PERSEUS MINING LIMITED — Capital/Financing Update 2006

Dec 13, 2006

ASX/MEDIA RELEASE 14 December 2006

Perseus Commences 50,000m RC drilling program at Tengrela Gold Project - Ivory Coast

OVERVIEW

RC drilling to test numerous significant RAB drill intercepts recorded over the previous year commenced on the Tengrela Gold Project in early December.

• The Tengrela project covers much of the Syama gold belt in Ivory Coast, close to the Mali border. $\bullet$
• The first target for RC drilling is the Sissingue prospect, where RAB drilling has identified multiple $\bullet$ zones of mineralisation over an area 4km long and up to 750m wide.
• Sissingue is one of nine main target areas identified on the Tengrela project, three of which have $\bullet$ been tested by RAB drilling to date.
• Initial RC drilling results are expected in mid January $\bullet$
• 7,000m of RAB and RC drilling per month is targeted for Tengrela throughout 2007.

Perseus Mining Limited (ASX: PRU) has commenced a 50,000m RC drilling program at the Tengrela Gold Project located in Ivory Coast near the Mali border, in West Africa.

RC drilling has commenced on the Sissingue zone, where RAB drilling has delineated in situ mineralisation over the 4km tested to date of a 6km long gold-in-soil anomaly. Multiple mineralised zones in an area at least 750m wide have been encountered at Sissingue. RAB drilling intercepts previously reported included 33m at 11.1g/t, 16m at 3.5g/t, 8m at 3.4g/t, 31m at 1.4g/t, 29m at 1.1g/t and 28m at 1.0g/t Au. The RC drilling will systematically test each of the zones of significant mineralisation and follow up with resource drilling on zones that show strike and depth persistence.

The Company's RAB rig has completed more than 400 drill holes over 12km of strike length on the first three of nine soil anomalies identified on 75km strike of the Syama gold belt within the Tengrela permits. It is currently drilling on 200m sections to better define zones of mineralisation for RC drilling. During 2007 the RAB rig will continue to undertake a combination of wide-spaced reconnaissance drilling of untested soil anomalies and infill drilling of areas containing significant intercepts in preparation for RC drilling.

The multi-purpose rig is expected to complete about 4,000m of RC drilling per month and Perseus has an option to extend the initial 50,000m program by a further 50,000m. The Perseus RAB rig is currently drilling in excess of 200m per day.

Interpretative Geology - Tengrela Region

Background

The 885sq km Tengrela project is located in Ivory Coast on the border with Mali, 30km SSW from the Syama gold mine (6.5Moz), along the Syama shear within the Syama-Boundiali greenstone belt. The project lies 150km SSE of the Morila gold mine (7Moz) and 65km WNW of the Tongon deposit (3Moz).

Perseus has a net 80% interest in the Tengrela project, with 10% held by a local partner and 10% reserved for the Government at the mining stage.

The geology of the northern portion of the Syama-Boundiali greenstone belt has many similarities to the better-explored Ashanti gold belt in neighbouring Ghana, where Birimian volcaniclastics dominate over competent volcanics, with the development of inner belt basins filled with Tarkwaian epiclastics.

Previous extensive systematic exploration on the Tengrela project, including airborne geophysics and 22,500 geochemical samples, identified a series of significant soil anomalies over a strike of 75km. mostly along the Syama shear. The nine main soil anomalies at Tengrela are comparable to other significant soil anomalies in the region (Syama group, Tabakoroni, Tioro, Morila) and are prime targets for follow-up exploration. The total area of these anomalies is over 40sq km, requiring staged follow-up. Importantly, the Morila-Tongon region has to date had an extremely high conversion rate of significant soil anomalies to gold discoveries.

$To$ discuss aspect of this Calderwood any announcement. please Mark contact $\alpha$ n calderwoodm@perseusmining.com.

For media enquiries please contact Tiffany Winch-Buist or John Williams at Professional Public Relations on +61 893880944

1. Juli

Mark Calderwood Managing Director

Perseus Mining listed on ASX in September 2004 to explore and develop several advanced gold projects located in West Africa and Central Asia.

Perseus has experienced staff working in regions which host numerous "World Class" gold deposits, but which remain amongst the least explored by modern techniques.

Perseus has demonstrated the exploration potential of its key projects in Ghana, Ivory Coast and the Kyrgyz Republic and in September 2006 reported increases in its resource base to over 2 million ounces of gold.

Ongoing drilling campaigns on projects in Ghana, Ivory Coast and the Kyrgyz Republic should result in further significant resource upgrades by Perseus.

The information in this report that relates to exploration results, mineral resources or ore reserves is based on information compiled by Mr Mark Calderwood, who is a Member of The Australasian Institute of Mining and Metallurey. Mr Calderwood is a Director and 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.