#1TOP 10 COMPANY Sunday Times INTERIM RESULTS for the 6 months ended 31 Dec 2020 INVESTOR PRESENTATION COBUS LOOTS CEO PAN AFRICAN FEBRUARY 16TH, 2021 WALL MAIN ST. Virtual InvestorConferences.com GLOBAL METALS & MINING INVESTOR CONFERENCE RESOURCES#2DISCLAIMER The name 'Presenter' refers to Pan African Resources PLC and its advisors, subsidiaries or affiliated companies. This presentation has not been filed, lodged, registered or approved in any jurisdiction and recipients of this document should keep themselves informed of and comply with and observe all applicable legal and regulatory requirements. Statements or assumptions in this presentation as to future matters may prove to be incorrect. The Presenter makes no representation or warranty as to the accuracy of such statements or assumptions. 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Recipients of these slides and the presentation should not therefore deal in any way in ordinary shares in the capital of the Presenter ("Ordinary Shares") until the date of a formal announcement by the Presenter in connection with the preliminary results of the Presenter for the six months ended 31 December 2020. Dealing in Ordinary Shares in advance of this date may result in civil and/or criminal liability. 2#3FORWARD LOOKING STATEMENTS Statements in this presentation that address exploration activities, mining potential and future plans and objectives of Pan African Resources are forward-looking statements and forward-looking information that involve various risks, assumptions and uncertainties and are not statements of fact. The directors and management of Pan African Resources believe that the expectations expressed in such forward-looking statements or forward-looking information are based on reasonable assumptions, expectations, estimates and projections. However, these statements should not be construed as being guarantees or warranties (whether expressed or implied) of future performance. There can be no assurance that such statements will prove to be accurate and actual values, results and future events could differ materially from those anticipated in these statements. Important factors that could cause actual results to differ materially from statements expressed in this presentation include among others, the actual results of exploration activities, technical analysis, the lack of availability to Pan African Resources of necessary capital on acceptable terms, general economic, business and financial market conditions, political risks, industry trends, competition, changes in government regulations, delays in obtaining governmental approvals, interest rate fluctuations, currency fluctuations, changes in business strategy or development plans and other risks. Although Pan African Resources has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. Pan African Resources is not obliged to publicly update any forward-looking statements included in this presentation, or revise any changes in events, conditions or circumstances on which any such statements are based, occurring after the publication date of this presentation, other than as required by regulation. 3#4OVERVIEW OF PRESENTATION COVID-19 Impact and mitigation H1 FY 2021 - Highlights Overview of our operations Operational performance by asset Further reducing Group AISC Group capital expenditure (ZAR) Environmental, social and governance (ESG) H1 FY2021 financials Near term organic growth: Egoli project Mintails SA proposed transaction FY2021 - Delivery on track Appendix 4#5COVID-19 IMPACT AND MITIGATION PAN AFRICAN RESOURCES ANIZANINIZNIZNIZNIZNIZNIZNINZEZNAN#62020/03/08 ° 2020/04/24 2020/05/18 MINERALS COUNCIL SOUTH AFRICA 2020/06/03 2020/07/05 2020/07/21 2020/08/06 2020/08/22 Daily cases • Total cases 2020/09/07 2020/09/23 2020/10/09 2020/10/25 2020/11/10 2020/11/26 2020/12/12 2020/12/28 2021/01/13 COVID-19 IMPACT AND MITIGATION COPING WITH SOUTH AFRICA'S SECOND WAVE OF INFECTIONS Daily cases 800 600 400 200 Daily and total cases diagnosed over time 30k • 25k 20k 15k 10k 5k Total cases OUR EMPLOYEES • • • Two deaths due to COVID-19 complications (as at date of presentation) Total positive cases represent 3.4% of total Group employees and contractors Encouraging recovery rate, in line with minerals industry and country Rate of infections currently decreasing 2021/01/29 MITIGATION MEASURES AND RESPONSE PLANS IN PLACE • • • Standard Operating Procedures and Protocols in place - regularly updated Strict site access protocols and screening, with temperature monitoring, handwashing and sanitisation facilities at all operations Extensive and ongoing awareness campaigns . Provision of PPE (facemasks, sanitisers, gloves) and health supplements/immune boosters to employees • Isolation facilities and medical practitioners at each site • Medical stations offered as vaccination facilities#7AZNIZAIZKIZNIZIA H1 FY2021 – HIGHLIGHTS NZNZ ZNZNZNZ PAN AFRICAN RESOURCES "Our improved operational and financial performance of the year continues to demonstrate the resilience and operational flexibility of our multiple producing assets. "#8(ZAR/kg) FY2021 HIGHLIGHTS FIVE-YEAR HISTORIC GOLD PRICES ZAR/KG AND US$/OZ 1 300 000 1 200 000 1 100 000 1 000 000 900 000 800 000 700 000 2 200 2 000 1 800 1 600 1 400 1 200 1 000 600 000 800 500 000 400 000 600 400 2015/07/01 2015/12/01 2016/05/01 2016/10/01 2017/03/01 2017/08/01 2018/01/01 2018/06/01 2018/11/01 2019/04/01 2019/09/01 2020/02/01 2020/07/01 2020/12/01 Source: World Gold Council ZAR/kg -US$/ OZ (US$/oz)#9H1 FY2021 HIGHLIGHTS Group performance highlights COD ☑ Safety performance • Ongoing safety initiatives and interventions in pursuit of a zero-harm working environment • Improvement in all reportable • accident rates across Group operations Elikhulu – no lost-time / - reportable injuries during reporting period • One fatality at Barberton Mines in July 2020, following 3 million fatality free shifts Production performance • Group gold production • 5.9% to 98,386oz Barberton Mines u/g gold production 15.3% to 42,3500z Evander 8 Shaft Pillar production 9.1% to 12,6070z . Financial performance Revenue 38.4% to US$183,8m • Net cash generated by operating activities 178.2% to US$28,1m . . Profit after tax US$40,8m 86.3% to • Adjusted EBITDA 72.9% to US$76,4m • Net senior debt 49.1% to US$59,9m EPS 85.1% to US 2.11 cents per share • • Cost performance • Group cash cost- US$ 999/oz↑ 4.6% Group AISC excluding realised hedge losses US$ 1,182/oz 1.2% - Group AISC including realised hedge losses US$ 1,252/oz 12.5% • 80% of production (Elikhulu, BTRP and Barberton Mines u/g) at an AISC of US$ 1,030/oz✓#10OVERVIEW OF OUR OPERATIONS PAN AFRICAN RESOURCES ANIZA#11OVERVIEW OF OUR OPERATIONS Operating in South Africa 費 . Electricity Reduced instances of supply disruptions, power grid stable Barberton and tailings operations - less exposed than deep- level miners • To commission 9,975MW solar plant at Evander in Q3 2021 - feasibility study initiated at Barberton operations • Mining tenure Evander mining rights valid until 2038 Submitted renewal application for Barberton mining rights - renewal in process • Regular inspections from authorities and reporting procedures . Security • Integrated multi- • faceted security strategy plan for the group Modernisation of crime prevention security technology at all facilities - resulted in increased arrests for illegal mining Stakeholder engagement • Multi-facetted engagements with all stakeholders, including with our communities • COVID-19 awareness, prevention and mitigation programmes for employees ESG • Increased focus on rehabilitation, water recycling and alternate land use • Independent audits on environmental and legal compliance for assurance 'Beyond compliance' community projects on track for commissioning in 2021 - to alleviate high unemployment rates 11#12OVERVIEW OF OUR OPERATIONS A UNIQUE COMBINATION OF UNDERGROUND MINING AND SURFACE REMINING - WITH INCREASING PRODUCTION PROFILE MPUMALANGA Mbombela Kruger National Park Middelburg BTRP Barberton Emalahleni Evander Mines Élikhulu Secunda Ermelo Barberton Mines Ounces PAR Group gold production profile 250 000 200 000 C. 210.000OZ C. 190.0000Z C. 195.0000Z c.180.0000Z 150 000 100 000 50 000 0 2018 2019 Actual 2020 2021 2022 Projected ■Barberton ■BTRP Evander 8# ■ Elikhulu 2023 ----- ■ Egoli 12#13OVERVIEW OF OUR OPERATIONS - KEY FEATURES GOLD PRODUCTION 5.9% to 98,386oz (2019: 92,9410z) • . ELIKHULU This US$120million tailings retreatment plant is one of the lowest cost operations in southern Africa Processing up to 1.2mt of historic tailings per month • ~60,000oz p/a production capacity ⚫ AISC of US$737/oz (with scope to reduce further) • Technologically advanced and safe automated plant, minimal labour required Forecast capital payback in <3 years (FY2021) • Life of mine ~12 years • BTRP • Designed to treat 100,000 tonnes per month - • . commenced June 2013 Production stable at 10,0040z (2019: 10,619oz) AISC of US$864/oz Work ongoing to ensure production run-rate is maintained - additional feed expected from Royal Sheba project Turns environmental rehabilitation liabilities into profits • Capital cost paid back in 18 months • Life of mine ~9 years (2-3 years at current rate of production) BARBERTON MINES Underground Improved mining flexibility and available face length • Three high grade platforms established at Fairview Mine, average grade of between 15g/t and 36g/t . . • Excellent safety record Robust operational performance with the complex achieving production output of 52,354oz (2020:47.356oz) • Underground AISC decreased by 8.2% to US$1,256oz due to increased production Life of mine ~20 years EVANDER 8 SHAFT PILLAR • Limited capital outlay • Maximising the value of our own asset portfolio ~30,000oz p/a production capacity Production ramping up - increased by 9.1% to 12,607oz (2019:11,5530Z) • Mining crews to be redeployed at Egoli ⚫ Life of mine ~3 years 13#14AZNIZNINIZNIZNIZN OPERATIONAL PERFORMANCE BY ASSET PAN AFRICAN RESOURCES#15• • OPERATIONAL PERFORMANCE BY ASSET TAILINGS OPERATIONS ELIKHULU • Production 8.3% to 26,8630z (2019: 29,3010z) - AISC of US$737/oz (2019: US$708/oz) Lower recoveries and constrained plant throughput to be resolved during H2FY21 9,975MW solar photovoltaic renewable energy power plant on track for calendar Q3 commissioning - ensures a reliable power supply and reduced electricity costs Ounces production per year Adjusted EBITDA generated: ZAR484,8million (US$29,8million) Evander 7 Evander 7A Year 4 mining Year 2 mining Year 3 mining Year 6 mining Year 5 mining Pump Year 4 mining Year 7 mining Year 5 mining station Approximately 6 km of piping to be established Leslie/Bracken re-mining Process water dam Elikhulu LOM production profile 80 000 70 000 Actual Forecast 60 000 50 000 40 000 30 000 20 000 10 000 0 Year 2 mining Year 1 mining Elikhulu TSF All Elikhulu tailings deposited onto the combined Elikhulu and Kinross TSF's Elikhulu metallurgical plant Kinross re-mining Approximately 5.5 km of piping to be established Pump station Year 7 mining Year 8 mining Year 9 mining Winkelhaak re-mining Year 10 mining Year 11 mining Year 12 mining Switch to Winkelhaak TSF 15#16• • • OPERATIONAL PERFORMANCE BY ASSET TAILINGS OPERATIONS BTRP BTRP LOM production profile 30 000 Production stable at 10,0040z (2019: 10,619oz) - AISC of US$864/oz (2019: US$643/oz) LOM of 9 years - 2-3 years at current resources, additional feed sources planned from Royal Sheba project EBITDA generated: ZAR134,6million (US$8,3million) Reduces Barberton Mines environmental and rehabilitation liabilities - clean up of historic tailings frees up land for other uses Ounces 25 000 20 000 15.000 10 000 5 000 0 2018 2019 2020 2021 2022 2023 2024 2025 Tailings Surface Other sources 16#17OPERATIONAL PERFORMANCE BY ASSET • BARBERTON UNDERGROUND FAIRVIEW MINE • · . Improved mining flexibility - combined high- grade face lengths available for mining cycles are in excess of 120m, with mining widths exceeding 15m Increased mineral reserve delineation drilling has improved geological models and predictability Current mining on 358, 256 and 257 platforms of the MRC orebody de-risk FY21 production guidance - three high-grade platforms now established Next high grade Platform 258 scheduled to be accessed in H2 FY2021 Exploration drilling and development resulted in a 110% increase in high-grade MRC platform available to mine (1,781m2 vs 847m2) SHEBA MINE . New winder at ZK shaft improving safety and efficiency - enables access to Royal Sheba Down-dip extension to 37 Level providing additional 57m of high-grade strike length at Sheba Mine Bramber Harper South Quartzites BTRP Harper North Fairview Adit Wagon Road Quartzites Ultramafic lava Sheba fault Chert Greywake Rossiter 54 Level Hope Reef Cats Cave Titbits 2 Decline 42 Level 3 Decline Sub-vertical 1 Decline 38 Clutha 5 Fracture 23 Level 60 Level 30 Level 195 Platform 101 Platform 62 Level 272 Platform 37 Level 358 Platform 256 Platform 62 level 430 Decline 68 Level 257 Platform 258 Platform planned 68 Level ZK orebody MRC orebody Margaret Thomas Golden Quary Sheba Edwin Bray Adit ZK Shaft Vantage Royal Sheba Royal Royal Sheba 17 Sheba Adit#18OPERATIONAL PERFORMANCE BY ASSET FAIRVIEW MINE - EXCELLENT PROGRESS WITH DEVELOPMENT ON HIGH GRADE PLATFORMS 358 Platform Current footprint = 680 m² Average grade @14.74g/t gold 257 Platform 68.60MRC11A 6.37/ 256 Platform ECLINE -150 RAMP 484 68 20MRC11A 2:20 305 MRCIID 595 68 60MRC11E 9.15/393 Original footprint = 327 m² Average grade @ 17.28g/t gold Current footprint = 587 m² Average grade @ 23.90g/t gold 2.65 334 3617562 68.20MRCIID 1:42 595 6MRC1ID IND 142 595 - Original footprint = 263 m² Average grade @ 23.90g/t gold 68 20MRC11E 1:42/633 68RCHIE D 1:42 633 Current footprint = 514 m² Average grade @35.76g/t gold Original footprint = 257 m² Average grade @ 25.78g/t gold OCHICAD 334 18#19OPERATIONAL PERFORMANCE BY ASSET BARBERTON UNDERGROUND 3 Shaft 6 Shaft PC adit 42 level 7 Shaft PC shaft MMR shaft MMR adit 14 level 15 level Consort gold production and AISC 2 000 4.000 CONSORT MINE • . • • Successful extraction of high-grade section at New Consort's Prince Consort (PC) Shaft 42 Level - Proved Reserve of 5,000 tonnes at average grade of 25g/t New Consort outperformed gold production targets by more than 34% (or 3,000oz) at grades in excess of 300g/t Au Orebody remains continuous along strike and up-dip to 41 Level • Targeted AISC of ~US$1,200/oz now achieved (2019: US$2,046/oz) EXPLORATION . • On-site exploration team in place for target generation and prioritisation Continued interpretation of historic data, structural analyses and digitisation using advanced software Follow up site inspections for systematic target drilling programme - targets include Footwall Bar, PC Contact Block and MMR Block Initial sampling at PC Shaft revealed grades in excess of 300g/t, containing large amounts of visible gold Ounces 1 500 1 000 500 0 …..!!!! Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec 0 3 000 2000 1 000 Ounces AISC US$/oz 19#20OPERATIONAL PERFORMANCE BY ASSET • EVANDER 8 SHAFT PILLAR Shaft tower construction between 14 and 16 Levels completed • Teething issues with underground • • • • support pseudo-packs now resolved, following delays due to COVID-19 - now changed to dry tailings and fly ash Production delays due to fracturing of the shaft lining successfully repaired - additional support installed in holing area to prevent similar incidents On track for feasibility study plan to produce 30,000oz/year at an average AISC of US$1,000/oz for the next three years Production cost savings result from simplified logistics, modern underground mining support and reduced travel times (300m tramming distance from shaft) Despite challenges, gold production from Evander u/g increased by 9.1% to 12,6070z (2019: 11,5530Z) 12 crews now in place to maintain tonnage of ~12,000 tpm (previously 9 crews, ~8,000 tpm) - to further benefit unit costs 25 Level Sandstone Coal Tillite Dolomite Mafic lava Witwatersrand supergroup 18 Level 24 Level Kimberley Reef รอวuno 8 Shaft 15 Level Egoli Evander 8 Shaft pillar production 5.000 Actual 4 000 3 000 2 000 1 000 0 7 Shaft 7A Shaft Kinross metallurgical plant Sandstone Coal Tillite Mafic lava 4.000 Forecast 3 000 2 000 1000 0 July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Ounces AISC US$/oz 20#21FURTHER REDUCING GROUP AISC Lower cost operations AISC per kg (ZAR/kg) AISC per oz (US$/oz) Higher cost operations Total lower Barberton Mines underground* BTRP Elikhulu cost operations % PAR Group Production 656,633 451,700 385,214 538,715 80% 1,256 864 737 1,030 Evander underground Evander surface sources Total higher cost operations % PAR Group Production AISC per kg (ZAR/kg) AISC per oz (US$/oz) 1 302,365 806,095 1132,480 20% Including realised hedging losses Excluding realised hedging losses 2,491 1,542 2,166 1,950 AISC per oz (US$/oz) - Forecast H2 FY2021 Hedges closed out in December 2020 1,094** * Includes all Barberton Mines underground operations **Assuming production of 100kg/month as per feasibility study with costs in line with H1 and exchange rate of ZAR16.26/US$ 21#22US$/oz 0 1600 1400 1200 1000 800 600 400 200 B2Gold Corp Evolution Mining Kirkland Lake Gold Centerra Gold Newcrest Mining Source: S&P Global, Individual company websites and presentations FY 2021 AISC OUTLOOK Endeavour Mining Northern Star FURTHER REDUCING GROUP AISC Kinross Gold Fields AngloGold Ashanti Golden Star PAR core operations H1FY21 Barrick DRD Gold Newmont AISC (US$/oz) Yamana Agnico Eagle PAR H1FY21* lamgold Harmony *Excluding realised hedging losses 22 Average US$999/oz#23GROUP CAPITAL EXPENDITURE (ZAR) ZARM 2 000 1 800 1 600 1 400 1 200 1 000 800 600 400 200 0 2017 2018 2019 2020 2021 FC Egoli 70 Elikhulu 1 256,1 534,6 8,6 80 Evander 262,0 342,4 38,1 328,3* 90 BML Expansion 77,9 99,4 89,3 110,3 200 BML Sustaining 116,5 111,0 140,0 186,6 250 *Includes 9A block exploration drilling, osmiridium recovery circuit in plant and critical spares not previously budgeted for 23 23#24AZAZNIZNIZN ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) PAN AFRICAN RESOURCES#25ESG ONGOING REHABILITATION, BIODIVERSITY AND SUSTAINABLE DEVELOPMENT INITIATIVES ENVIRONMENT ENVIRONMENT SOCIAL SOCIAL • Renewable energy: Elikhulu 9,975MW solar PV plant . Reduced carbon footprint - will save 26,000t of CO2 emissions in the 1st Year Ensures stability of supply & cost reduction Options to expand plant to 25MW • Feasibility study complete for solar PV plant at Barberton Mines ENVIRONMENT Responsible and sustainable water use programmes • Focus on efficient use of water through reuse and recycling Feasibility study completed at Evander Mines on a water retreatment plant to treat 3 megalitres of water/day using reverse osmosis technology • . Biodiversity management Collaboration projects to promote sustainability of protected areas in host communities Will provide a clear framework for the continued coexistence of conservation and mining activities GOVERNANCE Independent audits completed and ongoing • Carbon tax emissions • Tailings storage facilities • Mineral tenure compliance • Social and Labour Plan implementation Water use licenses • • Environmental management system compliance Closure liabilities fully funded Ongoing rehabilitation programmes Socio-economic development • Construction of second healthcare • • infrastructure project nearing completion at Barberton Mines Community - to be handed over to Deptartment of Health in March 2021 New school infrastructure plans approved at Kaapvallei School, Barberton - construction to commence in Q1 2021 Community lighting infrastructure projects commenced at Evander Planning for numerous host community initiatives in progress as part of the current 5-year approved social and labour plans implementation process Invested US$1.0 million in host community projects and employee development programmes . • • Barberton Blueberries agri-project Employment for local communities - up to 375 seasonal jobs, added downstream job opportunities Optimise use of land and water resources - 15ha initial phase on land owned by Barberton Mines On track for commissioning during May 2021 'Beyond compliance' long-term initiative to sustain local communities beyond mining - initial budget of US$2.7 million SOCIAL Skills development · Ongoing investment in skills development and training of employees, learnerships and community bursaries 25#26H1 FY2021 FINANCIALS ANIZNANIZNIANINIZNIZNIZNENZENEN PAN AFRICAN RESOURCES#27H1 FY2021 FINANCIALS SUMMARISED CONSOLIDATED FINANCIAL RESULTS Period ended Period ended 31 December 31 December Salient features Units 2020 2019 Movement Gold produced (oz) 98,386 92,941 5.9% Gold sold (Note 1) (oz) 98,386 90,602 8.6% Revenue (US$ Million) 183.8 132.8 38.4% Average gold price received (combined) (US$/oz) 1,865 1,464 27.4% (R/kg) 975,187 692,045 40.9% Adjusted EBITDA APM (Note 2) (US$ Million) 76.4 44.2 72.9% Attributable earnings (US$ Million) 40.8 21.9 86.3% Headline earnings EPS (US$ Million) 40.8 21.7 88.0% (US cents) 2.11 1.14 85.1% HEPSAPM Net debt APM (US cents) 2.11 1.13 86.7% (US$ million) 65.2 123.7 (47.3%) Note 1: Gold sold excludes 2,339oz produced by Evander Mines' mining operations between July 2019 and December 2019. The associated revenue and costs were capitalised for accounting purposes prior to the 8 Shaft pillar project reaching steady-state production during May 2020. Note 2: Adjusted EBITDA comprises earnings before interest, taxation, depreciation and amortisation and impairment reversals. 27#28US$ '000 H1 FY2021 FINANCIALS 130 000 120 000 110 000 100 000 90 000 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 Jun-19 Sep-19 Dec-19 HISTORICAL/EXISTING SENIOR DEBT CONTRACTUAL REPAYMENT PROFILE Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Solar plant senior debt - contractual repayment profile Jun-21 Existing senior debt - historical/forecasted repayment profile Existing senior debt - contractual principal repayment profile Egoli senior debt - contractual repayment profile Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 Dec-26 Mar-27 Jun-27 Sep-27 *Assumptions: R900,000/kg gold price to 30 June 2021 with a 5% annual escalation from 1 July 2021 | Guided ounces | Exchange rate US$/ZAR:16.50 28#29H1 FY2021 FINANCIALS HISTORICAL/FORECAST COMBINED SENIOR DEBT PROFILE US$ '000 140 000 120 000 100 000 80 000 60 000 40 000 20 000 Jun-19 Sep-19 Dec-19 *Assumptions: R900,000/kg gold price to 30 June 2021 with a 5% annual escalation from 1 July 2021 | Guided ounces | Exchange rate US$/ZAR:16.50 Mar-20 Jun-20 Total Senior Debt Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 Dec-26 Mar-27 Jun-27 Sep-27 29#30H1 FY2021 FINANCIALS RATIO OF NET DEBT TO NET ADJUSTED EBITDA* 3,5 30 3,0 2,5 2,3 2,0 1,5 1,0 0,5 0,5 3,2 1,6 0,5 0,0 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 *Net adjusted EBITDA is represented by earnings before interest, taxes, mining depreciation, and amortisation, impairment reversal and fair value gains and losses from financial instruments 30#31ANIZA NEAR TERM ORGANIC GROWTH PAN AFRICAN RESOURCES#32NEAR-TERM ORGANIC GROWTH - EGOLI PROJECT PROJECT RATIONALE • • Long-life: capitalising on established infrastructure, utilising proven mining methods Initial LOM of nine years - production of ~72,000 oz/year at an average head grade of 6,61g/t gold Significant geological and operational upside- Inferred Resources (6.26 Mt at 9,68g/t (1.95Moz)) to be accessed as underground development proceeds - potential increase in LOM to 14 years Time to first gold: 20 months - steady state production in 16 months thereafter Sandstone Coal Tillite Dolomite . Fully funded rehabilitation • Experienced operational mining teams in place • • Low geological risk - orebody models well understood from adjacent operations and drilling results ESG: Low development risk - access requires 560 meters of underground development from existing No.3 Decline Maficlava 25 Level 18 Level Witwatersrand supergroup Kimberley Reef 24 Level • • Utilising existing TSF - no increase in environmental footprint Evander solar plant to contribute to cost savings and reduced emissions Licencing - Evander mining right valid until 2038 8 Shaft 15 Level Egoli 7 Shaft 7A Shaft Kinross metallurgical plant Sandstone Coal Tillite Mafic lava 32#33NEAR-TERM ORGANIC GROWTH - EGOLI PROJECT PROJECT STATUS EARLY WORKS . DRA Global mandated to complete detailed project scheduling and planning - early works commenced in October 2020 FINANCIAL MATRIX CAPITAL EXPENDITURE . Materially lower upfront capital investment when benchmarked against other development projects of similar scale COMPELLING & ROBUST ECONOMIC RETURNS#: • Payback period from project inception - 3.8 years • NPV10,71 - ZAR2,010 million (US$131,25 million) . Project IRR (post tax): 50,1% • • • DRA engineering, procurement, construction and project management (EPCM) contract to be completed in Q3 FY2021 EVANDER NO.7 SHAFT INFRASTRUCTURE: Optimization of the ventilation and refrigeration design, dewatering designs and water balance commenced Dimensional and Non-Destructive Testing (NDT) inspection quotes for all winders in progress Inception of project construction anticipated in March 2021 FINANCING PACKAGE: . Non-dilutive funding: Dedicated senior debt package from leading SA Bank, redemptions ring-fenced to project cash flows - cash flows from existing operations unaffected First tranche of ZAR400million committed - to dewater and equip decline and shaft, conduct initial mine development Second tranche of ZAR800million - to fund balance of development over two-and-a-half-year construction period Finalisation of legal agreements for implementation of debt funding package is currently underway • • • • . • ECONOMIC ASSUMPTIONS#: Gold price: ZAR850,000/kg ~ (US$1,650/oz)* Peak funding: ZAR1,05 billion ~ (US$66 million) Recovered grade: 5.21g/ton AISC: ZAR399,600/kg (US$777/oz)# 2 LOM gold produced: 17,771kg ~ (570,000oz) Employees: ~1,200 * US$1=ZAR16.00 | # As per DRA FS dated July 2019 33 33#34MINTAILS SA PROPOSED TRANSACTION CONDITIONAL ACQUISITION AGREEMENTS SIGNED ANNOUNCED 6 NOVEMBER 2020 • Aggregate consideration of ZAR50 million (US$ 3.1 million) • Conditional due diligence and feasibility studies in progress TRANSACTION IS SUBJECT TO: • Independent due diligence and feasibility studies (period extended to 31 January 2022) • Regulatory consents and conditions precedent from the state DETAILS OF THE ASSETS: 1L23-25 Lancaster Dam ⚫ Historic tailings storage facilities comprising Mogale Gold and Mintails Soweto Cluster (MSC) assets, as follows: • • Mogale Gold TSFs (Resources* of 123Mt at a head grade of 0.29g/t, for an estimated content of 1.16Moz gold); and MSC TSFs (Resources* of 119 Mt at a head grade of 0.31g/t, for an estimated content of 1.20Moz gold) A modern retreatment plant will need to be constructed - no processing facilities on site Princess Cluster Tudor Dam Tudor Dump Mogale Gold TSFs near Krugersdorp, Gauteng *refer to Pan African's SENS announcement dated 6 November 2020 for Resource declaration North Sands Dump Eskom Dump 34#35FY2021 DELIVERY ON TRACK PAN AFRICAN RESOURCES#36FY2021 - DELIVERY ON TRACK KEY DELIVERABLES • Continue to manage the impact of COVID-19 • Proactive journey to 'zero harm' • ⚫ Deliver (and potentially exceed) production guidance of 190,000oz • . • Reduce AISC at Evander 8 Shaft and Barberton Mines' Sheba operation Progress Egoli and evaluation of Mintails opportunity Endeavour to increase dividends and further reduce net debt Results and Sustainable • Financial → Performance - Responsible - and Safe Mining Mining For A Future OUR VALUES Action & Delivery | Integrity Courageous conversations | Care Innovation | Attitude | Resilience Ownership | Excellence | Teamwork PAN AFRICAN RESOURCES Quality → Long Life Assets ESG Attractive Organic -> Growth 36#37ANIZA THANK YOU CONTACT US Hethen Hira Head: Investor Relations [email protected] +27 11 243 2900 PAN AFRICAN RESOURCES WWW.PANAFRICANRESOURCES.COM JSE:PAN AIM:PAF ADR:PAFRY#38ANIZA APPENDIX PAN AFRICAN RESOURCES#39CORPORATE OVERVIEW AS AT 9 FEBRUARY 2021 • JSE (PAN) • AIM (PAF) SHARE PRICE AND MARKET CAPITALISATION PAF SHARE PRICE PERFORMANCE VS RELEVANT GLOBAL INDICES (PAST 12 MONTHS) • • • • • 12 month change ADR (PAFRY) 20:1 Market Capitalisation Shares Outstanding Treasury Shares • Shares in market 306m MAJOR SHAREHOLDERS ZAR473cps 25,00 GBP23,5P +97% US$6,15 20,00 US$720m 2,235m 1,929m • Adjusted EBITDA US$76,4m 10,00 • Net Debt US$65,2m . Allan Gray IM (SA) 25% • PAR Gold (SA) 14% . Ninety One AM (Investec) (SA) 6% • Ruffer (UK) 5% • PIC (SA) 5% Source: Peel Hunt 5,00 Jan-20 15,00 Feb-20 Mar-20 Apr-20 PAF FTSE AIM All Share Philadelphia Index ⚫FTSE 100 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 FTSE Gold Mines FTSE AIM BASIC Resources NYSE Gold Bugs Jan-21 39 PAF#40CORPORATE OVERVIEW BOARD AND EXECUTIVES Hester Hickey Keith Spencer Cobus Loots Deon Louw Chairman Appointed: 8 October 2007 Experience Technical and operational Risk management Environmental and sustainability Business and strategy Leadership Thabo Mosololi Chief executive officer Appointed: 26 August 2009 Experience Technical and operational Finance and accounting Business and strategy Leadership Technology Taxation Charles Needham Financial director Appointed: 1 March 2015 Experience Finance and accounting Risk management Business and strategy Leadership Technology Taxation Non-executive director Appointed: 12 April 2012 Experience Finance and accounting Risk management Governance and regulation Business and strategy Leadership Non-executive director Appointed: 9 December 2013 Experience Finance and accounting Governance and regulation Business and strategy Leadership Taxation Yvonne Themba Non-executive director Appointed: 17 July 2019 Experience Technical and operational Risk management Governance and regulation Environmental and sustainability Business and strategy Leadership Non-executive director Appointed: 17 July 2019 Experience Technical and operational Risk management Governance and regulation Environmental and sustainability Business and strategy Leadership 40#41RESERVES AND RESOURCES GROWTH PORTFOLIO - ROBUST PROJECT PIPELINE Gold Mineral Resources Barberton hard rock BTRP Evander underground Elikhulu TOTAL PROJECT VALUE- EXPLORATION DEVELOPMENT PROJECT MINE CONSTRUCTION Proved Probable Measured Mineral Resources Indicated Inferred Sheba Hills exploration Poplar Rolspruit MINE PRODUCTION Mineral Reserves New Consort PC remnant blocks Royal Fairview sub-vertical shaft Sheba Egoli project Royal Sheba east extension Elikhulu BTRP Evander Mines' 8 Evander South Barberton Mines' Evander Mines' 9 Shaft A-block near-mine exploration 1 1 DISCOVERY Evander Mines' near-mine exploration DESKTOP STUDY FEASIBILITY STUDY PROJECT COMMISSIONING CONFIDENCE Tonnes Grade Gold Gold Mt g/t t Moz Gold Mineral Reserves 24.4 4.8 117.0 3.8 Barberton hard rock 21.0 1.3 26.4 0.8 BTRP 103.8 9.4 974.7 31.3 Evander underground 183.1 0.3 51.7 1.7 Elikhulu 332.3 3.5 1 169.8 37.6 TOTAL Shaft pillar Barberton Mines Tonnes Grade Gold Gold Mt g/t t Moz 15.5 3.3 51.7 1.7 9.1 1.7 15.4 0.5 27.1 8.4 227.1 7.3 156.5 0.3 43.8 1.4 208.2 1.6 338.0 10.9 41