PAN AFRICAN RESOURCES PLC - Group Trading Statement for the six months ended 31 December 2025

Evidence from the filing

• The company anticipates an outstanding increase in Headline Earnings Per Share (HEPS) of between 507% and 517% for the current reporting period, indicating robust profitability growth.

  “Headline earnings per share (HEPS) for the current reporting period is expected to be between US 7.28 cents per share and US 7.40 cents per share, compared to HEPS of US 1.20 cents per share for the corresponding reporting period, an increase of between 507% and 517%, respectively.”

• A significant increase in revenue of 157.3% was achieved, primarily due to a 51.5% increase in gold produced to 128,296oz and a 61.6% increase in the average US$ gold price received.

  “The increase in EPS and HEPS for the current reporting period, relative to the corresponding reporting period, is primarily attributable to an increase in revenue of 157.3%, as a result of the following: • an increase of 61.6% in the average US$ gold price received to US$3,812/oz (2024: US$2,359); and • an increase in gold produced of 51.5% to 128,296oz (2024: 84,705oz).”

• Earnings Per Share (EPS) is projected to rise dramatically by between 187% and 197%, demonstrating strong underlying earnings power and operational leverage.

  “Pan African advises shareholders that its earnings per share (EPS) is expected to be between US 7.18 cents per share and US 7.43 cents per share, compared to EPS of US 2.50 cents per share for the six- month period ended 31 December 2024 (corresponding reporting period) (as restated), an increase of between 187% and 197%, respectively.”

• Management provides strong forward guidance, expecting group production to increase further in the second half of the financial year ending 30 June 2026, supported by the MTR expansion project and Tennant Mines, targeting full-year guidance of 275,000oz to 292,000oz.

  “Group production is expected to increase further during the second half of the financial year ending 30 June 2026, largely attributable to increased production from the MTR expansion project and from Tennant Mines, with full year production guidance of 275,000oz to 292,000oz.”

• The 5.08% increase in weighted average outstanding shares represents material dilution for existing shareholders, eroding per-share value even amid positive earnings growth.

  “The weighted average number of outstanding shares as at 31 December 2025 was 2,027,345,177 shares (2024: 1,929,379,411 shares).”

• The restatement of the corresponding reporting period's EPS signals potential prior accounting complexities or inaccuracies, which can reduce investor confidence in the reliability and consistency of financial reporting.

  “The previously published EPS for the corresponding reporting period of US 2.35 cents per share has been restated (as disclosed above). The restatement arose from the acquisition of Tennant Consolidated Mining Group Proprietary Limited initially being accounted for on a provisional basis. The accounting was finalised by 30 June 2025, and the provisional amounts recognised as at 31 December 2024 have been restated to reflect the resulting measurement period adjustments.”

• The reported surge in EPS and HEPS is overwhelmingly driven by an unsustainable 61.6% increase in the average US$ gold price received, exposing the company's profitability to significant commodity price volatility.

  “The increase in EPS and HEPS for the current reporting period, relative to the corresponding reporting period, is primarily attributable to an increase in revenue of 157.3%, as a result of the following: • an increase of 61.6% in the average US$ gold price received to US$3,812/oz (2024: US$2,359);”

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