PERSEUS MINING LIMITED — Capital/Financing Update 2005

Jun 1, 2005

ASX RELEASE

SIGNIFICANT EXPLORATION RESULTS AT OBDILLA GOLD PROSPECT (Tolubay Project - Kyrgyz Republic - Perseus 100%)

HIGHLIGHTS

• Systematic soil sampling at the Obdilla prospect has defined an exceptionally strong 2,000m by 200m gold in soil anomaly in a prospective geological setting containing extensive alteration and sulphide mineralisation.
• A drill access road to the target zone, favourably located near the crest of a 600m hill, is under construction with the view to drilling in late June.

Systematic soil sampling has been completed over a 2,100m by 400m portion of the Obdilla prospect. 337 samples were collected where possible at 50m by 50m intervals. Results show excellent continuity and high-grade cores within the open ended 2000m long anomalous zone. A total of 105 samples exceeded 100ppb Au, of which 46 samples exceeded 400ppb and 14 exceeded 1,000ppb $(1g/t)$ Au. The average grade of values over 400ppb Au was in excess of 1,000ppb.

The geology is dominated by a series of high angle reverse faults where limestone has been progressively over thrust onto shale and sandstone lithologies. Sulphide mineralisation is abundant within the poorly exposed altered shale close to the faults and limonite alteration is common within the brecciated limestone.

The level of alteration, arseno-sulphide mineralisation and gold in soil at Obdilla is significantly more pronounced than at Tolubay, where Perseus announced a drill intercept of $22m (a) 1.8g/t$ Au earlier this year. The Tolubay and Obdilla prospects lie on a 15km long Upper Carboniferous limestone – shale contact zone in a setting which has similarities to some deposits on the Carlin Trend in Nevada.

A drill access road is currently being prepared and drilling is planned commence in late June. The initial target is a 500m by 70m area of shale containing exceptionally high levels of orpiment, with soil assays averaging $1500$ ppb $(1.5g/t)$ Au.

Soil sampling is continuing to the east and west of Obdilla, along the contact zone which has evidence of gold mineralisation over at least 10 km, to define the extent of this and other strong gold in soil anomalies.

To discuss any aspect of this announcement, please contact Mark Calderwood on email calderwoodm@crcpl.com.au or telephone (08) 9240 6344.

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The information in this report that relates to exploration results is based on information compiled by Mr Mark Calderwood, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Calderwood is a full-time employee of the Company. Mr Calderwood has sufficient experience, which is 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'. Mr Calderwood consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

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Mark Calderwood Managing Director

2 June 2005

Obdilla Prospect - Tolubay Gold Project