P A N A U S T R A L I A NR E S O U R C E S L I M I T E D

November 2007Corporate Update

About Pan Australian Resources Limited

Australia-based emerging copper-gold miner (ASX:PNA)

Immediate growth from the Phu Kham Copper-Gold Mine, Laos:

Commissioning March Q 2008; mine life +12 years

+200,000t pa concentrate containing 52,000t copper, 47,000oz gold and 400,000oz silver

Capital cost US$241m - fully funded (50/50 debt/equity)

Competitive cash unit costs - US¢74/lb*

Medium term growth from:

Phu Kham Copper-Gold Mine Expansion to 65,000t pa copper

Ban Houayxai Gold-Silver Project, Laos* Source: 2006 feasibility study. Estimated cash cost after precious metal credits: US$450/oz gold and US$8.00/oz silver.

Phu Kham Development…..

…..ahead of schedule, within budget12 Months Ago

Now

Phu Kham Development…..

…..ahead of schedule, within budget

Mine, Crusher and conveyor alignment

Phu Kham Development…..

…..ahead of schedule, within budget12 Months Ago

Now

Competitive on Capital Intensity

Industry Average~US$5,500/t Cu Eq

(2003 Dollars)

~US$6,000/t Cu Eq(2006 Dollars)

Phu Kham Cu Eq assumptions – copper US$1.35/lb, gold US$450/oz, silver US$8/oz

0

1000

2000

3000

4000

5000

6000

7000

8000

1985 1990 1995 2000 2005 2010

Cap

ital I

nten

sity

US$

/t C

u Eq

uiv

2006 Dollars2003 Dollars

2003 Dollars(Adjusted for mine cost inflation)

Phu Kham

Competitive Operating Costs

Copper mine cost curve, 2009

-50

0

50

100

150

200

0 2000 4000 6000 8000 10000 12000

Cumulative production (000t)

Bus

ines

s op

erat

ing

cost

(c/lb

Cu)

1st Quartile 2nd Quartile

8th Decile 9th Decile

Phu Kham

Assumptions:Copper price: US$1.00/lbGold price:US430/ozSilver price:US$6.50/ozMolybdenum oxide price:US$4.56/lbTC:US$55/dmtRC:US5.5/lbProduction:52,312t contained CuBusiness operating cost: US$0.659/lb

Scenario 2

Concentrate Marketing

• BHP Billiton – manager of all concentrate sales

• Exposure to considerable global market presence and expertise

• TC/RC’s secured for 40,000t of concentrate in 2008 at < US¢3/lb

• Well positioned to supply custom smelters in SE Asia

Phu Kham Operations –A Track Record of Leveraging Assets

Heap Leach Gold operation

Strategic greenfield “starter” project

Operations team, systems and infrastructure established

Annual cash flow funds group overheads

Phu Kham Copper-Gold Mine

Project ahead of schedule and within budget

Pre-commissioning from December 2007

New Ore Reserve March 2008

Concentrate sales commence in June Q 2008

Planned expansion mid-2010

Phu Kham Deposit Schematic Section

Phu Kham Copper-Gold Ore Reserve

Category*Tonnes

(Mt)Cu Grade

(%)Au Grade

(g/t)Copper Metal

(000 t)Gold Metal

(Moz)

Proved 67 0.63 0.28 420 0.6

Probable 77 0.51 0.23 390 0.6

Total 144 0.56 0.25 810 1.2

Exceptionally low strip ratio ~ 0.6 : 1

Likely Ore Reserve increase in north mine area

Price assumptions: copper US$1.35/lb, gold US$450/oz

* Refer to Competent Person Statement

Likely Reserve Upside - North Mine Area

Target area for step-out drilling

GDD231: 44m @ 2.7% Cu, 1.1g/t Au fm 8minc 24m @ 4.4% Cu, 1.7g/t Au fm 24mand 93m @ 0.5% Cu, 0.1g/t Au fm 93m

GRD251: 188m @ 1.3% Cu, 0.5g/t Au fm 192minc 40m @ 3.4% Cu, 0.4g/t Au fm 340m

GDD228: 278m @ 0.6%, 0.4g/t fm 6minc 20m @ 2.3% Cu, 0.5g/t Au fm 163m

GDD223: 172m @ 1.0% Cu, 0.6g/t Au fm 70minc 32m @ 1.5% Cu, 0.8g/t Au fm 131m

GDD99: 322m @ 1.1% Cu, 0.2g/t Au fm 8minc 34m @ 4.6% Cu, 0.7g/t Au fm 294m

A'

A

North Mine Area Drilling

North mine area infill and resource extension 

drill area

Cross Section A′ - A

GDD99

Planned Expansion at Phu Kham

33% increase in throughput to 16Mt/yr

Additional 6.5MW ball mill, upgraded flotation and concentrate handling

Commissioning by mid-2010

Capital efficient - US$40 million (inc.US$7M contingency)

Increases annual metal output to ~ 65,000t copper, 60,000oz gold and 550,000oz silver *

Maximises value from the anticipated increased Ore Reserve

* Based on 2006 feasibility study operating costs and head grade of 0.56% copper and 0.25g/t gold

Phu Kham Expansion - Cash Flow

Cu Price Au Price 12 Mt/yrFeasibility Study

16 Mt/yrExpanded

US$2.25/lb US$550/oz US$110M US$135M

US$3.15/lb US$650/oz US$180M US$225M

Indicative cash flows at various price assumptions *

* Silver price assumption US$8.00/oz

Projects & Selected Prospects

Phu KhamCopper-Gold Mine Expansion Project

PhonsavanCopper-Project

Puthep Copper Project

Pha Nai Copper Prospect

Ban HouayxaiGold-Silver Project

Ban Houayxai – Pre-Feasibility StudyDrilling primary mineralisation to 100m centres – now

Proposals for pre-feasibility & feasibility works invited Oct 2007

Primary Mineral Resource March 2008

Pre-feasibility study June Q 2008

+100,000oz pa gold objective

Silver : gold ratio ~15 : 1

Recoveries: +90% gold and +80% silver

Favourable topography for a low strip ratio mine

Ban Houayxai Gold-Silver Deposit

Overlain by Oxide/Transitional Mineral Resource#

6.4M t @ 1.0g/t for 199,000oz (0.5g/t cut-off)*Primary mineralisation openbelow 300m and along strike

# Refer to Competent Person Statement * Measured: 2.3M t @ 1.0g/t, Indicated: 3.5M t @ 0.9g/t & Inferred: 0.6M t @ 1.1g/t

Ban Houayxai Deposit – North Zone

98m @ 3.7g/t Au Eq from 176m inc. 20.6m @ 12.8g/t Au Eq from 211m

Gold to silver price ratio assumption: 50 to 1

56m @ 4.9g/t Au Eq from 88m inc. 6m @ 12.9g/t Au Eq from 120m &6m @ 21.3g/t Au Eq from 136m

Ban Houayxai Deposit – Looking Southeast

Possible waste dump location

Northern mineralised zone

Dilation zone oxide mineralisation

Southern mineralised zone

Proposed plant site & TSF locations behind hill

Pha Nai Copper-Gold-Molybdenum Prospect

20km north of Phu Kham

High tenor - up to 0.18% copper soil anomaly

1.5km x up to 1km within a 4km x 2km halo

Elevated molybdenum (70 to 150ppm) and gold zones

Geophysical survey in progress

Phonsavan Copper Project

Bohr Thong Tharkhek

KTL

3220

00 m

E32

2000

mE

2150000 mN

2146000 mN

3180

00 m

E31

8000

mE

3140

00 m

E

3100

00 m

E

3140

00 m

E

2150000 mN

2146000 mN

3100

00 m

E

Cu in Soils (ppm) NEA Copper Project

1,000 to 10,000 (11)300 to 1,000 (110)100 to 300 (215)

0 to 100 (1776) 4 km

Phonsavan

Puthep copper project

1H 2007 drilling targeted primary copper-gold mineralisation below existing oxide & transitional mineral resource

New program started October 2007 testing new geological model

Pre-Feasibility Study due mid-2008

Bulk flotation concept similar to Phu Kham being evaluated

Positive flotation test results from primary mineralisation

Eastern Fault Zone

Eastern Fault Zone

Eastern Fault Zone

Eastern Fault Zone

Eastern Fault Zone

Eastern Fault Zone

Eastern Fault Zone

Eastern Fault Zone

Eastern Fault ZoneWestern Fault Zone

Western Fault Zone

Western Fault Zone

Western Fault Zone

Western Fault Zone

Western Fault Zone

Western Fault Zone

Western Fault Zone

Western Fault Zone

Sedimentary RocksSedimentary RocksSedimentary RocksSedimentary RocksSedimentary RocksSedimentary RocksSedimentary RocksSedimentary RocksSedimentary Rocks

Diorite Intrusive RocksDiorite Intrusive RocksDiorite Intrusive RocksDiorite Intrusive RocksDiorite Intrusive RocksDiorite Intrusive RocksDiorite Intrusive RocksDiorite Intrusive RocksDiorite Intrusive Rocks

Breccia ZoneBreccia ZoneBreccia ZoneBreccia ZoneBreccia ZoneBreccia ZoneBreccia ZoneBreccia ZoneBreccia Zone

SkarnSkarnSkarnSkarnSkarnSkarnSkarnSkarnSkarn

PUT1 DepositBoundary

0 250 500

metres

2007 Phase 1 Drillhole, drilled, assays received

2007 Phase 1 Drillhole - drilled,assays pending

2007 Phase 1 Drillhole - planned

Holes from previous drill programs

Puthep Copper Project, Thailand

P1DD012:52m @ 0.6% Cu from 134m

P1DD010:24m @ 0.4% Cu fm 14m,22m @ 0.7% Cu fm 54m &68m @ 0.4% Cu & 0.2g/t Au fm 138m

P1DD008:62m @ 1.0% Cu fm 70m

P1DD011:94m @ 0.8% Cu from 58m

P1DD013:10m @ 1.6% Cu, 2.15g/t Au fm 64m &20m @ 1.6% Cu, 1.75g/t Au fm 82m

P1DD001:6m @ 0.7% Cu, 8.0% Zn, 0.2g/t Au, 3.0g/t Ag &30m @ 0.6% Cu, 4.5% Zn, 0.2g/t Au, 3.0g/t Ag

P1DD002:20m @ 1.0% Cu, 0.2% Zn, 0.2g/t Au, 1.3g/t Ag

P1DD006:96m @ 0.6% Cu, 0.3g/t Au fm 62mMultiple sub-10m intercepts

Production Summary and Strategy

0

20

40

60

80

100

120

2007 2008 2009 2010 2011 2012

Cop

per E

q. (t

000

's)

Phu Kham expansionPhu Kham copperPhu Kham gold + silverHeap leach gold

Five-year growth strategy to double production.

Potential sources include: Ban Houayxai gold, Puthep copper

Indicative production profile (100% basis) based on 2006 feasibility study metal-in-concentrate production; includes planned expansion from mid-2010Revised Ore Reserve scheduled for March 2008 Copper Equivalents assumptions - copper US$1.35/lb, gold US$450/oz, silver US$8/oz

This presentation has been prepared by the management of Pan Australian Resources Limited (the 'Company') for the benefit of brokers, analysts and investors and not as specific advice to any particular party or person.

The information is based on publicly available information, internally developed data and other sources. No independent verification of those sources has been undertaken and where any opinion is expressed in this document it is based on the assumptions and limitations mentioned herein and is an expression of present opinion only. No warranties or representations can be made as to the origin, validity, accuracy, completeness, currency or reliability of the information. The Company disclaims and excludes all liability (to the extent permitted by law), for losses, claims, damages, demands, costs and expenses of whatever nature arising in any way out of or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any of it.

Where the Company expresses or implies an expectation or belief as to the success of future exploration and the economic viability of future projects, such expectation or belief is based on management’s current predictions, assumptions and projections. However, such forecasts are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed, projected or implied by such forecasts. Such risks include, but are not limited to, exploration success, gold and copper price volatility, changes to the current mineral resource estimates, changes to assumptions for capital and operating costs as well as political and operational risks and governmental regulation outcomes. For a more detailed discussion of risks and other factors, refer to the Directors' Report in the Company's 2006 Annual Report which has been lodged with the Australian Securities Exchange, as well as the Company's other Australian Securities Exchange announcements and filings. The Company does not have any obligation to advise any person if it becomes aware of any inaccuracy in, or omission from, any forecast or to update such forecast.

The data in this report that relates to Exploration Results, Ore Reserves and Mineral Resources is based on information evaluated by the Competent Person as identified below. All these persons are affiliated in the capacity indicated with the professional institution shown and have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”). All these persons are full-time employees of the organisation indicated and consent to the inclusion in the report of the matters based upon their information in the form and context in which they appear.

Exploration Results: Mr. Richard Hague is a Member of the Australian Institute of Geoscientists (MAIG) and an employee of Pan Australian Resources Ltd.

Phu Kham Copper-Gold Ore Reserve: Mr Chris Desoe is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and an employee of Australian Mine Design and Development Pty Ltd.

Ban Houayxai Resource: Mr. Richard Hague is a Member of the Australian Institute of Geoscientists (MAIG) and an employee of Pan Australian Resources Ltd.

Important Notices

Joe Walsh

GM Corporate Development

Website: www.panaustralian.com.auEmail: info@panaustralian.com.au

P A N A U S T R A L I A NR E S O U R C E S LIMITED