refinance, page-7

Here is Pna`s official reply to my emailed question of "why yesterdays fall in SP."
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Andrew,



Thanks for asking.

The fall probably related to the surprise announcement by CopperCo that it had appointed administrators due to refinancing difficulties, combined with the US market Thanksgiving holiday “long weekend” which essentially meant end-of-month trading conditions.



With the current global financial crisis, the market continues to be sensitive to companies that require, in the short term, to refinance debt positions.



On PanAust’s debt facilities - there is no requirement to refinance PanAust’s project facility which is a seven-year facility (commenced last year) held with a syndicate of banks led by ANZ.



PanAust also has an US$80m subordinated debt facility with Goldman Sachs JBWere. This facility will need to be replaced or refinanced at the earliest February next year. Discussions with interested parties to refinance this facility have already commenced.



On the operational front, PanAust continues to perform well. A couple of weeks ago the company hosted a brokers analyst visit to the Phu Kham operation. The analysts were positive – to quote Geoff Breen’s (RBC analyst) report, the operation is “humming”.



Allan



Allan Ryan

Investor Relations Manager

PanAust Limited

Tel +61 (0)7 3117 2002