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PERSEUS MINING LIMITED Interim / Quarterly Report 2007

Jul 30, 2007

46513_rns_2007-07-30_c648af2f-2581-4c75-810f-7ee0216b1292.pdf

Interim / Quarterly Report

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JUNE 2007 QUARTERLY ACTIVITY REPORT

Highlights

  • 260% resource increase at the Ayanfuri project in Ghana from 0.61Moz to 2.19Moz of gold.

  • Total resources in Ghana now 3.0Moz; total Perseus resource base increased to 3.6Moz of gold.

  • 28,400m of drilling completed between April 24 and July 17 2007, including 8,800m of diamond core drilling.

  • Significant high grade drill intercepts at the Tengrela project in Ivory Coast including: 8m at 113.8g/t and 4m at 175g/t Au on separate sub-zones, highlighting the potential of the Sissingue East zone.

  • New zone discovered at Ayanfuri, with intercepts including 110m at 3.8g/t, 99m at 3.3g/t, 70m at 7.8g/t, 78m at 3.3g/t, 66m at 3.2g/t and 102m at 2.6g/t.

  • Deeper drilling on Ayanfuri project intercepted high grade mineralisation with significant potential for open pit and underground resources, including 5m at 125.4g/t, 48m at 6.9g/t, 20m at 8.1g/t Au and 4m at 13.1g/t Au.

  • Early success in regional exploration on 3,800sq km Southern Kyrgyz projects with the discovery of two potentially significant prospects.

  • $11.5M raised from placement of 10 million shares at $1.15 each to institutional investors in July. The funds were raised to allow the Company to ramp up exploration and feasibility activities.

September 2007 Quarter Program

During the September 2007 Quarter Perseus proposes to:

  • Complete pre-feasibility and reserve estimate for the southern Kayeya deposit on the Grumesa Gold Project in August;

  • Complete Ayanfuri sizing study in September;

  • Complete a resource estimate for the newly discovered AF-Gap prospect on the Ayanfuri gold project in August;

  • Complete detailed airborne electromagnetic survey over Ayanfuri; and

  • Further increase number of rigs working in Ghana, Ivory Coast and the Kyrgyz Republic.

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: [email protected] Website: www.perseusmining.com

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Overview

Active exploration on Perseus’s key projects in West Africa and the Kyrgyz Republic continues to enhance those projects. During the June quarter the Company was successful in increasing its resource base by 1.6Moz to 3.6Moz and at the same time made several potentially important discoveries.

The Grumesa heap leach pre-feasibility is nearing completion and a sizing study to determine the optimum CIL throughput for Perseus’s Ayanfuri project is progressing.

Ayanfuri Gold Project (Ghana)

129 RC and diamond holes were completed during the last three months at Ayanfuri for a total of 10,955.5m of RC and 7,101.5m of diamond core. Selected results are tabled below .

Perseus is currently undertaking extensive RC and diamond drilling to gain an understanding of the resource potential (within economic limits) of seven of the largest known gold deposits at Ayanfuri. Resource estimates were released for six deposits.

Drilling is also now extending into previously untested areas along strike from known deposits. Early success was achieved with the discovery of the high grade AF-Gap deposit and extensions to the Fetish and Chirawewa West deposits. An initial resource estimate for AF-Gap is expected to be completed in late August, subject to laboratory assay turn around times.

Gold mineralisation at Ayanfuri occurs within a series of granitoid stocks intruded along a major deformation zone, and to a lesser extent within the enclosing sheared meta-sediments. A number of shallow open cut mines were developed on the outcropping granitoid stocks towards the end of mining operations in 2001, but their depth potential was not tested at the time due to the low prevailing gold price.

A detailed airborne electromagnetic survey covering 21sq km will be flown in the September quarter to test for more granite intrusives, the host of most of the gold mineralisation at Ayanfuri.

The Ayanfuri Mine licences incorporate the Ayanfuri mine, which produced 306,400 ounces of gold from multiple open pits and an oxide ore heap leaching circuit between 1994 and 2001.

Feasibility studies are being conducted for a CIL plant operation at Ayanfuri and the Company is currently undertaking a sizing study to determine the optimum mill size for the expected large tonnages.

Current announced gold resources for the Ayanfuri project are 376,100 ounces Indicated and 1,812,800 ounces Inferred from 7 of the 19 previously mined deposits (see Table below). Low-grade resources currently total an additional 18.2Mt at 0.74g/t containing 436,000 ounces of gold.

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Mineral Resources (Gold) - Ayanfuri Gold Project

Deposit Indicated Indicated Inferred Inferred Inferred
Tonnes g/t
Au
Ounces
Au
Tonnes g/t
Au
Ounces
Au
EsuajahNorth(1, 5) 5,381,000 1.2 205,900 8,160,000 1.3 327,800
EsuajahSouth(1, 4) 2,932,000 1.5 141,700 4,990,000 2.4 385,800
Abnabna-Fobinso(1,6) 10,940,000 1.4 502,800
Ataasi(2) 340,000 2.6 28,500 200,000 2.8 18,000
Chirawewa(2) 1,200,000 1.6 65,000
Dadieso(3,7) 2,720,000 1.8 153,400
Fetish(1,8) 7,594,000 1.5 360,000
Totals 8,953,000 **1.4 ** 376,100 35,804,000 1.6 1,812,800

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 1.3Mt at 0.7g/t Au

  • 7 Excludes low grade mineralisation of 1.1Mt at 0.9g/t Au

  • 8 Excludes low grade mineralisation of 4.1Mt at 0.7g/t Au

  • 9 Rounding applied to totals

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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 quarter Perseus drilled 63 RC holes for 5,061.5m and 78 RAB holes for 3,543m on its 80% owned Tengrela gold project in northern Ivory Coast.

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.

RC drilling completed during the quarter tested a number of targets over a 3.9km strike of the 7km long Sissingue anomaly. Multiple mineralised intercepts were recorded, highlighting the potential of four areas:

  • Sissingue prospect – Eastern zone: Due to drilling difficulties only eight holes were drilled on the main portion of the Eastern zone. Four of the eight holes intercepted significant mineralisation, while assay results are yet to be received for three holes. Gold intercepts from two separate mineralised sub-zones included 8m at 113.8 g/t Au and 16m at 44.2 g/t Au. Higher grade zones within these intervals included 2m at 438g/t and 4m at 175g/t Au respectively. Other intercepts in the same drill holes included 24m at 4.3 g/t and 10m at 2.6 g/t Au.

  • Sissingue prospect – Eastern zone (south eastern extension): Eight low priority RC drill holes were drilled in an attempt to extend the eastern zone to the south east. Four holes intercepted significant mineralisation including 12m at 2.0g/t and 22m at 1.1g/t Au, extending the Eastern zone south by 80m and further east by up to 150m.

  • Sissingue prospect – South zone: Two RC drill holes were drilled 750m and 950m along strike to the south of eastern zone. One of these holes had multiple intercepts including 12m at 2.2g/t Au highlighting the potential to extend the eastern zone.

  • Sissingue prospect – Northern extension: Eleven RC drill holes were drilled on four traverses over a strike distance of 1.7km of the central northern portion of the Sissingue anomaly. One hole intercepted 18m at 1.3g/t and another intercepted 18m at 1.1g/t Au.

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.

Reconnaissance RAB drilling has intercepted a new area of significant mineralisation 700m east of the Eastern zone. One hole into a second order section of the soil anomaly intercepted 8m at 1.6g/t and an open ended 10m at 1.1g/t Au.

Perseus has a net 80% interest in the Tengrela project, with 10% held by a local partner and 10% reserved for the Government at the mining stage.

The geology of the northern portion of the Syama–Boundiali greenstone belt has many similarities to the better-explored Ashanti gold belt in neighbouring Ghana, where Birimian volcaniclastics dominate over competent volcanics, with the development of inner belt basins filled with Tarkwaian epiclastics.

The Company’s RAB rig has to date completed more than 500 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 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.

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Previous extensive systematic exploration on the Tengrela project, including airborne geophysics and 22,500 geochemical samples, identified a series of soil anomalies over a strike length of 75km, mostly along the Syama shear. 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. The total area of these anomalies is over 40sq km, requiring staged follow-up. Importantly, the Morila-Tongon region has historically had an extremely high conversion rate of significant soil anomalies to gold discoveries.

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Grumesa Gold Project (Ghana)

The Grumesa pre-feasibility is now scheduled for completion in late August and the full feasibility is expected to be completed at the end of 2007 after delays in appointing a project manager and mechanical engineering consultants. Those positions have been filled and a maintenance superintendent experienced with the Perseus’s heap leach plant recruited to begin refurbishing it in November 2007.

Tolubay (Kyrgyz Republic)

1,679.5m 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 7 diamond holes were collared at the prospect. Fractured ground conditions resulted in the abandonment of one drillhole and delays in completing two others. Assays are pending for two holes and one hole is currently in progress. Limited drilling completed to date indicates that that the 400m strike between the current resource and 251,200E contains fragmented gold mineralization while west of 251,100E the mineralisation in surface sampling strengthens again.

A ground EM survey was completed over the Tolubay licence area during the quarter after a similar survey over the main part of the Obdilla prospect last year successfully located the sulphide rich mineralisation which potentially hosts gold on the deposit. The recent survey tested Obdilla and the neighbouring Chatyrman, Sart-Istagan and Tolubay prospects to a depth of about 300m. Final results and documentation are expected shortly, but preliminary results have identified a number of polarisable conductors in several areas.

Two additional drilling rigs from another contractor recently increased the number of rigs on site to four and has resulted in a distinct improvement in recovery and drilling rate. The Company has plans to increase the number of rigs working on multiple targets on the Tolubay and Isfairamsai licences.

South Kyrgyz Gold Project – Regional

Perseus holds a number of exploration licences in Southern Kyrgyzstan surrounding and along strike of the Obdilla discovery. These licences contain similar stratigraphy and thrust structures to that hosting gold mineralization at Obdilla.

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Field programs were carried out on most of the licences during the quarter. Of particular note are the following:

Isfairamsai

The Isfairamsai licence lies immediately south of the Tolubay licence and has substantial outcrop of Tolubai Suite rocks, and Pyrkaff limestone, a similar setting to that hosting the Obdilla deposit.

Perseus has now completed stream sediment sampling over the licence area. A total of 242 samples were taken along the principal drainage lines – particularly targeting the areas of Tolubai Suite rocks. Assays show a number of significant anomalous sites, with clusters along drainage tracts proximal to both Tolubai Suite rocks and Devonian lithologies. The highest assay was 208 ppb gold and 46 samples (19%) assayed greater or equal to 10 ppb gold. This is a strongly anomalous population and is comparable to stream sediments originally encountered in the Obdilla area (Tolubay Licence).

The most prospective site identified to date is the Shambesai prospect, located in the far west of the licence. This prospect is situated 7km south of Obdilla on the same lithological contact where it is exposed at surface by thrusting. Stratigraphy, alteration and degree of brecciation at Shambesai is similar to Obdilla but the topography at Shambesai is relatively subdued and is more accessible for drilling. A spot rock chip on initial reconnaissance returned 3.76 g/t gold in brecciated tuffaceous siltstone. A single trench was then dug across the most exposed stratigraphy – this returned 11m at 3.70g/t gold (open-ended) . These results, together with the similarities to the Obdilla prospect, are highly encouraging. A soil sampling program has recently been completed over the prospect, and results are awaited. The initial trenching and soils program will be followed up with more extensive trenching and early drilling.

Aksu

Four prospective areas were previously identified based on Perseus stream sediment sampling, historic Soviet exploration and interpretation of Soviet airborne EM and other geophysical surveys. During the quarter soil sampling was conducted over these areas. Significant gold in soil anomalies were identified at the Mamaksai prospect, where extensive Soviet trenching for mercury mineralization was conducted. There appears to be extensive outcrops of prospective Tolubai Suite type rocks at Mamaksai. A program of infill soil sampling and trenching is planned for the September quarter.

Djingilsai

At the Kurbanbulak prospect, resampling of parts of old Soviet costeans produced a best assay of 3m at 5.83 g/t gold.

At Ulugtau, there is a large area of Tolubai Suite rocks including jasperoids, with extensive Soviet trenching. A soil sampling program was completed over the prospect during the quarter and results are awaited.

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Savoyardy (Kyrgyz Republic)

On 24 May 2007, Perseus announced that it had entered into a joint venture agreement with ASX listed Kentor Gold Limited (“Kentor”) over the Savoyardy Gold Project. 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.

Perseus has joint ventured the Savoyardy project to allow it to focus on its large Southern Kyrgyz projects that total 3,800 sq km and its more advanced projects in Ghana and Ivory Coast in West Africa.

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.

Kentor plans to commence exploration in the September quarter with the construction of the final part of the access tracks and a 1,000m drilling program initially targeting the main mineralized zone as exposed in the Soviet costeans and adits.

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Mark Calderwood Managing Director

31 July 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.

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Table 1: Most Significant Intercepts, June Quarter 2007 Within Limits of Existing Resources, Ayanfuri Gold Project

Hole North
(m)
East
(m)
Depth
(m)
Incl.
**(˚) **
Azm.
**(˚) **
From
(m)
To
(m)
Width
(m)
Au
g/t
Location
ABDD008
13720
25930 251.8 -70 180
incl.
incl.
and
86
96
10
1.2
108
183
75
3.0
126
146
20
8.1
136
138
2
29.3
145
146
1
69.8
Abnabna
ABDD009
13704
25970 227.8 -63 90
incl.
and
103
185
82
1.2
126
143
17
1.7
159
175
16
1.9
Abnabna
ABDD012
13691
25853 184.7 -60 180
incl.
and
and
and
and
and
and
78
181
103
1.5
78
80
3
10.5
87
94
7
2.8
110
112
2
5.6
125
126
1
25.3
167
168
1
8.3
172
173
1
8.5
180
181
1
7.1
Abnabna
ADD014 6200 2060 401.1 -65 270
incl.
and
incl.
and
and
125
401.1
276.1
1.6
178
186
8
2.3
199
295
96
2.7
208
210
2
16.1
253
270
17
5.7
343
345
2
9.9
354
364
10
2.4
364
399
35
0.5
399
401.1

2.1*
1.4
Esuajah South
ADD015 6280 2066 334.1 -50 268
incl.
incl.
and
and
82.1
107
24.9
1.5
93
97
4
4.5
107
147
40
0.4
147
217
70
1.3
147
159
12
1.7
182
185
3
3.3
207
210
3
7.1
Esuajah South
ADD016 6280 2066 388.9 -63
268
incl.
and
and
and
and
incl.
high
grade
and
and
102
388.9
285.9
2.3
131
141
10
2.9
185
227
42
2.2
249
297
48
6.9
306
309
3
7.0
371
382
11
5.1
249
255
6
17.8
270
279
9
11.9
292
297
5
14.3*
Esuajah South
ADD023 5200 3375 260.3 -50
270
Incl.
and
183
231
48
2.5
183
196
13
4.4
225
231
6
6.3
Fetish
ADD027 6280 1867 230 -60
90
Incl.
96
216
120
1.3
111
127
16
3.6
Esuajah South
ADD028 6200 1875 230.1 -65
90
93
110
17
1.0
128
136
8
1.2
146
168
22
1.1
208
209
1
102.9
Esuajah South

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Table 1: Most Significant Intercepts, June Quarter 2007 (continued) Within Limits of Existing Resources, Ayanfuri Gold Project

Hole North
(m)
East
(m)
Depth
(m)
Incl.
**(˚) **
Azm.
**(˚) **
From
(m)
To
(m)
Width
(m)
Au
g/t
Location
ADD032 6140 2033 300.1 -62 270
Incl.
131
296
165
2.2
177
273
96
3.0
Esuajah South
AKRC064 5160 3390 170 -70 270 0
170#
170
0.7
Fetish
AKRC065 5200 3410 150 -62 270 0
150#
150
1.0
16
102
86
1.3
Fetish
AKRC066 5200 3380 150 -62 270 0
150#
150
0.6
Fetish
  • denotes ended in mineralisation

denotes entire drill hole

only holes with intercepts above 100 gram metres included

Table 2: Significant RC Drill intercepts, AF-Gap Prospect, Ayanfuri Gold Project, Ghana

Hole North
(m)
East
(m)
Depth
(m)
Incl.
**(˚) **
Azm.
**(˚) **
From
(m)
To
(m)
Width
(m)
Au
g/t
ABRC048 13640 26200 100 -50 360
incl.
8
28
20
1.2
16
20
4
3.6
68
82
14
0.6
98
100*
2
1.5
ABRC060 13780 26260 132 -50 180 66
132
66
0.6
ABRC061 13740 26260 102 -50 180
incl.
16
102*
86
2.2
16
74
58
2.7
ABRC062 13700 26260 100 -50 180 16
100*
86
1.7
ABRC063 13660 26260 100 -50 180 12
40
28
1.8
ABRC049 13690 26300 107 -50 360
incl.
8
107*
99
3.3
8
74
66
4.0
ABRC056 13680 26300 99 -50 180 8
12
4
1.7
ABRC057 13720 26300 100 -50 180
incl.
16
94
78
3.3
24
62
38
5.9
ABRC058 13760 26300 150 -50 180
incl.
0
20
20#
1.1
40
142
102
2.6
52
114
62
3.3
ABRC059 13800 26300 178 -50 180
incl.
68
178*
110
3.8
88
172
86
4.4
ABRC064 13690 26340 100 -50 180 16
20
4
1.3
ABRC065 13730 26340 60 -50 180 12
46
34
1.9
ABRC066 13770 26340 100 -50 180 20
100
80
2.3
ABRC067 13810 26340 100 -50 180
incl.
70
100
30
3.0
80
100

20
3.6
ABRC029 13750 26400 59 -50 360
incl.
16
49
33
1.3
28
34
6
3.6
50
56
6
2.5
ABRC050 13751 26401 71 -50 360
incl.
16
70
54
1.4
48
60
12
3.3
ABRC068 13830 26400 100 -50 180
incl.
44
100
56
1.1
62
72
10
2.0
ABRC076 13750 26400 100 -50 180
incl.
8
74
66
3.2
70
72
2
71.0
ABRC077 13790 26400 100 -50 180
incl.
and
0
100^
100
1.1
70
80
10
2.4
90
94
4
7.5
ABRC078 13800 26440 78 -50 180 48
56
8
1.6
66
74
8
1.3
ABRC079 13840 26440 90 -50 180
incl.
28
32
4
1.6
52
82
30
7.8
72
74
2
103.6

13

F:\PUBLIC\Perseus Mining Limited\Accounts Quarterly\2007\Jun 2007\ASX Quarterly Report June 2007.doc

Table 2: Significant RC Drill intercepts, AF-Gap Prospect, Ayanfuri Gold Project, Ghana (Continued)

Hole North
(m)
East
(m)
Depth
(m)
Incl.
**(˚) **
Azm.
**(˚) **
From
(m)
To
(m)
Width
(m)
Au
g/t
ABRC085 13760 26440 141 -50 180 118
141*
23
1.8
ABRC082 13850 26515 84 -50 180 66
82
16
0.9
ABRC083 13876 26515 84 -50 180 70
78
8
1.5
ABRC084 13830 26620 102 -50 180
incl.
and
6
102^
96
1.4
66
84
18
2.2
92
102*
10
3.6
ABRC073 13850 26660 30 -50 180 28
30*
2
3.7
ABRC074 13810 26660 100 -50 180 60
80
20
1.8
ABRC072 13880 26700 100 -50 180
incl.
20
98
78
1.2
74
90
16
2.2
ABRC081 13920 26700 100 -50 180 68
76
8
1.8
ABRC089 13820 26740 102 -50 180 12
16
4
10.1
68
82
14
1.0
ABRC026 13860 26740 80 -55 180
Incl.
10
80*
70
0.5
24
28
4
2.0
ABRC090 13900 26740 126 -50 180
Incl.
50
104
54
2.3
50
72
22
4.3
ABRC025 13890 26780 120 -60 180 40
52
12
0.8
114
120*
6
3.4
ABRC088 13810 26780 66 -50 180 60
66*
6
0.9
AFRC021 13830 26840 102 -50 180 82
88
6
3.2
AFRC023 13880 26880 102 -50 180 72
76
4
3.2
AFRC024 13840 26880 102 -50 180 12
28
16
1.5
ABRC027 13870 26920 41 -50 180 4
28
24
1.7
ABRC028 13868 26920 24 -50 180 8
20
12
1.6
Incl. 12
18
6
2.4
AFRC026 13800 26920 102 -50 180 60
62
2
2.4
AFRC028 13878 26920 108 -50 180 8
20
12
1.2
AFRC029 13919 26920 102 -50 180 40
76
36
1.0
  • denotes ended in mineralisation

denotes intercept in waste dump

^ denotes entire drill hole sampled

Table 3: Drill Intercepts, Chirawewa Main Zone, Ayanfuri Gold Project

Hole North
(m)
East
(m)
Depth
(m)
Incl.
**(˚) **
Azm.
**(˚) **
From
(m)
To
(m)
Width
(m)
Au
g/t
AKRC079 4632 4260 138 -45 270
incl.
and
and
60
62
2
1.8
74
76
2
1.6
104
136
24
1.4
112
114
4
3.0
120
128
8
1.8
134
136
2
4.2
ADD024 4560 4290 247.9 -50 270
incl.
incl.
and
47.2
48.8
1.6
2.0
56.4
77
20.6
0.5
88
100
12
1.1
99.1
100
0.9
7.6
129
133
4
13.1
129
130
1
37.6
131
132
1
11.5
168
169
1
1.7
200
201
1
2.1

14

F:\PUBLIC\Perseus Mining Limited\Accounts Quarterly\2007\Jun 2007\ASX Quarterly Report June 2007.doc

Table 3: Drill Intercepts, Chirawewa Main Zone, Ayanfuri Gold Project (Continued)

Hole North
(m)
East
(m)
Depth
(m)
Incl.
**(˚) **
Azm.
**(˚) **
From
(m)
To
(m)
Width
(m)
Au
g/t
ADD025 4590 4280 208.8 -48 270
incl.
and
22.9
37
14.1
0.5
61
62
1
1.6
97
147
50
0.7
147
152
5
125.4
147
148
1
605.0
151
152
1
20.8
196
200
4
1.1

Table 4: Results of Full Assays March Quarter Drilling - Tengrela Gold Project, Ivory Coast

Hole North
(m)
East
(m)
Depth
(m)
Azm.
**(˚) **
Incl.
**(˚) **
From
(m)
To
(m)
Width
(m)
Au
g/t#
Au
g/t^
SRC006 1153920 806784 80 90 -60 59
61
2
6.9
7.0
SRC007 1154074 806740 80 90 -60 22
24
2
8.3
8.4
SRC008 1154081 806778 80 90 -60 50
52
2
2.1
2.1
SRC009 1154197 806070 96 90 -60
incl.
and
24
96
72
0.4
30
36
6
1.1
54
58
4
1.5
0.6
1.2
1.6
SRC010 1154200 806099 95 90 -60 32
38
6
3.0
3.4
SRC011 1154203 806271 100 90 -60
incl.
50
52
2
2.8
90
100
10
0.8
96
100*
4
1.2
3.5
1.1
1.5
SRC012 1154199 806298 82 90 -60
incl.
and
12
28
16
4.0
12
14
2
22.1
24
28
4
4.0
5.3
29.9
5.3
SRC014 1154200 806619 86 90 -60
incl.
and
and
22
86
64
2.3
22
48
26
2.3
54
68
14
5.3
80
86

6
3.5
3.1
2.5
7.5
5.1
SRC015 1154157 806619 100 90 -60
incl.
and
55
100
45
0.7
70
80
10
1.2
98
100

2
1.3
0.8
1.4
1.5
SRC016 1154162 806657 96 90 -60
incl.
78
94
16
3.4
82
92
10
4.7
4.9
6.7
SRC018 1154160 806740 99 90 -60
incl.
66
72
6
1.6
82
96
14
2.6
90
94
4
4.2
2.3
4.2
10.9
SRC019 1154400 806625 54 90 -60 6
20
14
1.6
40
48
8
2.6
1.9
3.0
SRC020 1154400 806674 96 90 -60
incl.
14
30
16
1.0
66
92
26
1.6
78
88
10
2.7
1.2
2.0
3.0
SRC021 1154400 806585 48 90 -60
incl.
and
20
48*
28
1.3
30
40
10
2.2
42
44
2
4.0
1.5
2.7
4.4
SRC002A 1153997 806547 80 90 -60 18
32
14
1.8
2.7
SRC019B 1154405 806625 100 90 -60 12
14
2
3.1
40
42
2
2.2
3.6
2.7
SRC021A 1154403 806584 72 90 -60
incl.
incl.
20
36
16
1.0
20
28
8
2.1
44
64
20
1.0
44
48
4
1.9
60
64
4
2.6
1.5
2.5
1.3
2.3
3.1

15

F:\PUBLIC\Perseus Mining Limited\Accounts Quarterly\2007\Jun 2007\ASX Quarterly Report June 2007.doc

Table 4: Results of Full Assays March Quarter Drilling - Tengrela Gold Project, Ivory Coast (Continued)

Hole North
(m)
East
(m)
Depth
(m)
Azm.
**(˚) **
Incl.
**(˚) **
From
(m)
To
(m)
Width
(m)
Au
g/t#
Au
g/t^
SRC024 1154600 806020 80 90 -60 36
38
2
1.6
52
54
2
1.4
1.8
1.7
SRC025 1154600 806630 68 90 -60
incl.
20
32
12
1.0
24
30
6
1.5
40
56
16
0.4
64
68*
4
0.8
1.2
1.7
0.4
0.9
SRC025a 1154598 806628 74 90 -60 6
12
6
0.7
26
30
4
2.1
54
58
4
0.6
68
72
4
0.9
0.7
2.3
0.7
0.9
SRC026 1154600 806330 80 90 -60 12
14
2
1.1
1.3
56
60
4
1.5
1.7
  • denotes ended in mineralisation Assay sample intervals typically 2m

denotes bottle roll recovered grade only ^ denotes full calculated grade based on fire assay results of bottle roll tails

Table 5: Summary of June Quarter RC Drilling - Tengrela Gold Project, Ivory Coast

Hole North
(m)
East
(m)
Depth
(m)
Azm.
**(˚) **
Incl.
**(˚) **
From
(m)
To
(m)
Width
(m)
Au
g/t#
SRC027 1154800 806103 84 90 -60 58
60
2
3.3
SRC030 1155300 806120 100 90 -60 58
76
18
1.1
SRC033A 1155600 806001 80 90 -60
incl.
54
72
18
1.3
54
62
8
2.1
SRC037 1153198 807284 90 90 -60
incl.
22
24
2
1.3
38
40
2
1.1
72
84
12
2.2
74
80
6
3.6
SRC040 1153840 806821 84 90 -60
incl.
10
30
20
0.7
14
20
6
1.3
SRC043 1154320 806740 82 90 -60
incl.
0
12
12
1.1
8
12
4
1.7
66
70
4
0.8
SRC044 1154319 806700 90 90 -60
incl
24
32
8
113.8
24
26
2
438
80
90*
10
2.6
SRC046 1154319 806620 86.5 90 -60
incl.
incl.
12
36
24
4.3
18
20
2
39.1
50
66
16
44.2
58
62
4
175
SRC047 1153920 806935 88 90 -60
incl.
64
86
22
1.1
64
66
2
3.6
SRC049 1153920 806860 86 90 -60 20
24
4
1.2
SRC050 1153923 806820 84 90 -60
incl.
56
68
12
2.0
60
64
4
3.6
SRC055 1153920 806160 80 90 -60 60
62
2
2.9
SRC062 1154080 806080 80 90 -60 76
80*
4
1.4
SRC071 1154200 806040 84 90 -60 22
28
6
1.1

16

F:\PUBLIC\Perseus Mining Limited\Accounts Quarterly\2007\Jun 2007\ASX Quarterly Report June 2007.doc

Table 5: Summary of June Quarter RC Drilling - Tengrela Gold Project, Ivory Coast (Continued)

Hole North
(m)
East
(m)
Depth
(m)
Azm.
**(˚) **
Incl.
**(˚) **
From
(m)
To
(m)
Width
(m)
Au
g/t#
SRC072 1154200 806080 78 90 -60 68
72
4
1.5
SRC073 1154200 806120 54 90 -60
incl.
16
20
4
10.2
18
20
2
20.0
SRC078 1154240 806040 78 90 -60 28
30
2
2.7
SRC084 1154400 806700 63 90 -60 AP
SRC085 1154320 806540 60 90 -60 AP

NSI denotes no significant intercepts * denotes ended in mineralisation Samples assayed by 50g fire assay

Table 6: Drilling Summary – Obdilla Prospect – Tolubay Gold Project, Kyrgyz Republic

Hole North
(m)
East
(m)
Depth
(m)
Incl.
**(˚) **
Azm.
**(˚) **
From
(m)
To
(m)
Width
(m)
Au
g/t
ZDDH049 4447587 251107 121.5 -90 360 NSI
abn.
ZDDH051 4447502 251408 144.0 -90 360 Inprogress
hole collapse
ZDDH052 4447444 251220 328.0 -90 360 23
26
3
2.5
71.4
78
6.6
2.3
184
191
7
1.2
207
208
1
1.2
Inprogress
hole collapse
ZDDH053 4447441 251555 418.5 -50 045 62.5
63.3
0.8
1.7
159
170
11.0
1.0
191
194
3.0
1.5
212
418.5
assayspending
ZDDH054 4447365 251200 248.0 -30 360
incl.
76.2
85
8.8
0.7
109
113.3
4.3
2.5
134.8
138.6
3.8
1.4
195
223.3
28.3
1.4
217.5
223.3
5.8
2.8
ZDDH055 4447440 251200 68.0 -70 360
incl.
and
and
20
56
36
1.0
20
26
6
1.4
30
34
4
1.4
49
54
5
1.4
ZDDH056 4447365 251200 209 -50 360 assayspending
ZDDH057 4447441 251555 264 -80 360 Inprogress

All samples were assayed by fire assay NSI denotes not significant mineralisation Abn. denotes abandoned

17

F:\PUBLIC\Perseus Mining Limited\Accounts Quarterly\2007\Jun 2007\ASX Quarterly Report June 2007.doc

Appendix 5B Mining exploration entity quarterly report

Appendix 5B

Mining exploration entity quarterly report

Name of entity

PERSEUS MINING LIMITED

ABN
27 106 808 986
Consolidated statement of cash flows
Quarter ended (“current quarter”) Quarter ended (“current quarter”)
30 June 2007
Cash flows related to operating activities
1.1
Receipts from product sales and related debtors
1.2
Payments for
(a) exploration and evaluation
(b) development
(c) production
(d) administration
1.3
Dividends received
1.4
Interest and other items of a similar nature
received
1.5
Interest and other costs of finance paid
1.6
Income taxes paid
1.7
Other – Deposits held re drilling programs
Net Operating Cash Flows
Current quarter
$A’000
Year to date
(12 months)
$A’000
-
(4,040)
-
-
(239)
-
151
-
-
-
-
(10,378)
-
-
(1,010)
-
376
-
-
165
(4,128) (10,847)
Cash flows related to investing activities
1.8
Payment for purchase or renewal of:
(a) prospects
(b) equity investments
(c) other fixed assets
1.9
Proceeds from sale of:
(a) prospects
(b) equity investments
(c) other fixed assets
1.10
Loans repaid to other entities
1.11
Loans repaid by other entities
1.12
Other – Insurance recoveries on fixed assets
1.12
Other - Bank guarantees held
Net investing cash flows
1.13
Total operating and investing cash flows (carried
forward)
-
-
(257)
-
-
-
(3)
-
-
(1,201)
-
(600)
(361)
-
2,709
5
(34)
2
22
(1,201)
(1,461) 542
(5,589) (10,305)

F:\PUBLIC\Perseus Mining Limited\Accounts Quarterly\2007\Jun 2007\Appendix 5B Jun 07 - Perseus.doc

18

Appendix 5B Mining exploration entity quarterly report

1.13
Total operating and investing cash flows (brought
forward)
(5,589) (10,305)
Cash flows related to financing activities
1.14
Proceeds from issues of shares, options, etc.
1.15
Proceeds from sale of forfeited shares
1.16
Proceeds from borrowings
1.17
Repayment of borrowings
1.18
Dividends paid
1.19
Other – share issue expenses
Net financing cash flows
408
-
-
-
-
-
10,636
-
-
-
-
(559)
408 10,077
Net increase (decrease) in cash held
1.20
Cash at beginning of quarter/year to date
1.21
Exchange rate adjustments to item 1.20
1.22
Cash at end of quarter
(5,181)
10,720
(180)
(228)
6,000
(413)
5,359 5,359

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

1.23
1.24
Aggregate amount of payments to the parties included in item 1.2
Aggregate amount of loans to the parties included in item 1.10
Current quarter
$A'000
189
-
1.25 Explanation necessaryfor anunderstanding of thetransactions
A$’000
Directors fees, consultancy charges and remuneration
148
Accounting, secretarial and occupancy expenses 41

F:\PUBLIC\Perseus Mining Limited\Accounts Quarterly\2007\Jun 2007\Appendix 5B Jun 07 - Perseus.doc

19

Appendix 5B Mining exploration entity quarterly report

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

N/A

Financing facilities available

Add notes as necessary for an understanding of the position.

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

Estimated cash outflows for next quarter

4.1
Exploration and evaluation
4.2
Development
$A’000
4,500
-
Total 4,500

F:\PUBLIC\Perseus Mining Limited\Accounts Quarterly\2007\Jun 2007\Appendix 5B Jun 07 - Perseus.doc

20

Appendix 5B Mining exploration entity quarterly report

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as
shown in the consolidated statement of cash flows) to
therelateditemsin theaccountsisasfollows.
Current quarter
$A’000
Previous quarter
$A’000
5.1
Cash on hand and at bank
5.2
Deposits at call
5.3
Bank overdraft
5.4
Other (provide details)
467 391
4,892 10,329
- -
- -
Total: cash at end of quarter(item 1.22) 5,359 10,720

At 30 June 2007, the Company had US$1 million (approximately AUD$1.2m) held in a bank deposit which is subject to a lien and is collateral for a bank guarantee that is proposed to be issued to the Ghana EPA in relation to environmental rehabilitation provisions concerning a Ghana mineral permit. This deposit amount is not included in cash balances at the quarter end for the purposes of this cash flow statement.

Changes in interests in mining tenements

6.1
Interests in mining
tenements relinquished,
reduced or lapsed
6.2
Interests in mining
tenements acquired or
increased
Tenement reference Nature of
interest
Interest at
beginning
ofquarter
Interest at
end of
quarter
None
N/A. -

F:\PUBLIC\Perseus Mining Limited\Accounts Quarterly\2007\Jun 2007\Appendix 5B Jun 07 - Perseus.doc

21

Appendix 5B Mining exploration entity quarterly report

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 Issue
price
per
security (cents)
Amount paid up
persecurity (cents)
7.1
Preference
+securities
(description)
7.2
Changes during
quarter
- - - -
- - - -
7.3
+Ordinary
securities
7.4
Changes during
quarter
Exercise of options
Exercise of options
Exercise ofoptions
117,513,166 117,513,166
822,216
50,000
410,000
822,216
50,000
410,000
20 cents
26 cents
50 cents
20 cents
26 cents
50 cents
7.5
+Convertible debt
securities
(description)
7.6
Changes during
quarter
- - - -
- - - -
7.7
Options
(description and
conversion factor)
7.8
Issued during
quarter
7.9
Exercised during
quarter
7.10
Cancelled/Expired
during quarter
26,337,784
945,000
400,000
400,000
12,165,000
600,000
150,000
22,637,784
-
-
-
-
-
-
Exercise price
20 cents
26 cents
45 cents
50 cents
50 cents
50 cents
65 cents
Expiry date
31/03/2009
01/12/2008
06/06/2009
06/06/2009
29/02/2008
01/04/2010
30/05/2010
600,000
150,000
-
-
50 cents
65 cents
01/04/2010
30/05/2010
(822,216)
(50,000)
(410,000)
642,216
-
-
20 cents
26 cents
50 cents
31/03/2009
01/12/2008
29/02/2008
- -
7.11
Debentures
(totals only)
- -
7.12
Unsecured notes
(totals only)
- -

F:\PUBLIC\Perseus Mining Limited\Accounts Quarterly\2007\Jun 2007\Appendix 5B Jun 07 - Perseus.doc

22

Appendix 5B Mining exploration entity quarterly report

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.

==> picture [169 x 71] intentionally omitted <==

Sign here: Print name: Mark Calderwood Managing Director

Date: 31 July 2007

F:\PUBLIC\Perseus Mining Limited\Accounts Quarterly\2007\Jun 2007\Appendix 5B Jun 07 - Perseus.doc

23