PERSEUS MINING LIMITED — Capital/Financing Update 2006

Dec 3, 2006

ASX/MEDIA RELEASE 4 December 2006

PURCHASE OF HEAP LEACH PLANT TO PROGRESS GOLD PROJECT IN GHANA

Perseus Mining Limited (ASX:PRU) is pleased to announce that it has entered into an agreement to purchase heap leach plant and equipment for the Grumesa gold project in Ghana.

The plant and equipment, mostly located in Ghana, is being purchased from Caspian Oil & Gas Ltd for a purchase price comprising 1,400,000 Perseus shares at an issue price of 40 cents each and a cash payment of US$25,000. Perseus will also assume responsibility for Caspian's security staff and their employee entitlements up to a limit of US$5,000.

After refurbishment, the plant is expected to provide significant savings in the development of the Grumesa gold project, as a low cost and faster development alternative to the acquisition of new plant, given current manufacturing, shipping costs and timeframes.

The plant consists of:

• A used crushing, agglomeration and conveying system;
• A used absorption-elution circuit and gold room; $\blacksquare$
• Significant quantities of new spares and other equipment including extensive piping, electrical cabling, motors, pumps, conveyor spares and belting etc; and
• An extensive database of digital drawings and construction and operational documentation. $\bullet$

The largely non-cash consideration enables Perseus to conserve its cash resources for the development of its Ghana projects.

Perseus recently announced Inferred resources of 29Mt $\omega$ 0.9g/t Au containing 800,000 ounces of gold for the Grumesa project and is targeting a resource upgrade based on a further 9,000m of drilling recently completed and an additional 5,000m planned for the new year.

The acquisition of the plant and equipment will provide a firm basis on which to complete the mining prefeasibility study for the stage one open pit, which it is hoped will produce 50,000 oz of gold per annum over an initial four-year period.

To discuss this Mark Calderwood anv aspect οf announcement. please contact on calderwoodm@perseusmining.com.

For media enquiries please contact Tiffany Winch-Buist or John Williams at Professional Public Relations on $+61893880944$ .

Mark Calderwood Managing Director

Perseus Mining Limited ABN 27 106 808 986 30 Ledgar Road, Balcatta, Western Australia 6021 PO Box 717 Balcatta WA 6914 Telephone: (618) 9240 6344 Pacsimile: (618) 9240 2406 Email address: info@perseasmining.com Website: www.perseasmining.com

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 has reported increases its resource base to over 2 million ounces of gold in September 2006.

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