PERSEUS MINING LIMITED — Interim / Quarterly Report 2007

Oct 30, 2007

September 2007 QUARTERLY ACTIVITY REPORT

Highlights

Ayanfuri – Ghana

• Maiden 421,000 ounce gold resource estimate announced for AF-Gap, providing a 19 percent increase in gold resources for Ayanfuri to 2.61 million ounces, up from 2.19 million ounces.
• The increase takes Perseus's total gold resources at the Ayanfuri and Grumesa projects in Ghana to 3.4 million ounces and its global resources to 4.0 million ounces.
• The Ayanfuri Options study has been completed and Perseus has commenced a detailed Feasibility Study adopting a minimum throughput of 3mtpa for 150,000ozpa, with a target cash cost in the early years of US$300 per ounce of gold produced.
• Ongoing deeper drilling at Fetish on the Ayanfuri project has returned encouraging results. One hole returned 35m at 5.8g/t Au, including 3m at 51.6g/t Au.

Grumesa – Ghana

• The Kayeya heap leach pre-feasibility study concluded that project should be considered as a satellite operation to a larger mine at Ayanfuri, though with continued high gold prices it could be brought into production in advance of Ayanfuri.

Tengrela – Ivory Coast

• RC drilling to extended the known limits of the Sissingue East Zone on the Tengrela project to an area about 250m wide and 800m long.
• RAB drilling results from the larger Sissingue prospect included 12m at 11g/t Au on northernmost drill line, demonstrating that the zone of in situ mineralisation extends for at least 4km.

Kyrgyz Republic

• Infill soil sampling on the Shambesai prospect in south-western Kyrgyz Republic returned strongly anomalous results, with the core 700m portion of the soil anomaly averaging 4.5g/t Au. Significant trenching has been completed and drilling has commenced, with results pending.
• Drilling by Perseus's JV partner, Kentor Gold, on the Savoyardy Gold Project in southern Kyrgyz Republic returned significant gold assays, including 14m at 15.1 g/t and 4.3m at 27.7g/t Au.

Drilling Summary

• 33,312 metres of drilling was completed by the Company from July 17 to October 26, including 13,821m of core drilling. 45% of the drilling was completed in October and assays are pending for a significant portion of the drilling completed over the period.

December 2007 Quarter Program

During the next three months Perseus proposes to:

• Undertake 40,000m to 60,000m of drilling, split between infill resource and exploration drilling. The Company expects to have 5 to 6 rigs working in Ghana, 3 rigs working in Ivory Coast and 2 rigs in the Kyrgyz Republic.
• Complete drilling to enable a first pass resource estimate on the Sissingue East Zone on the Tengrela gold project in Ivory Coast in Q2 2008.
• Progress the Detailed Feasibility Study for the Ayanfuri project in Ghana;
• Complete an infill drill program on stage 2 resources for the Kayeya Heap Leach Project at Grumesa in Ghana while advancing environmental permitting for the proposed stage 1 development; and
• Evaluate options for the spin-out of the Kyrgyz exploration assets into a separate company with the intention of listing the new company on the ASX.

Overview

Active exploration continues to advance Perseus's key projects in West Africa and the Kyrgyz Republic, with results including a 421,000oz increase in its resource base to 4.0Moz during the September quarter.

Ayanfuri Project, Ghana

Exploration

From August to mid October exploration drilling was focused on AF-Gap, Fetish and Esuajah South. There are now four drill rigs operating at Ayanfuri and a fifth will arrive in November. A total of 106 RC and diamond holes were completed during the last three months at Ayanfuri for a total of 7,539m of RC and 9,759.2m of diamond core. Selected significant results are tabled below**.**

The rigs are undertaking both exploration and infill drilling. The Company will be testing 20 soil, trench and geophysical targets and will work towards extending known deposits and converting existing inferred resources to indicated status.

A maiden 421,000 ounce gold resource estimate for the AF-Gap portion of the Abnabna – Fobinso zone was announced in September, providing a 19 percent increase in resources for Ayanfuri to 2.61 million ounces, up from 2.19 million ounces declared on 24 July 2007.

Recent drilling and the resource estimate have confirmed that AF-Gap is part of an almost continuous 1.8km gold mineralised zone between Abnabna and Fobinso which is likely to support a 2km long open pit development. Deeper drilling is planned in several areas along the zone to further increase resources.

There is also significant potential NE and SW along strike from the Abnabna-Fobinso zone, where soil sampling, trenching and limited drilling has extended the zone of interest to a strike length of over 8km. For example, limited recent drilling completed on two sections 0.5km and 1.2km SW along strike from Abnabna returned encouraging results, including 18m at 1.1g/t, 4m at 2.5g/t, 35m at 0.6g/t and 79m at 0.5g/t. These results are comparable to those from between the main higher-grade shoots in the better drilled portion of the Abnabna-Fobinso zone.

Mineralisation in the Abnabna-Fobinso zone is essentially hosted by a single granite body which is open along strike to the NE of Fobinso and SW of Abnabna. The majority of resources are contained in structurally controlled shoots, each typically 50 to 100m wide and 200m long.

Diamond drilling is continuing on the Fetish deposit. A total of 14 holes for 3,330m have been completed since the maiden inferred resource estimate of 360,000 ounces of gold was released on 24 July 2007. The latest round of drilling encountered high-grade mineralisation below the wide, low-grade eastern lode. One hole returned assays of 17m at 3.2g/t and 35m at 5.8g/t Au (including 3m at 51.6g/t Au).

A detailed airborne electromagnetic survey covering 21sq km was flown in the September quarter to gain a better understanding of geology. Though not fully interpreted, the preliminary data has been used to assist in the delineation of at least 20 exploration drill targets.

Current announced gold resources for the Ayanfuri project are 637,500 ounces Indicated and 1,972,800 ounces Inferred from 7 of the 19 previously mined deposits (see Table below). Low-grade resources currently total an additional 21.5Mt at 0.7g/t containing 490,000 ounces of gold.

		Indicated			Inferred			Total
Deposit	Tonnes	g/t	Ounces	Tonnes	g/t	Ounces	Tonnes	g/t	Ounces
		Au	Au		Au	Au		Au	Au
Esuajah North(1, 5)	5,381,000	1.2	205,900	8,160,000	1.3	327,800	13,541,000	1.2	533,700
Esuajah South(1, 4)	2,932,000	1.5	141,700	4,990,000	2.4	385,800	7,922,000	2.1	527,500
Abnabna	4,633,000	1.8	261,400	14,063,000	1.4	662,800	18,696,000	1.5	924,200
Fobinso(1,6,7)
Ataasi(2)	340,000	2.6	28,500	200,000	2.8	18,000	540,000	2.7	46,500
Chirawewa(2)				1,200,000	1.6	65,000	1,200,000	1.7	65,000
Dadieso(3,8)				2,720,000	1.8	153,400	2,720,000	1.8	153,400
Fetish(1,9)				7,594,000	1.5	360,000	7,594,000	1.5	360,000
Totals	13,286,000	1.5	637,500	38,927,000	1.6	1,972,800	52,213,000	1.6	2,610,300

Table 1: Mineral Resources (Gold) - Ayanfuri Gold Project

Notes

• 1 Resource Evaluations May 2007 Estimate based on Perseus, Cluff and AGC drill data
• 2 Perseus Mining May 2006 Estimate based on Cluff and AGC drill data
• 3 Perseus Mining June 2007 Estimate based on Perseus and AGC drill data
• 4 Excludes low grade mineralisation of 4.4Mt at 1.0g/t Au
• 5 Excludes low grade mineralisation of 7.3Mt at 0.6g/t Au
• 6 Excludes low grade mineralisation of 4.6Mt at 0.6g/t Au
• 7 Includes AF-Gap resource estimate
• 8 Excludes low grade mineralisation of 1.1Mt at 0.9g/t Au
• 9 Excludes low grade mineralisation of 4.1Mt at 0.7g/t Au
• 10 Rounding applied to totals;

Feasibility Overview

An Options Study was undertaken to assess annual throughput rates of 3, 4 and 5 Mtpa using standard CIL technology. The Options Study and subsequent work indicate that between 3Mtpa and 5Mtpa the project economics are not enhanced by increasing the scale of the project. Processing costs were estimated to range from US$9.80 to US$10.60 per tonne and capital costs were estimated at from US$125M to US$176M.

Perseus will proceed with a detailed feasibility study ("DFS") for a CIL process plant with a 3mtpa throughput rate with the aim of identifying areas for future throughput optimisation after capital payback. Initial expectations from limited work to date are:

• Throughput rate 3Mtpa
• Mine life target >10 years
• Material movement (yrs 1-4) 6.5Mtpa
• Head grade (yrs 1-4) 1.7g/t Au
• Annual production 150,000oz
• Recovery 93%
• Royalties 4.5%
• Capital cost US$100M to US$140M
• Operating cost (yrs 1-4) US$300 per ounce
• Pre-tax cash surplus target US$52Mpa at US$650 gold price; US$66Mpa at US$750 gold price
• Capital Payback (Pre-Tax) 3 years at US$650 gold price; 2 years at US$750 gold price.

Perseus is targeting total cash cost of production of US$300 per ounce produced for the first 4 years, depending on the cut off grade applied, the resulting predicted waste to ore ratio and budget mining costs.

The DFS has commenced with a comprehensive metallurgical program and infill drilling of selected gold deposits. The Company expects to finalise the project feasibility study management team in the near future. Given the large number of drill rigs currently on site the Company aims to complete the DFS in 2008 with the target milestones set out below.

December Quarter 2007 - Completion of metallurgical sampling and export samples to Australia. Selection of project feasibility study management consultants.

March Quarter 2008 - Commencement of definitive resource modeling, detailed geotechnical, hydrogeological and hydrology studies. Completion of environmental base line report and comminution testwork. Commencement of process plant design criteria definition.

June Quarter 2008 - Completion of infill resource drilling (first 40 million tonnes), detailed metallurgical testwork, resource models, pit designs for years 1 to 5 and preliminary tenders for mining contractors. Submit environmental scope and terms of reference for environmental impact statement ("EIS").

September Quarter 2008 - Completion of resource models, pit designs for years 6 to 10, detailed process plant design. Table draft of the DFS for review and submit draft EIS and modified closure plan.

December Quarter 2008 - Submit final EIS and present final DFS to Ministry of Mines. Draft mining contracts.

Metallurgy

Initial comminution and gravity - leach test work on Ayanfuri core has been completed at AMMTEC in Australia.

At this early stage there appears to be excellent consistency in the metallurgical characteristics between the various granite deposits within the Ayanfuri mining lease.

Gravity gold recoveries from the five samples were consistently high, ranging from 45.5% to 64.8% and averaging 51.7%.

Leach kinetics carried out on gravity tails showed rapid leaching for the granite samples, with 92.6% of the contained gold recoverable after 8 hours leaching and 0.4% to 0.6% recoverable over subsequent 8hr periods, with ultimate recovery after 36 hours of 94%. Significantly, low-grade samples (0.81g/t and 0.85g/t) also produced high gravity and leach recoveries, indicating that there is no fixed tail component to the mineralisation.

The reagent consumptions were moderate, with the four granite samples averaging 0.59 kg/t cyanide consumption and 0.35 kg/t lime consumption.

Unconfined Compressive Strength, Impact Crushing, Bond Rod ("BRWi") and Bond Ball Mill (BBWi) work indexes were within expected limits for the four fresh granite samples, with the average BRWi of 16.5 kWh/t and average BBWi of16.7 kWh/t. The single fresh meta-sediment sample returned a BRWi of 12.0 kWh/t and BBWi of 10.6 kWh/t.

Sulphide meta-sediment material from Dadieso showed poor leach recovery, with total recovery of 54.6% inclusive of 45.5% gravity recovery. Sulphide meta-sediment resources at Dadieso represent only 4.5% of the current total resource base at Ayanfuri.

Grumesa Gold Project, Ghana

Exploration

Infill resource drilling recommenced in October, with 2,173m of the planned 20,000m program designed to upgrade a significant portion of the current 573,000 ounces of Inferred resources in the northern portion of the Kayeya deposit completed to date.

Drilling should continue at an average rate of about 6,000m per month.

Feasibility

GR Engineering Services Pty Ltd (GRES) was commissioned by Perseus to carry out a Preliminary Feasibility Study (PFS) for the development of the Kayeya Heap Leach Project on the Grumesa-Awisam licence. The Kayeya project has been divided into 2 stages of potential development:

Phase 1 - comprising heap leach plant refurbishment and construction, leach pad and pond construction and a pit design of well drill-defined portion of the deposit with 3 to 4 years mine life (stage 1 pit); and

Phase 2 - comprising conceptual continuation of the operation to include a leach pad enlargement and pits within areas that currently comprise inferred resources.

The Phase 1 capital cost estimate excluding mining contractor mobilization is US$13.05M (+/- 25%). Phase 2 capital costs if required are estimated at US$3.1M.

Indications are that the low grade Kayeya project would have a low capital cost but high operating cost per ounce, with the initial estimated cash cost of US$490 per ounce of gold produced over the first 3 years based on average annual production of 36,000ozpa. Work to refine the pit design by reducing the pit size to eliminate marginal resources is expected to improve the head grade and annual gold production, thereby significantly reducing the cost per ounce. Grumesa has the potential to be a satellite producer to a larger operation at Ayanfuri, while at high gold prices it could be brought into production in advance of Ayanfuri.

The Company is confident that it can significantly reduce the estimated capital costs and has employed highly experienced expatriate maintenance superintendent and maintenance supervisor to carry out the plant refurbishment and to manage operations. Planning of the refurbishment process will commence in November 2007 and physical work on major equipment items is expected to commence in Ghana in January 2008. The heap leach plant is also now being considered for Ayanfuri low grade oxide and transitional material.

Several areas highlighted for further work include:

• Final metallurgical report from Kappes, Cassiday & Associates ("KCA"), including detoxification requirements;
• Tendering process with potential mining and civil contractors;
• Mining contractor mobilisation and infrastructure cost estimate;
• Infill resource drilling of Phase 2 target areas;
• Power line survey and cost estimation;
• Further geotechnical and groundwater assessment;
• Further test work on physical properties of ore; and
• Further work on leach pad design.

This further work will be carried out concurrently with the more important Ayanfuri DFS and is expected to be completed by mid 2008.

The proposed mine life can only be determined after infill drilling of the northern portion of the large, low grade Kayeya gold deposit is completed.

An additional 13 column tests are currently near completion at KCA in America. Results to date are highly encouraging, but final tail grades are required before the recoveries can be estimated.

Tengrela Gold Project (Ivory Coast)

The 885sq km Tengrela project is located immediately south of Resolute Mining Limited's 6.8Moz Syama and Finkalo projects, along the same structural/stratigraphic corridor within the Syama-Boundiali greenstone belt. The project lies 150km SSE of the Morila gold mine (7Moz) and 65km WNW of the Tongon deposit (3Moz).

During the last three months Perseus drilled 26 RC holes for 1,961m and 223 RAB holes for 7,410m on its 80% owned Tengrela gold project in northern Ivory Coast.

RC drilling at Sissingue East Zone recommenced in September without the rig's booster compressor. As a consequence, drilling was largely restricted to the periphery of the Sissingue East Zone resource target area, but several significant recent intercepts including 20m @ 1.7 and 22m at 1.4g/t Au increased the known size of the zone to 250m by 800m. Assays are still pending for 19 of the 26 RC holes drilled during September and October, the results are expected in November.

RAB drilling at Tengrela highlighted the potential of the northern portion of the 4km of the Sissingue prospect drilled to date. Intercepts included 12m at 11.0g/t, 11m at 3.4g/t, 12m at 1.3g/t and 8m at 1.5g/t Au.

The higher grade intercepts in SRB395 (11m at 3.4g/t open ended) and SRB464 (12m at 11.0g/t) are located 1.0km and 2.3km respectively north along strike from the previously reported Eastern Zone, with highgrade mineralisation encountered in the RC drilling programme.

Further RAB drilling was undertaken on the 4km long Kanakono prospect, where three broad-spaced drilllines completed by Perseus in 2006 intercepted significant mineralisation, including 25m at 3.2g/t (open ended), 4m at 42.6g/t, and 4m at 5g/t Au. Recent results include 4m at 6g/t Au and numerous anomalous intercepts in shallow holes.

A third rig, a diamond drill rig, has been commissioned to commence drilling in early November to gain an understanding of the structural controls and gold distribution to a depth of 200m within the potentially large, high grade Sissingue East Zone.

The Sissingue prospect is the first of nine regionally significant soil anomalies identified by Perseus subjected to RC Drilling. Perseus is conducting the first phase of a 50,000m RC drilling program planned for Tengrela.

The Company's RAB rig has to date completed more than 900 drill holes over 12km of strike length on three of nine significant soil anomalies identified on 75km strike of the Syama gold belt within the Tengrela permits. During 2007-2008 the RAB rig will continue to undertake a combination of wide-spaced reconnaissance drilling of untested soil anomalies and infill drilling of areas containing significant intercepts to firm up RC drill targets.

The size of the Sissingue Eastern zone, the style of mineralisation, the presence of multiple zones of gold mineralisation and the fact that this is just a small portion of one of the nine regional gold anomalies to be tested by Perseus highlights the potential of the Tengrela gold project.

The nine main soil anomalies at Tengrela are comparable to other significant soil anomalies in the region (Syama group, Tabakoroni, Tioro, Morila) and are prime targets for follow-up exploration. Importantly, the Morila-Tongon region has historically had an extremely high conversion rate of significant soil anomalies to gold discoveries.

South Kyrgyz Gold Project – Regional

Gold assays have been received for the 2006-2007 regional stream sediment sampling program, with 1,090 samples taken over about 4,000 sq km. Over half the samples reported gold values above 5ppb, with nine percent (112) reporting gold values above 9ppb. Limited soil sampling follow-up undertaken to date indicates that the stream sediment sampling methodology used has been successful in narrowing down the areas of interest except in areas containing significant transported cover. Multi-element analysis results are still pending.

Most (84%) of the values of 10ppb Au or above, including all values above 50ppb Au, were obtained from three of the eight licence areas - Isfairamsai, Akbura and Karavshin. Follow-up of earlier assay results from the stream sediment program resulted in the discovery of the Shambesai prospect on the Isfairamsai licence.

Tolubay (Kyrgyz Republic)

1,719m of diamond drilling was completed during the quarter at the Obdilla prospect within the Tolubay licence area. As presently defined, the Obdilla prospect extends for some 2km in strike and hosts Carlin style gold mineralisation. An independently estimated Inferred resource of 10.4Mt grading 1.9 g/t gold was based on 24 diamond drillholes covering the easternmost 400m of the mineralized zone. During the quarter, a total of 8 diamond holes were collared at the prospect. Assays are pending for three holes and three holes are currently in progress.

First pass drilling is expected to be completed at Obdilla in the December Quarter and an updated resource estimate will also be completed in December.

Shambesai Prospect, Isfairamsai Licence (Kyrgyz Republic)

In the June 2007 quarterly report the Company noted the discovery of the Shambesai prospect on the Isfairamsai licence, located 7km south of Perseus's Obdilla discovery.

Infill soil sampling has been completed on a 50m by 100m pattern over the Shambesai prospect. Results confirm previous high grades, with the anomaly averaging 2,200ppb (2.2g/t) Au over 1,000m strike length. The core zone averages 4,500ppb (4.5g/t) Au over 700m strike length, with individual results of 22.1g/t, 16.8g/t, 9.2g/t and 10 values between 1g/t and 4g/t Au. This anomaly is significantly stronger than the Obdilla soil anomaly, which averaged less than 1,000ppb (1.0g/t) Au.

The Shambesai prospect is located on the same lithological contact as Obdilla, where it is exposed at surface by thrusting. A spot rock chip sample on initial reconnaissance returned 3.76g/t gold in brecciated tuffaceous siltstone. A single trench dug across the most exposed stratigraphy returned 11m at 3.70g/t gold (open-ended). This trench is located outside the soil anomaly. Stratigraphy, alteration and degree of brecciation at Shambesai are similar to Obdilla.

Access to Shambesai is relatively easy and the prospect is able to be explored all year round. The Company has commenced trenching the main soil anomaly and has commenced drill pad preparation in this area. Drilling has commenced near the discovery trench. It is expected that at least one additional drill rig will be moved from Obdilla to Shambesai in November.

Broad-spaced (800m by 100m) first pass soil sampling has commenced on the eastern portion of the Isfairamsai licence, about 26km east of Sambesai. Early results have returned anomalous values over about 10km strike length, with high values of 624ppb, 208ppb, 228ppb and 183ppb over the important Tolubai and Pyrkaf suites (the host rocks of Obdilla and Shambesai).

Karabulak Licence, Kyrgyz Republic

Regional stream sediment sampling has identified a number of target areas on the 757 sq km Karabulak licence. Early wide-spaced (800m by 100m) soil sampling has highlighted one area of 11km by 1km to 2.5km wide comprising Carboniferous limestone and shale with numerous granitoid intrusive bodies and historic gold occurrences. The highest soil value to date is 468ppb Au.

A number of other stream sediment anomalies on the Karabulak licence have been identified as justifying soil sample follow-up.

Savoyardy

The joint venture with Kentor Gold Limited has returned early results, with Kentor intercepting significant gold mineralisation on the Savoyardy joint venture prospect as part of a planned 23 hole program. 10 holes totalling about 800m have been completed to date and assays have been received for part of four drill holes. Early intercepts included 14m at 15.1g/t and 4.3m at 27.7g/t Au.

Kentor currently has two rigs on site and is making good progress towards rehabilitating the Soviet era exploration adits so drilling can be undertaken from within the adits.

Early drilling results indicate that the mineralised zones appear to be increasing in grade with depth. with high grade gold mineralization being intercepted below areas where surface trenching is only showing grades of 1 to 2 g/t Au.

Perseus presently has a 100% interest in the 84.5sq km Savoyardy licence and has entered into an agreement forming a joint venture ("JV") with ASX listed, Kentor Gold Limited ("Kentor") over the Savoyardy Gold Project in the Kyrgyz Republic. Kentor can earn a 70% interest by incurring exploration expenditure of at least US$6 million over a 5 year period to 31 March 2012, and is required to spend at least US$500,000 by 31 March 2008, inclusive of 1,000 metres of drilling, before it can withdraw from the JV.

The Savoyardy Gold Project covers a northeast trending belt of sedimentary rocks, which form part of the Southern Tien Shan thrust/fold complex. Gold mineralisation is known to occur over at least a 12km strike, and is exposed in Soviet-era costeans and adits at the Savoyardy prospect where Perseus has previously obtained channel samples including 7m at 12.9g/t, 2m at 38.9g/t and 31m at 1.7g/t Au.

Maly Naryn Project (Kyrgyz Republic)

A total of 502, two to ten metre long channel samples totalling 3,137m were taken on the Maly Naryn gold project this field season. Assay results to date from this programme include open-ended intercepts of 5m at 12g/t and 5m at 2.2g/t Au. Other intercepts included 5m at 5.6g/t, 40m at 0.5g/t and 30m at 0.6g/t Au, with common visible copper mineralisation. Channel sampling was undertaken fairly randomly over the main area of interest, which covers at least 12 sq km. Only gold assay results have been received to date.

Infill soil sampling comprising 696 samples on 50m by 100m and 25m by 50m patterns returned numerous significant values, including 93 values greater than 100ppb Au. Multi-element assays are still pending, though previous sampling returned strongly anomalous Cu, Mo, Bi, Pb and Zn values.

The 12 sq km area of interest comprises extensively altered carbonaceous shale and limestone with a number of Permo-Carboniferous intrusive granitoids ranging from granite to diorite. Gold and other metals appear to be enriched in the skarn and hornfel contact zones, however limited sampling of the granitoids and soil sampling suggest the intrusives are also auriferous. The area is highly prospective for high-grade exocontact and low-grade porphyry style copper-gold mineralisation.

Kyrgyz Assets Spin-off

With the Company's focus on feasibility work on its two Ghanaian projects and the extensive Tengrela project in Ivory Coast, Perseus's directors are investigating the possibility of spinning off the Company's Kyrgyz Republic minerals assets into a new Australian vehicle established for that purpose. The spin-off would enable the exciting Kyrgyz projects to be developed more quickly by a dedicated management team with access to its own funding. Perseus would expect to retain a substantial interest in the new company and Perseus shareholders will have a priority allocation in its proposed initial public offering, but a detailed plan will be drawn up over the coming weeks and further details will be released at that time.

Mark Calderwood Managing Director

31 October 2007

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.

(m)(m)(m)(˚)(˚)(m)(m)(m)g/tABRC0891382026739102-501801216410.1AF-GapABRC0901389826744126-5018048106582.2AF-Gapincl.667269.9122126*41.4ABRC094137402632084-501801682662.4AF-Gapincl.4056165.0ABRC0951375026360136-501802088682.2AF-Gapincl.7080107.2ABRC0961372026280136-5018024136*1122.3AF-Gapincl.2450263.0and5866810.0ABRDD0971376026280184.8-50180361571211.8AF-Gapincl656835.9and132133111.6175176115.7ABRDD0981378026320176.9-50180541571033.2AF-Gapincl.54101475.7or63731013.0ABRDD1041370026240-501802474502.2AF-Gapincl.5272203.8ABRDD1071379026360-5018028127991.3AF GapABRDD1081383026360-50180661731071.5AF Gapincl.124135112.9ABRDD1101368526180-501803248165.6AF Gapincl.3236420.3ABRDD1151385026340-5018097109123.8AF Gapincl.9798126.4122214922.0incl166181153.6ABRDD1171384026380182-50180521781261.2AF Gapincl.17017449.1ABRDD1181380026380140.6-5018001371371.1AF Gapincl.111126152.7ABRDD119137602638098.8-50180091911.2AF Gapincl.8081118.3ABRDD1311369125855231.1-50180741841101.2AF-Gapincl.125146213.9or125126155.1217229120.9ABRDD1351394026740200.7-50180901991091.2AF GapIncl.117118121.7and16016228.7ABRDD1401372026140176-5018084851AF Gap49.7ADD02918766200312.7-7590115195802.2EsuajahSouthincl169194254.5	Hole	North	East	Depth	Incl.	Azm.	From	To	Width	Au	Location
						or	169	174	5	11.5
and178194163.3
EsuajahADD03120326140166.1-4527086154681.7South
incl.12213089.3

Table 2: Most Significant Intercepts, September Quarter 2007 Within Limits of Existing Resources, Ayanfuri Gold Project

* denotes ended in mineralisation

only holes with intercepts above 100 gram metres or intercepts above 10g/t Au included

	North	East	Depth	Azm.	Incl.	From	To	Width	Au
Hole	(m)	(m)	(m)	(˚)	(˚)	(m)	(m)	(m)	g/t
ADD034	5160	3475	267	270	-50	97	258	161	0.8
					incl.	97	111	14	1.2
					and	126	146	20	1.5
ADD035	5200	3450	257.86	270	-60	86	256	170	0.8
					incl.	86	128	42	1.6
ADD036	5240	3489	303.63	270	-60	44	46	2	3.2
						53	54	1	4.7
						59	61	2	1.5
						135	150	15	1.7
						174	177	3	1.0
						183	188	5	2.9
						193	200	7	2.0
						205	222	17	3.2
						212	219	7	5.6
						233	248	15	0.5
						249	284	35	5.8
					incl.	254	257	3	51.6
						289	292	3	1.0
ADD037	5120	3409	273.10	270	-50	45	80	35	0.7
						96	111	15	2.6
						132	137	5	2.7
						143	148	5	1.2
						155	161	6	1.2
						183	185	2	18.0
						230	264	34	1.0
ADD038	5280	3430	263.6	270	-50	121	200	79	0.8
						238	255	17	1.8

Table 3: Drill Intercepts, Fetish Deposit, Ayanfuri Gold Project, Ghana

Table 4: RC Drill intercepts, South West Abnabna, Ayanfuri Gold Project, Ghana

Hole	North(m)	East(m)	Depth(m)	Incl.(˚)	Azm.(˚)	From(m)	To(m)	Width(m)	Aug/t
ABRC127	24520	13420	81	-50	180	1	36	35	0.6
					incl.	12	18	6	1.5
ABRC128	24520	13460	83	-50	180	4	83*	79	0.5
					incl.	18	24	6	1.1
					and	76	82	6	1.2
ABRC132	25200	13385	80	-50	180	0	4	4	2.5
ABRC133	25200	13425	80	-50	180	22	40	18	1.1
ABRC134	25200	13465	84	-50	180	72	84*	12	0.6

* denotes ended in mineralisation

Hole	North(m)	East(m)	Depth(m)	Azm.(˚)	Incl.(˚)	From(m)	To(m)	Width(m)	Aug/t
SRC084	1154400	806700	63	90	-60	8	10	2	2.4
						46	63*	17	0.8
					incl.	46	52	6	1.8
SRC087	1154160	806780	90	90	-60	32	34	2	4.7
						68	90*	22	1.4
					incl.	80	88	8	1.8
SRC088	1154080	806820	84	90	-60	4	84*	80	0.8
					incl.	40	60	20	1.7
					and	74	80	6	1.4
SRC090	1154080	806580	90	90	-60	68	76	8	0.8
SRC091	1154280	806660	90	90	-60	12	14	2	1.1
						62	90	28	0.3

Table 5: Significant RC Intercepts September Quarter - Tengrela Gold Project, Ivory Coast

* denotes ended in mineralisation

Table 6: Anomalous RAB Drilling, Tengrela Gold Project, Ivory Coast

	North	East	Depth	Azm.	Incl.	From	To	Width	Au
Hole	(m)	(m)	(m)	(˚)	(˚)	(m)	(m)	(m)	g/t
SRB395	1154450	806012	47	90	-60	36	47*	11	3.4
SRB398	1154450	806096	40	90	-60	28	36	8	1.2
SRB409	1155439	806387	48	90	-60	8	16	8	1.5
SRB412	1155600	806539	22	90	-60	4	8	4	1.3
SRB440	1155840	806233	34	90	-60	4	8	4	1.8
SRB455	1156198	805798	34	90	-60	16	28	12	1.3
SRB456	1156200	805824	34	90	-60	8	16	8	0.9
SRB457	1156200	805850	36	90	-60	32	36*	4	0.6
SRB458	1156198	805877	40	90	-60	12	16	4	1.8
SRB459	1156197	805910	32	90	-60	16	32*	16	0.7
					incl.	20	28	8	1.0
SRB464	1156600	805442	54	90	-60	24	36	12	11.0
					incl.	24	28	4	30.0
						48	54*	6	0.6
SRB468	1156600	805592	46	90	-60	16	36	50	0.5
SRB477	1154600	807520	54	90	-60	8	16	8	0.7
SRB481	1154600	807734	42	90	-60	8	42*	34	0.3
					Incl.	8	28	20	0.5
SRB482	1154600	807766	50	90	-60	12	20	8	1.6
						40	50*	10	1.0
SRB485	1154600	807886	40	90	-60	36	40*	4	0.6
SRB515	1155000	808329	59	90	-60	44	48	4	0.4
SRB516	1155000	808374	59	90	-60	0	4	4	1.3
SRB544	1154800	806882	35	90	-60	20	28	8	0.4
KRB077	1144200	805428	34	90	-60	16	34*	18	0.3
KRB125	1144200	805428	37	90	-60	4	8	4	6.0
KRB137	1144200	805428	24	90	-60	8	16	8	0.4
KRB146	1144200	805428	14	90	-60	4	8	4	0.5
KRB161	1144200	805428	37	90	-60	8	12	4	0.5
KRB187	1144200	805428	12	90	-60	8	12*	4	0.6
KRB202	1144200	805428	40	90	-60	20	28	8	0.4
KRB204	1144200	805428	41	90	-60	32	36	4	0.8
KRB206	1144200	805428	27	90	-60	20	27*	7	0.4

* denotes ended in mineralisation.

Table 7: Drilling Summary – Obdilla Prospect – Tolubay Gold Project, Kyrgyz Republic

Hole	North(m)	East(m)	Depth(m)	Incl.(˚)	Azm.(˚)	From(m)	To(m)	Width(m)	Aug/t
ZDDH053	4447441	251555	418.5	-50	045	233	236	3	0.6
						275	279	4	1.1
						283	287	4	0.7
						292	305	7	0.9
						309	319	10	0.8
						326	377	51	1.2
					incl.	353	372	19	2.0
ZDDH057	4447444	251558	395.5	-80	360	17	18	1	1.3
ZDDH058	4447375	250880	275	-50	360	13	14	1	1.1
ZDDH059	4447427	251373	190.7	-50	360		assays pending
ZDDH060	4447485	251300	144	-75	360		in progress
ZDDH061	4447375	250880	279.2	-80	360		assays pending
ZDDH062	4447415	251000	129.2	-30	360	NSI
ZDDH063	4447415	251000	274.6	-65	360		assays pending
ZDDH064	4447420	250800	135.3	-90	360		in progress
ZDDH065	4447465	251094	159	-90	360		in progress

NSI denotes no significant mineralisation

Table 8: Significant Intercepts – Savoyardy Gold Project, Kyrgyz Republic

Hole	North(m)	East(m)	Depth(m)	Incl.(˚)	Azm.(˚)	From(m)	To(m)	Width(m)	Aug/t
SVD-PD-04	4443723	446806	69.7	-70	130	38.7	43	4.3	27.7
SVD-PD-05	4443711	446820	80.9	-70	130	30	30.5	0.5	7.1
SVD-PD-09	4443660	446774	99	-70	130	71	72	1	10.4
						78	92	14	15.1
SVD-PD-10	4443652	446787	77.2	-70	130	74	76	2	4.8

Only intercepts above 3g/t Au included

Table 9: Summary of Stream Sediment Sampling - South Kyrgyz Group

Licence	No. SamplesTaken	No. Samples5-9ppb Au	No. Samples10-50ppb Au	No. Samples>50ppb Au
Tolubay	25	15	7	-
Djingilsai	55	32	-	-
Isfairamsai	242	102	42	3
Akbura	263	113	30	2
Aravan	83	50	1	-
Aksu	129	58	10	-
Karabulak	149	71	15	2
Karavshin	144	29	-	-
Total	1090	470	105	7

Table 10: Summary of 2007 Channel Sampling – Maly Naryn Gold Project

Traverse	E	N	Interval	width	Au	Geology
				(m)	(g/t)
3	615137	7626	35-40m	5*	12.0	hornfel rock with pyrite and chalcopyrite
9	615423	7653	7-12m	5*	2.2	hornfel rock with pyrite and chalcopyrite
10	615626	7784	7-12m	5	5.6	skarn with pyrite and chalcopyrite
28	615666	7708	17-22m	5	1.2	skarn
16	614990	4763	20-60m	40	0.5	hornfel shale with pyrite and chalcopyrite
23	614358	7029	80-145m	65	0.3	skarn with pyrite and chalcopyrite
24	615089	4748	60-90m	30	0.6	granodiorite and hornfel shale
26	615825	5054	220-310m	90	0.2	granodiorite and hornfel shale
26	615930	5157	405-475m	70	0.3	cherty hornfel shale

Notes

* denotes open ended

co-ordinates approximate centre of intercept

Cont.

Cont.

Appendix 5B

Mining exploration entity quarterly report

Name of entity

PERSEUS MINING LIMITED

ABN Quarter ended ("current quarter")

27 106 808 986 30 September 2007

Consolidated statement of cash flows

	Cash flows related to operating activities	Current quarter$A'000	Year to date(3 months)$A'000
1.1	Receipts from product sales and related debtors	-	-
1.2	Payments for(a) exploration and evaluation	(3,658)	(3,658)
	(b) development	-	-
	(c) production(d) administration	-(263)	-(263)
1.3	Dividends received	-	-
1.4	Interest andother itemsof a similar naturereceived	154	154
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	-	-
1.7	Other – Reimbursement from JV partner	54	54
	Net Operating Cash Flows	(3,713)	(3,713)
	Cash flows related to investing activities
1.8	Payment for purchase or renewal of:
	(a) prospects	-	-
	(b) equity investments	-	-
	(c) other fixed assets	(65)	(65)
1.9	Proceeds from sale of:(a) prospects(b) equity investments	--	--
	(c) other fixed assets	-	-
1.10	Loans to other entities	(4)	(4)
1.11	Loans repaid by other entities	-	-
1.12	Other - Environmental bond deposit	(313)	(313)
	Net investing cash flows	(382)	(382)
1.13	Total operating and investing cash flows (carriedforward)	(4,095)	(4,095)

1.13	Total operating and investing cash flows (broughtforward)	(4,095)	(4,095)
1.141.151.161.17	Cash flows related to financing activitiesProceeds from issues of shares, options, etc.Proceeds from sale of forfeited sharesProceeds from borrowingsRepayment of borrowings	12,717---	12,717---
1.181.19	Dividends paidOther – share issue expenses	-(557)	-(557)
	Net financing cash flows	12,160	12,160
	Net increase (decrease) in cash held	8,065	8,065
1.201.21	Cash at beginning of quarter/year to dateExchange rate adjustments to item 1.20	5,391(290)	5,391(290)
1.22	Cash at end of quarter	13,166	13,166

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	146
1.24	Aggregate amount of loans to the parties included in item 1.10	-

1.25	Explanation necessary for an understanding of the transactions
		A$'000
	Directors fees, consultancy charges and remuneration	110
	Accounting, secretarial and occupancy expenses	36

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

N/A.

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Approximately $92,000 – Kentor Gold Ltd earning an interest in the Savoyardy Gold project.

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available$A'000	Amount used$A'000
3.1	Loan facilities	-	-
3.2	Credit standby arrangements	-	-

Estimated cash outflows for next quarter

4.1	Exploration and evaluation	$A'0005,000
4.2	Development	-
	Total	5,000

Reconciliation of cash

Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows) tothe related items in the accounts is as follows.		Current quarter$A'000	Previous quarter$A'000
5.1	Cash on hand and at bank	470	499
5.2	Deposits at call	12,696	4,892
5.3	Bank overdraft		-
5.4	Other (provide details)		-
	Total: cash at end of quarter (item 1.22)	13,166	5,391

At 30 September 2007, the Company had US$1.258 million (approximately AUD$1.42m) held in bank deposits which are subject to lien and are provided as collateral for bank guarantees issued to the Ghana EPA in relation to environmental rehabilitation provisions concerning a Ghana mineral permit. These deposit amounts are not included in cash balances at the quarter end for the purposes of this cash flow statement.

Changes in interests in mining tenements

		Tenement reference	Nature ofinterest	Interest atbeginningof quarter	Interest atend ofquarter
6.1	Interests in miningtenements relinquished,reduced or lapsed	None
6.2	Interests in miningtenements acquired orincreased	N/A.		-

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	Issuepricepersecurity (cents)	Amountpaidupper security (cents)
7.1	Preference+securities(description)	-	-	-	-
7.2	Changes duringquarter	-	-	-	-
7.3	+Ordinarysecurities	131,313,150	131,313,150
7.4	Changes duringquarter
	Placement	10,000,000	10,000,000	$1.15	$1.15
	Exercise of optionsExercise of options	2,199,984175,000	2,199,984175,000	20 cents26 cents	20 cents26 cents
7.5	Exercise of options+Convertible debtsecurities(description)	1,425,000-	1,425,000-	50 cents-	50 cents-
7.6	Changes duringquarter	-	-	-	-
7.7	Options(description andconversion factor)			Exercise price	Expiry date
		24,137,800	20,437,800	20 cents	31/03/2009
		770,000400,000	--	26 cents45 cents	01/12/200806/06/2009
		400,000	-	50 cents	06/06/2009
		10,740,000	-	50 cents	29/02/2008
		600,000	-	50 cents	01/04/2010
		150,000610,000	--	65 cents$1.00	30/05/201012/07/2010
7.8	Issued duringquarter
		610,000	-	$1.00	12/07/2010
7.9	Exercised duringquarter	(2,199,984)	(2,199,984)	20 cents	31/03/2009
		(175,000)(1,425,000)	--	26 cents50 cents	01/12/200829/02/2008
7.10	Cancelled/Expiredduring quarter	-	-
7.11	Debentures(totals only)	-	-
7.12	Unsecured notes(totals only)	-	-

Compliance statement

• 1 This statement has been prepared under accounting policies, which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
• 2 This statement gives a true and fair view of the matters disclosed.

Print name: Mark Calderwood Managing Director

Sign here: Date: 31 October 2007