PERSEUS MINING LIMITED — Capital/Financing Update 2009

Feb 8, 2009

ASX RELEASE

9 February 2009

Scoping Study - Tengrela Gold Project Perseus's Second Gold Project 100,000 ozpa - 17month payback

Highlights:

• ¾ 514,000ozpa for first 4 years at a cash cost of US$396/oz
• ¾ 838,000oz of gold production over 8.3 years at cash cost of US$452/oz
• ¾ The capital cost estimate of US$89M with a payback of 17 months
• ¾ IRR of 57% indicating a NPV of US$130M using a 10% discount
• ¾ EBITDA of US$315M, including US$221M in the first four years
• ¾ Based on gold US$850/oz gold price

Managing Director's Comments

"We are highly encouraged with the results of the study - it paves the way for feasibility studies to advance concurrently with ongoing extensional drilling"

"We have only resource drilled 1km of the 5.6km strike at Sissingue and most of the resource is contained within pit shells used in the study. Drilling is already extending zones of high grade ore beyond the resource with the bottom of hole intercept of 18m at 10.1g/t from 62m, reported in the December quarterly report"

"During 2009 we will be in a position to update the market on both the feasibility and drilling activities. Our target is to take the Sissingue resource past 2 million ounces"

"Tengrela is Perseus's second most important project and given the robust economics of the larger, more advanced Ayanfuri project, we have potential to develop Tengrela from cash flow"

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

Perseus Mining Limited (ASX:PRU) is pleased to provide details of a scoping study (preliminary indicative assessment) for the Sissingue gold deposit on the Tengrela Project (Perseus: 80%) in northern Ivory Coast.

While the Sissingue gold deposit at Tengrela has only been partially resource drilled, the scoping study demonstrates that even at this early stage the project has potential to deliver strong cash returns and complements the Company's larger and more advanced Ayanfuri project in neighboring Ghana.

DETAILS OF STUDY

The scoping study was based on the following:

• Metallurgical testwork conducted on global composites prepared for each of the oxide, transitional and primary ore zones from the Sissingue deposit.
• Two-stage crush and single stage SAG mill with a gravity-CIL circuit.
• Metallurgical recovery of 95% for both the oxide and primary ore zones.
• A staged mining schedule based upon the defined resources for the Sissingue deposit only.

Metallurgy

Preliminary scouting testwork was carried out on samples from various oxidation levels. Further metallurgical testwork was carried out on global composites prepared for each of the oxidation zones. A separate primary composite sample was sent for comminution test work.

Sample quantity requirements were estimated and drill-hole intercepts selected for the following:

• Comminution test work to characterise the grindability of the various oxidation zones to define parameters to allow design and simulation of the proposed grinding circuit.
• Metallurgical test work to establish the optimal process route and treatment conditions based on composite and variable samples representing the major ore types, gold grades and geographical locations.

Physical Characteristics

• The gold mineralization at Tengrela is believed to be associated with increased silicification, veining, sulphidation and shearing. Significant coarse gold is present in quartz veins.
• The gold is hosted predominantly in granites and sediments. The granites, which represent the majority of the ore, exhibit high rock strength.
• The ore would appear to be moderately abrasive (Ai value of 0.36).
• The Bond Ball Mill Work Index for the primary ore of 16.3kwh/t (at a grind size P80 of 75µm) is considered medium to hard.
• Liner and media consumption are expected to be moderate to high.

Metallurgical Characteristics

• The ore can be classified as extremely clean with no obvious metallurgical problems.
• The oxide and primary ore zones exhibit a high proportion of coarse gold, to the extent that the gravity circuit should recover between 35-50% of total gold recovered.
• Overall combined gravity-cyanidation recovery for the oxide and primary ore zones were very high at 97%. A predicted gold recovery of 95% is expected in the full scale plant.

• Soluble base metals are not expected to present problems in the CIL circuit.
• Leach kinetics were extremely fast, with more than 95% of the gold recovered after 16 hours of leaching.
• Average cyanide and lime consumption from the testwork is 0.37kg/t and 0.44kg/t respectively.

Operating Costs

Mining

Mining costs were applied based on mining rates in neighboring Ghana, with the application of a potentially conservative additional cost factor of 20% to 30% to allow primarily for increased labour and fuel costs in Ivory Coast.

In-pit resources consisting of 14.7Mt at 1.8g/t Au and low-grade resources of 2.9Mt at 0.6g/t Au for a total of 882,000oz of contained gold were included in the study. Scheduling for the study assumed stockpiling of low grade ore to be treated when there is a shortfall of high-grade material during the stage 3 cutback and after mining has ceased.

Average Unit Costs per Tonne	USD	Total
D&B Cost_Waste	$0.54
ELH Cost_Waste	$1.84	$2.38
D&B Cost_Ore	$0.74
ELH Cost_Ore	$1.92
Grade Control Cost	$1.12
Dewatering & Rehab Cost	$0.49
Dayworks	$0.19
Ore Rehandle	$0.50
Other (excluding management)	$0.06	$5.02

Table 1 Scoping Study Unit Mining Costs.

Notes

D&B = drill and blast, ELH = excavate, load and haul.

The base case model has been prepared on the assumption that the mining of the Sissingue open pit will be completed on a contract mining basis. Perseus plans to conduct a detailed study comparing the capital and operating costs of owner/operator versus contract mining for Tengrela.

The Company believes that given the current tightness in the earthmoving contracting market, and the potential savings in operating costs, owner/operator mining may be the most appropriate approach to the project.

Processing

Operating costs have been determined on the basis of a treatment rate of 2.0 million tonnes per annum for primary ore and 2.4Mtpa for oxide ore, and on the basis of the preferred process route as described.

The process costs have been derived from first principles, metallurgical testwork, and typical values from other operations operating within the Ivory Coast on similar ore types.

Cost Department	OxideCIL$US/t	PrimaryCIL$US/t
Process Labour	0.99	1.18
Power	1.65	1.98
Consumables	3.42	4.09
Maintenance	0.83	1.00
Laboratory	0.18	0.18
Total	7.07	8.43

Table 2: Estimated Process Plant Operating Cost Summary

Note - excludes ore rehandle on ROM pad which is included in mining cost

Capital Costs

The indicative capital cost estimate was prepared by consultants Mintrex and is presented in United States dollars to an accuracy level of ±35%. The capital cost estimate does not make any allowance for escalation costs or contingency.

The estimate has been developed from a combination of quantity take-offs, factoring costs from a similar recent project in Ivory Coast, and obtaining budget prices for major equipment.

Following is a summary of the capital cost estimate:

Main Area	CostsUS$M
Treatment Plant Costs	55
Infrastructure	13
Management Costs	10
Total	77*
Owner's Project Costs	7
Mining Mobilization and Pre-Strip	6
Total	89*

Table 3: Capital Cost Summary

* rounding applied

The Company has not added a contingency allowance to the capital cost estimate as it believes that sufficient conservatism has been adopted through the cost estimation process and the ±35% level of accuracy ±35% means that the capital cost can range within these limits.

Economic Assessment

The economic assessment was prepared with capital costs and operating costs in sufficient detail to be considered a scoping study and allows for assumed Ivorian fiscal environment (royalties) and tax incentives.

The income tax estimation assumes a five year tax holiday, based on the tax holiday granted to a similarsized gold project in recent times.

Following is a summary of the economic assessment of the project:

Gold price	$750/oz	$850/oz	$950/oz(1)
		'base case'
Ore processed tonnes @ g/t Au	14.6Mt@1.75g/t &	14.6Mt@1.75g/t &	14.6Mt @1.75g/t &
	LG 2.9Mt@0.62g/t	LG 2.9Mt@0.62g/t	LG 2.9Mt@0.62g/t
Strip Ratio (excludes LG)(2)	3.4:1	3.4:1	3.4:1
Capital Cost	$89.3M	$89.3M	$89.3M
Mining Costs (includes LG)(2)	$11.1/t ore $230/oz	$11.1/t ore $230/oz	$11.1/t ore $230/oz
Process Recovery	95% CIL	95% CIL	95% CIL
Processing Costs	$8.3/t, $170/oz	$8.3/t, $170/oz	$8.3/t, $170/oz
G&A Costs (includes LG)(2)	$2.5/t ore, $52/oz	$2.5/t ore, $52/oz	$10/t ore, $52/oz
Cash Operating Cost/oz	$452/oz	$452/oz	$452/oz
Payback period	1 yrs 9 months	1 year 5 months	1 year 2 months
Tax paid	$6.6M	$14.7M	$23.2M
Royalties paid	$19.9M	$21.5M	$24.0M
Free cash (before capital,
interest and tax)	$233.2M	$314.6M	$395.8M
Free cash after capital and tax
(interest costs not included)	$137.3M	$210.5M	$283.2M
IRR	40%	57%	75%

Table 4: Economic Assessment in US Dollars

• 1. Each of the US$750, US$850 and US$950 gold price scenarios are based on mining pits optimized at a gold price of US$850.
• 1. LG is low grade ore 0.4g/t 0.8g/t Au

To discuss any aspect of this announcement please contact:

Mark Calderwood Managing Director +61 8 9240 6344 calderwoodm@perseusmining.com Simon Jemison Farrington National +61 2 9332 4448 simon.jemison@farrington.com.au

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.

Metallurgical test work was completed under the supervision of Mr Gary Patrick, an external consultant to the Company. Mr Patrick 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 Patrick consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Statements regarding the Company's plans with respect to its mineral properties are forward-looking statements. There can be no assurance that the plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that the Company will be able to convert Inferred resources to Indicated resources, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of the Company's mineral properties.

Sissingue Prospect (Tengrela)Mineral Resource Estimate (Gold)>1.0g/t
	Indicated		Inferred			Total *
	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces
		Au	cont.		Au	cont.		Au	cont.
		g/t			g/t			g/t
Oxide
Transition	830,000	2.1	56,000	2,490,000	2.1	170,000	3,320,000	2.1	226,000
Fresh	5,210,000	1.9	323,000	7,130,000	1.8	421,000	12,340,000	1.9	744,000
Total	6,040,000	2.0	379,000	9,630,000	1.9	591,000	15,660,000	1.9	970,000

Table 5: Resource by Classification and Weathering

* Rounding applied