PERSEUS MINING LIMITED — Capital/Financing Update 2006

May 16, 2006

17 May 2006

The Manager Australian Stock Exchange Ltd Level 4 20 Bridge Street Sydney, NSW 2000

Dear Sir

ACQUISITION OF ADDITIONAL MINERAL INTERESTS IN GHANA

Perseus Mining Limited advises that a trading halt on its securities was put in place on Monday, 15 May 2006, following the entering into of an agreement to acquire additional mineral interests in Ghana. Some settlement issues have arisen in relation to the agreement and the Company is presently working through those issues with the other parties. The Company anticipates being in a position to finalise these issues and provide further information to the ASX by the end of this week.

Yours faithfully

Renal

Susmit Shah Company Secretary