PERSEUS MINING LIMITED — Capital/Financing Update 2006

May 4, 2006

5 May 2006

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

Dear Sir

COMPLETION OF CAPITAL RAISING

Perseus Mining Ltd has today completed the allotment and issue of 9,600,000 ordinary shares pursuant to subscriptions received under the Company's prospectus offer dated 10 April 2006. The shares were issued at 40 cents each to raise a total of $3,840,000.

The capital raising initiatives referred to in the Company's announcement dated 30 March 2006 will be completed following shareholder approval of a placement of $5,750,000$ shares at 40 cents ($2.3) million in total) each to Macquarie Bank Ltd at a meeting convened for 19 May 2006.

The Company is well funded to progress its Grumesa feasibility study in Ghana and exploration on its exciting Tolubay and Tengrela projects in the Kyrgyz Republic and Ivory Coast respectively.

Yours faithfully

Mark Calderwood Managing Director