SOURCE: Pan African Mining Corp.

January 23, 2007 18:00 ET

Pan African Mining Corp. International Oil Affiliate Receives Approval for Formal Negotiation of Its Prime Madagascar Offshore Oil Leases

VANCOUVER, BC -- (MARKET WIRE) -- January 23, 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 received written notification from the Government of Madagascar that its bid for certain prime offshore oil and gas leases has been accepted for formal negotiations. Such negotiations are scheduled to commence in early February between senior management of EnerMad and officials of L'Office des Mines Nationales et des Industries Strategiques ("OMNIS"). OMNIS is a government agency of the Malagasy State charged with oversight and administration of the country's strategic resources of uranium and hydrocarbons. A total of 11,873,785 shares of EnerMad are issued and outstanding, of which the Company owns 13%.

The 2006 Madagascar Offshore Bid Round administrated by OMNIS closed on December 8, 2006. EnerMad submitted a bid for 6 Lease Blocks covering an aggregate of 8,845 sq km. The lease package includes a prime multi-zone deep-water prospect as well as shallower extensions of the potential field. EnerMad's leases will be the subject of formal negotiations and finalization and execution of a long-form lease contract in Antananarivo.

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, Corporate Secretary & Director; and Ken Schubert, P.Geoph., Senior GeoPhysicist. 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 recently incorporated a 100% owned subsidiary in Madagascar, EnerMad Sarl. Mr. James Dalsin is statutory manager of EnerMad Sarl, Mr. Fanomenzana Ramboasalama serves as local manager. EnerMad Sarl serves as EnerMad's operating subsidiary in Madagascar.

About Pan African

The Company is an exploratory resource company with approximately 10,000 square kilometres of diversified mineral properties and 5,500 square kilometres of uranium properties in Madagascar. The Company is exploring these properties for gold, uranium, coal, precious stones, base metals and industrial commodities. 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.
Pan African Mining Corp.
Suite 1925, Box 11553
650 West Georgia Street
Vancouver, BC
V6B 4N8

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 - London
    Email: Email Contact
    Phone: 7780-602-788