While Pan Australian Resources full year report shows a net loss of US$4.6 million for the full year to 31 December which includes depreciation and amortisation charges of US$4.5 million and a write-off of uneconomically recoverable gold in circuit of US$5.2 million, good news continues to greet the company"s construction of its Phu Kham copper-gold project.

Pan Australian's Phu Bia Gold Mine made an operating cash flow contribution of US$1.1 million for the year. At the end of December 2006, Pan Australian had cash and cash equivalents of US$80 million and no borrowings.

Managing director Gary Stafford says development activities at the US$232 million Phu Kham Copper-Gold project were progressing well, with construction of the mine camp starting recently along with the erection of first structural steel work.

"The Phu Kham Copper-Gold mine development is progressing well and remains on schedule and within budget.

At full production, the Phu Kham Project should produce more than 200,000 dry metric tonnes of concentrate a year, containing on average 52,000 tonnes of copper, 47,000 ounces of gold and 400,000 ounces of silver - a company-making project for Pan Australian," Gary Stafford says.

Gary Stafford says: "Encouraging drill results have been received from both new projects and existing deposits. Furthermore, gaining land access to the Puthep Project in late 2006 has paved the way for resource drilling to start this month at Puthep, Thailand's largest known copper deposit."

About Pan Australian

Pan Australian Resources Limited is a minerals exploration and development company. The company owns 100%of Phu Bia Mining Limited, the Lao-registered company that holds all of the company's minerals interests in Laos.

With a market capitalisation of about $530 million, Pan Australian is focused on developing the Phu Kham copper-gold project and Phu Bia gold mine in Laos, in addition to the Puthep project in Thailand.