Pan African Resources Plc – Operational Update for the half-year ended December 2025 (H1FY26) & Proposed Initiation of Interim Dividend

Pan African Pan African Resources Funding
Resources PLC Company Limited

(Incorporated Incorporated in the Republic of
and South Africa with limited
registered in liability
England and
Wales under Registration number:
the Companies 2012/021237/06
Act 1985 with
registered Alpha code: PARI
number
3937466 on 25
February
2000)

Share code on
LSE: PAF

Share code on
JSE: PAN

ISIN:
GB0004300496

ADR ticker
code: PAFRY

(«Pan African
Resources» or
the «Company»
or the
«Group»)

OPERATIONAL UPDATE FOR THE HALF-YEAR ENDED DECEMBER 2025 (H1FY26) AND PROPOSED
INITIATION OF INTERIM DIVIDEND

Pan African is pleased to provide its shareholders and noteholders with an
operational update for the half year ended 31 December 2025 (Reporting Period)
as well as to announce the initiation of an interim dividend to be approved by
the Company’s board of directors (Board) together with the H1FY26 results.

KEY FEATURES

· Increase in gold production of 51% to 128,296oz (H1FY25: 84,705oz)
· Further production increases expected IN H2Fy26, on track to meet full year
production guidance
· Substantially de-geared balance sheet – reduction in net debt of more than
65%
· INITIATION OF interim dividend PROPOSED – ZA12 cents per share
· Definitive Feasibility Study Soweto Cluster project – expected to be
completed by June 2026

SAFETY

· Improvement in overall Group safety performance
· Total Recordable Injury Frequency Rate (TRIFR) improved substantially to
4.74 (H1FY25:8.25) per million-man hours
· Lost Time Injury Frequency Rate (LTIFR) improved to 1.22 (H1FY25: 1.54)
per million-man hours.

PRODUCTION

· Increase in gold production of 51% to 128,296oz (H1FY25: 84,705oz), with the
Group on track to meet full year production guidance range of between 275,000oz
and 292,000oz
· Production at Evander operations improved substantially by 87% to 21,640oz
(H1FY25: 11,551oz), with the subvertical hoisting shaft operating at capacity
and mining in the high-grade Kinross Channel of the Kimberley Reef.  Production
in H2FY26 is expected to increase further with higher mined tonnages
· Elikhulu achieved excellent results, with production increasing by 14% to
29,450oz (H1FY25: 25,725oz)
· Mogale Tailings Retreatment (MTR) operations at steady state following
ramp-up in FY25, with production of 21,729oz, approximately 10% lower than
expected, as a result of mining grades and recoveries impacted by the current
mining area
· MTR expansion to 1,000ktpm was successfully commissioned in December
2025, with increased capacity and improved recoveries expected to increase gold
production in H2FY26.  Going forward annualised production from MTR is expected
to be between 55-60kozpa

· Barberton Mines underground production increased by 5% to 32,774oz
(H1FY25: 31,142oz) and BTRP production remained stable at 7,143oz (H1FY25:
7,544oz)
· Tennant Mines achieved steady state throughput, with production of
15,560oz (including gold equivalent ounces from the sale of copper concentrate).
Production in H2FY26 is anticipated to increase to approximately 30,000oz as
higher-grade ore from open pits replace lower grade feed from the Crown Pillar
Stockpile (CPS). The average expected recovered mining grade in H2FY26 is
planned at 2.22g/t (H1FY26:1.15g/t).

FINANCIAL

· The Group has now substantially de-geared its balance sheet, with reduction
in net debt of more than 65% to US$49.9m, compared to US$150.5m in June 2025
· Given the prevailing high gold prices, the Group expects to be fully de
-geared (in terms of net debt) by the end of February 2026. This is despite the
payment of a record final dividend to shareholders in December 2025

· All in sustaining cost (AISC) of production for H1FY26 is expected in the
range of US$1,825/oz -US$1,875/oz at US$/ZAR17.37, (FY26 full year guidance:
US$1,525/oz to US$1,575/oz at US$/ZAR18.50) negatively impacted by:
· the strengthening of the US$/ZAR exchange rate by 6.1% to US$17.37, with
an impact of approximately US$115/oz
· the increase in employee share-based payment expenses, as a result of an
increase of more than 140% in the Company share price from ZAR11.09 (GBp45.75)
at 30 June 2025 to ZAR26.98 (GBp121.00p) at 2 January 2026 (approximately
US$80/oz)
· third party material processed at the Evander and MTR operations during
the period contributing to higher costs, as well as increased royalty payments
due to the higher gold price received

· Increased gold production guided for H2FY26 is anticipated to reduce unit
costs of production.

PROPOSED INTERIM DIVIDEND FOR THE SIX MONTHS ENDED 31 DECEMBER 2025

· Interim cash dividend of ZA12 cents per share (or US0.74488 cents per share
at an indicative exchange rate of US$/ZAR:16.11 or 0.54745 pence per share at an
indicative exchange rate of GBP/ZAR:21.92) is intended to be approved by the
Board together with the interim results for the six months ended 31 December
2025. Further information regarding the formal declaration of the proposed
interim dividend as required in terms of the JSE Listings Requirements,
including the salient dates, will be communicated with the release of the
Group’s interim results on 18 February 2026.

FUTURE PRODUCTION GROWTH

· A feasibility study to process the Group’s Soweto Cluster Tailings Storage
Facilities (Soweto TSFs) was successfully completed during the Reporting Period
(announced on SENS and RNS on 27 November 2025). An integrated 600ktpm Soweto
Tailings Retreatment (STR) circuit at MTR was identified as the preferred option
to process the Soweto TSFs, due to a significantly lower upfront capital
requirement, a shorter construction period, reduced permitting obligations and
superior financial returns. This option will also benefit from synergies with
the existing MTR plant and operational infrastructure
· The Definitive Feasibility Study for this option is expected to be
completed by June 2026, with a final Board decision to commence project
construction shortly thereafter
· Anticipated construction period of approximately 24 months
· Expected annual gold production of 30-35koz for approximately 15 years at
an all-in-sustaining-cost (AISC) of between US$1,000/oz and US$1,200/oz, which
will increase production from the MTR complex to approximately 100kozpa, once
construction is complete

· At Tennant Mines, the earn-in exploration joint venture with ASX listed
Emmerson Resources on which the White Devil project and others are located was
successfully concluded during September 2025
· Ongoing exploration on the Group’s wholly owned Mining Leases at Nobles,
Juno and Warrego confirmed extensions to the known mineralised zones.
Additionally, regional exploration programmes comprising magnetotelluric
geophysical surveys and remote sensing has identified more than 10 new
prospective targets for exploration.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE UPDATES

· Following the completion of positive feasibility studies for the 20MW
Evander Mines’ phase 2 solar plant expansion, total solar generation capacity at
Evander will be expanded from 10MW to 30MW. A contractor has been appointed and
construction of the additional capacity is expected to commence by June 2026
· In July 2025, site work commenced on phase 2 of the 3ML/day Evander water
treatment plant, with first water expected in late February 2026. At MTR,
construction of a 3ML/day water treatment plant to treat acid mine drainage
water commenced in November 2025. This plant is expected to be commissioned in
May 2026 and will produce potable water to meet the requirements of the MTR
processing plant
· The MTR operation was awarded the `Best ESG Initiative by a Mining Company’
at the international Resourcing Tomorrow conference held in December 2025, where
competing entries included projects from other international mining groups. The
judges recognised the immediate positive impacts of Pan African’s activities on
the environment and local communities, following years of neglect in the area.

Pan African Resources CEO Cobus Loots commented:

«Pan African’s safety, operational and financial performance in the first half
of the financial year, together with the boon of record gold prices, has
positioned us to deliver outstanding results for the full year. During the
reporting period the Group de-geared its balance sheet and is also now further
boosting cash returns to shareholders, with our board set to approve an
attractive proposed interim dividend payment.

The half year results demonstrate the success of our strategy of focusing on
high-margin, long-life tailings retreatment operations and also the acquisition
of the very prospective Tennant Mining in Australia.  We also wish to commend
the Evander management team for the successful turnaround of the underground
operation, with further improvements expected in the period ahead.

Despite our continued focus on cost control, all-in sustaining unit costs were
higher than guided for the reasons detailed in this release, we believe the
expected increased gold production in H2 of the financial year will assist with
reducing unit costs.

We are excited about the further production growth opportunities within our
asset portfolio. Pan African is capitalising on the very favourable current
environment to position the Group to continue «Mining for a Future» for many
more years.

We look forward to presenting our interim results, including details on our
prospects and initiatives, on 18 February 2026.»

The information contained in this announcement is the responsibility of the
Company’s Board and has not been reviewed or reported on by the Group’s external
auditors.

Johannesburg

26 January 2026

For further information on Pan African, please visit the Company’s website at

www.panafricanresources.com

+———————————————+—————————+
|Corporate information |
+———————————————+—————————+
|Corporate Office |Registered Office |
| | |
|The Firs Building |107 Cheapside, 2nd Floor |
| | |
|2nd Floor, Office 204 |London, EC2V 6DN |
| | |
|Corner Cradock and Biermann Avenues |United Kingdom |
| | |
|Rosebank, Johannesburg |Office: + 44 (0)20 3869 |
| |0706 |
|South Africa | |
| |[email protected] |
|Office: + 27 (0)11 243 2900 | |
| | |
|[email protected] | |
+———————————————+—————————+
|Chief Executive Officer  |Financial Director and debt|
| |officer |
|Cobus Loots      | |
| |Marileen Kok |
|Office: + 27 (0)11 243 | |
|2900                                         |Office: + 27 (0)11 243 2900|
+———————————————+—————————+
|Head: Investor Relations |Website: |
| |www.panafricanresources.com|
|Hethen Hira | |
|Tel: + 27 (0)11 243 2900 | |
|E-mail: [email protected] | |
+———————————————+—————————+
|Company Secretary |Joint Broker |
| | |
|Jane Kirton |Ross Allister/Georgia |
| |Langoulant |
|St James’s Corporate Services Limited | |
| |Peel Hunt LLP |
|Office: + 44 (0)20 3869 0706 | |
| |Office: +44 (0)20 7418 8900|
+———————————————+—————————+
|JSE Sponsor & JSE Debt Sponsor |Joint Broker |
| | |
|Ciska Kloppers |Thomas Rider/Nick Macann |
| | |
|Questco Corporate Advisory Proprietary |BMO Capital Markets Limited|
|Limited | |
| |Office: +44 (0)20 7236 1010|
|Office: + 27 (0) 63 482 3802 | |
+———————————————+—————————+
| |Joint Broker |
| | |
| |Matthew Armitt/Jennifer Lee|
| | |
| |Joh. Berenberg, Gossler & |
| |Co KG (Berenberg) |
| | |
| |Office: +44 (0)20 3207 7800|
+———————————————+—————————+

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