http://moneyam.uk-wire.com/cgi-bin/articles/20050126070000PE650.html

Do you see these shares going places in the coming months?

I hope so!!

Pan African Resources PLC
31 January 2005




PAN AFRICAN RESOURCES PLC ('the Company')


Holdings in Company


The Company was informed on 21 January 2005 that, as a result of a purchase of
1,550,000 million ordinary shares of 1p each in the capital of the Company
('Ordinary Shares'), Mr John Drinkwater is now beneficially interested in
15,300,000 Ordinary Shares representing 4.35 per cent of the issued share
capital of the Company.



Enquiries:


Nathan Steinberg
Finance Director
Pan African Resources plc

Tel: 020 7845 7500


31 January 2005

These shares appear to be extremely cheap if they reach the target of 1,000,000 ounces of gold from the Ghana and Mozambique projects. Gold is currently $422 per ounce which would mean they are sat on approx $422 million less the extraction costs. Anyone know the approximate costs to extract the Gold?



Pan African Resources Plc

(the 'Company')

Exploration Update

* Significant exploration results from Ghana including 8 metres @ 5.26 g/t Au
and 7 metres @ 5.90 g/t Au.

* Reverse circulation drill programme suggests a duplication of the
mineralized zone at West Fair Bride prospect in Mozambique.

* Acquisition of new projects being investigated.

Further to its announcement on 25 November 2004, Pan African Resources Plc is
pleased to update shareholders on the two drilling programmes it is currently
engaged in at the Company's exploration projects in Ghana (the Wa Gold Project)
and Mozambique (the Manica Gold Project):

The Company's targets in Ghana and Mozambique could each produce a resource in
excess of 1,000,000 ounces of gold.

The Wa Gold Project, Ghana.

The Company is currently undertaking a 6,000 metre reverse circulation drilling
programme at the project which is designed to further test and extend the known
gold mineralization of the Julie Prospect (current inferred resource of over
300,000 ounces of gold to only a shallow depth) both along strike and at depth
and to increase the quality of the resource estimate.

To date 1709 metres of reverse circulation drilling have been completed on the
western end of the Julie Prospect. Initial results from drill holes completed
by the end of 2004 are now available and the following table details some of
the more significant intersections.

Drill Hole Intersection To Width Grade
From
(m) (Au g/t)

JRC 58 2 3 1 1.65

14 15 1 1.04

40 41 1 1.31

JRC 59 2 3 1 1.69

6 7 1 3.24

13 21 8 5.26

Including 4 8.10

JRC 61 28 29 1 1.94

50 53 3 1.01

JRC 62 57 60 3 1.08

JRC 64 4 6 2 6.16

JRC 87 43 45 2 1.70

JRC 88 20 27 7 5.90

Including 3 10.30

All holes were drilled at an inclination of -50 degrees.

The current drill programme will also further test the potential of the highly
prospective Collette Prospect.

In addition to this drill programme the Company continues to reassess all of
the extensive work completed by Kenor SA and conduct follow up exploration
programmes both in the licence areas and regionally. A further drill programme
designed to test these other targets is planned for later in 2005.

The Wa Gold Project is located in the Upper West Region of Ghana, approximately
50 km east of the regional capital, Wa and comprises three exploration
licences, Julie, Collette and Josephine, totalling 304 square kilometres.

The project is situated in an area of Birimian greenstones and granites in an
acurate belt, which represents the junction between the north-south trending
Lawra Belt and the north-east trending Bole-Navrongo Belt.

The geological setting of the project and the range of mineralization styles
identified to date are comparable to the major Birimian hosted gold deposits in
the south of Ghana and elsewhere in West Africa.

The Manica Gold Project, Mozambique.

A 2004 drill programme on the Andrada (Dot's Luck - Fair Bride) zone at West
Fair Bride demonstrated that mineralization is hosted by a package of chlorite
schists up to 50 metres wide. Significant intersections (previously reported)
were encountered over a 660 metre strike length to depths of 120 metres below
surface.

The Company is currently funding a follow up 2000 metre reverse circulation
drill programme designed to further test the West Fair Bride area and other
drill targets (Dot's Luck, Boa Esperanca, Vinganca and Palhada) within the
exploration licence.

To date some 824 metres of reverse circulation drilling have been completed and
samples submitted for assay. At this time no assay results have been received,
however, interpretation of the drill hole logs suggests a duplication of the
current mineralization in the form of a series of stacked mineralized lenses to
the north east of the previously drilled mineralization. Results will be
reported as received.

The Manica Project is situated at Manica, Mozambique on the east end of the
Odzi-Mutare-Manica Greenstone Belt. The belt is part of the Archean Zimbabwe
Shield and has produced more than 80 tonnes of gold to date. Manica is situated
on the Beira-Harare Corridor between Mozambique and Zimbabwe, with excellent
infrastructure, rail, power and communications.

The project area comprises a large exploration licence covering the 10
kilometre Mutambarico shear zone and the 7 kilometre Andrada zone of banded
iron formations. Both zones contain several old mines and workings.

The Manica Project is managed by Pangea Exploration with whom the Company has a
'right of first refusal' for all Pangea generated African gold projects. Pangea
Exploration has an enviable reputation for discovering and developing mineral
resource projects

New Projects

The Company is currently assessing a number of opportunities to add one or more
significant gold projects to its existing portfolio following its policy to
become a major African based gold exploration and development company.
Shareholders will be updated at the appropriate time.

Roger Craddock, Managing Director, commented,

'These results confirm the attractiveness of our prospects in Ghana where we
have seen some significant intersections of high grade mineralization. Our next
step will be to process results from Mozambique and further results from Ghana
before we are able to better determine the increase in our assets but I am most
encouraged by what we have seen so far. Furthermore we are currently
investigating a number of interesting gold projects with a view to adding them
to our existing portfolio.'

-Ends-

For further information please contact,

Roger Craddock

Managing Director, Pan African Resources Plc

Tel. 07785 364 291

Ben Simons

Hansard Communications

Tel. 020 7245 1100

From the press report below it would appear PAF are looking to extract 1,000,000 ounces of gold from each of the Ghana and Mozambique projects so my previous figure of $422 million should have been $844 million less the extraction costs. Would be grateful if anyone in the know could provide an indicative figure for extraction costs at these depths.

Article from GhanaWeb.com - 26th Jan 05(http://www.ghanaweb.com/GhanaHomePage/NewsArchive/artikel.php?ID=74148)

Pan African upbeat on drilling results from Wa Gold Project
LONDON (AFX) - Pan African Resources PLC provided an upbeat assessment on drilling results at the Wa Gold Project in Ghana.

The company is undertaking a 6,000 metre drilling programme at the project, which is designed to further test the known gold mineralization of the Julie Prospect, and has so far drilled 1,709 metres.

"These results confirm the attractiveness of our prospects in Ghana where we have seen some significant intersections of high grade mineralization" said managing director Roger Craddock.

The current drill programme will also further test the potential of the highly prospective Collette Prospect, it said.

"Our next step will be to process results from Mozambique and further results from Ghana before we are able to better determine the increase in our assets but I am most encouraged by what we have seen so far," said Craddock.

The company's targets in Ghana and Mozambique could each produce a resource in excess of 1 mln ounces of gold, the company said.

Pan African said it is also looking at the acquisition of a number of new gold projects.

From what I can find on the internet it would appear that the total costs for extraction vary from $190 to $300 per ounce. With possible reserves of 2,000,000 ounces of gold it would appear there is potential to earn $844 million, (based on $422/ounce) less $600 million in extraction costs leaving a resource of $244 million.

If we take a Dollar exchange rate of $1.90/pound that works out to 128 million GBP.

If you split that between the 352 million shares in issue, your looking at 36 pence per share. This is a pretty crude look at the potential figures but at 3p these look cheep as a speculative punt.

Would appreciate some other views on this.

Edit

Nice flow of buys gone through over the last couple of days, lets hope we see another move upwards soon.

Average volume today but almost all on the buy side once again.

Looking forward to another good week for PAF!!

Does anyone know who John Drinkwater is ? He has upped his stake steadily over the last few weeks. Thanks.

Appears to be a private investor with a big holding. Done a couple of searches over the past week to find who he is but come up with nothing to date.

Thanks for that. I looked could not find anything about Mr Drinkwater. I hope he keeps buying.

He has a big holding and it makes you wonder what he knows to make him so confident about the company. It would be nice to get some news flow going soon so we can start to see the SP really take off.

There is not much mentioned about PAF on other boards. There website is not very informative. However going off there recent announcements i think they are very good prospect ( no pun intended ).

Have also looked for Mr Drinkwater again - nothing.

Any contributions welcome on this company

The lack of news and awareness of PAF is one of the items that attracted me to this share. It has great prospects for the near and long term future and yet the SP is comparatively low to other mining companies. I'm pretty confident that once the news starts to flow with regard to the drilling results and they get a few mentions in the mags and papers the SP will move up at a fair pace.

Meanwhile, it's a case of being patient and just waiting for it to happen, because when it does, the rewards should well worth it!!

IMHO DYOR

Another large buy went through again today, I wonder if Mr Drinkwater is still adding to his holding?

Maybe. PAF year end is March. So perhaps they make an announcement re new mines etc and that Drinkwater is building his stake to make a killing then.

The results should be interesting, good potential to see the SP move upwards as we get closer to them and an update on drilling and new mines would be great.

Very quiet day for trading today!