PERSEUS MINING LIMITED — Capital/Financing Update 2007

Dec 11, 2007

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ASX RELEASE 12 December 2007

Exploration Update - West Africa

Overview

• 20,732m of drilling has been completed in Ghana and Ivory Coast in the 35 days to November 30, including about 8,500m of core drilling. Nearly all results from this large amount of drilling are still pending.

Ayanfuri (Ghana)

• Significant recent drill intercepts from Esuajah South included 150m at 2.4g/t, 225m at 1.6g/t, 76m at 2.4g/t, and 116m at 1.8g/t Au .

• Northerly extensions to the Abnabna deposit included intercepts of 50m at 1.7g/t, and 40m at 1.1g/t Au . Infill drilling included 154m at 2.4g/t, including 15m at 11.1g/t Au.

• Depth extensions to the Fetish deposit included intercepts of 92m at 1.2g/t and 11m at 10.1g/t Au from one hole and 60m at 2.3g/t Au from another.

• A strong, 1.3km long soil anomaly has been outlined south-west of the Abnabna deposit. This anomaly has essentially not been tested by trenching or drilling.

Tengrela (Ivory Coast)

• The diamond drill rig has arrived at Tengrela in the Ivory Coast.

• Impressive initial metallurgical results have been received for Sissingue East zone, with the 6 samples to date averaging 96.9% gold recovery, including 70.8% gravity recovery.

Perseus Mining Limited (ASX:PRU) is pleased to provide an update on significant exploration progress on its West African projects.

Ayanfuri Project, Ghana

Soil sampling to test the open strike south-west of Abnabna and north-east of Fobinso has been completed. This programme has defined a 4.3km long anomaly south-west of Abnabna with a strong core zone 1.3km long which included values up to 63,300ppb (63.3g/t) Au (see figure 2). The anomaly represents a high priority drill target for January 2008 when ground conditions improve.

Significantly, the recent discovery of new, coherent soil anomaly drill targets at Ayanfuri which were overlooked after inconclusive results from 1980s’ soil sampling adds a new dimension to the project.

About 14,000 metres of RC and diamond drilling was completed during November following on from 10,000 metres in October. Results for most of the October and November drilling are still pending. The results reported below are for holes drilled from late June to early October.

Infill drilling at Esuajah South highlighted the potential of this deposit, with significant intercepts of 150m at 2.4g/t including 26m at 4.0g/t and 12m at 4.7g/t , 76m at 2.4g/t including 3m at 9.1g/t and 1m at 13.5g/t , 80m at 2.2g/t, and 225m at 1.6g/t Au.

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 Facsimile: (618) 9240 2406 Email address: info@perseusmining.com Website: www.perseusmining.com

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Further encouraging results were returned from the start of the infill drilling programme at Esuajah North, including 60m at 1.1g/t with 18m at 2.9g/t Au.

Infill and extensional drilling underway at Abnabna continues to improve the outlook for this deposit, with intersections of 50m at 1.7g/t and 154m at 2.4g/t including 15m at 11.1g/t and 1m at 115.5g/t Au .

Drilling at the Fetish deposit, including 60m at 2.3g/t, 92m at 1.2g/t, 50m at 2.2g/t , and 11m at 10.1g/t Au, has extended the eastern lode.

Grumesa Project, Ghana

At Grumesa, RC resource drilling is progressing well, with more than 100 RC holes drilled to date in the central portion of the Kayeya deposit. The grades were generally typical of previous results, with better intercepts of 30m at 1.6g/t ; 14m at 1.3g/t ; 16m at 1.3g/t ; and 12m at 1.9g/t Au .

Tengrela Project, Ivory Coast

Drilling on the Tengrela Project was hampered during November with mechanical problems on both the RAB and the RC drill rigs. The RC drill rig is again operational and a diamond drill rig has arrived at Tengrela after extensive delays gaining customs clearances.

RC drilling that was able to be completed was confined to areas on the periphery of Sissingue East zone, returning modest results including 8m at 1.6g/t, 6m at 2.5g/t and 10m at 1.1g/t Au.

RAB drilling at Kanakono to the south of Sissingue and Papara to the north have returned a number of anomalies intercepts.

The drilling delays facilitated commencement of a soil sampling programme designed to infill and extend several known prospects and test lag sample anomalies. This programme will go hand-in-hand with regional prospecting, mapping and sampling already underway.

Initial gravity and leach test work on oxide and sulphide drill samples from the Sissingue East zone has confirmed that the mineralisation is free milling, with an exceptional amount of gravity recoverable gold. Leach kinetics were also impressive, with average recovery reaching 94.2% (98.2% weighted) within 8 hours.

Table 1 Summary of Metallurgical Test Work on Sissingue East Zone Drill Samples.

AMMTEC Sample No.	Drill Hole	Head Grade	Head Grade	Recovery, %	Recovery, %	Recovery, %	Reagent Consumption, Kg/t	Reagent Consumption, Kg/t
		Assay	Calculated	Gravity	Leach	Overall	NaCn	Lime
WH0581*	SRC044	9.1	15.3	78.8	18.9	97.7	0.36	0.44
WH0582*	SRC016	5.4	3.2	71.2	25.5	96.6	0.36	0.16
WH0583	SRC014	3.7	2.6	60.2	34.8	95.0	0.54	0.53
WH0584*	SRC020	4.1	1.5	64.3	30.2	94.6	0.46	0.20
WH0585	SRC046	4.6	3.8	55.7	42.3	97.9	0.51	0.53
WHO591*	SRC046	81.3	114.0	94.5	5.3	99.7	0.21	0.51
Average		18.0	23.4	70.8	26.2	96.9	0.41	0.40
Average (Wt)#				90.2	8.1	98.3

• denotes sulphide samples # denotes weighted average Test Conditions: Grind Size P80 of 106µm Cyanide Concentration 0.1%NaCN Leach Time 48 hours

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Background

Ayanfuri

In March 2007 Perseus exercised an option to purchase a company which had rights to two mining leases and a prospecting licence at Ayanfuri (the “Ayanfuri Mine Licences”), and two reconnaissance licences covering a project area of 510.6sq km. The project is located 25-65kms south-west of Obuasi on the Ashanti Gold Belt in Ghana.

Perseus’s second Ghanaian project, the 800,000oz Grumesa project, adjoins the Ayanfuri project area to the east. The Obuasi (Ashanti) gold mine, situated to the north-east, is one of Africa’s premier producing gold mines, having to date produced in excess of 60 million ounces.

The Ayanfuri Mine Licences incorporate the Ayanfuri mine, which between 1994 and 2001, produced 306,400 ounces of gold from multiple open pits and an oxide ore heap leaching circuit.

Feasibility studies are being conducted for a 2-5Mtpa CIL plant operation at Ayanfuri and a heap leach operation at Perseus’s nearby Grumesa project. Current gold resources for the Ayanfuri project are 637,500 ounces Indicated and 1,972,800 ounces Inferred from 7 of the 19 deposits previously mined.

Gold mineralisation at Ayanfuri occurs within a series of granitoid stocks which have intruded into a major deformation zone, and to a lesser extent within the enclosing sheared metasediments. Several shallow open cut mines were developed on the outcropping granitoid stocks towards the end of mining operations in 2001, but their depth potential was not tested at the time due to the low prevailing gold price.

Perseus is currently undertaking extensive drilling on the Ayanfuri project and expects to release resource upgrades on a regular basis.

Tengrela

The 885sq km Tengrela project is located in Ivory Coast on the border with Mali. The 6.4Moz Syama gold mine across the border in Mali is located 30km NNE from Tengrela and along the same Syama shear within the Syama-Boundiali greenstone belt. The project lies 150km SSE of the Morila gold mine (7Moz) and 65km WNW of the Tongon deposit (3Moz).

Perseus has a net 80% interest in the Tengrela project, with 10% held by a local partner and 10% reserved for the Government at the mining stage.

The geology of the northern portion of the Syama–Boundiali greenstone belt has many similarities to the better-explored Ashanti gold belt in neighbouring Ghana to the east, where Birimian volcaniclastics dominate over competent volcanics, with the development of inner belt basins filled with Tarkwaian epiclastics.

The Company’s RAB rig has completed more than 500 drill holes over 14km of strike length on four of the nine significant soil anomalies identified to date over 75km of strike length along the Syama gold belt within the Tengrela permits. During the remainder of 2007, the RAB rig is undertaking a combination of widespaced reconnaissance drilling of untested soil anomalies and infill drilling of areas containing significant intercepts in preparation for RC drilling.

Previous extensive systematic exploration on the Tengrela project, including airborne geophysics and 22,500 geochemical samples, identified a series of soil anomalies over a strike length of 75km, mostly along the Syama shear. The nine main soil anomalies at Tengrela are comparable to other significant soil anomalies in the region (Syama group, Tabakoroni, Tioro, Morila) and are prime targets for follow-up exploration. The total area of these anomalies is over 40sq km, requiring staged follow-up. Importantly, the Morila-Tongon region has to date had an extremely high conversion rate of significant soil anomalies to gold discoveries.

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To discuss any aspect of this announcement, please contact Richard Taylor on +61 8 9240 6344 or 0422 811 350 or by email at taylorr@perseusmining.com

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Mark Calderwood Managing Director

The information in this report that relates to exploration results, mineral resources or ore reserves is based on information compiled by Mr Mark Calderwood, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Calderwood is a Director and full-time employee of the Company. Mr Calderwood 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 Calderwood consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Table 2: Recent Significant Drill Intercepts, Tengrela Gold Project, Ivory Coast

Hole Deposit East (m) North (m) Azm. (˚) Incl. **(˚) **	From (m) To (m) Width (m) Au g/t
PRB004 Papara 797170 1171600 90 -60	0 8 8 0.71
PRB010 Papara 797404 1171616 90 -60	24 40 16 0.51
PRB037 Papara 798381 1171600 90 -60	36 43 7 1.47
SRC102 Sissingue 805580 1154279 90 -60	8 22 13 0.52
	38 50 12 1.04
SRC103 Sissingue 90 -60	6 12 6 1.30
SRC107 Sissingue 805900 1156200 90 -60	26 46 20 0.57
SRC109 Sissingue 805440 1156600 90 -60	60 66 6 2.47

• denotes ended in mineralisation.

Table 3: Recent Significant Drill Intercepts Ayanfuri Gold Project, Ghana

Hole Deposit East (m) North (m) Azm. (˚) Incl. **(˚) **	From (m) To (m) Width (m) Au g/t
ADD032 Esuajah South 2033 6140 270 -60	131 281 150 2.37
incl.	180 206 26 3.96
and	228 240 12 4.69
ADD033 Fetish 3435 5160 270 -50	78 103 25 1.2
incl.	94 95 1 8.99
	113 149 36 0.59
	153 203 50 2.24
incl.	188 189 1 64.35
	269 299 30 1.25
incl.	271 272 1 17.46
ADD035 Fetish 3450 5200 270 -60	86 128 42 1.55
incl.	117 118 1 27.64
	195 221 26 0.71
	233 255 22 0.80
ADD039 Fetish 3430 5320 270 -55	101 112 11 1.76
incl.	104 105 1 8.83
	122 200 78 1.01
	208 227 19 1.11
incl.	220 221 1 8.18
ADD040 Fetish 3390 5350 270 -50	70 85 15 2.66
incl.	77 78 1 20.33
	108 118 10 1.70
ADD041 Fetish 3320 5040 270 -65	175 176 1 21.24
ADD043 Fetish 3490 5200 270 -60	130 158 28 1.50
incl.	143 144 1 10.81
ADD044 Fetish 3450 5120 90 -50	85 117 32 1.17
	140 200 60 2.27
incl.	145 146 1 39.15

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Table 3: Recent Significant Drill Intercepts Ayanfuri Gold Project, Ghana (continued)

Hole Deposit East (m) North (m) Azm. (˚) Incl. **(˚) **	From (m) To (m) Width (m) Au g/t
ADD046 Fetish 3470 5280 270 -50	158 250 92 1.18
	271 282 11 10.08
incl.	273 274 1 11.46
	281 282 1 88.13
ADD047 Esuajah South 1895 6120 90 -44	86 99 13 1.56
ADD048 Esuajah South 1894 6120 90 -73	134 150 16 2.41
ADD050 Esuajah South 1850 6240 90 -60	126 242 116 1.8
incl.	176 242 66 2.50
incl.	188 189 1 12.62
and	212 214 2 10.47
	264 265 1 15.02
ADD052 Esuajah South 1890 6140 90 -75	110 186 76 2.44
incl.	146 149 3 9.12
and	169 170 1 13.50
ADD054 Esuajah South 2075 6300 270 -60	105 106 1 68.84
	116 119 3 8.39
incl.	118 119 1 21.08
	134 150 16 1.32
ADD057 Esuajah South 2060 6180 270 -55	158 383.13 225.13 1.6
incl.	231 232 1 17.14
ABRDD123 AF Gap North 26480 13760 180 -50	4 8 4 3.51
ABRDD124 AF Gap North 26660 13930 180 -50	134 135 1 9.58
ABRDD130 Abnabna 25890 13470 360 -50	98 115 17 0.87
	123 220 97 1.38
incl.	147 150 3 11.16
and	219 220 1 11.12
ABRDD142 AF Gap South 26090 13720 180 -50	167 172 5 4.09
ABRDD151 AF Gap South 26050 13705 180 -70	157 158 1 8.97
	165 205 40 1.13
ABRDD155 Abnabna 26010 13710 180 -70	107 192 85 0.94
	91 251 50 1.73
incl.	218 219 1 30.83
ABRDD162 Abnabna 25890 13703 180 -55	76 230 154 2.35
incl.	139 154 15 11.12
incl.	147 148 1 115.54
ABRDD163 Abnabna 25910 13750 180 -57	106 189 83 1.36
including	109 110 1 10.08
and	154 155 1 10.14
	243 265 22 1.02
ABRDD164 Abnabna 25770 13700 180 -60	140 142 2 5.39
AKRDD102 Esuajah North 2295 7120 90 -60	88 148 60 1.13
	167 185 18 2.88
	193 200 7 1.43
	219 236 17 0.82
AKRC103 Esuajah North 2278 7280 90 -60	74 76 2 8.03
AKRDD104 Esuajah North 2260 7440 90 -55	91 98 7 1.48

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Table 4: Recent Drill Intercepts Kayeya Project, Grumesa Gold Project, Ghana

		East	North	Azm.	Incl.	From	To	Width	Au
	Hole	(m)	(m)	**(˚) **	**(˚) **	(m)	(m)	(m)	g/t
	KRC368	60006	89660	90	-60	38	50	12	1.91
	KRC373	60400	89920	90	-60	24	34	10	0.64
	KRC374	60380	89920	90	-60	26	36	10	0.81
	KRC375	60420	89920	90	-60	16	24	8	0.72
	KRC376	60401	89920	90	-60	22	32	10	0.71
	KRC377	60360	89920	90	-60	10	14	4	1.67
	KRC379	60320	89920	90	-60	32	34	2	3.41
	KRC382	60260	89920	90	-60	38	44	6	0.86
	KRC385	60200	89920	90	-60	38	42	4	1.26
	KRC391	60160	89960	90	-60	36	52	16	1.33
	KRC395	60180	89960	90	-60	1	10	9	0.63
	KRC397	60280	89960	90	-60	54	58	4	1.51
	KRC400	60340	89960	90	-60	22	28	6	0.97
	KRC402	60380	89960	90	-60	28	34	6	1.02
	KRC405	60120	90040	90	-60	26	38	12	0.66
	KRC406	60140	90040	90	-60	32	52	20	0.77
	KRC408	90040	60180	90	-60	44	54	10	0.63
	KRC409	90040	60200	90	-60	38	52	14	0.6
	KRC410	90040	60220	90	-60	28	36	8	1.53
	KRC412	90040	60260	90	-60	10	16	6	1.24
	KRC413	90040	60280	90	-60	18	20	2	2.71
	KRC415	90040	60320	90	-60	42	48	6	1.41
	KRC416	90040	60340	90	-60	20	26	6	0.87
	KRC419	90040	60400	90	-60	22	32	10	1.74
	KRC420	90080	60100	90	-60	16	24	8	1.37
	KRC424	90080	60180	90	-60	0	4	4	2.49
				90	-60	12	16	4	1.32
	KRC428	90080	60240	90	-60	18	24	6	1.1
	KRC429	90080	60260	90	-60	6	16	10	0.71
	KRC430	90080	60280	90	-60	14	30	16	1.15
	KRC431	90080	60300	90	-60	10	20	10	0.85
	KRC432	90080	60320	90	-60	12	18	6	0.86
	KRC436	90120	60340	90	-60	12	20	8	1.33
	KRC437	90120	60320	90	-60	28	36	8	0.74
	KRC439	90120	60280	90	-60	20	32	12	0.69
	KRC440	90120	60260	90	-60	0	6	6	0.95
	KRC441	90120	60240	90	-60	12	20	8	1.18
	KRC442	90120	60220	90	-60	4	18	14	1.28
	KRC443	90120	60180	90	-60	2	32	30	1.57
	KRC446	90120	60140	90	-60	12	16	4	2.37
	KRC447	90120	60100	90	-60	18	30	12	1.18
	KRC449	60360	90240	90	-60	52	58	6	1.26

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Figure 1

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Figure 2

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Figure 3

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