PERSEUS MINING LIMITED — Capital/Financing Update 2018

Nov 19, 2018

20 November 2018 NEWS RELEASE

PERSEUS MINING DELIVERS EXPLORATION SUCCESS AT EDIKAN GOLD MINE

Highlights:

• Perseus Mining has increased exploration activities on its Edikan Gold Mine tenements aimed at extending the mine's current six year mine life.
• Drilling on the Esuajah Gap prospect between the Esuajah North and Esuajah South deposits, has discovered a significant mineralised granite body.
• Based on results returned to date, the Esuajah Gap discovery exhibits similarities to both the Esuajah North and Esuajah South deposits. Esuajah South has an open pit Ore Reserve, completed in 2016, of 391,000 ounces of gold, while prior to mining, Esuajah North's Ore Reserves totalled 475,000 ounces of gold.
• Recent diamond drilling results include:
  • 26 metres at 1.11 g/t gold and 13.7 metres at 2.32 g/t gold in EGDD005
  • 29 metres at 1.21 g/t gold in EGDD006
  • 13 metres at 2.65 g/t gold and 29.5 metres at 1.44 g/t gold in EGDD007
• The Esuajah Gap discovery resulted from a conceptual targeting exercise over the mine area and highlights the potential for further discoveries and is encouraging for the prospects of extending the mine life at Edikan.

Managing Director Jeff Quartermaine Comments:

"We have become increasingly encouraged by the results from our recent Edikan exploration programme that has been aimed at extending the current six year mine life at Edikan.

We now have sufficient data to delineate a cross section of the Esuajah Gap mineralisation that has revealed encouraging similarities to the Esuajah North and South ore bodies that flank the prospect.

The proximity of the Esuajah Gap discovery to the Esuajah South ore body, that contains 391,000 ounces of gold in open pit Proved and Probable Reserves that are not part of Edikan's current Life of Mine Plan, opens up the possibility of a future joint development of the two deposits and a material extension to the life of mine.

_________________________________________________________________________________

Perseus Mining Limited (ASX/TSX: PRU) is pleased to provide an update on its recent exploration activities within the Edikan Gold Mine leases in Ghana.

Edikan was Perseus's first gold mining operation. It commenced commercial production in January 2012 and since then, has recovered more than 1,400,000 ounces of gold. The Company is now aiming to extend the remaining six-year mine life by identifying additional Mineral Resources that can be processed through Edikan's gold processing facility. Recent exploration drilling has identified significant granite-hosted gold mineralisation extending over 200m of strike length at the Esuajah Gap prospect, situated 250 metres southwest of the Company's operating Esuajah North pit.

Esuajah Gap Drilling (Refer to Figures 1 & 2 and Table 1 for a list of significant intercepts)

Drilling commenced at Esuajah Gap during the June 2018 quarter as part of a systematic follow up of targets generated from a targeting exercise conducted at Edikan by consulting group Corporate Geoscience Group ("CGSG") in late 2016. As reported in the Company's June 2018 quarterly report, the initial drilling at Esuajah Gap was successful in intersecting a previously unknown granite body situated at depth between the Esuajah South and Esuajah North deposits, with drill hole EGRDD002 returning 96 metres grading 0.19 g/t gold from 430 metres downhole (approximately 350 metres vertical depth). Esuajah style mineralisation and alteration was intersected, comprising quartz-carbonate-sulphide veining with pervasive sericite–carbonate-pyrite +/- arsenopyrite alteration.

An additional seven diamond holes, EGDD001 to 007, have now been completed, with further intersections of mineralised granite at shallower depths and with better grades achieved in six of these holes, including (Refer to Figure 3).

EGDD001, drilled to intersect the up-plunge continuation of the EGRDD002 intersection, intersected mineralised granite from 295.5 metres downhole (~250 metres vertical depth) and returned 89 metres grading 1.18 g/t gold. A similar pattern of high grade mineralisation occurring at higher levels in the host granite was also observed in the Esuajah North and South deposits.

EGDD002 and 004 were drilled to intersect the granite at similar depths to EGD001, but 50- 60 metres along strike to the north and south respectively. EGDD002 failed to intersect the granite and is interpreted to have passed beneath the keel of the steeply south plunging granite body. EGDD004 deviated and achieved a deeper than planned intersection of 58.4 metres grading 0.75 g/t gold from 347.6 metres downhole.

EGDD003 was drilled down the interpreted axis of the granite body and initially intersected narrow intervals of mineralised granite before deviating to the west of the granite to cut variably altered and mineralised metasediments over most of its length, returning an intercept of 123 metres from surface grading 1.26 g/t gold. The intercept in EGDD003, which was deeply weathered to 100 metres downhole, opens the potential for shallow oxide mineralisation extending to the northeast.

Drill holes EGDD005, 006 and 007 were drilled to complete the EGDD001 section at shallower depths. Each of these holes intersected variable widths of granite within an envelope of altered and mineralised metasediments. EGDD005 intersected two mineralised intervals; 26 metres grading 1.11 g/t from 41.8 metres downhole (oxide) and 13.7 metres grading 2.32 g/t gold from 88.3 metres downhole (fresh). EGDD006, which undercut EGDD005, intersected 29.0 metres grading 1.21 g/t gold from 144 metres downhole. EGDD007, undercutting both EGDD005 and EGDD006, intersected two mineralised intervals; 13 metres grading 2.65 g/t gold from 146 metres downhole and 29.5 metres grading 1.44 g/t gold from 179.5 metres downhole. The upper EGDD007 intersection was unusual in that it was contained within a large sulphide-rich quartz vein within metasediments, whereas the lower intersection was contained in heavily altered and quartz veined granite.

Structural studies on oriented drill core from the recent mineralised intersections indicate similar vein orientations and alteration parageneses to those observed in both the Esuajah North and South orebodies, so it is probable that emplacement of mineralisation into these granites was contemporaneous across the whole Esuajah area. It also appears likely that the newly discovered granite shares a similar steep south-westerly plunge to the two other bodies.

Drilling of further holes to investigate the near surface extensions of the Esuajah Gap granite is currently underway, with the mineralisation open along strike to the north east and south west. This discovery also opens up the potential to find similar larger granite bodies beneath mineralised but narrow granite dykes elsewhere in the Edikan district.

A complete summary of the recent Esuajah Gap drilling is included in Appendix A.

To discuss any aspect of this announcement, please contact:

Managing Director:	Jeff Quartermaine at telephone +61 8 6144 1700 oremail jeff.quartermaine@perseusmining.com
General Manager BD & IR:	Andrew Grove at telephone +61 8 6144 1700 or emailandrew.grove@perseusmining.com
Media Relations:	Nathan Ryan at telephone +61 4 20 582 887 or emailnathan.ryan@nwrcommunications.com.au

Competent Person Statement:

The information in this report and the attachments that relate to exploration drilling results from the Edikan Project is based on, and fairly represents, information and supporting documentation prepared by Dr Douglas Jones, a Competent Person who is a Chartered Professional Geologist. Dr Jones is the Group General Manager Exploration of the Company. Dr Jones has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 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"). Dr Jones consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to the Mineral Resource and Ore Reserve estimates for the Edikan deposits was reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on 20 April 2015, 19 April 2016 and 29 August 2018. The Company confirms that it is not aware of any new information or data that materially affect the information in that market release and that all material assumptions underpinning those estimates and the production targets, or the forecast financial information derived therefrom, continue to apply and have not materially changed. The Company further confirms that material assumptions underpinning the estimates of Ore Reserves described in "Technical Report — Central Ashanti Gold Project, Ghana" dated 30 May 2011 continue to apply.

Caution Regarding Forward Looking Information:

This report contains forward-looking information which is based on the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management of the Company believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Assumptions have been made by the Company regarding, among other things: the price of gold, continuing commercial production at the Edikan Gold Mine and the Sissingué Gold Mine without any major disruption, development of a mine at Yaouré, the receipt of required governmental approvals, the accuracy of capital and operating cost estimates, 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 are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used by the Company. Although management believes that the assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the forwardlooking information will prove to be accurate. 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 forwardlooking information, except in accordance with applicable securities laws.

Figure 1: Edikan Geology and Mineralisation

Figure 3: Esuajah Gap – Cross section EGDD001 – EGDD007

Table 1: Esuajah Gap drill hole significant intercepts:

Hole	Intercept
	46.1m @ 1.29g/t Au from 294m including;
	▪	16.0m @ 2.33g/t Au from 310m
	▪	1.0m @ 13.63g/t Au from 319m
EGDD001*	45.0m @ 1.00g/t Au from 344m including;
	▪	5.1 m @ 13.63g/t Au from 319m
	▪	4.0m @ 2.01g/t Au from 357m
	52.2m @ 1.96g/t Au from surface including;
	▪	5.0m @ 8.41g/t Au from 20.2m
	▪	1.5m @ 6.38g/t Au from 41.7m
	8.3m @ 1.35g/t Au from 62.7m
	11.0m @ 0.51g/t Au from 93m
EGDD003*	4.5m @ 2.63g/t Au from 107m including;
	▪	0.7m @7.69g/t Au from 108.9m
	▪	0.5m @ 6.42g/t Au from 111m
	8.2m @ 2.53g/t Au from 114.70m including;
	▪	2.1m @ 4.13g/t Au from 114.7m
	▪	1.6m @ 4.29g/t Au from 119.3m

Hole	Intercept
EGDD004	59.4m @ 0.75g/t from 347.6m including;
	▪16.4m @ 1.11g/t Au from 347.6m
	26.0m @ 1.11g/t Au from 41.80m including;
EGDD005	▪1.5m @ 5.08g/t Au from 49.3m
	13.7m @ 2.32g/t Au from 88.30m including;
	▪3.5m @ 3.93 g/t Au from 94.3m
EGDD006	29.0m @ 1.21g/t Au from 144m including;
	▪3.0m @ 4.17g/t Au from 170m
	13.0m @ 2.65g/t Au from 146m including;
	▪1.0m @ 10.77g/t Au from 152m
	▪0.7m @ 15.43g/t Au from 157m
EGDD007	29.5m @ 1.44g/t Au from 179.5m including;
	▪1.0m @ 4.47g/t Au from 182m
	▪1.0m @ 4.62g/t Au from 196m
	▪1.0m @ 4.26g/t Au from 199m

* Previously reported

APPENDIX A – DETAILED DRILL RESULTS

Esuajah Gap drill holes and significant intercepts > 0.4g/t

Hole_ID	East	North	DrillType	Azimuth	Dip	From	To	Width	Au g/t
	(mE)	(mN)		(°)	(°)	(m)	(m)	(m)
EGRDD001	2273.555	6764.013	RCDD	200	-59	81	82	1	1.17
							306.3	308.6	2.3	0.86
						426	427.5	1.5	1.50
						429.37	430.5	1.13	1.08
EGRDD002	2203.19	6795.005	RCDD	170	-62	440	447.5	7.5	0.53
						452	456.5	4.5	0.42
						480.5	482	1.5	1.00
						536	542	6	0.64
						294	340.1	46.1	1.29
						344	390.5	46.5	0.98
EGDD001	2030.152	6877.054	DD	170	-52	395	396.5	1.5	0.60
						399.5	401	1.5	0.45
						404	407.3	3.3	0.71
						159.45	159.85	0.4	VG*
						268.5	271.3	2.8	0.98
						324.6	325	0.4	VG*
EGDD002	2274.263	6763.372	DD	145	-51	334.7	336	1.3	0.45
							356.8	358	1.2	1.42
						360.7	361.7	1	0.81
						0	52.2	52.2	1.96
						62.7	71	8.3	1.35
						93	99	6	0.62
										102	103	1	0.83
							107	111.5	4.5	2.63
						114.7	122.85	8.15	2.53
EGDD003	2502.899	6705.808	DD	250	-52	215.05	216.05	1	3.45
						221.7	225.1	3.4	1.06
						240.5	241.5	1	0.57
						253.6	254.7	1.1	1.29
						292	293	1	0.62
						306	307.2	1.2	0.68
						320	321	1	0.89

Hole_ID	East	North	Drill	Azimuth	Dip	From	To	Width	Au g/t
	(mE)	(mN)	Type	(°)	(°)	(m)	(m)	(m)
						273.6	275.5	1.9	2.13
						344.5	346	1.5	0.48
						347.6	364.5	16.9	1.09
EGDD004	2274.964	6760.184	DD	180	-51	373.5	407	33.5	0.72
						431	434	3	1.37
						440	452	12	1.00
						0	1.3	1.3	0.70
											36.27	38.8	2.53	2.09
EGDD005	2431.126	6635.921DD	128	-55											41.8	70.3	28.5	1.04
															88.3	102	13.7	2.39
						110	111.5	1.5	2.15
						88.6	90.1	1.5	0.43
				DD		128												99	100	1	1.54
EGDD006	2389.402	6635.964													-55	104.5	112	7.5	0.76
						153.35	173	19.65	1.54
						146	159	13	2.65
EGDD007	2349.325	6634.62	DD128									-55	166.9	170.5	3.6	0.88
						179.5	210.5	31	1.39

* Not assayed

APPENDIX B – JORC TABLE 1 EDIKAN EXPLORATION UPDATE

JORC Code, 2012 Edition – Table 1 Section 1 Sampling Techniques and Data

Criteria	JORC Code Explanation	Commentary
Samplingtechniques	 Nature and quality of sampling (e.g. cut channels,random chips, or specific specialised industry standardmeasurement tools appropriate to the minerals underinvestigation, such as down hole gamma sondes, orhandheld XRF instruments, etc.). These examples shouldnot be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure samplerepresentivity and the appropriate calibration of anymeasurement tools or systems used. Aspects of the determination of mineralisation that areMaterial to the Public Report. In cases where 'industry standard' work has been donethis would be relatively simple (e.g. 'reverse circulationdrilling was used to obtain 1 m samples from which 3 kgwas pulverised to produce a 30 g charge for fire assay').In other cases more explanation may be required, such aswhere there is coarse gold that has inherent samplingproblems. Unusual commodities or mineralisation types(e.g. submarine nodules) may warrant disclosure ofdetailed information.	 Drill holes have been drilled as Reverse Circulation (RC) anddiamond core (DD) RC samples were taken at 1m intervals, of which a nominal2-3kg sub-sample was obtain by riffle splitter. Twoconsecutive samples were combined to obtain 2mcomposites DD samples were cut in halves and one half submitted forassaying, the other half stored in the core box forreference. Sample intervals varied between 0.5m and 1.5m. Routine standard reference material, sample blanks, andsample duplicates were routinely inserted/collected in thesample sequence. Samples were submitted to Intertek Laboratories inTarkwa/Ghana for preparation and analysis by 50g FireAssay.
Drillingtechniques	 Drill type (e.g. core, reverse circulation, open-holehammer, rotary air blast, auger, Bangka, sonic, etc.) anddetails (e.g. core diameter, triple or standard tube, depthof diamond tails, face-sampling bit or other type,whether core is oriented and if so, by what method, etc.).	 RC have been drilled using a 5.25" diameter facesampling hammer DD holes were drilled with HQ diameter in weatheredmaterial, and NQ diameter in fresh rock
Drill samplerecovery	 Method of recording and assessing core and chip samplerecoveries and results assessed. Measures taken to maximise sample recovery and ensurerepresentative nature of the samples. Whether a relationship exists between sample recoveryand grade and whether sample bias may have occurreddue to preferential loss/gain of fine/coarse material.	 Riffle split samples were weighed to monitor samplerecovery No apparent relation has been observed between samplerecovery and grade
Logging	 Whether core and chip samples have been geologicallyand geotechnically logged to a level of detail to supportappropriate Mineral Resource estimation, mining studiesand metallurgical studies. Whether logging is qualitative or quantitative in nature.Core (or costean, channel, etc.) photography. The total length and percentage of the relevantintersections logged.	 All drill samples were geologically logged by Companygeologists. Drill holes were logged in full Geological logging recorded rock types, the abundance ofquartz and sulphides and degree of weathering using astandardized logging system Small samples of coarse and sieved RC drill material werepreserved in 'chip trays' to aid geological logging and forfuture reference Whole core is photographed wet and dry prior to cutting

Criteria	JORC Code Explanation	Commentary
Sub-samplingtechniques andsamplepreparation	 If core, whether cut or sawn and whether quarter, half orall core taken. If non-core, whether riffled, tube sampled, rotary split,etc and whether sampled wet or dry. For all sample types, the nature, quality andappropriateness of the sample preparation technique. Quality control procedures adopted for all sub-samplingstages to maximise representivity of samples. Measures taken to ensure that the sampling isrepresentative of the in situ material collected, includingfor instance results for field duplicate/second-halfsampling. Whether sample sizes are appropriate to the grain size ofthe material being sampled.	 All RC samples were riffle split at the drill rig Samples were obtained dry Routine field sample duplicates were taken to evaluaterepresentivity of samples with the results stored in themaster drill database for reference At Intertek Laboratories, samples were weighed, dried andcrushed to -2mm in a jaw crusher. A 1.5kg split of thecrushed sample was subsequently pulverised in a ring mill toachieve a nominal particle size of 85% passing 75um. Sample sizes and laboratory preparation techniques areconsidered to be appropriate for this stage of goldexploration.
Quality of assaydata andlaboratory tests	 The nature, quality and appropriateness of the assayingand laboratory procedures used and whether thetechnique is considered partial or total. For geophysical tools, spectrometers, handheld XRFinstruments, etc., the parameters used in determiningthe analysis including instrument make and model,reading times, calibrations factors applied and theirderivation, etc. Nature of quality control procedures adopted (e.g.standards, blanks, duplicates, external laboratory checks)and whether acceptable levels of accuracy (ie lack ofbias) and precision have been established.	 Analysis for gold was undertaken at Intertek Laboratoriesin Tarkwa/Ghana by 50g Fire Assay with AAS finish to alower detection limit of 0.01ppm. Fire assay is considereda total assay technique. No geophysical tools or other non-assay instruments wereused in the analyses reported. QAQC samples nominallyBlanks at 1 in 50-Certified standards at 1 in 25-Field duplicates of RC samples at 1 in 50- Review of standard reference material, sample blanks andduplicates suggest there are no significant analytical bias orpreparation errors in the reported analyses. Internal laboratory QAQC checks are reported by thelaboratory and routine review of the laboratory QAQCsuggests the laboratory is performing within acceptablelimits.
Verification ofsampling andassaying	 The verification of significant intersections by eitherindependent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures,data verification, data storage (physical and electronic)protocols. Discuss any adjustment to assay data.	 Drill hole data is captured by Company geologists at thedrill rig and manually entered into a digital database. The digital data is verified and validated by the Company'sData Base Manager before loading into a master drill holedatabase using acQuire data management software. The data is stored on a regularly backed-up server. Reported drill hole intercepts are compiled by the Company'sGroup Exploration Manager. Twin holes were not drilled to verify results. There were no adjustments to assay data.
Location of datapoints	 Accuracy and quality of surveys used to locate drill holes(collar and down-hole surveys), trenches, mine workingsand other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control.	 Drill hole collars were set out in UTM grid_WGS84Zone30N Drill hole collars were positioned using hand held GPS,accurate to +/- 2-3m in the horizontal Upon completion of the hole, the collar was accuratelysurveyed by the Company's surveyor using DGPS Downhole survey has been carried out by the drillcontractor using a Reflex multi-shot tool.Measurements were taken nominally at 12m depth, at30m depth and from there on every 30m

Criteria	JORC Code Explanation	Commentary
Data spacing anddistribution	 Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient toestablish the degree of geological and grade continuityappropriate for the Mineral Resource and Ore Reserveestimation procedure(s) and classifications applied. Whether sample compositing has been applied.	 Drill spacing and orientation is irregular due to the factthat the drill target is located underneath the township ofAyanfuri and available space for set-up of the drill rig islimited The reported drilling has not been used to estimate anymineral resources or reserves Prior to assaying, 1m RC sub-samples were composited byweight to form 2m composites for assaying
Orientation ofdata in relationto geologicalstructure	 Whether the orientation of sampling achieves unbiasedsampling of possible structures and the extent to whichthis is known, considering the deposit type. If the relationship between the drilling orientation andthe orientation of key mineralised structures isconsidered to have introduced a sampling bias, thisshould be assessed and reported if material.	 Exploration is at an early stage and the orientation of theintrusive body and its mineralisation has not yet beenconfirmed
Sample security	 The measures taken to ensure sample security.	 Samples were stored in a secure fenced compound at theCompany's Edikan Gold Mine prior to road transport tothe laboratory of Intertek Laboratories in Tarkwa
Audits or reviews	 The results of any audits or reviews of samplingtechniques and data.	 The Company's sampling techniques employed in Ghanawere last reviewed by independent consulting firmRungePincockMinarco (RPM) in 2011

Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineraltenement andland tenurestatus	Type, reference name/number, location andownership including agreements or material issueswith third parties such as joint ventures, partnerships,overriding royalties, native title interests, historicalsites, wilderness or national park and environmentalsettings.	The reported results are from the Ayanfuri Mining Lease,permit ML6/15. The Ayanfuri Mining Lease is located in theCentral Region of Ghana and is owned by Perseus Mining(Ghana) Limited, a 90% owned subsidiary of Perseus MiningLimited, with the remaining 10% owned by the Governmentof Ghana.
	The security of the tenure held at the time ofreporting along with any known impediments toobtaining a licence to operate in the area.	The Ayanfuri ML is in good standing and valid through to 30December 2024.
Explorationdone by otherparties	Acknowledgment and appraisal of exploration byother parties.	Historical exploration and mining was conducted on theproperty from the early 1990s up to 2001 by Cluff Mining(Ghana) Ltd and Ashanti Goldfields Corp.The past exploration was successful and resulted in multiplediscoveries leading to mining.However, the mineralisation reported in thisannouncement was not identified at that time and is, as faras known, a completely new discovery.

Criteria	JORC Code explanation	Commentary
Geology	Deposit type, geological setting and style ofmineralisation.	The Ayanfuri Mining Lease is situated within thePaleoProterozoic Birimian terrane of Southern Ghana, beinglocated in the Kumasi Basin sedimentary groupapproximately 5 to 8 kilometres west of the AshantiGreenstone Belt.The subject of this drilling program was the Esuajah Gapprospect, which is an intrusive-hosted Orogenic golddeposit. The host rock is a granite-granodiorite body andgold mineralisation is associated with stockwork quartzveining plus up to 3% disseminated pyrite and arsenopyrite.The dimensions of the mineralised granite are currentlyunknown and the subject of ongoing exploration.
Drill holeInformation	A summary of all information material to theunderstanding of the exploration results including atabulation of the following information for all Materialdrill holes:Easting and northing of the drill hole collar.Elevation or RL (Reduced Level – elevation abovesea level in metres) of the drill hole collar.Dip and azimuth of the hole.Downhole length and interception depth.Hole length.If the exclusion of this information is justified on thebasis that the information is not Material and thisexclusion does not detract from the understanding ofthe report, the Competent Person should clearlyexplain why this is the case.	Drill intercepts are displayed on cross-sections and drillhole locations on a plan.Drill intercepts together with hole collar locations,orientations and total depths are listed in tables.Intercepts in holes drilled are presented in conjunctionwith comments that describe the context of the intercepts.Isolated, narrow (<5cm) intercepts containing visible gold,whilst noted, have not been assayed as they are outside themain mineralised zone and therefore not regarded asmaterial.The Competent Person is satisfied that the resultspresented are representative of drilling results to date.
Dataaggregation methods	In reporting Exploration Results, weighting averagingtechniques, maximum and/or minimum gradetruncations (e.g. cutting of high grades) and cut-offgrades are usually Material and should be stated.Where aggregate intercepts incorporate shortlengths of high grade results and longer lengths oflow grade results, the procedure used for suchaggregation should be stated and some typicalexamples of such aggregations should be shown indetail.The assumptions used for any reporting of metalequivalent values should be clearly stated.	The drill intercepts presented have been consistentlycalculated as length-weighted average grades.Short, high-grade intervals that significantly affect theaverage grade of aggregate intercepts are included in thetable of intercepts.A minimum cut-off grade of 0.4 g/t Au is applied to thereported intervals.Maximum internal dilution is 2m within a reported interval.No grade top cut-off has been applied.No metal equivalent reporting is used or applied
Relationshipbetweenmineralisation widthsandinterceptlengths	These relationships are particularly important in thereporting of Exploration Results.If the geometry of the mineralisation with respect tothe drill hole angle is known, its nature should bereported.If it is not known and only the downhole lengths arereported, there should be a clear statement to thiseffect (e.g. 'downhole length, true width not known').	As currently understood, the mineralised zone dips ~80deg to the northwest, and drilling was inclined at -50 to -55deg to the southeast. True thicknesses of drill interceptsare therefore approximately 70 to 80% of the down-holelength.Results are reported as down hole length.
DiagramsBalancedreporting	Appropriate maps and sections (with scales) andtabulations of intercepts should be included for anysignificant discovery being reported These shouldinclude, but not be limited to a plan view of drill holecollar locations and appropriate sectional views.Where comprehensive reporting of all ExplorationResults is not practicable, representative reporting ofboth low and high grades and/or widths should be	A drill hole location plan and cross-section are included inthe report (Figures 1-3).All significant results are tabulated in Appendix A.All drill holes drilled in this program are shown in Figure 2(Drill Plan).
	practiced to avoid misleading reporting of ExplorationResults.

Criteria	JORC Code explanation	Commentary
Othersubstantiveexplorationdata	Other exploration data, if meaningful and material,should be reported including (but not limited to):geological observations; geophysical survey results;geochemical survey results; bulk samples – size andmethod of treatment; metallurgical test results; bulkdensity, groundwater, geotechnical and rockcharacteristics; potential deleterious or contaminatingsubstances.	There are no other exploration data that are consideredmaterial to the results reported in this announcement.Intercepts are presented in conjunction with commentsthat describe the context of the intercepts.The Competent Person is satisfied that the resultspresented are representative of drilling results to date.
Furtherwork	The nature and scale of planned further work (eg testsfor lateral extensions or depth extensions or large-scalestep-out drilling).Diagrams clearly highlighting the areas of possibleextensions, including the main geologicalinterpretations and future drilling areas, provided thisinformation is not commercially sensitive.	The work reported herein comprises initial explorationdrilling of a previously unknown mineralized body, withfollow-up drilling currently underway to investigate strikeand depth extensions.Drilling results may form the basis for future estimation ofMineral Resources and Mineral Reserves (if warranted).