2009 Media Releases

May 21, 2009

Deutsche Bank initiates coverage of PanAust Limited

Deutsche Bank has initiated coverage of copper and gold company PanAust Limited (ASX: PNA) with a Hold recommendation.

Research analyst Paul Young initiated coverage with an AUD 0.45 twelve month price target.

Mr Young said, “PanAust provides investors with low cost, low risk exposure to the copper and gold markets through its operation of the USD 300million Phu Kham copper/gold project in Northern Laos. The mine was commissioned in the June quarter 2008 and is producing approximately 60,000 ounces of copper and approximately 50,000 ounces of gold.”

According to Deutsche Bank research, the greatest near term value accretion is expansion of the Phu Kham mine. “The mine life is 13 years based on current reserves of 160 million tonnes per annum however in the next two years, we believe reserves are likely to increase to 190 million tonnes per annum, extending mine life to 16 years,” noted Mr Young.

“With expanded output, PanAust is set to benefit from the fundamental strength of copper in the medium to long-term. The company has an impressive project development track record however we remain cautious on the near-term outlook for copper”.

PanAust Limited is a growing mining company. Headquartered in Brisbane, Australia, the company holds mineral assets in the Lao PDR and Thailand. In Laos, PanAust operates the large Phu Kham Copper-Gold Operation and produces gold from the Phu Kham Heap Leach Gold Operation.

For further information, please contact:

Michelle Chaperon (02) 8258 1311



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