Madagascar awards lease to Pan African

Pan African Mining Corp. affiliate EnerMad Corp. has won an awarded for exploration license 34/07/TM.

Offshore staff

VANCOUVER, British Columbia -- Pan African Mining Corp. affiliate EnerMad Corp. has won an awarded for exploration license 34/07/TM. The license, called Grand Prix, covers 10 offshore blocks totaling 16,845 sq km (6,504 sq mi) west of Madagascar's Morondava basin in the Mozambique Channel.

Following the 2006 Madagascar Offshore Bid Round, which closed on Dec. 8, 2006, EnerMad has been in formal negotiations with L'Office des Mines Nationales et des Industries Strategiques, the government agency of the Malagasy state charged with overseeing and administering strategic hydrocarbon and uranium resources. Negotiations have resulted in the finalization and execution of a formal profit-sharing contract between EnerMad and OMNIS, and the subsequent award.

The exploration license includes a multi-zone deepwater prospect as well as shallower extensions of the potential field. Prime targets have been identified in approximately 1,300 m (4,265 ft) of water.

Calgary-based Geoseis Inc. is completing a comprehensive independent engineering report.

8/27/2007

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