PERSEUS MINING LIMITED — Interim / Quarterly Report 2007

Jan 30, 2007

DECEMBER 2006 OUARTERLY ACTIVITY REPORT

Highlights

• $\bullet$ Ayanfuri Gold Project (Ghana): 6,366m of RC and diamond drilling returned a number of significant intercepts including 52m at 6.1g/t, 96m at 2.6g/t, 159m at 1.7g/t, 43m at 3.2g/t, 83m at 2.1g/t, 6m at 11.1g/t, 107.35m at 1.4g/t, 60m at 2.2g/t, 102m at 1.4g/t and 97m at 1.4g/t Au. The extensive widths and grade of mineralisation encountered to vertical depths of between 150m to 210m in multiple deposits highlights the large tonnage open pit potential of the Avanfuri project. A significant increase in the current 608,000 ounces of reported Indicated and Inferred gold resources is expected when the resource estimate is updated in April 2007.
• Grumesa Gold Project (Ghana): A new strongly gold mineralized zone has been $\bullet$ identified from the latest round of drilling at the Grumesa Gold Project on the Ashanti Gold Belt in Ghana. This new zone of mineralization has the potential to impact significantly on the economics of the planned heap leach project, by providing additional gold ounces and higher grade material which would enhance the cash flow in early years. The Grumesa Gold Project's existing Inferred gold resource of 800,000 oz will be upgraded in April to incorporate results from 2006 drilling and the 5,000m drilling program planned to commence in February.
• Tengrela Gold Project (Ivory Coast): A further 4,556m of reconnaissance RAB drilling $\bullet$ completed on the 6km long Sissingue prospect continues to delineate multiple parallel, strike-persistent zones of gold mineralisation. Three RC holes were completed prior to the December break. The RAB and RC rigs both recommenced drilling in late January 2007.
• Tolubay Gold Project (Kyrgyz Republic): Drilling has confirmed the continuation of the $\bullet$ mineralised zone a further 240m beyond the western limit of the existing resource envelope.
• The Company received a net cash injection of \$2.1 million from the sale of its holding in $\bullet$ Monaro Mining NL.
• It is expected that at least six rigs will be operating on the Company's projects by the end of February.

Overview

Perseus is very active on its project portfolio in West Africa and the Kyrgyz Republic and continues to receive favourable results from ongoing exploration on its four key projects. During the December quarter the Company was successful in expanding the limits of known mineralised zones and is undertaking work required to update resources by April 2007.

Feasibility studies are being conducted for a 2Mtpa CIL plant operation at Avanfuri and a 2Mtpa heap leach operation at Perseus's nearby Grumesa project. Perseus has entered into an agreement to purchase heap leach plant and equipment for the Grumesa gold project in Ghana.

Grumesa (Ghana)

Drill results received during the December quarter resulted in the delineation of a new zone containing gold mineralisation of significant grade and width at Grumesa. The new discovery was made from limited exploration drilling carried out in conjunction with infill resource drilling on the proposed stage 1 pit area situated approximately 800m to the south (see map). One hole averaged 1.7g/t Au over its entire length of 60m, including 4m at $6.3g/t$ , 4m at $5.3g/t$ and 12m at $2.3g/t$ Au. The easternmost hole on the same section intercepted 19m at 1.9g/t Au form surface. A third hole, drilled 200m to the south (possibly off strike), intercepted 66m at 0.9g/t, including 6m at 2.0g/t and 22m at 1.3g/t Au.

The new zone appears to coincide with a geophysical anomaly that is 1,500m long and up to 200m wide. The more significant intercepts from the latest drilling are set out in the Table 8. It has the potential to impact significantly on the economics of the planned heap leach project, for which a feasibility study is in progress, by providing additional gold ounces and higher grade material which would enhance the cash flow in early years.

Infill drilling on the resource at the southern end of the project returned intercepts including 42m at 2.3g/t, 38m at 1.7g/t, 22m at 1.8 g/t, 8m at 3.7g/t, 6m at 4.5g/t, 30m at 1.2g/t, 48m at 1.0g/t and 71m at 0.9g/t Au.

Existing Inferred resources at Grumesa stand at 29Mt at 0.9g/t Au for 800,000 ounces of gold. Infill resource drilling completed on the southern portion of the deposit will enable a partial upgrade of the Inferred resources to Indicated category. Resource/Reserve modeling is currently underway and it is planned to announce a resource upgrade after results from the proposed 5,000m drilling program, expected to commence in February, become available.

Perseus has entered into an agreement to purchase heap leach plant and equipment for the Grumesa gold project in Ghana. After refurbishment, the plant is expected to provide significant savings in the development of the Grumesa gold project, as a low cost and faster development alternative to the acquisition of new plant, given current manufacturing and shipping costs and timeframes.

The plant consists of:

• A used crushing, agglomeration and conveying system;
• A used absorption-elution circuit and gold room;
• Significant quantities of new spares and other equipment including extensive piping, $\bullet$ electrical cabling, motors, pumps, conveyor spares and belting etc; and
• An extensive database of digital drawings and construction and operational $\bullet$ documentation.

The acquisition of the plant and equipment will provide a firm basis on which to complete the mining pre-feasibility study, targeting production of 50,000 oz of gold per annum.

Avanfuri (Ghana)

During the December quarter Perseus completed 4.163m of RC drilling and 2.203m of diamond drilling on the Avanfuri gold project in Ghana. The results confirm grade and width continuity with depth.

Significant drilling results for the quarter included intercepts of 52m at 6.1g/t, 96m at 2.6g/t, 159m at 1.7g/t, 43m at 3.2g/t, 83m at 2.1g/t, 6m at 11.1g/t, 107.35m at 1.4g/t, 60m at 2.2g/t, 102m at 1.4g/t, 97m at 1.4g/t Au, 62m at 1.9g/t, 82m at 1.4g/t, 60.7m at 1.6g/t and 78m at 1.3g/t Au. Subintercents included 18m at 14.5g/t, 13m at 8.4g/t, 4m at 15.9g/t, 37m at 3.3g/t, 10m at 7.8g/t, 6m at 7.3g/t and 2m at 17.1g/t Au.

Previously announced gold resource estimates for the project totalling 608,000 ounces (Indicated -268,000 ounces: Inferred - 340,000 ounces), cover only four of the seven deposits tested by Perseus and do not reflect the depth potential highlighted by the latest drilling. Only very limited drill testing of the free milling sulphide gold mineralisation took place during the mining of over 8Mt of ore from the project area between 1994 and 2001. At that time only oxide ore was targeted for the heap leach mining operation.

Perseus is working towards completing a resource upgrade in April 2007 and drilling is expected to continue throughout the year. Soil sampling along strike of known deposits has identified a number of significant untested soil anomalies.

Perseus has acquired an option over the 29.8sq km Nkotumso licence, located west of the Abnabna deposit on Avanfuri. Reconnaissance drilling over a portion of a 2.4km long gold in soil anomaly on Nkotumso in the 1990s located wide gold intersections in mineralised granite, including intercepts of 12m at 1.9g/t and 10m at 1.7g/t Au.

The Avanfuri project tenement package, when consolidated with the Company's Grumesa and Kwatechi projects, represents a highly prospective 680 sq km holding in the central Ashanti Gold Belt.

Ayanfuri Gold Project, Ghana Open Pits and Target Areas

Tengrela (Ivory Coast)

During the quarter Perseus drilled 112 RAB holes for 4,556m on its 80%-owned Tengrela project in northern Ivory Coast. All of the holes were drilled on 200m spaced sections at Sissingue in preparation for the arrival of the RC drill rig. The RAB drilling program continues to define multiple parallel, strike-persistent zones of gold mineralisation. The abundance of anomalous to significant drill intercepts encountered on nearly all RAB traverses and the extensive nature and depth of ancient gold workings highlight the potential of this poorly explored portion of the Syama gold belt.

RC drill commissioning commenced shortly before the December break and three holes totaling 220m were completed. Drill hole SRC002 intercepted 30m at 0.6g/t Au from 24m and SRC004 intercepted 10m at 2.1g/t from 10m.

The RAB and RC drill rigs recommenced drilling in late January and are expected to drill throughout the remainder of 2007. Based on results to date, it is expected that the larger RC rig will focus principally on resource drilling and should complete about 4,000m of drilling per month. The smaller RAB rig will continue to undertake wide-spaced exploratory drilling on a number of soil anomalies, most of which are currently untested, at the average rate of about 2,000m per month.

RAB Drilling - Sissingue Prospect, Tengrela Gold Project, Ivory Coast

Tolubav (Kvrgyz Republic)

Of the four holes drilled on Sections 9 and 10 at Obdilla during the quarter, two were abandoned prior to reaching the target depth due to ground conditions, one missed the target zone because it was positioned above the mineralisation encountered on Section, 8, but hole ZDDH045 provided evidence of the continuation of gold mineralisation 240m west of Section 8 with an intersection of 66m @ 1.4g/t Au from 134m, including 11m @ 2.8g/t and 5m @ 2.1g/t Au. None of the holes drilled to date on Sections 9 and 10 reached the portion of the IP anomaly where the width of mineralisation and the sulphide levels are expected to be strongest, so further drilling on these sections will continue in the March quarter.

Drilling rates were slower than anticipated due to fractured mineralized zones and problems with drilling equipment in the winter conditions, resulting in a total of 1,015m completed during the quarter.

The focus during the quarter was on drilling immediately west along strike of the 400m long zone containing the initial Inferred resource estimate of 10.4Mt at 1.9g/t Au for 618,000 ounces of gold.

Drill hole ZDDH041 was collared on Section 8 at the same position as drill hole ZDDH034 (0- $213m$ , $213m$ at 1.8 $g/t$ gold), but was drilled in the opposite direction (70 degrees to the south). The drill hole confirms mineralisation extends to at least 370m down dip but the grades appear to weaken at depth on this section.

The rigs are currently drilling on Sections 11 and 12, located 155m to 255m respectively west of Section 10. Further deeper drilling will be undertaken on Sections 9 and 10 when a larger, more capable rig arrives on site.

Due to the relatively low altitude and good infrastructure, drilling at Obdilla continues throughout the year. Perseus expects to be in a position to announce regular resource upgrades for the Obdilla deposit, which appears to be part of a large mineralised system in a geological setting highly prospective for large-scale sediment hosted gold deposits.

Obdilla is one of five identified prospects situated on the Tolubay licence, which is the smallest of the eight Perseus licences covering 4,190sq km (reduced from 4,846sq km) that form the South Kyrgyz Gold Project. The licences are prospective for Carlin-style gold mineralisation similar to the Company's Obdilla discovery. Since Carlin-style gold occurrences are often found in clusters, the Obdilla discovery highlights the potential of other anomalies at Tolubay and the surrounding areas.

Perseus has collected 746 regional stream sediment samples from six of the eight licences. While all sampling has been completed, analysis is still in progress for most of the prospects. A total of 129 stream sediment sample assays were received from the Aksu licence. Approximately 9% of the samples returned anomalous gold values up to a maximum of 42 ppb gold. After field checking, anomalous areas will be further defined by infill stream sediment and soil/rock chip sampling.

Soil geochemical sampling and re-sampling of old Soviet era costeans was conducted on the Diingilsai licence, to the north of Tolubay. Soil geochemical sampling on a 100m by 20m grid showed generally limited anomalism in the soils, with a peak result of 494ppb gold. Clearing and re-sampling of old Soviet costeans is underway, with assay results for the first two costeans received to date. Channel sampling results to date include 3m at 5.83g/t Au from ferruginous shale.

Metallurgical Testwork

Gold mineralisation at Obdilla is associated with fine-grained arsenical pyrite similar to other Carlin Style gold deposits. Gold recoveries by cyanidation are high only after pre-oxidization of sulphides. Systematic flotation test work has resulted in a recovery of 82% of Au into concentrates using a relatively coarse grind size. Ongoing test work is focusing on reducing the rougher concentrate whilst maintaining overall recovery to increase the gold grade of the concentrates.

Savoyardy (Kyrgyz Republic)

During the quarter, two shallow diamond drill holes were drilled in the main Savoyardy prospect, in proximity to the Soviet era adits. These holes were drilled using a man portable Winkie drill rig. in an attempt to produce early drilling results prior to the main access road being completed. The drill holes were too shallow to intercept the main gold mineralised zone, but one hole intercepted 8.4m at 4.1% Sb and 0.5g/t Au from 8m in a parallel zone. In addition, a total of 1,577 soil samples were taken over the prospect. Final assay results for the drilling and soil sampling are pending.

Exploration is at an early stage, hampered by difficult access. To this end, a drill rig access road is being constructed and is near completion.

The potential of the Savoyardy project is highlighted by resource estimates and recent exploration results obtained by the adjacent licence holder – Majestic Gold Corporation of Canada, who hold the Sawayaerdun licence along strike and over the border into China. In 2006, Majestic calculated that the main Sawavaerdun-IV zone, that extends over a 4km strike length contained indicated and inferred reserves totalling 1.5 Moz gold. The general stratigraphy and structure present in the Sawayaerdun licence extends along strike into the Savoyardy licence.

Mark Calderwood Managing Director

31 January 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.

Esuajah Deposit Section 7280N
Ayanfuri Gold Project, Ghana

Esuajah South Deposit Section 6320N Ayanfuri Gold Project, Ghana

Fetish Deposit Section 5240N Ayanfuri Gold Project, Ghana

Abnabna Deposit Section 25880E
Ayanfuri Gold Project, Ghana

Dadieso Deposit Section 9600S
Ayanfuri Gold Project, Ghana

Hole	North	East	Depth	Incl.	Azm.	From	To	Width	Au
	(m)	(m)	(m)	$^{\circ}$	$^{\circ}$	(m)	(m)	(m)	g/t
ADD007	7280	2480	280.7	$-45$	270	60	$82\,$	$22\,$	1.1
					incl.	68	$74\,$	6	2.3
						106	120	14	0.9
					incl.	111	116	5	1.3
						137	185	48	0.7
						197	259	62	1.9
					incl.	247	251	4	15.9
						269	275	6	$2.4\,$
					incl.	269	270	1	12.6
AKRC 022	7160	2400	105	$-60-$	270	8	105*	97	1.4
					incl.	$10\,$	16	6	7.3
					and	70	76	6	2.6
					and	90	102	12	2.9
AKRC 023	7200	2380	101	$-60$	270	19#	$101*$	82	$0.7\,$
					incl.	26	32	6	2.7
AKRC 024	7200	2420	100	$-60$	270	8#	$100*$	92	1.0
					incl.	10	16	6	2.0
					and	44 70	$50\,$ 76	6	3.9 1.7
					and and	82	88	6 6	$2.2\,$
AKRC 025	7200	2460	101	$-60$	270	$20\mu$	98	78	1.3
					incl.	24	38	$\overline{14}$	$2.0\,$
					and	62	82	20	2.1
AKRC 026	7160	2480	100	$-60$	270	24#	92	68	1.2
					incl.	28	38	10	2.2
					and	46	58	$12 \,$	2.3
AKRC 027	7240	2400	100	$-60$	270	15#	$100*$	85	1.0
					incl.	15	22	7	2.6
					and	44	$60\,$	16	1.6
AKRC 028	7240	2370	100	$-60$	270	14#	56	42	1.2
					incl.	26	36	10	2.0
					and	52	56	$\overline{4}$	2.0
AKRC 029	7320	2360	100	$-60$	270	12#	$100*$	88	0.9
					incl.	$12 \,$	24	$12 \,$	2.5
					and	68	76	8	1.6
AKRC 030	7280	2380	100	$-60$	270	13#	96	83	2.1
					incl.	28	30	$\boldsymbol{2}$	13.3
					and	54	64	10	$7.8\,$
					and	94	96	$\overline{2}$	5.9
AKRC 031	7400	2360	100	$-60$	270	20 22	$100*$ 36	80 $\overline{14}$	1.1 2.8
					incl. and	56	64	8	2.5
					and	84	86	2	2.8
AKRC032	7280	2460	89	$-60$	270	50	68	18	0.9
AKRC 033	7320	2430	100	$-60$	270	22	$100*$	78	0.8
					incl.	34	52	18	1.2
					and	96	$100*$	$\overline{4}$	3,4
AKRC 034	7240	2450	100	$-60-$	270	22#	$100*$	78	1.3
					incl.	$22\mu$	44	22	2.7
					and	72	82	10	1.8
AKRC 035	7440	2430	100	$-60$	270	16	$20\,$	$\downarrow$	1.4
						30	46	16	0.9

Table 1: Drill Intercepts - Esuajah Deposit - Ayanfuri Gold Project, Ghana

			Table 1: Drill Intercepts – Esuajah Deposit – Ayanfuri Gold Project, Ghana(continued)
--	--	--	---------------------------------------------------------------------------------------

Hole	North (m)	East (m)	Depth (m)	Incl.	Azm.	From (m)	Tо (m)	Width (m)	Au g/t
AKRC 036	7280	2420	100	-60	270	14	100	86	0.9
					incl.	18	46	28	1.2
					and	62	66	$\overline{4}$	1.9
AKRC 037	7400	2400	107	-55	270	Ħ	107	96	0.7
					incl.	18	22	4	2.1
					and	56	60	4	2.3
					and	66	70.	4	1.9

Depth in which sampling commenced due to drill holes commencing in back fill.

* denotes ended in mineralisation.

All samples were assayed by fire assay.

Table 2: Drill Intercepts - Esuajah South Deposit - Ayanfuri Gold Project, Ghana

Hole	North (m)	East (m)	Depth (m)	Incl.	Azm.	From (m)	Τо (m)	Width (m)	Au g/t
ADD 001	6241	2062	206.35	$-60$	270	99	$206*$	107	1.4
					incl.	104	109	5	3.3
					and	119	126	7	3.7
					and	144	148	4	2.1
					and	182	$206*$	24	2.2
ADD002	6321	2060	218.5	$-60$	270	121	217	96	2.6
					incl.	123	160	37	3.3
					and	174	217	43	2.6

* denotes ended in mineralisation.

All samples were assayed by fire assay.

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

Hole	North (m)	East (m)	Depth (m)	Incl. $^{\circ}$	Azm. $^{\circ}$	From (m)	To (m)	Width (m)	Au g/t
ADD003	5227	3385	260.6	$-50\,$	270	9	$77\,$	$68\,$	$0.5\,$
						$78\,$	139	61	$1.6\,$
					incl.	78	$\bf 87$	9	3.1
						169	176	$\overline{\tau}$	2.5
						205	248	43	$_{3.2}$
					incl.	205	218	13	$8.4\,$
ADD004	5160	3371	235	$-45$	270	$\overline{\tau}$	113	106	$0.8\,$
					incl.	7	$\mathbf{1}$	$\boldsymbol{4}$	2.0
					and	38	51	13	1.3
					and	96	101	5	1.7
					and	107	110	3	3.0
						164	166	2	1.3
						171	209	38	2.0
					incl.	175	179	4	4.9
					and	188	190	2	$5.0\,$
					and	199	200	ĺ	22.0
ADD005	5084	3343	236.5	$-60-$	270	$\,0\,$	157	157	ASP
						169	175	6	$0.6\,$
						178	182	4	1.2
						187	188	ĺ	2.4
						195	197	2	3.6
						205	208	3	3.3
AKRC038	5160	3371	90	$-70$	$90\,$	$\overline{2}$	$90*$	$88\,$	0.7
						60	90*	30	1.0

Hole	North (m)	East (m)	Depth (m)	Incl.	Azm. Δ	From (m)	Tо (m)	Width (m)	Au g/t
ADD006	4520	4290	294.1	-45	270	99	124	25	3.6
					incl.	114	115		74.6
						134	143	9	0.5
						187	192	5	0.5
						200	234	34	0.5
					incl.	222	225		2.8

Table 4: Drill Intercepts - Chirawewa Deposit - Ayanfuri Gold Project, Ghana

All samples were assayed by fire assay.

Table 5: Drill Intercepts - Dadieso Deposit - Ayanfuri Gold Project

Hole	North	East	Depth	Incl.	Azm.	From	To	Width	Au
	(m)	(m)	(m)	$^{\circ}$	$\binom{6}{2}$	(m)	(m)	(m)	g/t
DDD001	-9598	-409	200.0	$-50$	90	$10\,$	16	6	11.1
					incl.	$\rm 10$	12	$\overline{2}$	17.1
					and	15	16	Í	30.4
						102	108	6	$2.7\,$
						125	130	5	3.4
					incl.	128	129	Í	12.8
						136	137	Í	3.8
						141	180	39	0.4
					incl.	141	143	2	1.8
						184	190	6	$0.7\,$
DKRC009	$-9680$	$-330$	80	$-50$	270	$\overline{2}$	14	12	1.7
					incl.	$10 -$	14	4	3.7
						30	40	10	2.7
DKRC010	$-9640$	$-413$	96	$-50$	90	32	34	$\boldsymbol{2}$	4.2
						82	96*	$\overline{14}$	2.5
DKRC011	$-9600$	$-412$	101	$-50$	90	10	62	52	6.1
					incl.	22	40	18	14.5
						68	70	$\mathbf 2$	1.4
						74	$101*$	27	2.4
DKRC012	-9500	$-390$	100	$-50$	90	26	36	$10\,$	1.9
						70	76	6	0.9
DKRC013	-9500	$-270$	80	-50	270	6	22	16	0.8
					incl.	8	12	4	1.6

* denotes ended in mineralisation.

DDD prefix denotes diamond drill hole, DKRC prefix denotes RC drill hole.

Hole	North	East	Depth	Incl.	Azm.	From	To	Width	Au
	(m)	(m)	(m)	$^{\circ}$	$^{\circ}$	(m)	(m)	(m)	g/t
ABDD001	13705.249	25895.04	271.3	$-60$	180	81	240	159	1.7
					incl.	82	92	10	2.7
					and	97	102	$\mathsf S$	9.0
					and	144	154	10	4.0
ABRC 003	13700	25970	150	$-50$	180	20	32	12	1.4
						44	98	54	0.4
						98	$150*$	52	1.2
					incl.	134	$150*$	16	2.0
ABRC 004	13700	25890	59州	$-50$	180	56	59*	3	2.4
ABRC 005	13659	25815	160	$-50$	180	42	104	62	$0.8\,$
					incl.	62	86	24	1.3
						134	156	22	2.0
					incl.	138	148	10	3.3
ABRC 006	13705	25890	160	$-50$	180	58	$160*$	102	1.4
					incl.	58	68	10	1.9
					and	80	88	8	3.0
					and	100	116	16	2.1
ABRC 007	13692	25855	147	$-70$	180	96	118	22	0.7
						136	142	6	0.6
ABRC 008	13701	25930	122	$-70$	180	40	$122*$	82	1.4
					incl.	72	122	50	1.9
ABRC 009	13510	25810	120	$-45$	360	12	$120*$	108	$0.8\,$
					incl.	12	20	$\bf 8$	2.3
					and	66	74	8	2.0

Table 6: Drill Intercepts - Abnabna Deposit - Ayanfuri Gold Project, Ghana

* denotes ended in mineralisation.

denotes hole abandoned

ABDD prefix denotes diamond drill hole, ABRC prefix denotes RC drill hole.

Table 7: Drill Intercepts - Fobinso Deposit - Ayanfuri Gold Project, Ghana

Hole	North (m)	East (m)	Depth (m)	Incl. $^{\circ}$	Azm. $\circ$	From (m)	To (m)	Width (m)	Αu g/t
AFRC004	13891	27380	80	$-50$	180	$\overline{2}$	14	12	1.0
						36	50	14	3.0
						62	$80*$	18	1.7
					incl.	62	70	8	2.6
AFRC005	13974	27300	150	-50	180	68	126	58	1.2
					incl.	76	92	16	1.9
					and	106	114	8	2.3
AFRC006	13985	27260	154	$-50$	180	86	146	60	2.2
					incl.	100	108	8	3.0
					and	118	142	24	3.6
AFRC007	13988	27218	163	$-65$	180	108	162	54	0.9
					incl.	108	122	14	1.4
					and	140	156	16	1.1
AFRC008	13987	27190	167	-50	180	116	156	40	1.3
					incl.	134	142	8	2.4
					and	148	150	2	5.0
					and	154	156	$\overline{2}$	5.7
AFRC009	13987	27160	160	-60	180	116	158	42	1.0
					incl.	118	136	18	1.5
					and	142	146	4	1.6

Table 7: Drill Intercepts - Fobinso Deposit - Ayanfuri Gold Project, Ghana (continued)

Hole	North (m)	East (m)	Depth (m)	Incl.	Azm.	From (m)	Tо (m)	Width (m)	Αu g/t
AFRC010	13982	27120	152	-50	180	98	124	26	כ.ו
					incl.	98	108	10	2.3
					and	-16	22		2.4

* denotes ended in mineralisation.

Table 8: Significant Drill Intercepts - Grumesa Gold Project, Ghana

Hole	North	East	Depth	Azm. $^{\circ}$	Incl. $^{\circ}$	From (m)	To	Width	Αu
	(m)	(m)	(m)				(m)	(m)	g/t
KRC183	89320	60180	73	90	-60 incl.	2 16	73 30	71 14	0.9 1.6
					and	60	68	8	$1.8\,$
KRC184	89320	60161	60	90	-60	$\boldsymbol{2}$	52	50	0.9
					incl.	48	52	4	3.7
KRC186	89360	60180	50	270	-60	$\overline{2}$	46	44	0.6
					incl.	32	40	8	2.0
KRC187	89360	60200	80	270	-60	28	68	40	$1.0\,$
					incl.	34	50	16	1.3
KRC188	89360	60220	62	270	$-60$	24	$62*$	38	1.7
KRC190	89300	60167	100	270	-60	2	94	92	0.4
KRC194	89361	60320	58	270	-60	18	24	6	0.7
						28	58*	30	$0.8\,$
KRC195	89361	60340	60	270	-60	18	60*	42	2.3
					incl.	22	50	28	3.0
KRC196	89362	60360	60	270	$-60$	20	52	32	$0.8\,$
KRC198	89360	60400	50	270	-60	10	$\sqrt{28}$	18	1.3
						38	42	4	2.7
KRC200	89440	60250	120	270	$-60$	56	64	8	$1.5\,$
						76	84	8	1.0
KRC201	89440	60221	120	270	-60	76	106	30	$1.1$
					incl.	84	90	6	2.8
KRC202	89440	60190	100	270	$-60$	56	78	22	1.1
					incl.	$72\,$	78	6	1.8
KRC203	89440	60160	80	270	-60	$\overline{2}$	30	28	$1.1\,$
					incl.	12	22	10	1.7
KRC207	89480	60160	80	270	-60	26	$80*$	54	0.5
					incl.	36	44	8	1.3
KRC208	89480	60141	70	270	$-60$	Ť	65	64	0.5
KRC209	89481	60121	50	270	-60	Ť	9 30	$8\,$	3.7 3.1
KRC210	89540	60100	50	270	-60	26 Ť	44	$\overline{4}$ 43.	1.0
KRC211	89540	60121	70	270	-60	18	56	38	0.9
					incl.	18	30	$12 \,$	1.5
KRC212	89540	60140	100	270	-60	36	60	24	1.2
					incl.	42	48	6	3.2
KRC213	89540	60170	120	270	-60	72	$120*$	48	1.0
					incl.	74	88	14	2.0
KRC219	89540	60281	30	90	-60	$\,$ 2 $\,$	24	22	$1.8\,$
					incl.	$\overline{4}$	10	6	4.8
KRC222	89360	60239	76	270	-60	46.	$76*$	30	1.2
KRC229	89580	60220	40	270	-60	$\theta$	$\overline{18}$	18	1.5

	Table 8: Significant Drill Intercepts – Grumesa Gold Project, Ghana (continued)

Hole	North (m)	East (m)	Depth (m)	Azm. $^{\circ}$	Incl. $^{\circ}$	From (m)	Ŧо (m)	Width (m)	Aп g/t
KRC232	89580	60280	30	270	$-60$	18	$30*$	12	$2.5\,$
					incl.	18	24	6	4.5
KRC236	89620	60149	50	90	$-60$	28	50*	22	1.0
					incl.	30	36	$\boldsymbol{6}$	1.6
KRC238	89621	60190	50	90	$-60$	$22\,$	42	20	1.1
					incl.	26	32	6	1.5
KRC239	89621	60209	50	90	$-60$	$32\,$	$50*$	18	1.6
					incl.	38	$50*$	$12 \,$	2.1
KRC265	90400	59872	40	90	$-50$	$12 \,$	$40*$	28	1.0
					incl.	12	20	8	$1.7\,$
					and	28	30	$\overline{2}$	3.5
KRC276	90698	60132	100	270	$-50$	$\mathbf{I}$	72	71	0.4
KRC277	90700	60045	100	270	$-50$	29	$100*$	71	0.4
KRC279	90992	60015	100	270	$-50$	34	$100*$	66	0.9
					incl.	50	56	6	2.0
					and	78	$100*$	22	$1.3\,$
KRC288	91197	60682	60	270	$-50$	$\theta$	$60*$	60	1.7
					incl.	2	$\rm 6$	4	6.3
					and	28	32	4	5.3
					and	$40\,$	52	12	2.3
KRC289	91196	60702	60	270	$-50$	3	22	19	1.9
					incl.	$\overline{14}$	22	8	3.3
KRC292	90699	60015	100	90	$-50$	$\bar{z}$	$100*$	98	0.4
KRC293	89240	60325	80	270	$-60$	Ť	44	43	0.7
KRC294	89280	60350	100	270	$-60$	$\boldsymbol{0}$	36	36	0.9
						82	96	14	1.0

* ended in mineralisation.

Mineralised in Innecansation.
Mineralised intersections are reported where hole contains intercepts of over 20 gram-metres.
All samples were assayed by 1kg bottle roll cyanide leach (only leach recovered grades reported).

Table 9: Anomalous RAB Drill Intercepts - Tengrela Gold Project, Ivory Coast

Hole	North (m)	East (m)	Depth (m)	Azm. $^{\circ}$	Incl. $(\tilde{ }')$	From (m)	To. (m)	Width (m)	Aц g/t
SRB311	1154800	806240	41	90	$-60$	$\theta$	4	4	2.1
SRB315	1154800	806360	40	90	-60	8	16	8	0.4
						32	40*	8	0.7
SRB318	1154800	806428	21	90	-60	8	12	4	0.8
SRB323	1154800	806594	40	90	-60	$12 \overline{)}$	16	4	0.4
SRB335	1155000	805830	52	90	-60	0	8	8	0.7
SRB336	1155000	805870	54	90	-60	40	52	12	2.4
					incl.	44	48	4	5.9
SRB337	1155000	805912	57	90	-60	0	4	4	0.6
SRB339	1155000	806080	54	90	$-60$	16	24	8	0.8
SRB342	1155000	806200	52	90	$-60$	24	44	20	0.3
SRB368	1153600	806206	56	90	-60	$12 \overline{ }$	16	4	0.4
SRB393	1155450	805938	50	90	-60	44	50*	6	1.7
SRB395	1155450	806012	47	90	-60	28	$47*$	19	2.1
					incl.	36	$47*$	11	3.4
SRB398	1155450	806096	40	90	-60	28	40*	12	0.9

Table 9: Anomalous RAB Drill Intercepts - Tengrela Gold Project, Ivory Coast (continued)

Hole	North (m)	East (m)	Depth (m)	Azm.	Incl.	From (m)	Ŧо (m)	Width (m)	Aш øΛ
SRB404	155450	806272		90	-60		g∗		4.3
SRB409	155439	806387	48	90	-60	o	10		ر…
SRB412	155600	806539	າາ	90	-60

* ended in mineralisation.

Samples were typically 4m composites.

Mineralised intersections were reported where at least one 4m composite sample exceeded 0.4g/t Au.

Table 10: Significant RC Drill Intercepts - Tengrela Gold Project, Ivory Coast

Hole	North (m)	East (m)	Depth (m)	Azm.	Inci.	From (m)	Ŧо (m)	Width (m)	Au g/t
SRC002	1154000	806075	60	90	$-60$	24	54	30	0.6 1
					incl.	28	30		1.0
					and	42	44		1.6
					and	28	50		2.7
SRC004	1154000	806770	80	90	$-60$	10	20	10	2.1
					incl.	ĺ4	16		8.2

Table 11: Drill Intercepts - Obdilla Prospect - Tolubay Gold Project, Kyrgyz Republic

Hole	North	East	Depth	Incl.	Azm. $^{\circ}$	From	To	Width	Au
	(m)	(m)	(m)	$^{\circ}$		(m)	(m)	(m)	g/t
ZDDH041	4447550	251692	392.0	$-70$	180	$\theta$	14	14	0.9
					incl	0	6	6	1.2
						49	53	4	0.7
						202	262	60	0.5
						269	337	68	0.9
					incl	272	294	22	1.4
					and	305	308	3	1.4
					and	323	326	3	1.4
						349	357	8	0.6
ZDDH042	4447439	251553	160.0	$-30$	360	121	1251	$\ddot{4}$	1.1
ZDDH044	4447439	251553	315.0	$-60-$	360	13	15	$\bar{z}$	1.5
						134	148	14	0.5
						165	167	2	1.3
						201	203	2	1.0
						237	278	41	0.6
					incl.	251	253	$\boldsymbol{2}$	1.9
					and	264	266	2	1.7
					and	268	269		1.9
					and	275	276		$1.8\,$
ZDDH045	4447413	251455	263.3	$-60$	360	132	198	65	1.4
					incl.	134	139	5	2.1
					and	154	165	11	2.8
					and	186	191	5	$1.8\,$
ZDDH046	4447400	251300	200 target	$-30$	$00\,$	Assays	pending
ZDDH047	4447375	251100	200 target	$-30$	00	Assays	pending

Appendix 5B

Mining exploration entity quarterly report

r

Name of entity

PERSEUS MINING LIMITED

ABN

27 106 808 986

Quarter ended ("current quarter")

31 December 2006

Consolidated statement of cash flows

	Cash flows related to operating activities	Current quarter \$A'000	Year to date $(6$ months) \$A'000
1.1	Receipts from product sales and related debtors
1.2	Payments for (a) exploration and evaluation (b) development (c) production (d) administration	(2,224) (241)	(3,569) (456)
1.3	Dividends received
1.4	Interest and other items of a similar nature
	received	58	121
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other - Deposits held re drilling programs		165
	Net Operating Cash Flows	(2,407)	(3,739)
1.8	Cash flows related to investing activities Payment for purchase or renewal of: (a) prospects
1.9	(b) equity investments (c) other fixed assets Proceeds from sale of:	(600) (12)	(600) (65)
	(a) prospects (b) equity investments (c) other fixed assets	2,709	2,709 5.
1.10	Loans repaid to other entities	(12)	(25)
1.11	Loans repaid by other entities	2	2
1.12	Other - Insurance recoveries on fixed assets		22
	Net investing cash flows	2,087	2,048
1.13	Total operating and investing cash flows (carried forward)	(320)	(1.691)

1.13	Total operating and investing cash flows (brought forward)	(320)	(1,691)
1.14 1.15 1.16 1.17 1.18 1.19	Cash flows related to financing activities Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares Proceeds from borrowings Repayment of borrowings Dividends paid Other – share issue expenses	116.	168.
	Net financing cash flows	116	168
	Net increase (decrease) in cash held	(204)	(1,523)
1.20 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	4,648 (130)	6.000 (163)
1.22	Cash at end of quarter	4,314	4,314

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	80
-1.24	Aggregate amount of loans to the parties included in item 1.10
	$\mathbf{A}$ and $\mathbf{B}$ are the set of the set of $\mathbf{A}$ and $\mathbf{A}$ are the set of $\mathbf{A}$ and $\mathbf{A}$ are the set of $\mathbf{A}$

Explanation necessary for an understanding of the transactions $1.25$

--	$-$
		A\$'000
	Directors fees, consultancy charges and remuneration
	Occupancy expenses

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

The Company entered into an agreement to purchase heap leach plant and equipment for the Grumesa gold project in Ghana for consideration comprising 1,400,000 ordinary shares at an issue price of 40 cents each and US\$25,000 cash. Perseus will also assume responsibility for the vendor's security staff and their employee entitlements up to a limit of US\$5,000. The issue of shares is expected to take place in the $3^{rd}$ quarter of 2006/2007.

$2.2$ 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.

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

Estimated cash outflows for next quarter

	Total	2,000
4.2	Development	٠
4.1	Exploration and evaluation	2,000
		\$A'000

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.		Current quarter \$A'000	Previous quarter \$A'000
5.1	Cash on hand and at bank	989	718
5.2	Deposits at call	3,325	3,930
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	4,314	4,648

Changes in interests in mining tenements

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

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	price Issue per security (cents)	Amount paid up per security (cents)
7.1	Preference + securities (description)	$\overline{a}$
7.2	Changes during quarter
7.3	+Ordinary securities	89,680,950	89,680,950
7.4	Changes during quarter
	Exercise of options Exercise of options	400,000 140,000	400,000 140,000	20 cents 26 cents	20 cents 26 cents
7.5	+ Convertible debt securities (description)
7.6	Changes during quarter	$\overline{a}$
7.7	Options (description and conversion factor)			Exercise price	Expiry date
		27,160,000 995,000 1,000,000 400,000 400,000	23,280,000	20 cents 26 cents 35 cents 45 cents $50$ cents	31/03/2009 01/12/2008 31/03/2007 06/06/2009 06/06/2009
7.8	Issued during quarter
7.9	Exercised during quarter	(400,000) (140,000)		20 cents 26 cents	31/03/2009 01/12/2008
7.10	Cancelled/Expired during quarter	(50,000)		26 cents	01/12/2008
7.11	Debentures (totals only)
7.12	Unsecured notes (totals only)	۰

Compliance statement

• $\mathbf{1}$ 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).
• $\overline{2}$ This statement gives a true and fair view of the matters disclosed.

Maltin

Sign here: Print name:

Mark Calderwood Managing Director

Date: 31 January 2007