SOURCE: Pan African Mining Corp.

August 24, 2007 03:01 ET

Madagascar Government Grants Prime Offshore Oil & Gas Lease to Pan African Mining Corp. International Oil Affiliate

VANCOUVER, BC--(Marketwire - August 24, 2007) - PAN AFRICAN MINING CORP. (TSX-V: PAF) (FRANKFURT: P2A) (the "Company") is pleased to announce that its international oil affiliate, ENERMAD CORP. ("EnerMad"), has been formally awarded Exploration License No. 34/07/TM. The License, entitled "Grand Prix," covers 10 offshore blocks comprising approximately 16,845 sq. km. located to the west of Madagascar's Morondava Basin in the Mozambique Channel. The Company presently owns approximately 13% of EnerMad's 13,603,185 issued and outstanding shares.

Following the 2006 Madagascar Offshore Bid Round which closed on December 8, 2006, EnerMad has been in formal negotiations with L'Office des Mines Nationales et des Industries Strategiques ("OMNIS"), the government agency of the Malagasy State charged with oversight and administration of the country's strategic resources of hydrocarbons and uranium. Those negotiations have now resulted in the finalization and execution of a formal Profit Sharing Contract between EnerMad and OMNIS and grant of the aforesaid Exploration License. The foregoing have now been ratified by the signature of the Honorable President of the Republic of Madagascar, Mr. Marc RAVALOMANANA.

The Exploration License includes a prime multi-zone deep water prospect as well as shallower extensions of the potential field. Prime targets have been preliminarily identified in approximately 1300 m. of water, which would require drilling to a depth anticipated to be approximately 3500 m. A comprehensive independent engineering report is presently being completed by David J. Birnie, P.Geoph., and James A. Mott, P.Geol., of Calgary-based GEOSEIS INC.

The management of EnerMad is comprised of a number of leading oil men from Calgary, Alberta, with over 100 years' aggregate experience in exploration, development and exploitation of petroleum properties internationally. The team is headed by Jim Dalsin, CEO & Director; Soren Christiansen, Chairman; Paul Sicotte, Director; and Ken Schubert, P.Geoph., V.P. Exploration. Limor Rubin, C.A. serves as Chief Financial Officer & Director. In addition, Irwin Olian, CEO and Chairman of the Company, serves as a Director of EnerMad.

EnerMad has incorporated a 100% owned subsidiary in Madagascar, EnerMad Sarl. Mr. James Dalsin is statutory manager of EnerMad Sarl, Mr. Fanomezana RAMBOASALAMA serves as local manager. EnerMad Sarl serves as EnerMad's operating subsidiary in Madagascar. EnerMad presently has in excess of $2 Million cash on hand and is contemplating going public later this Fall.

According to Irwin Olian, CEO of the Company, "We are delighted that Pan African's shareholders will have a stake in EnerMad's offshore oil play. It has all the earmarks of a world-class oil & gas prospect, and companies like Exxon Mobil and Sterling Energy are participating in Madagascar's offshore play with their own licenses in relatively close proximity to EnerMad's. EnerMad, through its senior management team, has excellent access to financing and we do not presently envision any further cash investments by Pan African in EnerMad."

About Pan African Mining Corp.

The Company is an exploratory resource company with approximately 7,500 sq. km. of diversified mineral properties and 5,000 sq. km. of uranium properties in Madagascar. The Company is exploring these properties for uranium, gold, coal, precious stones, base metals and industrial commodities. In addition, the Company is exploring two large regions for gold and metals in Mozambique under agreements with other companies. It also has approximately 5500 sq. km. of diamond licenses in Botswana which it is presently exploring. Its operations in Madagascar are carried out through its operating subsidiary, PAM Madagascar Sarl, and its uranium activities are carried out through its 80% owned subsidiary PAM Atomique Sarl. The Company has offices in Vancouver, Canada and Antananarivo, Madagascar. More information about the Company is available at www.panafrican.com.

ON BEHALF OF THE BOARD OF DIRECTORS OF PAN AFRICAN MINING CORP.

"Irwin Olian"
Irwin Olian
Chairman & CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations.

Contact Information

  • For more information, contact:

    Irwin Olian
    President and CEO
    E-mail: Email Contact
    Phone: (604) 899-0100
    Fax: (604) 899-0200

    Tom Kinakin
    Corporate Communications - Vancouver
    Email: Email Contact
    Phone: (604) 899-0100
    Fax: (604) 899-0200

    Carrie Howes
    Corporate Communications
    Email: Email Contact
    Phone: London: +44 (0) 7780 602 788
    Phone: Germany: +49 (0) 1722 1234 47

    Pan African Mining Corp.
    Suite 1925, Box 11553
    650 West Georgia Street
    Vancouver, BC
    V6B 4N8