PERSEUS MINING LIMITED — Capital/Financing Update 2007

May 14, 2007

ASX RELEASE 15 May 2007

New Gold Zone Discovered Avanfuri Gold Project - Ghana

Highlights

• Perseus has discovered a new zone of near surface gold mineralisation between the Abnabna and Fobinso deposits at its Ayanfuri gold project. One hole intercepted an open ended 99m at 3.3 $g/t$ Au from 8m, including 66m at 4.0g/t Au from 8m.
• Recent deeper drilling at Abnabna included an intercept of 75m at 3.0g/t including 20m at 8.1g/t Au. $\bullet$
• The company is currently working on a resource update for Abnabna and an initial resource estimate for ۰ the Fobinso deposit.
• The discovery of this new zone supports Perseus's view that there is strong potential for the discovery of multiple new zones of gold mineralisation within the 20km long licence area.

Further significant results have been received by Perseus Mining (ASX:PRU) at its Ayanfuri gold project in Ghana. Last week, the Company announced significant and large open-ended drill intercepts for the Esuajah South deposit, another focus area within the Ayanfuri gold project.

The latest discovery lies between the Abnabna and Fobinso deposits, part of the Ayanfuri gold project. It was made during an initial phase of Reverse Circulation (RC) drilling designed to test an unexplored area between the Abnabna and Fobinso oxide pits.

The Abnabna - Fobinso zone has an open strike length of 2km and large areas are under transported alluvial cover. While mining was undertaken at both ends of the zone, the area in between remained essentially unexplored.

Results from the drilling included an open ended intercept of 99m at 3.3g/t Au (commencing eight metres from the surface), including 66m at 4.0g/t Au from drill hole ABRC049. This intercept combined with others along strike, highlight the potential for additional shallow oxide resources and large tonnage free milling granitoid sulphide mineralisation in wide shoots typical for the Abnabna area.

Recent deeper diamond drilling at Abnabna, including an intercept of 75m at 3.0g/t with 20m at 8.1g/t Au, has highlighted the potential of the deposit at depth with high grade results from drill holes ABDD008 and ABDD012 indicating the 100m wide shoot at Abnabna has an easterly plunge.

Perseus is currently undertaking extensive RC and diamond drilling to gain an understanding of the resource potential (within economic limits) of seven of the largest known gold deposits at Ayanfuri. Drilling is also now extending into previously untested areas along strike from known deposits.

Indicated and Inferred resources totalling 189,300 ounces were announced for the Abnabna deposit in May 2006 as part of the overall Ayanfuri resource estimate at that time. Perseus is currently working on a resource update for Abnabna in early June and an initial resource estimate for the Fobinso deposit.

A resource upgrade is also planned for the Esuajah and Esuajah South deposits at Ayanfuri within weeks.

Hole	North	East	Depth	Incl.	Azm.	From	To	Width	Au
	(m)	(m)	(m)	$^{\circ}$	$\circ$	(m)	(m)	(m)	g/t
ABDD008 13720		25930	251.76	$-70$	180	86	96	10	1.2
						108	183	75	3.0
					incl.	126	146	20	8.1
					incl.	136	138	$\boldsymbol{2}$	29.3
					and	145	146	1	69.8
ABDD012	13691	25853	184.71	$-60$	180	$78\,$	181	103	1.5
					incl.	$78\,$	80	3	10.5
					and	$87\,$	94	7	2.8
					and	110	112	2	$5.6\,$
					and	125	126	1	25.3
					and	167	168	1	8.3
					and	172	173	1	8.5
					and	180	181	1	7.1
ABRC025	13890	26780	120	$-60$	180	40	$\sqrt{52}$	12	0.8
						114	$120*$	6	3.4
ABRC026	13860	26740	80	$-55$	180	10	$80*$	$70\,$	0.5
					lncl.	24	28	4	$2.0\,$
ABRC027	13870	26920	41	$-50$	180	$\overline{4}$	28	24	1.7
					lncl.	28	34	6	3.9
						$50\,$	56	6	$2.5\,$
ABRC028	13868	26920	24	$-50$	180	8	20	12	1.6
					lncl.	12	18	6	$2.4\,$
ABRC029	13750	26400	59	$-50$	360	16 28	49 34	33	1.3
					incl.			6	3.6
ABRC048	13640	26200	100	$-50$	360	50 $\bf 8$	56 28	6 20	$2.5\,$ 1.2
					incl.	16	20	$\overline{4}$	3.6
						68	82	14	0.6
						98	$100*$	2	1.5
ABRC049	13690	26300	107	$-50$	360	$\bf 8$	$107*$	99	3.3
					incl.	$\bf 8$	74	66	4.0
ABRC050	13751	26401	71	$-50$	360	16	$70\,$	54	1.4
					incl.	48	60	12	3.3

	Table 1: Significant Recent Drill Intercepts - Abnabna - Fobinso - Ayanfuri Gold Project

* denotes ended in mineralisation

Background on Ayanfuri Gold Project

In March 2007 Perseus exercised an option to purchase a company which has 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 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 produced in excess of 60 million ounces.

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

Feasibility studies are being conducted for a 2Mtpa CIL plant operation at Ayanfuri and a heap leach operation at Perseus's nearby Grumesa project. Current resources for the Ayanfuri project are 268,000 ounces Indicated and 340,000 ounces Inferred from 5 of the 19 deposits previously mined.

Gold mineralisation at Avanfuri occurs within a series of granitoid stocks intruded along 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 Mining was listed on the ASX in September 2004 to explore and develop several advanced gold projects located in West Africa and Central Asia.

Perseus has experienced staff working in regions which host numerous "World Class" gold deposits, but which remain amongst the least explored by modern techniques.

Perseus continues to demonstrate the exploration potential of its key projects in Ghana, Ivory Coast and the Kyrgyz Republic and in September 2006 reported increases in its resource base to over 2 million ounces of gold and ongoing drilling campaigns on these projects should result in further significant resource upgrades in 2007.

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

For media enquiries please contact Jill Thomas or John Williams at Professional Public Relations on +61 8 9388 0944

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.