PERSEUS MINING LIMITED — Capital/Financing Update 2005

Sep 5, 2005

6 September 2005

The Manager Australian Stock Exchange Ltd Level 4 20 Bridge Street Sydney, NSW 2000

Dear Sir

PROPOSED ISSUE OF NEW SECURITIES

Perseus Mining Ltd is pleased to announce that it has entered into agreements for the placement of 12,500,000 fully paid ordinary shares at an issue price of 20 cents each, with 6,250,000 free attaching options for a total subscription amount of \$2,500,000. The options are exercisable at 20 cents each on or before 31 March 2009.

A subscription agreement has been executed with Macquarie Bank Ltd for it to subscribe for 3,500,000 fully paid ordinary shares and 1,750,000 free attaching options for a total subscription amount of \$700,000. The placement is expected to be completed later this week.

An agreement has been reached with Montagu Corporate Pty Ltd ("Montagu") for it to procure subscriptions for the remaining 9 million shares and 4.5 million free attaching options for total subseription monies of \$1,800,000. Completion of the placement to clients of Montagu will be subject to shareholder approval under ASX Listing Rule 7.1. A general meeting to seek that approval will be held in mid October.

The total funds raised of \$2.5 million will be used for exploration programs and for general working capital. Exploration programs include:

• the Tengrela Project, where a substantial drill program is planned to commence shortly;
• the Tolubay Project, where the Company has commenced diamond drilling the Obdilla discovery. Recent trenching at Obdilla has defined significant gold mineralisation at surface; and
• the Grumesa Project, where the Company is continuing feasibility work for the toll treatment of higher grade ore at the nearby Sansu plant belonging to Anglogold Ashanti Limited.

Yours faithfully

(hos

Susmit Shah Company Secretary