Further to the Company’s announcement on24 March 2020, Pan African Resources informsshareholders that the Company has implemented the necessary measures at all its operations to conduct essential services during the 21-day lockdown period (the “National Lockdown”).

The Group’s actions are consistent with the regulationsannounced by President Cyril Ramaphosa on Monday 23 March 2020,and enacted in terms of the South African Disaster Management Act(“the Regulations”), as well as with additional applicable regulations and requirementspertinent to the National Lockdown. The Regulations areeffectivemidnight 26 March 2020 to midnight 16 April 2020, in an effort to contain the spread of the COVID-19 (coronavirus) pandemic.

Essential servicesspecific to affected Pan African Resources’operationsinclude security services, pumping and ventilation activities, metallurgical plant maintenance, inspection of underground workings, management and monitoring of tailings deposition facilities, waste management and water treatment facilities and other health and safety related services.

As part of essential services, the Group is also currently conducting limited surface re-mining and processing activities at its Elikhulu Tailings Retreatment Plant and at its Barberton Tailings Retreatment Plant (collectively the “Group surface operations”). The Group surface operations are currently operating at approximately 70 per cent of normal capacity.

Barberton Mineswill,in the next few days,endeavour to resume limited operations at certain high-grade sections of its Fairview operation to ensure the required minimum feed for its BIOX ® processing plant.

Pan AfricanResourcessupports and is committed to all government efforts to contain the spread of COVID-19. Of the Group’s total staff and contractor complement, only 20 per cent (excluding security staff) are involved in the essential services detailed above. Employees and contractors not required for essential services willremain at home for the duration of the National Lockdown, as required by the Regulations. Further measures to reduce the riskof COVID-19 contamination of essential service personnel include the following:

• Where possible, relevantstaff members are housed in dedicated, restricted-access housing facilities for the duration of the lockdown;
• Continuous screening and monitoring, including thermal temperature monitoring,of staff members for COVID-19 symptoms have been implemented;-Standby medical support; and
• Rigorous social distancing and sterilisation/hygiene protocols, which are in place.

The South African Department of Mineral Resources and Energy has approved the Group’s planned activities during the National Lockdown,subject to compliance with and adherence to all relevant Regulations and applicable legislation.

The COVID-19 pandemic is expected to have a severe adverse economic and social impact on stakeholders involved in the Group’s operations. The Group will,in the coming weeks,embark upon initiativesto assist stakeholdersin this regard in the areas in which we operate.

Updated guidance for the 2020 financial year will be communicated to shareholdersafter the National Lockdown has concluded, once the Group is in a position to quantify the extent and duration of the operational disruptions during this time.

Cobus Loots, CEO of Pan African Resources, commented: "In this time of crisis, we are heartened by the manner in which all stakeholders in the mining industry are collaborating. Pan African Resources recognises that the adverse effects of the COVID-19 pandemic will besevere and far reaching. The impact will be even more pronounced in areas with limited resources and poverty. Recognising the economic and social hardship that communities and employees will experience during the National Lockdown, the Company will embark on support programmes, in addition to our existing initiatives, to alleviate this hardship.

Pan African Resources will continue to provide shareholders with regular updates regarding developments at Group operations.”