• Unlocking the value of major organic projects

• Identifying new expansion opportunities to sustain growth.

GROUP STRATEGY




The evolution of a project from initial testing to commissioning can take 12 to 18 months or longer, and

involves a series of study stages to reach investment approval and implementation.

We distinguish the group from our peers by having a clear focus on growth and only mining resources

that must be profi table in all parts of the price cycle, in order to deliver long-term economic value to

Pan African Resources. The graph below demonstrates the group’s mineral assets within the value chain

and how value is released through projects such as the BTRP and ETRP.

EXPLORATIONDEVELOPMENT

PROJECT

PROJECT COMMISSIONING

DESK TOP STUDY

DISCOVERY

PR

OJE

CT

VA

LU

E

MINE PRODUCTIONMINE CONSTRUCTION

Mineral Resources

Mineral ReservesBarberton Mines

Evander 8 Shaft

Phoenix Platinum

Evander 7 Shaft No.3 Decline

Elikhulu

Rolspruit

Evander South

Poplar

BTRPReconnaissance

Inferred

Measured

Probable

Proved

Project life cycle of mineral assets at Pan African Resources

Indicated

ETRP

FEASIBILITY STUDY

HIGHLIGHTS

Exploration drilling at Barberton Mines, confi rming the down dip extension of the high grade

11 Block of the main reef complex (MRC) orebody by a further 170 metres. Annual increase in

Barberton Mines’ mineral reserves by 236,162 ounces

Positive results of the ETRP, feasibility study undertaken on the viability of constructing “Elikhulu”

Internal technical team has been assigned to assess the merits of progressing the Evander South

brownfi eld project to the level of a feasibility study

The Sheba and New Consort tailings dams will provide potential future sources of tailings and

will support the increased BTRP life of operation to 15 years (2014: 12 years)




GROUP MINERAL RESOURCES AND

MINERAL RESERVES

The mineral resources and mineral reserves underpin the enterprise value of Pan African Resources, and the

group’s position on the mineral resources and mineral reserves is presented below.

GOLDGroup Mineral Resources

The total mineral resources for the group decreased from 33.5 million ounces (Moz) in June 2014 to 31.9Moz

in June 2015 – a gross annual decrease of 1.6Moz, or 4.8%. Of this variance, a decrease of 1.9Moz can be

attributed to Evander Mines and an increase of 0.3Moz to Barberton Mines.

As at 30 June 2015

Contained gold

Category

Tonnes

million

Grade

g/t kg Moz

Mineral Resources Measured 6.5 10.35 67,471 2.2

Indicated 273.7 2.33 637,457 20.5

Inferred 38.6 7.43 286,990 9.2

Pan African Resources Total 318.8 3.11 991,918 31.9

The 0.3Moz positive variance in contained gold at Barberton Mines was a result of adding new mineral

resources from the extension of the MRC orebody on Fairview Mine.

The total decrease in mineral resources can be attributed to a lower gold price and infl ationary cost drivers

in the reporting of the 2015 mineral resources.

Group Mineral Reserves

Pan African Resources’ mineral reserves increased from 10.1Moz in June 2014 to 10.4Moz in June 2015 – a

gross annual increase of 0.3Moz, or 3.0%.The 0.3Moz increase can be attributed to Barberton Mines.

As at 30 June 2015

Contained gold

Category

Tonnes

million

Grade

g/t kg Moz

Mineral Reserves Proved 3.9 7.27 28,474 1.0

Probable 81.0 3.62 293,478 9.4


The total increase in the mineral reserves can be attributed to the conversion of mineral resources at

Barberton Mines, the extension of MRC orebody at Fairview Mine.

MIN

ER

AL RESOURCES

(4.8%)

GROUP – GOLD 2015

MIN

ERAL RESERVES

3.0%




PGEsGroup Mineral Resources

The group’s total mineral resource PGEs did not change materially for the year under review.

As at 30 June 2015

Contained PGEs

Category

Tonnes

million

Grade

g/t kg Moz


Indicated 3.2 3.66 11,574 0.4

Inferred 1.2 2.90 3,446 0.1


Group Mineral Reserves

Pan African Resources’ mineral reserves PGEs decreased from 0.52Moz in June 2014 to 0.50Moz in June 2015

– a gross annual decrease of 20,000oz PGEs or 3.9 %. This was attributed to the re-mining of the Buffelsfontein

tailings dam.

As at 30 June 2015

Contained PGEs

Category

Tonnes

million

Grade

g/t kg Moz


Probable 3.2 3.56 11,574 0.4


GROUP – PGEs 2015

MIN

ERAL RESERVES

(3.9%)

MIN

ER

AL RESOURCES

0%




The operations’ robust life of mine plans support the group business plans. Current exploration drilling as well as accessing and

developing the orebody were aggressively maintained during the year. The strategy of converting mineral resources to mineral

reserves was progressed by moving organic projects further up the mining value chain towards commissioning. The tables below

refl ect the progress of near-mine growth projects that have contributed ounces to the mineral resources for the year.

Exploring the orebody: exploration drilling

Operation Total metres

Number of

boreholes

Average

channel

width

cm

Number of

intersections

above

cut-off

Average

grade

g/t

Total

expenditure

Rm

Barberton Mines 15,491 157 130 72 19.79 8,5

Evander Mines 632 12 132 8 16.3 0,6

Phoenix Platinum – – – – – –

Highlights

Exploration drilling projects at Barberton Mines yielded positive results, confi rming the down dip extension of the high grade

11 Block of the MRC orebody by a further 170 metres. This extension to the MRC orebody resulted in an annual increase in

Barberton Mines’ mineral reserves by 236,162 ounces, thereby extending the life of mine of Barberton Mines to 20 years.

The Fairview MRC orebody has been the primary gold contributor towards gold produced at Barberton Mines. This orebody is an

epigenetic hydrothermal lode-gold deposit with a strike length that ranges between 70m and 120m and also extending to depth.

Gold mineralisation is associated with arsenopyrite and pyrite with an average reserve grade of 35g/t has been declared for the

MRC. The mineralised widths range between 7m and 15m.

Recent borehole results of the 11 Block are detailed below:

Borehole number

Channel width

cm

Grade

g/t

Bh 5940 687 53.30

Bh 5816 691 120.03

Bh 5849 1,626 50.22

Bh 5864 1,383 43.82

GROUP ORGANIC GROWTH

MRC orebody at Fairview Mine




Accessing the orebody: on-reef development

Operation

Total on-reef

development

metres

Average

grade

g/t

Barberton Mines 1,041 5.01

Evander Mines 528 22.72

Phoenix Platinum – –

Developing the orebody: capital ore reserve projects – Barberton Mines

Project

2015

metres

2014

metres

2013

metres

Potential

resource

target

oz

Sheba – pillar development 824 351 317 23,599

Sheba – Edwin Bray to Thomas and Joe’s Luck area 5 171 102 13,246

Fairview – 11 Level Royal Reef (Equipping) – – 17,000

Fairview – 1# one reserve opening 84 154 179 14,821

Fairview – 3 Shaft deepening 26 – 228 1,600

Fairview – (64 – 68) Level 447 295 601 840,704

New Consort – (33 – 45) PC 258 193 252 10,000

New Consort – MMR pillar development – 173 129 new target

New Consort – 3 Shaft 327 253 – 900

Royal Sheba 165 – – 206,750

Sheba Western Cross 295 71 – 30,022

Capital ore reserve projects: Evander Mines

Project

2015

metres

2014

metres

2013

metres

Potential

resource

target

oz

2 Decline 24 – 25 Level 904 685 5541,200,000

25 A block ventilation 10 925 124


BARBERTON MINES

HIGHLIGHTS

• Increased gold mineral reserves by 236,162 ounces, resulting in the extension of the life of mine to

20 years

• Remained one of the lowest cost producers in the South African gold industry

• BTRP continued to perform well – 80,100 tonnes per month at a recovered grade of 0.8g/t

Barberton Mines consists of three mines: Fairview,

Sheba and New Consort, and now the BTRP.

Fairview produces 50% of Barberton Mines’ gold production with Sheba and New Consort

producing 30% and 20%, respectively. Operating three mines continues to provide fl exibility and

versatility in terms of resource allocation.

The mix of high grade ore from the mines is planned monthly to maintain the targeted grade/

tonnage profi le and gold production, giving Barberton Mines the advantage of managing cash fl ows

from an early stage in the mining process. The operation has a proven track record of consistently

delivering a solid performance, driven to a large extent by an embedded culture of cost control.

The mining methods used are an underground semi-mechanised up-dip cut and fi ll and up-dip

room and stick. An estimated 16%–18% of gold is recovered by sweeping and vamping contractors

focusing on worked-out areas and mining high grade pillars. Gold is extracted using the BIOX®

gold extraction process, an environmentally friendly process which uses bacteria to release gold

from the sulphide ore.

Gold was originally discovered in the Barberton area in 1886 and comprises the sediments

and metavolcanics within the Barberton Greenstone Belt. Barberton Mines has therefore been

mined for over a century with current production practices now embedded. Given the aged mine

infrastructure, the operations undergo ongoing maintenance and refurbishment.

LOOKING AHEAD

• Achieving and maintaining production targets

• Achieving planned capex projects to establish new ore reserves

• Exploring new retreatment projects to extend the life of the BTRP and possible additional gold from

other sources

• Continuing to maintain costs

CHALLENGES

• Four DMR section 54 safety stoppage instructions halted production for a total of six days

• An oil contamination in the BIOX® plant negatively impacted production

• Production tonnes below targets






BARBERTON MINES

REGIONAL GEOLOGICAL SETTINGThe mineralisation at Barberton Mines is classifi ed as Achaean epigenetic hydrothermal lode gold deposits

within a granite greenstone terrain. The distribution and localisation of these orebodies in the Barberton

Greenstone Belt (BGB) can be largely attributed to the combined infl uence of thermal metamorphism and

structural deformation. The BGB has produced approximately 11Moz of gold since the fi rst discovery in the

early 1880s. Barberton Mines has produced more than 75% of the total production from the BGB.

GENESIS OF THE ORE IN BARBERTONMetamorphic devolatisation of the mafi c and ultra-mafi c Onverwacht lava at the transition from greenschist

to amphibolite facies triggers the process by which fl uid is released. These low-salinity fl uids, which transport

gold as a reduced sulphur complex containing H2O, CO

2 and H

2S, are released, form mineral crystal structures

and can transport gold in solution to favourable depositional sites. It is calculated that a lava volume of ten

cubic kilometres is suffi cient to have produced all the known gold mineralisation in the BGB. The Onverwacht

Group consists of approximately four thousand eight hundred cubic kilometres of potential parent material

lava. The stability fi elds of most of the common sulphides in the Barberton Mines ore (pyrite, arsenopyrite and

pyrrhotite) indicate that the gold complex in the transport fl uid is Au(HS)2.

To facilitate metal deposition from the hydrothermal fl uid, the pressure, temperature or chemical conditions

need to change. Most greenstone gold deposits form as a result of the mineralised fl uid coming into contact

with an iron-bearing host rock. The Barberton Mines host lithologies are not high in iron content, so the ore

deposition occurred due to a drop in fl uid pressure. Pressure shadows, which form during dilating, faulting

and folding, create low-pressure zones, effectively sucking the fl uids into these spaces and releasing pressure.

When pressure is released, H2S (the ligand that makes gold soluble) is driven off, resulting in gold precipitation.

The Barberton ores are thus mineralised shears with gold occluded in sulphide minerals. The sulphides often

occur as massive assemblages in the shear structure. Lower ore grade disseminations of sulphide minerals in

the wall rock form as a result of the alteration process during fl uid fl ow. A late stage of gold mineralisation

occurred when quartz veins formed in brittle fractures. These quartz veins often contain free gold in visible

clusters.

SWAZILAND20km0Scale

N4

Nelspruit

Barberton

Piggs PeakBulembu

Kaapmuiden

Malelane

International border

BTRP

New Consort Mine

Sheba Mine

Fairview Mine

LEGENDMining licenceProspecting licenceNational roadRegional roadRailwayBarberton Greenstone Belt

LOCATIONBarberton Mines is situated

in the Magisterial District

of Barberton, Mpumalanga,

Republic of South Africa,

some 370km east of

Johannesburg and 47km

south-east of Nelspruit.

The geographic location of

Barberton Mines is set out in

the map alongside. Barberton

Mines comprises Fairview

Mine, Sheba Mine, Consort

Mine and BTRP.




BullionA B

G H

BTRP

Lilly Fault

X+

40,0

00

X+

45,0

00

X+

50,0

00

Y-15,000Y-10,000Y-5,000

Margaret, Mamba and Eureka

Fairview slimes dam

Barberton Mines

Barberton Mines ® Metallurgical PlantBIOX

Sheba slimes dams

0 2km

Infrastructure

Main roadTownShaft

Mine Authorisation Boundary

New Order Prospecting Area

Nelspruit SuiteKaap Vallei TonaliteOnverwacht GroupJameson Schist BeltMoodies GroupFig Tree GroupZwartkoppies FormationFault

Geology

LEGEND

N

L

M

K

Sheba Fault

Ulundi Syncline

Barbrook Fault

Thomas and Joe’s Luck

Florence

and Devonian

To Nelspruit

New Consort slimes dam

Sheba Mine

Fairview Mine

Royal Sheba Mine

Clutha Mine

Eagles Nest Mine

To Kaapmuiden

Eureka Syncline

New Consort Mine

Geological setting (sections are illustrated on the map along the mines to depict the mineralised geological structures)

GEOLOGICAL/RESOURCE ESTIMATION METHODOLOGYThe resource was classifi ed according to guidelines compliant with the South African Code for Reporting of

Exploration Results, Mineral Resources and Mineral Reserves (the SAMREC code, 2007).

Geological modelling

The grade and the structure in the ore shoots are highly erratic in nature, and most of the data for evaluating

resource blocks is derived from development adjacent to the mining blocks and from the position of the

present mining areas. The continuity of grade values within the ore shoots is derived primarily from short-

range statistical projections, based on experience that has been gained from historic mining of the orebody

and from the study of its tectonic structure.

The tectonic structure and orebody geometry has been modelled using the Lynx orebody modelling system.

This system allows the three-dimensional structure of the mineralised volume to be viewed graphically.

This is used as a tool for visualising grade continuity and is an aid for mine planning.




Resource estimation

For both diamond-cored drill hole and underground sampling, a minimum sampling width of 230cm is used in

the case of mechanical mining, and 100cm for conventional scraper-type stoping. Where the reef width is less

than this value, hangingwall and footwall samples are included.

Measured reserve blocks are generally 20m on strike and 10m in the dip direction. Where blocks are defi ned

adjacent to a development end only, the grade and true width of the reef in the block are estimated by

calculating the arithmetic mean or ‘stretch average’ of the samples along the development end. If the sample

spacing is at the standard 3m, the block value is derived by calculating the average value of the samples. If the

sample interval is variable, the block is assigned the length-weighted arithmetic mean of the strip averages. If

the resource block is surrounded by sampling, either by previous stope sampling or development sampling, the

block is assigned values based on the mean of the surrounding sample stretches. In each case, one mean value

is determined for each channel sampling section fi rst and the means are then averaged.

Exploration drill hole values are weighted by the inverse of the distance from the sampling to the centre of

indicated and inferred blocks.

Where an individual sample value is greater than 100g/t, the grade is capped at 100g/t. It has been found

historically that if sample values over 100g/t are capped, these abnormally high sample grade values will not

lead to over-valuation of the mean value of the stretch samples, which are used to assign values to nearby

resource blocks.

MINING RIGHTS The mineral rights pertaining to Barberton Mines were issued by the Department of Mineral Resources in

terms of Item 7 of Schedule II of the Minerals and Petroleum Resources Development Act, 2002 (No. 28 of

2002) (MPRDA).

Mineral rights to Barberton Mines comprise three separate mining rights for the three different mining

operations. All three operations’ old order rights were converted to the sole and exclusive right to mine on

28 April 2011. The description of the mining area of all these mines is situated in the Mpumalanga Magisterial

District of Barberton and the commodity is gold. All three of these mining rights will continue to be in force

for a period of 10 years, ending on 27 April 2021.

Mine name Mining licence Mining area Area (ha) Expiry date

New Consort

Mine

MP 30/5/1/2/2/190

MR

Portions of the farms Dublin

302JU, Tinto 300JU, Segalla 306JU,

Whitwick 301JU and Barberton

Nature Reserve 964JU

2,520.81 27 April 2021

Fairview Mine MP 30/5/1/2/2/191

MR

Portions of the farms Sheba 940JU,

Worral 352JU, Hayward 310JU,

Bramber East 314JU and Bickenhall

346JU

3,033.86 27 April 2021

Sheba Mine MP 30/5/1/2/2/189

MR

Portions of the farms Camelot

320JU, Sheba 940JU and Sheba

Siding 939JU

1,705.06 27 April 2021

Mining method: Barberton has continued with the application of semi-mechanised cut and fi ll mining method.

BARBERTON MINES continued




FAIRVIEW MINE

Surface

Fairview Mine

K L

23 Haulage

Fairview 1

Inclin

e

Fairv

iew 2 In

cline

Fairvi

ew 3

Incl

ine

MR

C O

rebo

dy

MRT

Orebo

dy

ZK

Orebody

Wagon Road

Orebody

Hope O

rebody

Com

mitm

ent

Ore

body

11 Level Adit

60 - 62 Level: Mining

64 - 68 Level: Le Roux & MRC Exploration Drilling

54 Level:

Stoping

+1 000m

MSL

-1 000m

MRC Shaft

RossiterStoping

0 500m

LEGEND

Mined-out areas

Envelope of potential mineralisation

Dykes

Shafts

Tunnels

Geology at Fairview Mine

The Fairview Mine orebody is an epigenetic hydrothermal lodegold deposit. Three distinct types of

mineralisation occur in the mine:

• Refractory sulphidic ore, which constitutes the bulk of the ore, is hosted in the greywacke and shale

sequence of the Fig Tree Group. The mineralisation is found in close association with an anastamosing shear

system that often parallels the stratigraphy. Auriferous pyrite and arsenopyrite mineralisation is confi ned to

ribbon-like shoots within the shear system and as disseminations. The shears are often defi ned by quartz-

carbonate veining, and the host rock can be sericitised and carbonated on either side of the shear.

• A coarse clastic unit of the Fig Tree Group hosts a series of hangingwall bodies. The unit consists of thick-

bedded to massive greywacke, grading into arenite with interbedded granule stone layers. Two quartz-

porphyry dykes and two dolerite dykes intrude the host rock sediments. Although the mineralised fractures

persist for up to 500m long, payable gold values are confi ned to several discrete ribbon-like payshoots.

Blue-black quartz veins and quartz-carbonate veins and stock-work are recognised in the hangingwall area.

The contacts and texture of the veins suggest a dilation fracture fi ll origin, rather than replacement origin.

Refractory gold-quartz-carbonate-sulphide ore occurs as disseminated to massive pyrite and arsenopyrite

mineralisation. The age relationship between the gold mineralisation and the quartz-porphyry dykes

suggests that the Hope Reef is marginally older and the Le Roux Reef is marginally younger than the quartz-

GEOLOGYThe Fairview Mine area

straddles the contact between

the Moodies Group to the

north (Eureka Syncline) and

the Fig Tree Group greywacke

and shale to the south (Ulundi

Syncline). The contact is

marked by the presence of the

Sheba Fault. The two synclines

are re-folded, back-to-back

isoclines that dip steeply

to the south. Tight isoclinal,

thrust fault-related anticlines

of Onverwacht Group schist

(Zwartkoppie Formation) occur

within the greywacke.




porphyry dykes. The quartz-porphyry dyke that

intrudes into the Hope Reef mineralisation has

been dated at 3,050 million years.

• Quartz veins, containing free milling gold, occur

in the Moodies Group in the footwall of the

Sheba Fault. The blue-gray quartz veins fi ll near-

vertical cross-cutting fractures in the siliceous,

brittle quartzite units. Gold mineralisation

generally occurs within the vein, but may

penetrate the adjacent host rock. Only minor

pyrite and arsenopyrite is associated with this

ore type.

The deepest intersection on a Fairview orebody is

at a depth of 1,600m below the adit elevation. The

orebody is open at depth.


Mineral Resources

As at 30 June 2015

Category

Tonnes

million

Grade

g/t

Contained gold

tonnes Moz

Measured 1.86 8.08 15.02 0.48

Indicated 1.23 23.96 29.53 0.95

Inferred 1.00 21.78 21.74 0.70

Fairview Mine Total 4.09 16.21 66.30 2.13

Mineral Reserves modifying factors

As at 30 June 2015

Gold

price

R/kg

Cut-off

value

g/t Au

Cut-off

value

cmg/t

Stoping

width

cm

Dilution

%

MCF

%

PRF

%

Fairview Mine 400,000 3.99 399 100 4 100.0 90.5

Mineral Reserves

As at 30 June 2015

Category

Tonnes

million

Grade

g/t

Contained gold

tonnes Moz

Proved 0.60 10.21 6.13 0.20

Probable 1.22 21.03 25.75 0.83

Fairview Mine Total 1.82 17.47 31.88 1.02

1,600,000

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0

2,000,000

1,800,000 45

40

35

30

25

20

15

5

10

00.00 5.00 10.00 20.0015.00 30.0025.00 35.00 40.00 45.00 50.00

50

FAIRVIEW GRADE/TONNAGE CURVE

Tonnage Grade

Cut-off grade (g/t)

Tonn

es

Gra

de (

g/t)




SHEBA MINE

Vantage – Goldfields Mining Area Royal Sheba MineSheba Mine

Proposed future

development

M N

Sheba ZK Shaft

27 Sub

-Incli

ne Sha

ft

Thomas and Joe’s Luck Development

ZK

Orebody

Into

mbi

Ore

body

Royal Sheba

Shaft

Bonanza Mine

ZK

Ore

body

F

G

H

0 500m

LEGEND

Mined-out areas

Envelope of potential mineralisation

Dykes

Shafts

Tunnels

Geology at Sheba Mine

GEOLOGYThe Sheba section area straddles the contact

between the Moodies Group to the north

(Eureka Syncline) and the Fig Tree Group

greywacke and shale to the south (Ulundi Syncline).

The contact is marked by the presence of the

Sheba Fault. The two synclines are re-folded,

back-to-back isoclines that dip steeply to the

south. Tight isoclinal, thrust fault-related anticlines

of Onverwacht Group schist (Zwartkoppie

Formation) occur within the greywacke.

SHEBA GRADE/TONNAGE CURVE

200,000

150,000

100,000

50,000

0

300,000

250,00045

40

35

30

25

20

15

5

10

00.00 5.00 10.00 20.0015.00 30.0025.00 35.00 40.00 45.00 50.00

50

Tonn

es

Gra

de (

g/t)

Cut-off grade (g/t)

Tonnage Grade




Mineral Resources

As at 30 June 2015

Category

Tonnes

million

Grade

g/t

Contained gold

tonnes Moz

Measured 1.80 5.98 10.76 0.35

Indicated 1.20 5.32 6.37 0.20

Inferred 1.19 4.65 5.51 0.18

Sheba Mine Total 4.18 5.41 22.65 0.73


As at 30 June 2015

Gold

price

R/kg

Cut-off

value

g/t Au

Cut-off

value

cmg/t

Stoping

width

cm

Dilution

%

MCF

%

PRF

%

Sheba Mine 400,000 4.49 449 100 5 100 92.75

Mineral Reserves

As at 30 June 2015

Category

Tonnes

million

Grade

g/t

Contained gold

tonnes Moz

Proved 1.19 4.72 5.60 0.18

Probable 1.18 4.36 5.13 0.17

Sheba Mine Total 2.36 4.54 10.73 0.35


The Sheba orebody is an epigenetic hydrothermal lodegold deposit. Three distinct types of mineralisation

occur in the mine:

• Refractory sulphidic ore (MRC Section), which constitutes the bulk of the ore, is hosted in the greywacke

and shale sequence of the Fig Tree Group. The mineralisation is found in close association with a shear

system in the immediate hangingwall of greenschist anticlines of the Zwartkoppie Formation. Auriferous

pyrite and arsenopyrite mineralisation occurs as massive replacement veins within the shear system and

as disseminations.

• In the Zwartkoppie Section, visible gold and disseminated pyrite in the greenschist is the prominent

mineralisation, in association with shear and fracture hosted smoky and white quartz veins.

• The Royal Sheba mineralisation occurs within the Sheba Fault mylonite and shear zone in the footwall of a banded

chert-carbonate shale unit of the Fig Tree Group.

The deepest orebody intersection on Sheba is 1,200m below shaft collar elevation. The orebody is open at

depth.




CONSORT MINE

50 Level

Sub-Incline21Sub-Incline 22

PC

Shaf

t

10 Level

MM

R In

clin

e Sh

aft

22 Level

Prospective

Paytrends

37 Level

45 Level

40 Level

PC Adit3 Shaft

7 Shaft

MMR Payshoot

MMR

Proposed Future

Development

B/G

3 Shaft Payshoot

37 Level: Capital Development

MMR Exploration Drilling

37 Sub-incline Shaft

LEGEND

Mined-out areasEnvelope of Potential MineralisationPegmatitesShafts

+ +++ ++

0 500m

3 Shaft Payshoot

7 Sh

aft Paysh

oot

7 Sh

aft Paysh

oot

PC Shaft Payshoot

49 Sub-Vertical Shaft

Current Stoping

Exploration Drilling

Current Stoping

Current Stoping

Current Stoping

Current Stoping

Geology at Consort Mine

GEOLOGYThe New Consort area can be divided into two distinctive synclinal structures,

termed the Three Shaft syncline and the Top Section syncline. The Shires structure,

which is a prominent north-south striking shear zone dividing these two synclines,

is intruded by a pegmatite.

The New Consort orebody is an epigenetic

hydrothermal lodegold deposit. Gold mineralisation

at the New Consort section is associated with

the contact between the underlying schist of the

Onverwacht Group and the overlying metapelite

of the Fig Tree Group. This contact is marked by

the presence of the Consort ‘bar’, a highly siliceous

banded chert. The Consort bar is thought to be a

silicifi ed mylonite occupying the contact. A series

of north-dipping tabular pegmatites, termed the

MR pegmatites, displace the south-dipping Consort

contact and the mineralised shoots. Some scheelite

mineralisation has been recorded, associated with

the pegmatites. A lenticular body of fi ne-grained

siliceous amphibolite, termed the ‘footwall lens’,

occurs on the northern limb of the Top Section

syncline and is host to the mineralisation in the

PC and MMR shoots. Mineralisation consists of

arsenopyrite and visible gold associated with

fractures in the footwall lens. The Consort bar is

host to mineralisation in the 7 Shaft, 3 Shaft and

Ivaura areas.

The deepest intersection of a New Consort

orebody is 1,450m below adit elevation. The

orebody is open at depth.

200,000

150,000

100,000

50,000

0

250,000

30

25

20

15

5

10

00.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00

35

CONSORT GRADE/TONNAGE CURVE

Tonn

es

Gra

de (

g/t)

Cut-off grade (g/t)

Tonnage Grade




Mineral Resources

As at 30 June 2015

Category

Tonnes

million

Grade

g/t

Contained gold

tonnes Moz

Measured 0.37 8.93 3.34 0.11

Indicated 0.22 11.33 2.47 0.08

Inferred 0.13 12.14 1.57 0.05

Consort Mine Total 0.72 10.23 7.39 0.24


As at 30 June 2015

Gold

price

R/kg

Cut-off

value

g/t Au

Cut-off

value

cmg/t

Stoping

width

cm

Dilution

%

MCF

%

PRF

%

Consort Mine 400,000 5.74 574 100 5 90 89.98

Mineral Reserves

As at 30 June 2015

Category

Tonnes

million

Grade

g/t

Contained gold

tonnes Moz

Proved 0.05 8.62 0.46 0.02

Probable 0.11 8.15 0.86 0.02

Consort Mine Total 0.16 8.31 1.32 0.04





BARBERTON TAILINGS RETREATMENT PROJECTMineral Resources

Barberton Tailings Retreatment Plant (BTRP) as at 30 June 2015

Category

Tonnes

million

Grade

g/t

Contained gold

tonnes Moz

Measured – – – –

Indicated 13.43 1.49 20.02 0.64

Inferred 7.01 0.98 6.85 0.22

BTRP Total 20.44 1.31 26.87 0.86


BTRP as at 30 June 2015

Gold

price

R/kg

Cut-off

value

g/t Au

Cut-off

value

cmg/t

Stoping

width

cm

Dilution

%

PRF

%

BTRP 400,000 – – – – 57.5

Mineral Reserves

BTRP as at 30 June 2015

Category

Tonnes

million

Grade

g/t

Contained gold

tonnes Moz

Proved – – – –

Probable 13.43 1.49 20.02 0.64

BTRP Total 13.43 1.49 20.02 0.64

The table below forms the keynotes to the sources of material that constitute the above mineral reserves.

Slimes dump Tonnes

Grade

g/t

Au content

kg

Ounces

oz

Fairview Bramber 1,377,974 1.65 2,271 73,017

Fairview Harper South 1,959,040 1.50 2,938 94,477

Fairview Harper North 2,868,000 1.55 4,445 142,923

Calcine Northern Segalla 405,900 4.56 1,851 59,508

Segalla 6,816,618 1.25 8,514 273,720

Total 13,427,532 1.49 20,020 643,644




RECONCILIATION OF MINERAL RESOURCES AND MINERAL RESERVESMineral Resources reconciliation: 2014 to 2015

Gold

kg

Gold

koz

Balance as at end June 2014 117,909 3,790.9

Mined during 2014/2015 2,874 92.4

Addition 10,834 348.3

Balance as at end June 2015 125,869 4,046.8

Variance 7,960 255.9

Mineral Reserves reconciliation: 2014 to 2015

Gold

kg

Gold

koz

Balance as at June 2014 gold price R400,000 56,910 1,829.7

Mined during 2014/15 2,874 92.4

Addition 7,387 237.5

Balance as at June 2015 gold price R400,000 61,423 1,974.8

Variance 4,513 145.1

During the 2015 fi nancial year, the following signifi cant changes to resources and reserves occurred:

• Escalating cost with the resulting higher pay limit caused a loss of 212,000 tonnes and 30,600 ounces from

the total reserve

• Sheba – Development to access old boundary pillars increased the proved reserves by 00,000 tonnes at

00g/t

• Fairview – Re-blocking of the Drummond Reef from 18 to 22 level was done and this added 25,380 tonnes

at 5.90g/t

• Fairview – The MRC 11 reserve below 64 level increased from 528,470 tonnes at 32.5g/t to 707,620

tonnes at 34.3g/t, an increase of 7,096kg of gold

• Consort – Despite good drilling results and gains in the measured and indicated resources of 707kg the

rising pay limit resulted in a loss of 357kg proved and probable reserves

• The ongoing effort to re-visit old areas and capture of historical sampling and survey data of old mining areas is

allowing a continued process of vamping and remnant mining at all three Barberton Mines operations.

As a result of the changes detailed above, the Barberton Mines mineral resources inventory posted the

following changes for 2015:

• Barberton Mines mineral reserves increased by 236,161oz contained gold

• Barberton Mines mineral resources increased by 232,880oz contained gold

• Barberton Mines measured mineral resources increased by 91,968oz contained gold

• Barberton Mines indicated mineral resources increased by 242,913oz contained gold

• Barberton Mines inferred mineral resources decreased by 78,272oz contained gold.

As indicated in the table, Barberton Mines’ ore reserves as at 30 June 2014 refl ected a year-on-year depletion

by mining of 92,401oz.





MINERAL RESOURCES TABLE: BARBERTON MINES

Operations Classifi cation

Mineral Resources 30 June 2015

tonnes g/t kg oz

Sheba Measured 1,801,200 5.98 10,764 346,069

Indicated 1,196,800 5.32 6,369 204,781

Inferred 1,185,500 4.65 5,513 177,247

Total 4,183,500 5.41 22,646 728,097

Consort Measured 374,500 8.93 3,344 107,521

Indicated 218,300 11.33 2,474 79,556

Inferred 129,500 12.14 1,572 50,542

Total 722,400 10.23 7,391 237,620

Fairview Measured 1,859,700 8.08 15,021 482,940

Indicated 1,232,400 23.96 29,533 949,512

Inferred 998,300 21.78 21,742 699,023

Total 4,090,500 16.21 66,296 2,131,475

Total mines Measured 4,035,400 7.22 29,129 936,530

Indicated 2,647,500 14.50 38,377 1,233,849

Inferred 2,313,400 12.46 28,827 926,813

Total 8,996,300 10.71 96,334 3,097,192

Slimes dumps Measured – –

Indicated 13,427,500 1.49 20,020 643,644

Inferred 7,013,000 0.98 6,854 220,375

Total 20,440,500 1.31 26,874 864,020

Surface ore Total 178,300 1.76 313 10,079



tonnes g/t kg oz

Outside sections Measured – –

Indicated 214,300 6.19 1,327 42,664

Inferred 183,100 5.69 1,042 33,511

Total 397,400 5.96 2,369 76,176

Total Barberton Measured 4,035,400 7.22 29,129 936,530

Indicated 16,467,700 3.65 60,037 1,930,236

Inferred 9,509,500 3.86 36,724 1,180,699

Total 30,012,600 4.19 125,890 4,047,466




MINERAL RESERVES TABLE: BARBERTON MINES


Mineral Reserves 30 June 2015

tonnes g/t kg oz

Sheba Proved 1,185,600 4.72 5,597 179,960

Probable 1,178,000 4.36 5,134 165,046

Total 2,363,700 4.54 10,731 345,006

Consort Proved 52,700 8.62 455 14,614

Probable 105,500 8.15 860 27,664

Total 158,200 8.31 1,315 42,278

Fairview Proved 600,300 10.21 6,131 197,108

Probable 1,224,200 21.03 25,745 827,729

Total 1,824,500 17.47 31,876 1,024,837

Total mines Proved 1,838,600 6.63 12,183 391,682

Probable 2,507,700 12.66 31,739 1,020,440

Total 4,346,400 10.11 43,992 1,412,122

Slimes dumps Probable 13,427,500 1.49 20,020 643,644

Surface ore Probable 178,300 1.76 313 10,079

Total Barberton Proved 1,838,700 6.63 12,183 391,682

Probable 16,113,600 3.23 52,072 1,674,162

Total 17,952,200 3.58 64,255 2,065,845

As at 30 June 2015, Barberton Mines reported a mineral reserve of 2,065,845oz and mineral resource of

4,047,466oz contained gold. The measured and indicated mineral resources are inclusive of those resources

modifi ed to produce the mineral reserves. Reserves are reported as mill-delivered tonnes at the contained

grade, having duly considered all modifying factors.

JD Verster, the chief surveyor at Barberton Mines, signs off mineral resources for Barberton Mines. He is a

member of the South African Council for Professional and Technical Surveyors (PLATO) (MS0014). Mr Verster

is based at Fairview Mine, GMO Building, Barberton, 1300. Mr Verster has confi rmed in writing that the

information disclosed is compliant with section 12 of the JSE Listings Requirements and Table 1 of the SAMREC

Code, 2009, and that it may be published in the form and context in which it is intended.





TOTAL MINERAL RESOURCES AND MINERAL RESERVES FOR BARBERTON MINESMineral Resources

As at 30 June 2015

Category

Tonnes

million

Grade

g/t

Contained gold

tonnes Moz

Measured 4.04 7.22 29.13 0.94

Indicated 16.47 3.65 60.04 1.93

Inferred 9.51 3.86 36.72 1.18

Barberton Mines Total 30.01 4.19 125.89 4.05


As at 30 June 2015

Gold

price

R/kg

Cut-off

value

g/t Au

Cut-off

value

cmg/t

Stoping

width

cm

Dilution

%

MCF

%

PRF

%

Barberton Mines 40,000 4.49 – 100 16 99.6 91.2

Mineral Reserves

As at 30 June 2015

Category

Tonnes

million

Grade

g/t

Contained gold

tonnes Moz

Proved 1.84 6.63 12.18 0.39

Probable 16.11 3.23 52.07 1.67

Barberton Mines Total 17.95 3.58 64.25 2.06


32

EVANDER MINES

Evander Mines exploits the Kimberley Reef

in the Evander basin, part of the greater

Witwatersrand basin. Mining methods

employed are underground conventional

scraper mining and rail bound equipment

with some trackless mechanised

development.

With No. 8 Shaft at a depth of 2.5km, it takes the workforce approximately an hour to

reach the mining area via a lift and locomotive and two chairlifts. The rock is then hauled

along 11 conveyors from the rock face to the bottom of No. 7 Shaft, where it is hoisted

to surface. The gold is extracted at a CIL hybrid plant.

HIGHLIGHTS

• ETRP commenced in January 2015 – processing 200,000 tonnes per month at 0.31g/t

• Capital spend on ETRP was below budget

LOOKING AHEAD

• Investigating the viability of constructing ‘Elikhulu’ – a tailings retreatment plant to

treat slimes at about 12 million tonnes per annum at a headgrade of 0.28g/t

• Assessing the merits of progressing the Evander South project up the value chain

CHALLENGES

• Three DMR section 54 safety stoppage instructions halted production for a total of six days

• Underground mining operations and infrastructure constraints delayed production

turnaround – high grade mining cycle only commenced in June 2015

• Production tonnes below targets

Pan African Resources





EVANDER MINES

Exploration in this area started in 1903 with the advent of diamond drilling and progressed, intermittently,

through various major exploration phases, up to the incorporation of the fi rst mine (Winkelhaak Mine) in

1955. Since then, three other mines were brought into production – namely Leslie Mine, Braken Mine and

Kinross Mine.

Evander Mines’ mineral assets comprise a set of mineral resources that are from early prefeasibility studies to a

production mine. The current revenue streams for Evander Mines are generated from the Evander 8 Shaft and

re-mining of tailings. The principal economical horizon mined at Evander Mines is the Kimberley Reef, which

was deposited in the Witwatersrand sedimentary basin, ca 2,300 million years ago.

10km0Scale

N17

Leandra

Kinross

EvanderTrichardt

Secunda

Embalenhle

Kriel

Bethal

Evander 8

Evander South

Evander South Ext.

Poplar

Rolspruit

Poplar Ext.

E8

E7

E9

E10

E1

E3

E2 E6

E5

LEGENDMining licenceProspecting licenceNational roadRegional roadRailwayOperational shaftShaft

LOCATIONEvander Gold Mine is

located approximately

120km east-south-east from

Johannesburg in Mpumalanga.

It is close to Secunda, which

hosts the Sasol II Plant, which

exploits several coal seams in

the area.




EVANDER 8 SHAFTLocation

The Evander 8 Shaft is situated about 5km north-west of the town of Evander. It covers an area of 44km2. It

sits between Rolspruit to the north-west and 7 Shaft to the south-east. Mining occurs in the No. 2 Decline

area on the western side, at a depth of 2,100m to 2,300m below surface.

O28 55’E

O29 00’E

O29 05’E

O29 10’E

O29 15’E

O26

35’S

O26

30’S

O26

25’S

O26

20’S

Sugarbush Fault

0 4kmScale

LEGENDReef loss (Normal Fault)Reverse FaultSuboutcrop of Kimberley ReefSugarbush FaultIntermediate SuboutcropStratigraphic Dip DirectionKimberley ReefMined out area of Kimberley ReefEvander West Prospecting RightCompressional stress direction

GEOLOGYThe Evander 8 Shaft is situated

in the distal part of the Evander

Basin. The Kimberley Reef is the

only economical horizon that

is mined. The Kimberley Reef is

situated stratigraphically in the

lower part of the Turffontein

Subgroup, which is in the upper

portion of the Central Rand

Group. The Kimberley Reef

presents the distal facies of a

fl uvial placer that was deposited

by a system of braided-streams.

8 Shaft is currently mining the

western high-grade area of the

Kinross Payshoot (a payshoot

that extends for over 17km

from the south-east to the

north-west of the basin).

Geology

The reef is an oligomictic, pebbly conglomerate and comprises a composite sequence of channel-sediments

that defi ne longitudinal gravel bars and sand bars with pebbly veneers. The reef in the area strikes in an east-

west direction and dips to the north at about 10 degrees. The area is also divided by two major normal faults,

striking in an east-north-east to west-south-west direction. The reef thickness varies from a waste on contact

(WOC) up to a 50cm well-developed oligomictic conglomerate. Average reef thickness is 35cm. High gold

values in the Kimberley Reef are mostly located at the base of the unit, and are associated with the presence

of carbon and some visible gold on the footwall contact.

Mineral Resources estimation

The estimation method used for generating local grade estimates on Evander 8 Shaft is ordinary kriging (OK).

The orientations and ranges of each geozone’s semi-variogram are used to determine the kriging search

parameters, and the estimation parameters are optimised. Estimates are kriged into 30m x 30m blocks for the

measured resources, 60m x 60m blocks for indicated resources and 120m x 120m blocks for inferred resources.

The measured and indicated resource models are then tested on cmgt kriging effi ciency (KEFF) and slope of

regression (SR) and merged together with the inferred model to produce a combined kriged block model.

Underground exploration/development result

All underground borehole intersections are included in the estimation model. All new underground sampling

from stoping and development is added to update the estimation model.

Geology of Evander Mines




Mineral Resources

As at 30 June 2015

Category

Tonnes

million

Grade

g/t

Contained gold

tonnes Moz

Kimberley Reef Measured 1.90 17.04 32.4 1.04

Indicated 2.86 15.63 44.7 1.44

Inferred 7.50 10.58 79.4 2.55

Evander Shaft 8 a Total 12.27 12.76 156.6 5.03

Modifying factors

As at 30 June 2015

Kimberley Reef

Gold

price

R/kg

Cut-off

value

g/t Au

Cut-off

value

cmg/t

Stoping

width

cm

Dilution

%

MCF

%

PRF

%

Evander Shaft 8 a 400,000 9.86 1,243 126 73.5 96.4

Mineral Reserves

As at 30 June 2015

Category

Tonnes

million

Grade

g/t

Contained gold

tonnes Moz

Kimberley Reef Proved 2.05 7.90 16.2 0.52

Probable 3.37 7.34 28.1 0.90

Evander Shaft 8 Total 5.41 8.14 44.3 1.42

EVANDER MINES continued




Mining rights

The mineral rights pertaining to Evander Mines were issued by the Department of Mineral Resources in terms

of Item 7 of Schedule II of the Minerals and Petroleum Resources Development Act, 2002 (No 28 of 2002)

(MPRDA) and were registered on 15 October 2010.

Mining licence

Type of

licence

Licence

number

Area

ha Expiry date Status

Evander South Prospecting MP 30/5/1/2/2/248

PR

2,551 17 October

2008

Renewal application

lodged

Evander South

Extension

Prospecting MP 30/5/1/2/2/4272

PR

11,189 19 October

2016

Renewal application

lodged

E8 Mining MP 30/5/1/2/2/126

MR

36,898 28 April 2038 Conversion

application approved

and in effect

Mining method: Evander 8 Shaft mining method is footwall development to reef horizon and then developing

on reef horizon (raise). The mining follows an upside down Christmas tree sequence to extract the reef

horizon. Old areas of the mine are also cleaned up by means of vamping activities.

0 0

24 222220

20

1818

1616

1414

1212

1010

8 8

6 6

4 4

2 2

0 2

Tonn

es (

milli

on)

Gra

de (

g/t)

4 6 8 10 12 14 16

EVANDER 8: GRADE/TONNAGE CURVE(Measured/indicated resource)

Cut-off grade (g/t)

Tonnage Grade

Life of mine plan (grade/tonnage curves)




EVANDER 7 SHAFTThe Evander 7 Shaft is located south-east of 8 Shaft (approximately 3km apart) and hoists 8 Shaft’s ore to surface. Due to the increased gold price

over the last few years, an opportunity arose to investigate the viability to reclaim ore via vamping operations at 7 Shaft. Other organic growth

projects include the 2010 payshoot at the No. 3 Decline at 7 Shaft.

Mineral Resources

As at 30 June 2015

Tonnes

million

Grade

g/t

Contained gold

Category tonnes Moz


Indicated – – – –

Inferred – – – –

Evander 7 Shaft vamping a Total 0.06 2.75 0.2 0.005

Modifying factors

As at 30 June 2015

Kimberley Reef

Gold

price

R/kg

Cut-off

value

g/t Au

Cut-off

value

cmg/t

Stoping

width

cm

Dilution

%

MCF

%

PRF

%

Evander 7 Shaft vamping a 85 96.4

Mineral Reserves

As at 30 June 2015

Category

Tonnes

million

Grade

g/t

Contained gold

tonnes Moz




Evander 7 Shaft vamping a Total 0.03 3.76 0.12 0.004





EVANDER PROJECTSThe Evander gold assets also consist of exploration projects that are at varying stages of exploration and

development. The individual projects and level of study are summarised below and illustrated in the map below.

O28 55’E

O29 00’E

O29 05’E

O29 10’E

O26

35’S

O26

30’S

O26

25’S

O26

20’S

4km0Scale

P opla r

Evander 8

Poplar

Rolspruit

Poplar Ext.

Evander South Ext.

LEGENDShaftsOperational ShaftsMined-out areas

Mineral ResourcesMeasuredIndicatedInferred

Mineral ReservesProved and Probable

E8

E7

E10

E1

E5

E3

E9 E2

E6

Evander South

ETRP

Location of Evander projects

PROJECTS• The Rolspruit Project is at

preliminary feasibility study

(PFS) stage with a PFS by

Turgis Consulting completed

in October 2011 and updated

in April 2012. Probable

mineral reserves of 6.46Moz

contained gold have been

estimated and declared for

the Rolspruit Project

• The Evander South Project

is at PFS level. A PFS was

undertaken by SRK in 2010.

A mineral resource of

4,92Moz is declared

• The Poplar Project has a

defi nitive feasibility study (DFS)

completed in 2003, which

was updated in 2006.

Subsequent exploration

drilling was undertaken to

defi ne the mineral resource.

A mineral resource of 4.94Moz

is declared

• Evander Gold Surface Projects;

namely:

– The Elikhulu Project,

which is at PFS level,

with estimated indicated

mineral resources of

1.9Moz contained gold

– The ETRP mineral reserve

of 0.40Moz is declared

Pan African Resources (PAR) remains focused on creating shareholder value through unlocking the value of its

organic surface and brownfi elds exploration projects.

In this regard, shareholders are referred to the SENS announcement dated 12 February 2015, which announced

the successful commissioning of the ETRP and the fi rst gold poured from the ETRP in January 2015.

The total construction capital spend on the ETRP was approximately R172 million, which is substantially below

the original R200 million project budget.

The ETRP has now successfully ramped up processing to nameplate capacity of 180,000 to 200,000 tonnes

per month. Gold production from the ETRP remains on target and PAR is pleased to announce recoveries in

line with and exceeding the 42% planned recoveries.

Growth projects at Evander Mines

In light of the positive results of the ETRP, the company has decided to undertake a feasibility study on the

viability of constructing “Elikhulu”, a tailings retreatment plant which can potentially treat slimes at a processing

capacity of up to 12 million tonnes per annum at a headgrade of 0.28g/t from the Winkelhaak, Leslie and

Kinross tailings storage facilities. The total mineral resource for Elikhulu is 165Mt @ 0.28g/t (1.5Moz).

Furthermore, an internal technical team from Evander Mines has been assigned to assess the merits of

progressing the Evander South brownfi eld project to the level of a feasibility study. The Evander South Project

is a potentially attractive mining opportunity whereby the Kimberley Reef can be exploited at shallow depths,

commencing at 300m below surface.




ROLSPRUITBackground

The Rolspruit Project is an exploration project and the orebody is a down-dip extension of the Kinross

Payshoot, currently being exploited at Evander 8 Shaft. The project is located immediately adjacent to

Evander 8 Shaft as shown on page 37. Exploration on the Rolspruit Project commenced in 1955, and by 1988 a

total of 53 boreholes had been completed by various companies, with accompanying reef defl ections.

Geology

The Rolspruit Project is the down-dip extension of the Kinross Payshoot and is in the most distal part of

the Evander Basin. The reef has an average dip of between nine and 22 degrees to the north. The Kimberley

Reef varies in thickness from 10cm to about 60cm. The conglomerate is made up of rounded, quartz clasts

supported by a quartz matrix. Mineralisation is similar to that of Evander 8 Shaft in the No. 2 Decline area. The

nature and amount of pyrite mineralisation are relative good indicators of gold grade values. Buckshot pyrite

and fl yspeck carbon are indicators of high gold values.

Mineral Resources

The mineral resource estimation was performed by ExploreMine Consultants Proprietary Limited in

April 2011. An extensive channel sampling database for the adjoining Evander 8 Shaft area and the surface

drilling data for Rolspruit formed the dataset for the resource estimation.

Macro ordinary kriging was applied to indicated resources. Sichel’s-T estimate techniques were used to classify

the inferred mineral resources. The indicated mineral resource estimation was defi ned on the Evander 8 Shaft

channel sampling dataset and subsequent geozones. The block size was estimated into 60m x 60m blocks.





Mineral Resources

As at 30 June 2015

Category

Tonnes

million

Grade

g/t

Contained gold

tonnes Moz

Kimberley Reef Measured – – – –

Indicated 24.40 10.93 266.7 8.57

Inferred 0.94 9.17 8.6 0.28

Rolspruit a Total 25.34 10.86 275.3 8.85

Modifying factors

As at 30 June 2015

Gold

price

R/kg

Cut-off

value

g/t Au

Cut-off

value

cmg/t

Stoping

width

cm

Dilution

%

MCF

%

PRF

%

Kimberley Reef 400,000 5.59 615 110 16.5 85 96.4

Mineral Reserves

Mineral reserves declared are based on the PFS conducted by Turgis dated October 2011 (updated in April 2012).

As at 30 June 2015

Category

Tonnes

million

Grade

g/t

Contained gold

kg tonnes Moz

Kimberley Reef Proved – – – –

Probable 23.36 8.6 201 6.46

Rolspruit a Total 23.36 8.6 201 6.46


0 4

30 24

25

20

22

15

20

10

18

16

14

12

10

856

0 2

Tonn

es (

milli

on)

Gra

de (

g/t)

4 6 8 10 12 16 1814 20

ROLSPRUIT: GRADE/TONNAGE CURVE(Measured/indicated resource)

Cut-off grade (g/t)

Tonnage Grade




POPLARBackground

The Poplar Project is situated in the north-western limb of the Evander Basin, west of the town of Leandra.

Exploration on the Poplar Project commenced in the mid-1950s and has been the subject of several studies.

A total of 104 boreholes were drilled in the project area, which includes 146 defl ections. A total of

46 boreholes were drilled by Harmony from 2007 to 2010.

Geology

The Kimberley Reef occurs at a depth below surface of between 500m in the west and 1,200m in the east.

The reef strikes north-south and dips nine degrees to 24 degrees to the east. The Kimberley Reef comprises

a sequence of fl uvial, channel sediments that were deposited in a braided stream environment. Deposition

of the reef was infl uenced by the footwall lithologies. The Kimberley Reef horizon has a channel width of

approximately 30cm, generally thin reef hosting high gold grades. The reef has north-east-south-west trending

payshoots, which is evident in other parts of the Evander Basin.

A series of seven major, sub-parallel and fairly evenly spaced faults traverse the property. These are all

orientated in a roughly north-northeast–south-southwest direction. Throws of these faults vary between 50m

and 400m.

Mineral Resources

As at 30 June 2015

Category

Tonnes

million

Grade

g/t

Contained gold

tonnes Moz


Indicated 13.56 7.99 108.3 3.48

Inferred 6.49 6.97 45.3 1.46

Poplara Total 20.05 7.66 153.6 4.94



0 4

30 18

25

20

15

10

16

14

12

10

8

5 6

0 2

Tonn

es (

milli

on)

Gra

de (

g/t)

4 6 8 10 12 14 16

POPLAR: GRADE/TONNAGE CURVE(Measured/indicated resource)

Cut-off grade (g/t)

Tonnage Grade




EVANDER SOUTHBackground

The Evander South Project is in the south-western limb of the Evander Basin. It is located directly west of

Evander 9 Shaft and is south of the Poplar Project. A total of 116 boreholes were drilled in the project area,

and 475 defl ections. A total of 43 boreholes were drilled by Harmony during 2008 to 2009.

Geology

The Kimberley Reef occurs at a depth of between 300m in the west and 1,200m in the east below surface.

The reef strikes north-south and dips six degrees to 19 degrees. The Kimberley Reef comprises a sequence

of fl uvial channel sediments that were deposited in a braided stream environment. Deposition of the reef was

infl uenced by the footwall lithologies. The high-grade Kimberley Reef is associated with carbon and is a narrow,

small pebble, clast-supported and well-packed oligomictic conglomerate. Carbon was present in several of the

borehole Kimberley Reef intercepts drilled in the project area.

Mineral Resources

As at 30 June 2015

Category

Tonnes

million

Grade

g/t

Contained gold

tonnes Moz


Indicated 10.00 9.46 94.6 3.04

Inferred 8.78 6.64 58.5 1.88

Evander South Total 18.78 8.14 152.9 4.92


0 0

25 24

20 2022

15

18

10

1614121086

5 42

0 2

Tonn

es (

milli

on)

Gra

de (

g/t)

4 6 8 10 12 14 16

EVANDER SOUTH PROJECT: GRADE/ TONNAGE CURVE(Measured/indicated resource)

Cut-off grade (g/t)

Tonnage Grade




ELIKHULUBackground

Elikhulu is a surface dump retreatment project that exploits tailings dams which were generated from historical

mining activities at the Kinross, Winkelhaak and Leslie mines. The tailings dams in Evander were drilled and

sampled. A total of 158 holes were drilled on a 200m x 200m grid. Samples were composited at intervals of

1.5m and subjected to metallurgical test-work.

Mineral Resources

As at 30 June 2015

Category

Tonnes

million

Grade

g/t

Contained gold

tonnes Moz

Measured – – – –

Indicated 205.28 0.29 59.6 1.92


Libra Total 205.28 0.29 59.6 1.92

Mineral Reserves

A feasibility study was undertaken to re-treat only the Kinross Dam resource, ETRP. Modifying factors were

applied to convert the mineral resource to a probable reserve. The milling capacity at the Kinross Plant

contributed to a favourable economic modifying factor, resulting in favourable processing and capital costs, thus

allowing the conversion to be stated.

As at 30 June 2015

ETRP (Kinross dams) Category

Tonnes

million

Grade

g/t

Contained gold

tonnes Moz

Proved – – – –

Probable 38.14 0.32 12.3 0.40

ETRP a Total 38.14 0.32 12.3 0.40





EVANDER 7 SHAFT NO. 3 DECLINE – 2010 PAYSHOOTBackground

The No. 3 Decline – 2010 Payshoot area is situated north-east of Evander 7 Shaft. It is at a depth of between

1,600m and 2,450m below surface. The No. 3 Decline was extensively mined in the past up to 20 Level

(1,900m BS). The area is accessible by a decline system from 15 Level down to 21 Level. The 2010 Payshoot

runs parallel to the Kinross Payshoot, east of the No. 3 Decline. Surface boreholes in this area indicate possible

payable reef.

Geology

The Kimberley Reef strikes in an east-west direction and dips at 28 degrees to the north. The Foot Wall Sill

Break is an intrusive (sill) that is a reverse fault, which displaces the reef horizon 90m. The Kimberley Reef

at Evander 7 Shaft is a well-developed oligomictic conglomerate up to one metre thick, averaging about

37cm. The Kimberley Reef in this area is very similar to that of 8 Shaft. High gold values in the Kimberley Reef

are mostly located at the base of the unit and are associated with the presence of carbon and some visible

gold on the footwall contact.

Mineral Resources

As at 30 June 2015

Category

Tonnes

million

Grade

g/t

Contained gold

tonnes Moz


Indicated 0.34 10.03 3.4 0.11

Inferred 5.41 10.85 58.7 1.89

7 Shaft No. 3 Decline

and 2010 Payshoot Total 6.27 10.82 67.8 2.18


0 0

8 22

20

618

4

16

14

12

10

8

624

2

0 2

Tonn

es (

milli

on)

Gra

de (

g/t)

4 6 8 10 12 1614 18

EVANDER 7: GRADE/TONNAGE CURVE(Measured/indicated resource)

Cut-off grade (g/t)

Tonnage Grade




RECONCILIATION OF MINERAL RESOURCES AND MINERAL RESERVES

Mineral resource reconciliation: 2014 to 2015

Gold

kg

Gold

koz

Balance as at June 2014 925,106 29,743

Mined during 2014/15 (3,409) (110)

Addition

Balance as at end June 2015 866,028 27,843

Variance (55,669) (1,790)

Mineral reserve reconciliation: 2014 to 2015

Gold

kg

Gold

koz


Mined during 2014/15 (2,186) (70)

Addition


Variance 2,863 93

During the 2015 fi nancial year, the following signifi cant changes to resources occurred:

• Evander 8 Shaft had a reduction in ounces due to the increase in cut-off grade, a decrease of 1,147,161oz

• Poplar had a reduction in ounces due to the increase in cut-off grade, a decrease of 414,649oz.

During the 2015 fi nancial year, the following signifi cant changes to reserves occurred:

• Evander 8 Shaft reserve increased by 48,000oz. That was due to the additional reserves from the Lubbe

Payshoot.

As a result of the changed detailed above, Evander’s mineral resource inventory posted the following changes

for 2015:

• Total Evander mineral reserve increased by 23,000oz contained gold

• Total Evander mineral resource decreased by 1,900,000oz contained gold

• Measured mineral resource decreased by 77,000oz contained gold

• Indicated mineral resource decreased by 516,000oz contained gold

• Inferred mineral resource decreased by 1,307,000oz contained gold.





MINERAL RESOURCES TABLE: EVANDER MINES


Operations Classifi cation tonnes g/t kg oz

Evander 8 Shaft Measured 1,904,354 17.04 32,450 1,043,000

Indicated 2,861,334 15.63 44,712 1,438,000

Inferred 7,501,004 10.58 79,397 2,553,000

Total 12,266,692 12. 76 156,559 5,034,000

Evander surface sources Measured – – – –



Total – – – –

Evander 7 Shaft (vamping) Measured 57,765 2.75 159 5,000


Inferred – – – _

Total 57,765 2.75 159 5,000

Evander 7 Shaft No. 3 Decline Measured 518,669 11.05 5,733 184,000

Indicated 340,912 10.03 3,419 110,000

Inferred 5,405,496 10.85 58,658 1,886,000

Total 6,265,077 10.82 67,810 2,180,000

Elikhulu (ETRP) Measured – – – –

Indicated 205,280,945 0.29 59,559 1,915,000


Total 205,280,945 0.29 59,559 1,915,000

Rolspruit Measured – – – –

Indicated 24,399,050 10.93 266,672 8,574,000

Inferred 937,985 9.17 8,599 276,000

Total 25,337,035 10.86 275,271 8,850,000

Poplar Measured – – – –

Indicated 13,560,874 7.99 108,310 3,482,000

Inferred 6,494,122 6.97 45,292 1,456,000

Total 20,054,996 7.66 153,602 4,938,000

Evander South Measured – – – –

Indicated 9,997,892 9.46 94,617 3,042,000

Inferred 8,781,847 6.64 58,320 1,875,000

Total 18,779,739 8.14 152,937 4,917,000

Total Evander Measured 2,480,788 15.46 38,342 1,232,000

Indicated 257,181,497 2.25 577,420 18,565,000

Inferred 29,120,454 8.59 250,266 8,046,000

Total 288,782,739 3.00 866,028 27,843,000




MINERAL RESERVES TABLE: EVANDER MINES

Mineral resource 30 June 2015

Operations Classifi cation tonnes g/t kg oz

Evander 8 Shaft Proved 2,046,842 7.90 16,175 520,000

Probable 3,366,549 8.34 28,076 903,000

Total 5,413,391 8.17 44,251 1,423,000

Evander surface sources Proved

Probable – – – –

Total

Evander 7 Shaft (vamping) Proved 30,800 3.76 116 4,000


Total 30,800 3.76 116 4,000

ETRP Proved – – – –

Probable 38,142,803 0.32 12,324 396,000,

Total 38,142,803 0.32 12,324 396,000

Rolspruit Proved – – – –

Probable 23,362,565 8.60 201,006 6,462,000

Total 23,362,595 8.60 201,006 6,462,000

Total Proved 2,077,642 7.84 16,291 524,000

Probable 64,871,917 3.72 241,406 7,761,000

Total 66,949,558 3.85 257,697 8,285,000

As at 30 June 2015, Evander reported a mineral reserve of 8,285,000oz and mineral resource of 27,843,000oz contained gold. The measured and

indicated mineral resources are inclusive of those resources modifi ed to produce the mineral reserves. Reserves are reported as mill-delivered

tonnes at the headgrade, having duly considered all modifying factors.

The competent person for Evander Mines, Mr Barry Naicker, the group mineral resource manager, signs off the mineral resources for

Evander. He is a member of the South African Council for Scientifi c Professions (400234/10). Mr Naicker has a Master’s degree in mineral

resource management from Witwatersrand University and a Bachelor of Science (Honours) in economic geology. Mr Naicker has 14 years of

experience in economic geology and mineral resource management. Mr Naicker is based at First Floor, The Firs, cnr Cradock Avenue and Biermann

Avenue, Rosebank, 2196, Gauteng.





TOTAL MINERAL RESOURCES AND MINERAL RESERVES FOR EVANDER MINESTotal Mineral Resources

As at 30 June 2015

Category

Tonnes

million

Grade

g/t

Contained gold

tonnes Moz


Indicated 257.18 2.25 577.4 18.57

Inferred 29.12 8.59 250.3 8.05

Evander Mines Total 288.78 3.00 866.0 27.84

Total Mineral Reserves

As at 30 June 2015

Category

Tonnes

million

Grade

g/t

Contained gold

tonnes Moz

Proved 2.08 7.84 16.3 0.53

Probable 64.9 3.72 241.4 7.76

Evander Mines a Total 67.0 3.85 257.7 8.29


PHOENIX PLATINUM

Phoenix Platinum recovers PGEs from

CTRP located on IFL’s Lesedi Mine. The

Buffelsfontein, Elandskraal and Kroondal

mineral resources originate from the

mining of chromitite seams from the

Bushveld Igneous Complex.

The Bushveld Igneous Complex is host to the world’s largest deposits of PGEs. The

operation is expected to produce PGEs over a life of mine of 28 years. It has a total

process capacity of 240kt per annum.

The PGEs are extracted in the fl otation plant and the concentrate is delivered to

Lonmin’s Mooinooi Smelter for toll extraction.

The CTRP was designed to treat sulphide material from the Lesedi Mine, which is

supplied to Phoenix Platinum with sulphide-rich material, as a current arising.

HIGHLIGHTS

• 44% increase in PGE ounces sold

• Increase in PGE recoveries from 29% to 44%

• Capital spend on ETRP was below budget

LOOKING AHEAD

• Optimising mineral reserves from Elandskraal and Kroondal (122.534oz)

• Continuing to contain costs

CHALLENGES

• Declining commodity prices

• International Ferro Metals business rescue proceedings






HISTORY OF PHOENIXPan African Resources acquired 100% of Phoenix Platinum from Metorex Limited (Metorex) on 21 May 2009.

Phoenix Platinum recovers PGM 6E from old tailings and current arisings through mineral rights agreements

from the IFM Lesedi Mine dams and current arisings, the Elandskraal dumps and pits, and the Kroondal dump.

These tailings are covered through various agreements with Phoenix Platinum to be the feed source for a

240ktpa chrome tailings retreatment plant (CTRP).

Buffelsfontein (IFM Lesedi Mine dams and current arisings)

IFM operates a chromite ore benefi ciation plant that feeds a number of chromite furnaces on its property

to produce ferrochrome. The chromite ore benefi ciation plant rejects gangue minerals in the form of tailings

(current arisings) to the tailings dams. The bulk mass of the tailings is made up of pyroxenites, some unrecovered

chromite and PGM 6E minerals associated with pyroxenites. Historically, IFM mined mainly the MG1 seam, with

lesser amounts of MG2 included. The PGM 4Es mineral rights in the IFM tailings dams, and current arisings

situated on the farm Buffelsfontein, were acquired in 2008.

The IFM tailings dams were constructed in 2006 and, to date, have been used for the deposition of tailings

material from the IFM chrome benefi ciation plant.

Elandskraal

The tailings in the pits was created by historic mining of the MG1 and MG2 orebodies by Samancor and Hernic

mining operations. In 2003, Minco purchased the operations from Hernic and started chromite reclamation

from the dumps. Phoenix Platinum has an agreement with Minco to process the Elandskraal dumps and pits.

Kroondal

Metorex acquired the Kroondal resource from the joint venture between GB Mining and Exploration

SA Proprietary Limited and Aquarius Platinum SA Proprietary Limited in 2008. This dump was generated by

tailings from the mining of the LG6 chromitite layer of the Bushveld Igneous Complex at the Xstrata Kroondal

operations.

PHOENIX PLATINUM

10km0Scale

N4

Rustenburg

Mooinooi

Bapong

Kroondal

Elandskraal

Buffelsfontein

Magaliesberg ProtectedNatural Environment

LEGENDFarm boundaryNational roadRegional roadRailway

LOCATIONLocated in the North-West

Province of South Africa.

Situated in the town of

Mooinooi, on the lease area

of the IFM Lesedi Mine.




PILANESBERG ALKALINE COMPLEX

P

Vaalkopdam

R565

N4

15km0

Atlanta

RustenburgPretoria

Western Limb

Northern Limb

Middelburg

Nylstroom

Groblersdal

Dullstroom

Polokwane (Pietersburg)

EasternLimb

Mokopane(Potgietersrus)

Northam

Saulspoort

Heystekrand

Mogwase

Ledig

Sun City

Beestekraal

Mooinooi

Rustenburg

Bapong

Brits

RUSTENBURG LAYERED SUITE

MERENSKY REEF

UG2

UG1

MG4

MG3

MG2

MG1

LG7

LG6 & LG6A

LG5

Upper Group

MiddleGroup

Lower Group

PYROXENITE MARKER

MAIN ZONE

UPPER CRITICAL ZONE

LOWER CRITICAL ZONE

LOWER ZONE

MARGINAL ZONE

UPPER ZONE LEGEND

Chromitite

Anorthosite

Norite

Pyroxenite

LEGENDLebowa Granite SuiteUpper ZoneMain ZoneMerensky ReefUG2 ReefUpper Critical ZoneLower Critical ZoneLower ZoneMarginal ZoneTransvaal SupergroupPilanesberg Alkaline Complex FaultTownFarm boundariesRoadRailwayRiverTailings and current arisings sources

xel

pm

oC

dle

vh

su

B

der

ey

aL

gru

bn

ets

uR

eti

uS

N4

AngloPlat(Union)

AngloPla

t

(Aman

delbu

lt)

ImpalaLease

Barplats

Lonmin

(Marikana)

AquariusAngloPlat

(Marikana)

AngloPlat

(Rustenburg)

Aquarius

AngloPlat

(Kroondal)

AngloPlat

(Bafokeng-

Rasimone))

NorthamPlatinum

AngloPlat

(Pandora)Barplats

(Crocodile River)

Kroondal dump

Buffelsfontein dams and current arisings

Elandskraal dumps and pits

R

Geology of Western Limb – Bushveld Igneous Complex




REGIONAL GEOLOGYThe Buffelsfontein, Elandskraal and Kroondal mineral resources originate from the mining of the Bushveld

Igneous Complex. The chromitite layers in the Western Limb of the Bushveld Igneous Complex are confi ned

to the critical zone of the layered complex and are grouped from the bottom upwards, into lower, middle and

upper groups. The middle group consists of four chromitite seams of which the sixth seam – numbered from

bottom (MG1) to top (MG4) – is being mined. The mining that took place at Elandskraal and is still taking place

at Buffelsfontein (IFM Lesedi Mine) are the MG1 and MG2 seams. The MG1 seam sits in the Lower Critical

Zone of the Bushveld Igneous Complex, whereas MG2 is in the Upper Critical Zone of the Bushveld Igneous

Complex. Both MG1 and MG2 dip at approximately 12 degrees to the north.

Deposit types

Mineralisation at Phoenix is classifi ed as tailings dumps. The tailings from the various chromite mines are

deposited onto a dump, which is then re-treated by Phoenix Platinum to recover the PGMs 6E.

MINERAL RESOURCE ESTIMATION METHODOLOGYBuffelsfontein

Quantities

Dumps: The Buffelsfontein dumps were surveyed to obtain the in situ volumes. The tailings dams occupied

321,067.5m3. A bulk density of 1.54t/m3 was determined in a laboratory from dump samples, and this was used

in the tonnage calculation for declaration of the resource. Tailings from the CTRP were added as an inferred

resource; this was calculated using plant fl ow meters, densitometers and daily assays.

Current arisings: Current arisings tonnages were determined using a 15% extraction of the mineral reserves of

Lesedi Mine. The inferred resource was determined using a 15% extraction of the inferred resources for Lesedi Mine.

Grade

Resource determination was done by drilling the resource dams on a grid pattern of 8m x 8m where possible.

A composite sample of the drill hole was created and then analysed for the PGM 4E content at a minerals

analysis laboratory. An inverse distance estimation technique was used to derive the mineral resource grade.

Elandskraal

Quantities

Resource volumes were determined by drilling the resource dumps, dams and pits on a grid pattern where

possible. The grids at Elandskraal were less straight than at Buffelsfontein, due to the roughness of the terrain

that made up the resource. Information from this drilling process was modelled three-dimensionally by

mineral resource specialists to obtain accurate resource tonnage determinations, which would form part of a

SAMREC-compliant resource.

Grade

The information from the sampling process was analysed and the average grade for the dam and pits was

determined, using an inverse distance estimation technique.

Kroondal

As at June 2013, the Kroondal resource was split into three areas:

• Farm Kroondal 304JQ dump

• Wonderkop non-processed dumps

• Wonderkop processed dump.

Quantities

A volumetric survey was conducted on farm Kroondal 304JQ and on the Wonderkop non-processed dumps.

Due to vegetation on Wonderkop processed dump, a volumetric survey in 2013 was not undertaken, and the

resource was thus reclassifi ed as an indicated resource. A bulk density of 2.04 t/m was used.

Grade

The area consists of the LG6 tailings dump at the dormant Kroondal Mine. A detailed competent person’s

report was completed in 2003 by Craton Resources CC, and the grade determined was 2g/t PGE 6E.

PHOENIX PLATINUM continued

GEOLOGYThe Elandskraal and

Buffelsfontein mineral

resources are situated

5km east of Mooinooi,

north of the N4 highway

that connects Pretoria and

Rustenburg in North West.

The sites are accessed via the

old Rustenburg/Pretoria road,

which runs parallel to the

N4 highway. The Kroondal

mineral resource is 7km east

of Rustenburg on the old

Rustenburg/Pretoria Road.




BUFFELSFONTEINLocation

Buffelsfontein dumps and current arisings are located on the farm Buffelsfontein 465JQ, portion 11 constituted by portions 20, 21, 22, 23 and 24,

and portion 12. The satellite image below depicts the dumps and the decline shaft used to extract the current arisings.

Mineral Resources

As at 30 June 2015

Category

Tonnes

kt

Grade

g/t

Contained PGEs

kg oz

Buffelsfontein tailings dams Measured 118 3.66 432 13,903

Indicated – – –

Inferred 785 2.60 2,040 65,575

Buffelsfontein current arisings Indicated 3,054 3.66 11,178 359,369

Inferred 362 3.66 1,326 42,627

Buffelsfontein a Total 4,319 3.47 14,976 481,474

Mineral Reserves

As at 30 June 2015

Category

Tonnes

kt

Grade

g/t

Contained PGEs

kg oz

Buffelsfontein tailings dams Proved 118 3.66 432 13,903


Buffelsfontein current arisings Proved – – – –

Probable 3,054 3.66 11,178 359,369

Buffelsfontein Total 3,172 3.66 11,610 373,272

Mineral Resources and Reserves reconciliation

The mineral reserves decreased from 395,211oz PGEs to 373,272oz PGMs. This decrease can be attributed to the re-mining of the Buffelsfontein

tailings dam.

Landsat image of Buffelsfontein

• Exploration boreholes




ELANDSKRAALLocation

Elandskraal dumps, dams and pits are located on the farm Buffelsfontein 465JQ, portion 155, as shown below.


Mineral Resources

As at 30 June 2015

Category

Tonnes

kt

Grade

g/t

Contained PGEs

kg oz

Measured 1,149 2.45 2,815 90,506

Indicated 145 2.04 296 9,510

Inferred 42 2.00 84 2,701

Elandskraal a Total 1,336 2.39 3,193 102,717

Mineral Reserves

As at 30 June 2015

Category

Tonnes

kt

Grade

g/t

Contained PGEs

kg oz

Proved 1,149 2.45 2,815 90,506

Probable 145 2.04 296 9,510

Elandskraal Total 1,294 2.40 3,111 100,016

Mineral Resources reconciliation

No material movements occurred in the reporting year.

Landsat image of Elandskraal

• Exploration boreholes




KROONDALLocation

The Kroondal resource is located in two areas – the farm Kroondal 304GQ and the Xstrata

Wonderkop plant in Marikana.

1,160m AMSL

1 2Section E - G

70

1,160m AMSL

7 8 9 10 11

Section M - J

70

1,160m AMSL

16 15 14 13 12

Section P - N

70

1,160m AMSL

3456

Section A - L

70

27 26 25 24 23 22

Section B - S

70

1,160m AMSL

17 18 19 20 21

Section R - Q

70

1,160m AMSL

E

A

M

P

G

B

L

J

N

Q

S

R

Secti

on lin

es

32,900 33,000 33,100 33,200

44,9

00

45,0

00

45,1

00 >3g/t

1 - 3g/t

<1g/t

0 100m




Mineral Resources

As at 30 June 2015

Category

Tonnes

kt

Grade

g/t

Contained PGEs

kg oz

Measured 316 2.00 632 20,319

Indicated 50 2.00 100 3,215


Kroondal a Total 366 2.00 732 23,534

Mineral Reserves

As at 30 June 2015

Category

Tonnes

kt

Grade

g/t

Contained PGEs

kg oz

Proved 316 2.00 632 20,319

Probable 50 2.00 100 3,215

Kroondal Total 366 4.00 732 23,534

TOTAL MINERAL RESOURCE AND MINERAL RESERVE – PHOENIX PLATINUMTotal Mineral Resources – PGEs

As at 30 June 2015

Contained PGEs

Category

Tonnes

million

Grade

g/t kg Moz


Indicated 3.2 3.66 11,574 0.4

Inferred 1.2 2.90 3,446 0.1


Total Mineral Reserves – PGEs

As at 30 June 2015

Contained PGEs

Category

Tonnes

million

Grade

g/t kg Moz


Probable 3.2 3.56 11,574 0.4


As at 30 June 2015, Phoenix Platinum reported mineral reserves of 0,5Moz PGE and mineral resources of 0,6Moz PGEs. The measured and

indicated mineral resources are inclusive of those resources modifi ed to produce the mineral reserves.





GLOSSARY

Adit A mining tunnel that is mined from the side of a mountain or mining pit

Capital expenditure (capex) Expenditure on tangible assets – includes ongoing and project capital. In particular, capex

includes spending on ongoing development, abnormal expenditure, shaft projects and major

projects, and covers both sustaining and growing operations

Cash cost Cash costs include direct operating costs for all mining and processing sites, but are exclusive of

royalties, production taxes, depreciation and rehabilitation, as well as corporate administration,

capital and exploration costs

Chrome tailings Discards from a chrome washing plant be it historical (tailings dams) or new (current arisings)

Chrome Tailings Retreatment Programme This is a fl otation plant constructed to recover PGMs from chrome tailings

Contained gold The total gold content (tonnes multiplied by grade) of the material being described

Current arisings The live tailings discarded by the chrome operators’ washing plant and fed directly to a CTRP.

Cut-off grade Minimum grade at which a unit of ore will be mined to achieve the desired economic outcome

Decline Underground evacuation at an inclined angle – normally a shaft

Depletion Decrease in quantity of ore in a deposit or property due to extraction or production

Development Process of accessing an orebody through shafts or tunnelling in underground mining

Development capital Capital expenditure incurred in development of the workings areas and creation of additional

mineral resources to support the mining operations

Gold produced Refi ned gold derived from the mining process, measured in ounces or kilograms in saleable

form

Grade Quantity of gold contained in a unit weight of gold-bearing material, generally expressed in

ounces per short ton of ore (oz/t), or grams per metric tonne (g/t)

Greenstone Belt Geological zone of variably metamorphosed matic to ultramatic volcanic sequences with

associated sedimentary rocks that occur within Archaean and Proterozoic cratons between

granite and gneiss

IFL International Ferro Metals (SA) Proprietary Limited, Phoenix Platinum concluded a formal

CTRP agreement with IFL and operates from its Lesedi Mine

In situ Original or unbroken condition of the reef before mining

Indicated resource A mineral resource reported as an in situ mineralisation estimate – intermediate level of

geoscientifi c knowledge and confi dence

Inferred resource A mineral resource reported as an in situ mineralisation estimate – low level of geoscientifi c

knowledge and confi dence

JORC Australian code for reporting exploration results, mineral resources and mineral reserves

JSE JSE Limited

Measured resource A mineral resource reported as an in situ mineralisation estimate – high level of geoscientifi c


Metallurgical recovery factor A measure of the effi ciency in extracting gold from the ore deposit

Milling A process of reducing broken ore to a size at which concentrating can be undertaken

Mine call factor The ratio, expressed as a percentage, of the total quantity of recovered and unrecovered

mineral product after processing with the amount estimated in the ore based on sampling

Mining Charter Charter to facilitate the sustainable transformation and development of the South African

mining industry

Outside section Sections that are not part of the current operating mines, but are part of the contained mineral

rights area

Pay limit The grade of a unit of ore at which revenue from the recovered mineral content of the ore

is equal to the total cash cost, including ore reserve development and stay-in-business capital

Probable reserve A mineral reserve reported as a mineable production estimate – lower level of geoscientifi c


Proved reserve A mineral reserve reported as a mineable production estimate – higher level of geoscientifi c


Recovered grade The recovered mineral content per unit of ore treated




Reef A gold-bearing sedimentary horizon, normally a conglomerate band that may contain economic

levels of gold

Reserve base A mineral reserve reported as a mineable production estimate – the probable and proved

reserve

SAMREC South African code for reporting exploration results mineral resources and mineral reserves

Tailings Finely ground rock of low residual value from which valuable minerals have been extracted

Discarded tailings stored in dam facilities.

Ton Imperial = 2,000 pounds (1,016kg). Referred to as a short ton.

Tonne (t) Metric = 1,000 kilograms

Underground mining Mining activities occurring below the earth’s surface

Vamping tons Reef tons emanating from cleaning out of old underground working places

ABBREVIATIONSBarberton Mines Barberton Mines Proprietary Limited

BFS Bankable feasibility study

BIOX® Biological oxidation

CIL Carbon-in-leach

CTRP Chromite Tailings Retreatment Plant

DMR Department of Mineral Resources: South African Governmental department (previously DME)

EE Employment equity

Evander Mines Evander Gold Mines Proprietary Limited

LOM Life of mine

MPRDA The South African Mineral and Petroleum Resources Development Act, 28 of 2002

MRM Mineral resource management

PAR, Pan African or the company Pan African Resources

PGE’s Platinum group elements – platinum, palladium, rhodium and gold

PGM Platinum group minerals/metals

Phoenix Platinum Phoenix Platinum Mining Proprietary Limited – The Chromite Tailings Retreatment Plant in the

North-West province, South Africa

RC Reverse circulation: drilling method

SAMREC The South African Resource Committee

SAMREC Code The South African code for the reporting of exploration results, mineral resources and mineral

reserves

Shanduka Shanduka Gold Proprietary Limited, a 100% subsidiary of Shanduka Resources Proprietary

Limited

GLOSSARY continued


COMPANY INFORMATION

CORPORATE OFFICEThe Firs Offi ce Building

1st Floor, Offi ce 101

Cnr. Cradock and Biermann Avenues

Rosebank, Johannesburg

South Africa

Offi ce: + 27 (0) 11 243 2900

Facsimile: + 27 (0) 11 880 1240

REGISTERED OFFICESuite 31

Second Floor

107 Cheapside

London, EC2V 6DN

United Kingdom

Offi ce: + 44 (0) 20 7796 8644

Facsimile: + 44 (0) 20 7796 8645

DIRECTORSCobus Loots


Chief executive offi cer

Offi ce: + 27 (0) 11 243 2900

Deon Louw


Financial director

Offi ce: + 27 (0) 11 243 2900

COMPANY SECRETARYPhil Dexter

St James’s Corporate Services Limited

Offi ce: + 44 (0) 20 7796 8644

JSE SPONSORSholto Simpson

One Capital

Offi ce: + 27 (0) 11 550 5009

NOMINATED ADVISER AND JOINT BROKERJohn Prior/Paul Gillam/James Black

Numis Securities Limited

Offi ce: +44 (0) 20 7260 1000

JOINT BROKERMatthew Armitt/Ross Allister

Peel Hunt LLP

Offi ce: +44 (0) 20 7418 8900

PUBLIC AND INVESTOR RELATIONS SAJulian Gwillim

Aprio Strategic Communications

Offi ce: +27 (0)11 880 0037

PUBLIC AND INVESTOR RELATIONS UKDaniel Thöle

Bell Pottinger PR

Offi ce: + 44 (0) 20 3772 2500

www.panafricanresources.com


www.panafricanresources.com


mineral resources and mineral reserves report

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