SOURCE: Pan African Mining Corp.

April 12, 2007 04:00 ET

Pan African Mining Corp. Reaches Agreement With African Eagle Resources for Acquisition of Fingoe Permits in Mozambique

VANCOUVER, BC -- (MARKET WIRE) -- April 12, 2007 -- PAN AFRICAN MINING CORP. (TSX-V: PAF)(the "Company") is pleased to announce that it has entered into an Agreement with U.K.-based African Eagle Resources plc ("African Eagle") (AIM: AFE) for exploration, development and exploitation of five Prospecting Licenses controlled by African Eagle's wholly owned subsidiary, Twigg Resources Limited, in the greater Fingoe region situated in Tete Province in the northwest of Mozambique. The licenses comprise approximately 909 sq. km. in aggregate and are located in close proximity to the Company's other Fingoe area holdings under its joint venture with Manica Minerals, Ltd.

Under terms of the Agreement, the Company earns the right to acquire African Eagle's Fingoe licenses by funding and carrying out a regional exploration program on the licenses during the upcoming twelve months. African Eagle shall retain a customary 2% NSR with respect to all mineral production from the license area.

The Company's existing Fingoe project is a grass roots exploration project with good potential for the discovery of mesothermal vein gold, distal skarn Au and IOCG deposits. Its licenses cover the Meso-Proterozoic Fingoe Group consisting of a low-grade, meta-volcanosedimentary supracrustal succession of quartzites (BIF types), carbonates, shales, conglomerates, volcanoclastics, amphibolitic basalts and intrusive ultramafics. Fingoe supracrustals have been intruded by I-type granites. Very limited previous exploration has taken place, although there are known gold and Cu-Fe occurrences and reported veining, skarn mineralization and hematitic breccias within the belt. A regional reconnaissance geochemical sampling program has been underway for several months under the direction of Peter Siegfried, P.Geol., a Qualified Person. The African Eagle licenses will now be included in the sampling program in the coming months.

According to Irwin Olian, CEO of the Company, "We are excited about the opportunity for potentially economic gold and metals discoveries in the highly mineralized Fingoe region of Mozambique. Acquisition of the African Eagle licenses is an important step toward consolidating our land position in the area, which now aggregates approximately 1359 sq. km. We are looking forward to results of our initial exploration program in the region."

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 uranium, gold, coal, precious stones, base metals and industrial commodities. In addition, the Company is exploring two regions for gold and metals in Mozambique under agreements with other companies. 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 - London
    Email: Email Contact
    Phone: +44-7780-602-788

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