Pan African Mining Corp. Enters Into Formal Convention for Exploration and Exploitation of Madagascar Uranium

PAN AFRICAN MINING CORP. (Vancouver:PAF.V - News) (the "Company") is delighted to announce that it has now entered into a formal agreement with L'Office des Mines Nationales et des Industries Strategiques ("OMNIS"), for the establishment of a joint venture with respect to exploration, development and exploitation of certain prospective uranium properties in Madagascar. OMNIS is a government agency of the Malagasy State charged with oversight and administration of the country's strategic resources of uranium and hydrocarbons.
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Entitled Convention D'Associes Pour la Recherche et L'Exploitation de Gisements d'Uranium a Madagascar, dated November 7, 2005 (the "Agreement"), it supercedes the prior preliminary agreement between the parties dated February 3, 2005. Pursuant to the Agreement, the Company has now organized a new operating subsidiary in Madagascar named PAM Atomique Sarl, which will be 20% owned by the Malagasy State through OMNIS. Such ownership interest is reducible under certain circumstances to a floor of not less than 10% in the event OMNIS elects not to participate in funding of commercial mining operations at the exploitation stage. The Company is contributing all capital for exploration, with the initial tranche being U.S. $1 Million. All of the Company's other activities in the country will continue to be carried out through its existing subsidiary PAM Madagascar Sarl.

The Company had previously signed an Agreement dated September 19, 2005, with L'Institut National des Sciences et Techniques Nucleaires ("INSTN"), a Malagasy State Agency, for environmental controls on its program. In addition, on July 7, 2005, OMNIS approved the Company's formal Exploration Program and Budget for uranium projects in Madagascar, which is annexed to the Agreement. It delineates staged exploration programs on each of four perimeters: Folakara, Faratsiho, Tranomaro and Makay. The exploration budget for each perimeter contemplates aggregate expenditures of up to U.S. $3,920,000 over four result-contingent stages through preliminary feasibility. Included within the four perimeters are sites of historic uranium production by the French as well as known uranium occurrences. Under the agreement, OMNIS is providing the Company with access to its database and archival information, as well as the assistance and cooperation of its own geological team. Field exploration will commence upon receipt of all final permits and approvals presently pending with the Malagasy State.

According to the Company's CEO, Irwin Olian, "During the past year we have been working hand-in-hand with OMNIS to develop our program for exploration and development of Madagascar's uranium resources and to conclude our formal agreement. Execution of the Agreement is an important milestone which now opens the door to the exciting potential of development of uranium production in Madagascar. We are delighted to be in partnership with OMNIS and are committed to achieving success through provision of all necessary financial, technological, professional and other resources that may be required to reach this goal."

About Pan African

The Company is an exploratory resource company with approximately 10,000 square kilometres of diversified mineral properties in Madagascar. The Company is exploring these properties for gold, uranium, precious stones, base metals and industrial commodities. Its operations in Madagascar are carried out through its operating subsidiary, PAM Madagascar 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 A. Olian"
Irwin A. Olian
Chief Executive Officer

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

Distributed by Filing Services Canada and retransmitted by Market Wire



Contact:
For further information, contact:

Irwin Olian
President and CEO
Email: Email Contact
Phone: 604-899-0100
Fax: 604-899-0200

Tom Kinakin
Corporate Communications
Email: Email Contact
Phone: 604-676-8671
Fax: 604-899-0200

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