PERSEUS MINING LIMITED — Capital/Financing Update 2006

Jul 19, 2006

COSTIME CILES

ASX RELEASE CASPIAN FARMS OUT MANSOUNIA GOLD PROJECT

As part of the orderly recognition of value from the non-petroleum assets of Caspian Oil & Gas Limited, the Mansounia gold project in Guinea has been farmed out to unlisted Australian public company, Burey Gold Ltd ("Burey").

Burey is planning an initial public offer of its securities and to list on the Australian Stock Exchange, with the Mansounia project comprising its lead asset. Burey has prepared a substantial exploration program, including RC drilling, which is anticipated to commence in September. Mansounia is strategically located immediately south of Canadian listed, Semafo Inc's, Kiniero gold mine in North East Guinea.

The farm-in agreement requires Burey to complete a feasibility study to earn a 70% interest in the project. Burey is also required to pay US$500,000 cash to Caspian on completion of a feasibility study. On completion of a feasibility study by Burey, Caspian will hold 8% equity in the project, whilst local partners and the Government of Guinea will hold 7% and 15% interests respectively. Caspian can elect at any stage thereafter to convert its 8% contributing interest into a 5% net profit interest.

Caspian has been issued with 500,000 shares in Burey as reimbursement of its past expenditure. In addition. Caspian shareholders will be offered shares in Burey on a priority basis when it undertakes its initial public offer.

The joint venture with Burey follows Caspian's successful spin-off of its major gold assets into Perseus Mining Ltd and the farmout of its diamond interests in the Democratic Republic of Congo and Ghana to De Beers and Paramount Mining Corporation Ltd respectively, to enable Caspian to concentrate on developing its oil interests. Caspian is currently assessing a number of new oil projects and is planning to drill on the Ashvaz and Mailisu III prospects in the Kyrgyz Republic in 2006, while Santos International Operations Pty Ltd is continuing its staged exploration of 24,000 sq km Kyrgyz licences under its joint venture with Caspian.

Un Gerson

Colin Carson Director 20 July 2006