Pan African Resources for 2006 (PAF) Moderated

Pan African Resource Interim Results


RNS Number:6235O
Pan African Resources PLC
27 December 2006


27th December 2006

Pan African Resources PLC
("Pan African" or "the Company")

Interim report for the six months ended 30 September 2006

Pan African Resources PLC (AIM: PAF)("Pan African" or "the Company"), the
African based gold exploration Company, announces the interim statement as at 30
September 2006 and operational review.

Highlights



* Confirmation of high (90% for oxides and 86% for sulphides) gold
recoveries at the Manica project in Mozambique

* Scoping study confirmed viability of Manica project as an open pit mine
in Mozambique


Post Interim Period Results


* Signature of a conditional agreement to establish Pan African as a
significant gold producer



Chairman Colin Bird commented:



"The Manica gold project in Mozambique is showing tremendous development
potential and drilling in the Central African Republic will be underway in the
New Year. The Company has taken the first step, by signing a conditional
agreement for the purchase of gold mines in South Africa, to building a balanced
portfolio of gold production and exploration ounces. The Company is positioning
itself as an emerging mid-tier gold company."



Enquiries:

Pan African Resources Ambrian Partners Limited Parkgreen Communications
Jan Nelson, CEO Richard Brown Justine Howarth / Victoria Thomas
+27 11 886 1211 +44 (0)20 7776 6417 +44 (0) 20 7851 7480
Colin Bird, Chairman
+44 (0) 20 7584 2155


For further information on Pan African Resources please visit the website at
www.panafricanresources.com





PAN AFRICAN RESOURCES PLC

Six Month Interim Statement at 30 September 2006 and Operational Review

Chairman's statement

Result for the period

During the period under review, the Group returned a loss of #98,491 as compared
with a loss of #791,293 in the eighteen-month period to 31 March 2006. As at 30
September 2006 the Company had a cash balance of approximately # 1,058,993 .


Operational Review

Metallurgical testwork and engineering mine design work has taken place during
the period in the group's Manica gold project in Mozambique. Gold-in-soil and
stream sediment sampling was ongoing at the Bogoin and Dekoa gold projects in
the Central African Republic.

Metallurgical testwork at the Manica project indicated recoveries of 90,12% for
oxide material and 86% for sulphide material. The Company is currently
completing optimisation work to assess the possibility of increasing the
recoveries even further. An independent scoping study on the viability of an
open pit mine at the Manica project on the Fair Bride propsect indicated an
ungeared, pre-tax and royalty NPV of US$39 million and an IRR of 31%.
Optimisation work is currently underway on capital and working cost estimates.
Furthermore the results from a recent bulk sampling programme at the Fair Bride
prospect indicate a significantly higher sulphide grade of 3.73g/t insitu as
opposed to a resource estimated sulphide grade 2.61g/t in situ used in the mine
engineering scoping study. This is an increase of 1.12g/t and could
significantly improve the current NPV if validated. Work is currently underway
to produce independent validation of these results after which Turgis will
revisit their evaluation . Drilling is planned to commence in Q1 of 2007 to
validate these results.

In the Central African Republic, the regional gold-in-soil programme at the
Bogoin gold project has been completed and drilling is expected to commence in
Q1 of 2007 to test the 12km gold-in-soil anomaly identified to date. Stream
sediment sampling is underway at the Dekoa gold project.

The company is evaluating other opportunities in a number of African regions and
announcements will be made in due course as appropriate.


Post Interim Period Events

In addition to the above mentioned the Company announced on 20 December that it
has signed a conditional Sale of Shares Agreement with Metorex Limited to
purchase 74% of Barberton Mines Limited in South Africa. The proposed
transaction is intended to provide the Company with a strong production base to
further pursue its exploration and development strategy.

The directors are proactively seeking new opportunities as well as advancing the
Company's existing interests with a view to delivering above normal returns to
shareholders. The directors are confident that the second half year will be as
productive as the first with further positive progress being made in all aspects
of the business.


By Order of the Board

Colin Bird
Chairman



PAN AFRICAN RESOURCES PLC

UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT

Six Months Ended 30 September 2006


Six-Month Eighteen-Month
Ended 30.9.2006 Ended 31.3.2006
# #
Exploration Costs - (464,575)

Administrative expenses (117,617) (346,827)
(operating loss)

Interest receivable 19,126 30,759

Amount written off investments - (10,650)

Loss on ordinary activities before (98,491) (791,293)
taxation

Tax on loss on ordinary activities - -

Loss for the financial period (98,491) (791,293)

Loss per ordinary share - basic (0.02p) (0.22p)





PAN AFRICAN RESOURCES PLC

UNAUDITED CONSOLIDATED BALANCE SHEET AS AT 30 SEPTEMBER 2006

As at As at
30 September 31 March
2006 2006
# # # #

FIXED ASSETS
Intangible assets 5,316,658 4,847,630
Investments 4,800 4,800
4,321,458 4,852,430
CURRENT ASSETS
Debtors 23,910 3,225
Cash at bank 1,058,993 1,874,702

1,082,903 1,877,927
Creditors: amounts
falling due
within one year (171,951) (399,455)

910,952 1,478,472

Total assets less 6,232,410 6,330,902
current liabilities


CAPITAL AND RESERVES
Share capital 4,077,532 4,077,532
Share premium account 3,978,178 3,978,178
Merger reserve 1,485,000 1,485,000
Profit and loss (3,308,300) (3,209,808)
account

Shareholders' funds 6,232,410 6,330,902




PAN AFRICAN RESOURCES PLC

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

Six Months Ended 30 September 2006


Six Months Eighteen Months
Ended 30.09.2006 Ended 31.03.2006
# #

CASH FLOW STATEMENT

Net cash outflow
from operating activities (230,155) (503,901)

Returns on investments and
servicing of finance 19,126 30,759


Capital expenditure and
financial investment (604,680) (697,170)

Financing - 1,820,881

(Decrease) / Increase in cash (815,709) 650,569




PAN AFRICAN RESOURCES PLC

NOTES TO THE UNAUDITED INTERIM ACCOUNTS

Six Months Ended 30 September 2006



1 The calculation of earnings per share is based on the losses
of #98,491 and on the number of shares in issue being the adjusted weighted
average number of shares in issue totalling .

The fully diluted earnings per share are based on 407,753,235
ordinary shares allowing for the full exercise of outstanding share purchase
options and the earnings as stated above. There is no dilutive effect in the
period and in the previous period in accordance with FRS 14 paragraph 56.

No change has been made to share based payments under FRS in respect
of share options granted, as the Directors consider that the effect will not be
material.


2 The current period for the company is a twelve-month period ending 31st March 2007.

3 The comparative figures were for the eighteen-month period ended 31st March 2006.

4 The interim statement for the six months ended 30th September 2006 is
unaudited and was approved by the Directors on 22 December 2006. The financial
information set out above does not constitute statutory accounts within the
meaning of s.240 of the Companies Act 1985.

5 Copies of the Interim Report are available to the public free of
charge from the company at Manfield House, 2nd Floor, 1 Southampton Street,
London WC2R 0LR during normal office hours, Saturdays, Sundays and bank holidays
excepted, for 31 days from today.


This information is provided by RNS
The company news service from the London Stock Exchange
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