Increase in Cash Consideration to $4.50 for Pan African Mining Corp. Shares Announced by Asia Thai Mining Co., Ltd. and 0819615

VANCOUVER, BC (TSX-V: PAF) (FRANKFURT: P2A) announces that it has received from Asia Thai Mining Co., Ltd. ("ATM") and 0819615 B.C. Ltd. (the "Purchaser") notice of their intention to amend the Arrangement Agreement dated May 9, 2008, among ATM, the Purchaser, the Company and African Queen Mines Ltd. ("African Queen"), a newly formed subsidiary of the Company, to increase the consideration payable under the previously announced proposed Plan of Arrangement pursuant to which Purchaser will acquire on the effective date all of the outstanding common shares of the Company at the price of $4.50 cash per share (from its previous offer of $4.00 cash per share) and also offer to purchase for cash all outstanding warrants and all outstanding options (vested and not yet vested) of the Company for a price equal to the difference between $4.50 (previously $4.00) and the exercise price per share of the respective warrant or option (the "Transaction"). All other terms of the Arrangement Agreement will remain unamended including prior to the completion of the Transaction, the Company will transfer to African Queen the following: (i) $2,500,000 cash, (ii) all of the shares of the Company's non-Madagascar subsidiaries, namely, PAM Botswana (Pty) Ltd., PAM Minerals Namibia (Pty) Ltd. and PAM Mocambique Limitada, and (iii) all other assets and liabilities of the Company directly related to the Company's non-Madagascar subsidiaries and non-Madagascar properties. Subject to any required approvals, the Company plans to distribute the shares of African Queen in a spin-off transaction to shareholders (but not warrantholders or optionholders) of the Company of record at the Effective Time of the Plan of Arrangement. Any warrantholder or optionholder who wishes to receive shares of African Queen as part of the spin-off must exercise their warrants or options on or before Friday, June 20, 2008 (which exercise may be conditional upon the completion of the Plan of Arrangement). On its receipt of the proposed amendment to the Arrangement Agreement, the Company plans to submit the revised terms to its Independent Committee and the Board of Directors for review and approval.

The Plan of Arrangement will be subject to the approval of the shareholders, warrantholders and optionholders of the Company at the special meeting to be held for that purpose. In that regard, the Company has set the securityholder meeting date as June 25, 2008, and a record date of May 19, 2008, for shareholders, warrantholders and optionholders entitled to notice of and to vote at the meeting. Assuming the securityholders approve the Plan of Arrangement and related transactions at said meeting, final court approval for the Plan of Arrangement will be sought from the Supreme Court of British Columbia shortly thereafter, with an Effective Time for the Plan of Arrangement anticipated to occur soon after the court approval is received.

All votes cast by shareholders, optionholders and warrantholders in favour of the existing Plan of Arrangement will be deemed to be voted in favour of the improved terms of the Amended Arrangement Agreement.

About Pan African

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.

About Asia Thai Mining Co., Ltd.

Asia Thai Mining Co., Ltd. ("ATM") is a holding company incorporated in Thailand. ATM, either directly or through affiliated companies has extensive experience in the development and operation of mining interests, in particular in respect of coal mining interests. Through its subsidiaries, it is involved in the exploration and development of several coal mines in Indonesia. The company projects its coal production capacity will reach approximately 4 million tons by 2009. ATM forms part of a group of affiliated mining companies, including Saraburi Coal Co., Ltd. ("SBCC"). SBCC has been mining coal and tin in Thailand and other Southeast Asian countries since 1998. In addition, SBCC has recently been awarded a 9-year, US$500 million coal mining contract in Thailand from Electricity Generating Authority of Thailand and SBCC will start work in 2008. ATM is a private company with its registered address and principal place of business at 2034/132-161 New Petchburi Road, Bangkapi, Huaykwang, Bangkok, Thailand.

ON BEHALF OF PAN AFRICAN MINING CORP.

"Irwin A. Olian"
Irwin A. Olian
CEO & Director

Forward-Looking Statements

Certain statements herein constitute forward-looking statements or forward-looking information within the meaning of applicable securities legislation, including the statements or information about the Transaction and proposed spin-off of African Queen. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.

With respect to forward-looking statements and information contained herein, we have made numerous assumptions including among other things, assumptions of our ability to close the Transaction and spin-off African Queen. Although our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that a forward-looking statement or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such risks and uncertainties include risks and uncertainties involved in satisfying the conditions to close the Transaction and spin-off African Queen.

There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements or information. All forward-looking statements and information made herein, are qualified by this cautionary statement.

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.

Distributed by Filing Services Canada and retransmitted by Marketwire

For more information, contact: Irwin Olian President and CEO E-mail: Email Contact Phone: [phone] Fax: [phone] Tom Kinakin Corporate Communications - Vancouver Email: Email Contact Phone: [phone] Fax: [phone] Carrie Howes Corporate Communications - London Email: Email Contact London: 7780-602-788 Germany: (0) 1722-1234-47 Pan African Mining Corp. Suite 1925, Box 11553 650 West Georgia Street Vancouver, BC V6B 4N8