PERSEUS MINING LIMITED — Capital/Financing Update 2007

Apr 17, 2007

High Grade Results Extend Large Gold Deposit at the Avanfuri Gold Project - Ghana

Highlights

• broad and high grade intercepts from recent drilling have significantly enhanced the resource potential of the large Esuajah gold deposit on the Avanfuri gold project in Ghana.
• Intercepts received from four of five recent medium depth diamond drill holes drilled into the Esuajah deposit on the Ayanfuri gold project in Ghana included 124m at 2.2 $g/t$ , 117m at 2.1 $g/t$ , 103.8m at 1.7 $g/t$ , 13m at 4.3 $g/t$ , and 62m at 1.1 $g/t$ Au.
• High grade intervals included 3m at 38.6g/t, 4m at 33.5g/t, 2m at 18.2g/t, 1m at 60.0g/t, 13m at 5.0g/t, 2m at 12.4g/t, 1m at 24.2g/t and 1m at 15.5g/t Au.
• These results extend the known depth of mineralisation to 250m below the existing pit floor, 180m $\bullet$ deeper than the approximately 70m level used to estimate reported combined Inferred and Indicated resources of 197,000oz for Esuajah.
• Esuajah is one of five deposits on the Ayanfuri project for which Indicated and Inferred gold resources totaling 608,000oz were announced by Perseus in May 2006.
• Further resource upgrades are expected in May as a result of 23,700m of drilling completed since the May 2006 resource estimates.

Perseus Mining (ASX:PRU) is pleased to announce the latest assay results from an ongoing program of diamond and RC drilling have significantly extended the known limits of the large Esuajah gold deposit at the Avanfuri gold project, located near Obuasi (Ashanti Gold Mine) in Ghana.

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 Avanfuri. Drilling is also now extending into previously untested areas along strike from known deposits.

It is planned to release resource upgrades for the Esuajah and South Esuajah deposits in early May, followed by a resource upgrade for the Abnabna deposit in late May 2007 and initial resource estimates for the Fobinso and Dadieso deposits in early June 2007.

Esuajah Deposit

Esuajah is the first of seven deposits at Ayanfuri targeted in the current drilling program. It is about 100m wide and 400m long and comprises an altered granitoid intruded by quartz stockworks.

The shallow oxide ore was mostly mined out in the mid to late 1990s, while free milling sulphide mineralisation was not targeted at that time.

Resources at Esuajah were estimated in May 2006 at 2.3Mt at 1.4g/t Au Indicated and 2.12Mt at 1.4g/t Au Inferred, for a combined 197.200oz of contained gold. This resource estimate was based on mineralisation extending for only about 70m below the existing shallow pit floor. Drilling in late 2006 and 2007 by Perseus has confirmed that mineralisation extends to depths of at least 250m below the pit and remains open at depth. An encouraging aspect of the recent drilling is the high grade intervals encountered in each of the deeper holes.

Ayanfuri Gold Project, Ghana
Open Pits and Target Areas

Hole	North (m)	East (m)	Depth (m)	Incl. $^{\circ}$	Azm. $\binom{6}{2}$	From (m)	To (m)	Width (m)	Au g/t
ADD008	7200	2340	230	$-75$	$\bf 88$	21.3	57.0	35.7	1.1
					incl.	24	34	$10\,$	1.7
						65	189	124	$2.2\,$
					incl.	119	122	3	38.6
					and	125	128	$\boldsymbol{\mathfrak{Z}}$	6.2
					and	167	$180\,$	$13\,$	$5.0\,$
						202	224.8	22.8	$0.8\,$
						229	230*	1	1.4
ADD009	7280	2300	218	$-63$	$88\,$	69	186	117	2.1
					incl.	$82\,$	86	$\overline{4}$	33.5
					and	134	136	$\sqrt{2}$	18.2
						209	214	$\mathbb S$	0.9
ADD010	7200	2500	300.5	$-60$	268	36.3	140	103.8	1.7
					incl.	$5\,\mathrm{l}$	53	$\sqrt{2}$	3.7
					and	$96\,$	$100\,$	$\overline{4}$	$2.4\,$
					and	100	101	1	$60.0\,$
					and	122	139	$17\,$	2.1
						153	164	$\bar{1}1$	1.1
					incl.	153 186	154 248	$\mathbf{1}$ 62	$5.4\,$ $1.1$
					incl.	234	241	$\gamma$	2.9
					and	243	247	$\overline{4}$	1.9
						$277\,$	278	1	6.3
						285	286	1	$1.0\,$
						296	$300.5*$	4.5	1.1
ADD011	7360	2460	267	$-55$	268	103	123	20	0.6
						134	146	$12 \n$	$0.8\,$
						163	172	$11$	$0.7\,$
						182	195	13	4.3
					incl.	185	187	$\bar{2}$	12.9
					and	189	190	$\mathbf{1}$	24.2
						203	238	35	1.2
					incl.	206	207	1	15.5
						248	$267*$	19	$0.8\,$

Table 1: Drill Intercepts - Esuajah Deposit - Ayanfuri Gold Project

* denotes ended in mineralisation

All samples were assayed by fire assay.

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 25-65 kms south-west of Obuasi on the Ashanti Gold Belt in Ghana. Perseus's 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.

To discuss any aspect of this announcement. please contact Mark Calderwood at calderwoodm@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

Perseus Mining listed on 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 has demonstrated the exploration potential of its key projects in Ghana, Ivory Coast and the Kyrgyz Republic and has reported increases its resource base to over 2 million ounces of gold in September 2006.

Active drilling campaigns on projects in Ghana, Ivory Coast and the Kyrgyz Republic are expected to result in further significant resource upgrades by Perseus.

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.