PERSEUS MINING LIMITED — Capital/Financing Update 2006

Dec 4, 2006

5 December 2006

ASX / MEDIA RELEASE

SIGNIFICANT CAPITAL RAISING PLAN FINALISED

The Directors of Perseus Mining Limited advise they have finalised plans for an offer of Perseus securities to raise up to $6.5 million for the purpose of funding exploration and feasibility activities on its gold projects in Ghana and the Ivory Coast, located in West Africa, and the Kyrgyz Republic in Central Asia.

The offer will comprise 16,250,000 shares at a price of 40 cents each, together with 8,125,000 free attaching unlisted options.

The options will be exercisable at 50 cents each on or before 29 February 2008. The offer will be made to a small number of qualifying investors who do not require a disclosure document and the offer is subject to approval by shareholders.

A shareholders meeting to approve the placement will be convened in January 2007.

This proposed offer is in addition to the placement offer announced on 24 November 2006, under which an amount of up to $3.5 million will be raised pursuant to a prospectus, which is expected to be issued later today.

These capital raisings for a total of $10 million, together with the Company's existing cash reserves, place Perseus Mining in a strong position to complete several key milestones over the next 10 months including:

• 1. completion of the full feasibility on the Grumesa gold project in Ghana, including the delineation of measured and indicated resources:
• 1. completion of the pre-feasibility for the Ayanfuri gold project in Ghana, including substantial drilling to increase the current indicated resources;
• 1. continue drilling the Obdilla deposit on the Tolubay gold project and expand the number of drill rigs currently operating; and
• 1. undertake substantial resource drilling at the Tengrela Gold Project located on the Syama gold belt in the Ivory Coast

Yours faithfully

Mark Calderwood Managing Director