PERSEUS MINING LIMITED — Capital/Financing Update 2006

Sep 27, 2006

ASX/MEDIA RELEASE 28 September 2006

618.000 OZ MAIDEN RESOURCE HIGHLIGHTS POTENTIAL OF OBDILLA PROSPECT IN THE KYRGYZ REPUBLIC

Perseus Mining Limited (ASX: PRU) is pleased to announce a maiden Inferred resource estimate of 10.4Mt at 1.9g/t containing 618,000 ounces of gold covering the easternmost 400m of the 2km long mineralised zone at Obdilla.

Obdilla is one of five prospects situated on the Tolubay licence, in the foothills of the Alay Range and Chauway valley in central western Kyrgyz Republic, 110km from Osh city. The Tolubay licence is the smallest of the eight Perseus licences covering 4,846sq km that form the South Kyrgyz Gold Project.

Gold mineralisation is found in a Carlin-style setting hosted by calcareous siltstone and sandstone of the Tolubay Suite. This sequence appears to be getting deeper and wider to the west, highlighting the potential for a substantial increase in delineated resources as drilling is extended in a westerly direction. By way of example, the westernmost 100m of the 400m strike over which the resource estimation was made contains 266,000oz, or 43% of the gold in the resource estimate.

Perseus currently has two diamond drill rigs on site and has plans to add at least one further rig. Due to the relatively low altitude and good infrastructure, drilling at Obdilla will continue throughout the year. Perseus expects to be in a position to announce regular resource upgrades for the Obdilla deposit, which appears to be part of a large mineralised system in a geological setting highly prospective for large-scale sediment hosted gold deposits.

Obdilla ProspectInferred Mineral Sulphide Resource Estimate (Gold)
	Total
Cut-offAu g/t	Tonnes(x1,000)	GradeAu g/t	Ouncescontained
1.0	10,400	- 9	618,000

Rounding applied.

Notes to the estimate are contained in the attached appendix 1.

To discuss aspect οf this announcement, please contact Mark Calderwood any af calderwoodm@perseusmining.com

For media enquiries please contact Tiffany Winch-Buist or John Williams at Professional Public Relations on +61 8 9388 0944

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@perseusmining.com Website: www.perseusmining.com

Perseus Mining is a gold exploration company exploring for large gold deposits within regions that: have numerous "World Class" gold deposits; have significant existing gold production and growing reserve inventories; remain amongst the least explored by modern techniques; and include countries in which the Directors and Perseus staff have substantial experience.

Perseus has six rigs working on four projects (Grumesa, Avanfuri, Tolubay and Tengrela) in three countries. Feasibility studies are in progress at the Avanfuri and Grumesa Projects in Ghana.

The information in this report that relates to mineral resources at the Obdilla prospect is based on a resource estimate that has been compiled by Mr Paul Payne, who is the Principal and full time employee of Resource Evaluations Pty Ltd. Mr Pavne is a Member of The Australasian Institute of Mining and Metallurgy and 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 Payne consents to the inclusion in this report of the matters based on his information in the form and context in which it appears

Appendix 1 Notes on the resource estimate

• 1. The Mineral Resource estimate for the Obdilla gold deposit was completed in September 2006 by Resource Evaluations Pty Ltd for Perseus Mining Ltd.
• 1. Obdilla is situated within the Tolubay exploration licence, in the foothills of the Alay Range and Chauway Valley in central western Kyrgyz Republic, 110km from Osh city.
• 1. The geological setting and style of mineralisation is sediment hosted gold mineralisation within the Tien Shan Mobile Belt, which is an extensive thrust/fold belt that is host to some of the world's largest gold deposits such as the Muruntau 170Moz deposit in Uzbekistan and is similar to some deposits of the Carlin trend in Nevada. Mineralisation is hosted within Lower Carboniferous to Silurian, marine shelf facies of siltstone, sandstone and limestone, and associated with mesothermal alteration and mineralisation of cinnabar. antimony, arsenic, gold mineralisation over widths up to 70m.
• 1. The Obdilla resource area extends over a strike length of 400m from 251,650mE to 252.050mE and includes the 350m vertical interval from surface at 1500mRL to 1150mRL.
• 1. Drill holes used in the resource estimate included 24 surface diamond holes for a total of 3,274m of drilling. All holes were drilled by Perseus Mining in 2005 and 2006. Holes were generally drilled at 100m spacings throughout the deposit as fans from one or two sites for each section, orientated at variable angles into the topography.
• 1. Only diamond drilling was used in the resource estimate, with samples taken based on geology with intervals ranging from a minimum of 0.3m and a maximum of 2m.
• 1. Gold was assayed by Fire Assay with an Atomic absorption spectrometry (ASS) finish at Alex Stewart Assay Laboratories Ltd, Bishkek.
• 1. Drillhole collars have been located in WGS84 grid using a GPS and are considered accurate $to 5m$
• 1. Several holes have been downhole surveyed at 10m intervals using a Russian IEM-36 inclinometer.
• 1. Surface topography of the Obdilla area was sourced from relatively reliable Soviet data based largely on aerial photographic techniques.
• 1. Wireframes were constructed using cross sectional interpretations based on a 0.2g/t Au cutoff grade.
• 1. Samples within the wireframes were composited to even 2.0m intervals. No high grade cut was applied to gold values, based on statistical analysis.
• 1. A Surpac block model was used for the estimate with a block size of 10m NS x 50m EW x 10m vertical with sub-cells of $2.5m \times 10m \times 2.5m$ .
• 1. ID2 grade interpolation used an oriented search ellipse based on lode geometry, with a first pass radius of 75m and a second pass radius of 300m. All Blocks were estimated in these first two passes. An 'ellipsoid' search method was used.
• 1. A bulk density value of $2.53 \nu/m^3$ was applied to all material based on density determinations completed on core at Alex Stewart Assay Laboratories Ltd, Bishkek. There is essentially no oxide zone at Obdilla; all material is considered sulphide.
• 1. The Mineral Resource was entirely classified as Inferred as a consequence of wide drill hole spacing and the uncertainty associated with the interpretations.
• 1. No assumptions have been made about the mining and processing methods in the current resources estimation.

Obdilla, Section 8 (251690E) - Interpretative

Long Section of Interpretive Geology - Obdilla Gold Prospect