Pan African identifies 7 new Nickel Laterite Targets

Pan African Mining Corp. has identified seven new nickel laterite targets within its license area in Madagascar. These targets were identified by the detailed analysis of recently flown airborne magnetic and radiometric surveys in conjunction with the processing of Landsat remote sensing data. Of the seven new targets, two have been identified by management as the highest priority for immediate exploration and potential development. These two targets cover areas of approximately 50 sq. km. and 35 sq. km., respectively.

The purpose of the geophysical remote sensing study was to identify the geophysical characteristics that make up the signature over Sherritt International’s multi-billion dollar Ambatovy nickel laterite project in Madagascar and to use this signature as a template to identify possible new nickel laterite deposits. The two highest priority targets exhibit classic Ambatovy-like geophysical signatures.

Preparations are at an advanced stage for the detailed ground follow-up of the targets that will include mapping, sampling and auger drilling. This work is being undertaken by the Company’s nickel exploration team under the direction of F. Roger Billinton, P.Geo. Roger was formerly the Manager of Nickel Laterite Exploration for Falconbridge Limited.

On January 25, 2006, the Company earlier announced the discovery of a near-surface body of nickel laterite in Northern Madagascar. The oval-shaped ultramafic body is approximately 1000 m by 250 m. Grades from preliminary shallow auger drilling ranged from 0.5% to 2.6% Ni. However, management concluded that this deposit is not large enough on a stand alone basis to support commercial exploitation. Accordingly, the Company is now exploring for additional nickel laterite targets.

Irwin Olian, CEO of the Company, adds, we are very excited about our new nickel laterite targets in Madagascar as they offer the potential to create additional critical mass for a commercial operation. Our exploratory team is being mobilized for an early start of work at the onset of the dry season in April.