PERSEUS MINING LIMITED — Capital/Financing Update 2010

Aug 16, 2010

EXPLORATION UPDATE Significant intercepts from Ghana and Ivory Coast Projects

Perseus Mining Limited (ASX/TSX: PRU) is pleased to provide an exploration update on the Company's gold projects in Ghana and Ivory Coast.

Highlights include:

• ¾ The 30,186m drilled in July, including 10,469m of core, is a Company record.
• ¾ Significant intercepts from step-out drilling at Abnabna-AF Gap, Fobinso and Fetish on the Central Ashanti Gold Project ("CAGP") in Ghana included 93m at 3.1g/t and 21m at 4.2g/t Au from Fobinso, 7m at 19.2g/t Au from Fetish, and 41m at 3.1g/t, 95m at 1.4g/t and 13m at 5.5g/t Au from Abnabna -AF-Gap.
• ¾ Other infill drill results from the CAGP in Ghana included 82m at 3.8g/t, 119m at 2.5g/t and 75m at 1.7g/t Au from Esuajah South and 36m at 3.2g/t Au from Chirawewa.
• ¾ Anomalous results from drilling on the Dadieso and Kwatechi licenses in Ghana included 8m at 13.5g/t, 12m at 4.0g/t and 10m at 3.8g/t Au from Dadieso and 10m at 3.0g/t Au from Kwatechi.
• ¾ Significant deeper core drilling results on the Sissingue deposit on the Tengrela Gold Project in Ivory Coast included 23m at 2.7g/t, 39.7m at 2.2g/t and 6m at 8.0g/t Au.

Perseus is maintaining active and systematic infill and exploration drill programs on the Central Ashanti Gold Project in Ghana and the Tengrela Gold Project in Ivory Coast, to facilitate a number of resource and reserve upgrades during the next 12 months. The Company has targeted 250,000m of drilling for 2010 and, subject to success, has planned in excess of 300,000m of drilling for the 2010-11 fiscal year.

In addition to using consultants for resource and reserve estimates, the Company has employed a third mining engineer specifically focused on reserve updates and mine scheduling.

Perseus Managing Director, Mark Calderwood's Comments

"July was the first month in three years where exploration drilling exceeded reserve definition drilling. It's pleasing to report anomalous to significant drill results from a number of deposits and prospects."

"Encouraging grades from deeper drilling on the Esuajah South, Fobinso and Abnabna deposits on the CAGP and at the Sissingue deposit, Tengrela Project highlight the potential for significantly deeper pits and potentially underground bulk mining."

"A maiden reserve estimate for Esuajah South is scheduled to be completed in Q4 2010. Esuajah South is expected to provide relatively high-grade feed for the CAGP."

Note : the red circles on figures 1 & 2 represent the centre point of intercepts fromholes drilled since the last resource and reserve estimate (July 2009), the thick black line represents the current (2009) pit designs.

Figure 2. Fobinso Long Section

Table 1: CAGP Infill and Extensional Drilling

Hole	Deposit	East	North	Depth	Azm.	Incl.	From	To	Width	Au
		(m)	(m)	(m)	(°)	(°)	(m)	(m)	(m)	g/t
ABDD177	AF Gap	26260	13870	304	180	-50	172	183	11	1.1
							256	278	22	1.3
							289	294	5	1.6
ABDD178	AF Gap	26160	13888	462	180	-70	331	378	47	1.4
						incl.	341	342	1	10.7
							384	425	41	3.1
						incl.	394	395	1	64.9
ABDD180	AF Gap	26160	13735	205	180	-50	77	81	4	2.6
							112	125	13	5.5
						incl.	115	116	1	33.6
							123	125	2	8.6
ABDD181	AF Gap	26600	13990	353	180	-65	151	160	9	1.5
							190	226	36	2.2
						incl.	209	210	1	10.4
ABDD182	AF Gap	26420	13998	385	179	-55	277	372	95	1.4
						incl.	337	338	1	14.4
ABDD183	AF Gap	26540	14010	441	180	-70	355	365	10	1.0
							370	385	15	2.3
						incl.	370	371	1	13.8
							391	406	15	1.0
ABRDD424	Abnabna	26120	13858	417.5	180	-68	290	375	85	1.2
						incl.	294	295	1	10.5
ABRDD425	AF Gap	26240	13855	339.3	180	-62	235	253	18	1.3
							263	284	21	1.0
							292	306	14	2.1
							316	329	13	1.7
ADD162	Chirawewa	4283	4600	238	270	-54	133	140	7	5.9
						incl.	135	138	3	11.4
ADD163	Chirawewa	3957	4600	124.3	270	-78	50.1	54	3.9	9.6
						incl.	50.1	51	0.9	33.7
							86	95	9	1.5
							113	114	1	9.9
ADD167	Chirawewa	4046	4480	222	90	-50	186	222	36	3.2
						incl.	204	205	1	79.6
AKRDD240	Esuajah S.	1800	6240	312.2	90	-60	199	281	82	3.8
						incl.and	205234	206242	18	14.9
						incl.	237	238	1	16.256.5
AKRDD241	Esuajah S.	1799	6240	395	90	-68	218	231	13	1.3
							239	358	119	2.5
						incl.	250	255	5	25.9
						and	309	310	1	14.0
						and	353	354	1	16.3
AKRDD242	Esuajah S.	1798	6240	459.5	90	-76	247	272	25	3.5
						incl.	249	251	2	12.0
						and	263	265	2	20.5
							292	320	28	2.4
						incl.	315	316	1	26.8
							326	401	75	1.7
Continued

Table 1: CAGP Infill and Extensional Drilling (Continued)

Hole	Deposit	East	North	Depth	Azm.	Incl.	From	To	Width	Au
		(m)	(m)	(m)	(°)	(°)	(m)	(m)	(m)	g/t
EFDD001	Fetish	3380	5100	146	270	-55	55	62	7	19.2
						incl.	60	62	2	61.7
							73	77	4	4.2
							123	124	1	12.0
EFDD002	Fetish	3420	5100	196	270	-55	117	121	4	2.5
							129	141	12	2.5
						incl.	140	141	1	14.5
							169	171	2	5.3
EFDD004	Fetish	3460	5100	247	270	-55	104	112	8	1.4
							127	136	9	1.1
							191	195	4	2.6
							236	245	9	7.7
						incl.	239	243	4	15.7
EFDD005	Fetish	3370	5180	253	270	-55	123	133	10	1.8
							178	180	2	7.4
							203	222	19	1.0
EFDD006	Fetish	3410	5140	300	270	-55	60	68	8	4.0
						incl.	65	66	1	26.7
							121	166	45	1.4
						incl.	138	139	1	28.9
							179	186	7	1.1
							251	266	15	1.4
EFDD010	Fetish	3530	5280	320	272	-55	270	281	11	1.7
							294	314	20	1.9
FBDD088	Fobinso	27360	14085	248.51	180	-52	148	241	93	3.1
						incl.	150	152	2	10.1
						and	177	178	1	11.8
						and	190	191	1	46.1
						and	202	207	5	10.5
FBDD089	Fobinso	27440	14120	311	180	-60	164	198	34	1.3
							258	259	1	9.3
							277	298	21	4.2
						incl.	293	294	1	60.5

Notes

1. All holes were core drilled through the mineralised zone.

2. Core holes sampled at 1m intervals.

3. Oxide samples or low sulphur fresh rock samples analysed using 50grm fire assays by independent laboratory, Intertek Minerals Limited in Ghana.

4. High sulphide content samples analysed using 25gram fire assays by Intertek Minerals Limited in Ghana.

5. Only holes with combined intercepts of greater than 40 gram metres included.

6. The type of analytical or testing procedures utilized and sample size and the quality assurance program and quality control measures are consistent with those described in the technical report entitled "Technical Report – Central Ashanti Gold Project, Ghana" dated November 30, 2009.

7. The true width of intercepts from recent drilling at Esuajah South ranges from 55-80% of the intercept width.

8. The true width of intercepts from recent drilling at Abnabna-AF Gap-Fobinso ranges from 58-82% of the intercept width, averaging about 70%.

9. The true width of intercepts from recent drilling at Fetish ranges from 75-85% of the intercept width.

10. The true width of intercepts from recent drilling at Chirawewa ranges from 47-77% of the intercept width.

Table 2: Recent Anomalous Exploration Intercepts on Dadieso, Dunkwa, and Kwatechi Licenses in Ghana

Hole	Deposit	East	North	Depth	Azm.	Incl.	From	To	Width	Au
		(m)	(m)	(m)	(°)	(°)	(m)	(m)	(m)	g/t
DKRC062	Dadieso	-190	-9430	90	270	-50	34	44	10	2.1
							74	90*	16	2.2
						incl.	84	86	2	10.2
DKRC063	Dadieso	-220	-9400	70	270	-50	48	58	10	1.9
DKRC064	Dadieso	-180	-9400	100	270	-50	92	100*	8	3.6
DKRC065	Dadieso	-60	-9460	105	270	-50	66	74	8	13.5
						incl.	70	72	2	48.2
							104	105*	1	5.8
DKRC066	Dadieso	-160	-9360	100	270	-50	38	40	2	5.8
DKRC067	Dadieso	-210	-9330	90	270	-50	4	12	8	1.2
DKRC068	Dadieso	-170	-9330	90	270	-50	4	16	12	1.2
DKRC069	Dadieso	-130	-9330	90	270	-50	60	64	4	7.0
						incl.	60	62	2	12.9
DKRC070	Dadieso	-290	-9330	90	270	-50	58	70	12	1.1
DKRC071	Dadieso	-260	-9300	90	270	-50	80	90*	10	1.5
DKRC072	Dadieso	-180	-9300	75	270	-50	2	20	18	1.1
DKRC073	Dadieso	-139	-9300	90	270	-50	24	34	10	1.2
							46	58	12	2.0
DKRC074	Dadieso	-160	-9260	90	270	-50	72	82	10	3.8
						incl.	80	82	2	11.6
DKRC076	Dadieso	-240	-9260	90	270	-50	66	68	2	6.5
DKRC077	Dadieso	-220	-9220	100	270	-50	8	26	18	2.1
							44	56	12	1.7
							96	100*	4	2.5
DKRC078	Dadieso	-260	-9220	60	270	-50	10	16	6	3.2
DKRC080	Dadieso	-300	-9180	90	270	-50	24	36	12	4.0
						incl.	32	34	2	10.6
						incl.	8286	9088	82	3.410.3
DKRC093	Dadieso	-80	-9500	90	270	-50	40	58	18	0.7
							70	84	14	0.8
DKRC094	Dadieso	-100	-9560	70	270	-50	18	20	2	8.6
							50	54	4	1.5
							62	70*	8	2.1
DKRC095	Dadieso	-100	-9600	70	270	-50	26	28	2	3.7
DKRC096	Dadieso	-140	-9760	80	270	-50	74	76	2	2.3
BBRC009	Dunkwa	46450	90400	31	90	-55	24	28	4	5.7
KTRC031	Kwatechi	68000	78300	74	92	-60	22	30	8	1.7
					92	-60	44	54	10	3.0
						incl.	50	52	2	10.6
KTRC032	Kwatechi	68040	78300	80	92	-60	60	72	12	0.7
KTRC037	Kwatechi	67920	78200	51	92	-60	0	10	10	1.9
KTRC038	Kwatechi	67960	78200	80	92	-60	0	8	8	2.2
						incl.	0	2	2	6.9
KTRC042	Kwatechi	68120	78200	80	92	-60	62	74	12	1.1
KTRC045	Kwatechi	67920	78100	55	92	-60	24	30	6	1.4

Notes

1. All holes are RC holes.

• 1. RC holes samples sampled at 1m intervals and composited to 2m intervals.
• 1. Oxide samples or low sulphur fresh rock samples analysed using 50grm fire assays by Intertek Minerals Limited in Ghana.
• 1. High sulphide content samples analysed using 25gram fire assays by Intertek Minerals Limited in Ghana.
• 1. Only holes with combined intercepts of greater than 10 gram metres included.
• 1. * denotes open ended intercept.
• 1. The true width of intercepts from recent drilling at the Dadieso deposit, Kwatechi and Dunkwa liecnses is currently unknown.
• 1. The type of analytical or testing procedures utilized and sample size and the quality assurance program and quality control measures are consistent with those described in the technical report entitled "Technical Report – Central Ashanti Gold Project, Ghana" dated November 30, 2009.

Hole	Deposit	East	North	Depth	Azm.	Incl.	From	To	Width	Au
		(m)	(m)	(m)	(°)	(°)	(m)	(m)	(m)	g/t
SD106	Sissingue	806720	1154596	224.7	271	-56	67	73	6	8.0
						incl.	68	68.6	0.6	55.1
						and	72	73	1	13.0
							127	131	4	2.0
							147	170	23	2.7
						incl.	168.3	169	0.7	67.9
							185	200.6	15.6	1.2
SD109	Sissingue	806461	1154440	257.7	91	-51	107.6	116	8.4	3.6
						incl.	113	114	1	23.8
							164	168	4	2.4
SD111	Sissingue	806500	1154220	204.7	90	-51	138	144	6	1.7
							165	204.7*	39.7	2.2
						incl.	200	204.7*	4.7	7.7
						incl.	204	204.7*	0.7	28.4
KATCR025	Katara	806240	1131000	90	90	-55	34	36	2	13.7
KATRC029	Katara	806080	1131000	90	90	-55	56	62	6	1.7
KATRC032	Katara	806201	1131079	90	90	-55	48	52	4	2.6

Table 3: Significant Intercepts Tengrela Gold Project, Ivory Coast

Notes

1. KATRC holes are reverse circulation drill holes, SD holes are core drill holes.

2. The type of analytical or testing procedures utilized and sample size and the quality assurance program and quality control measures are consistent with those described in the technical report entitled "Technical Report – Tengrela Gold Project, Ivory Coast" dated November 30, 2009.

3. Drill samples were assayed by 50g fire assays by Intertek Minerals Limited, an independent laboratory in Ghana.

4. True width of intercepts from the current program at the Sissingue deposits is about 55-77% of the intercept width.

5. The true width of intercepts from the current program at the Katara prospect is currently unknown.

6. * denotes open ended intercept.

7. Only holes from Sissingue with combined intercepts of greater than 40 gram metres included.

8. Only holes from Katara with combined intercepts of greater than 10 gram metres included.

Mark Calderwood Managing Director

To discuss any aspect of this announcement, please contact:

Mark Calderwood at telephone +61 8 9240 6344 or email calderwoodm@perseusmining.com Brian Thornton at telephone +61 2 9332 4448, +61 411366668 or email bt@farrington.com.au (media) Nathan Ryan at telephone +0420 582 887 or email nathan.ryan@nwrcommunications.com.au Rebecca Greco at telephone +1 416 822 6483 or email fighouse@yahoo.com (Toronto)

About Perseus Mining Limited

Perseus Mining Limited (ASX/TSX: PRU) has forged a reputation as one of the West Africa's most successful gold explorers. Focused on under-explored gold belts in West Africa, Perseus is on track to become a producer during 2011 at its Central Ashanti Gold Project in Ghana. It is also working on a definitive feasibility study at its Tengrela Gold Project in Ivory Coast, subject to which production is targeted for late 2012.

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'") and to qualify as a "Qualified Person" under National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). 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. For a description of Perseus's data verification process, quality assurance and quality control measures, the effective date of the mineral resource and mineral reserve estimates contained herein, details of the key assumptions, parameters and methods used to estimate the mineral resources and reserves set out in this report and the extent to which the estimate of mineral resources or mineral reserves set out herein may be materially affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues, readers are directed to the technical report entitled "Technical Report – Central Ashanti Gold Project, Ghana" dated November 30, 2009 and the technical report entitled "Technical Report – Tengrela Gold Project, Ivory Coast" dated November 30, 2009 in respect of the Central Ashanti Gold Project and the Tengrela Gold Project, respectively.

Caution Regarding Forward Looking Information: This report contains forward-looking information which is based on assumptions and judgments of management regarding future events and results. Such forward-looking information, includes but is not limited to information with respect to future exploration and drilling, procurement of financing, procurement of necessary regulatory approvals, the development of a mine at the Central Ashanti Gold Project, completion of a definitive feasibility study at Tengrela and development of a mine at Tengrela subject to the results of that study .

Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual market price of gold, the actual results of current exploration, the actual results of future exploration, , changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents.. The Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable. Assumptions have been made regarding, among other things, the Company's ability to carry on its exploration and development activities, the timely receipt of required approvals, the price of gold, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers should not place undue reliance on forward-looking information. Perseus does not undertake to update any forward-looking information, except in accordance with applicable securities laws.