PERSEUS MINING LIMITED — Interim / Quarterly Report 2008

Oct 30, 2008

QUARTERLY REPORT

Exchanges:

ASX : PRU

:PRUO

Börse Frankfurt: P4Q Highlights

Issued Shares: 174.6M

Listed Options: 10.4M

Unlisted Options: 9.7M

Cash at bank (end Q3) $11.3

Resources:

Current

Ghana

Now 4.7Moz

Target +5Moz Q1 2009

Ivory Coast

Target ~ 1Moz Q4 2008

Transitioning to Production:

DFS Ghana Q2 2009

PFS Ivory Coast Q4 2009

Ghana Production Q1 2011

SEPTEMBER 2008 QUARTERLY ACTIVITY REPORT

31 October 2008

Ayanfuri

• On 1 October 2008 a detailed summary of the ongoing Definitive Feasibility Study ("DFS") was released providing a 'base case' of:
  • o 1.9Moz of in-pit gold resources from four of the eight deposits at Ayanfuri, using a US$750 gold price for whittle shell selection;
  • o processing rate of 4.5mtpa through a conventional CIL mill;
  • o average gold production 196,000ozpa for years 1 to 5 and 162,000ozpa for years 6 to 10;
  • o average cash cost of US$430 per oz and operating cash surplus of US$74Mpa for years 1 to 5 using a US$850 gold price;
  • o total gross operating cash surplus of US$625M; and
  • o the capital cost estimate is US$175M giving a two year one month payback.

Further work currently underway is expected to significantly improve the 'base case' capital and operating costs.

• Significant infill and extensional exploration drill intercepts during the September quarter included:

AF-Gap - 93m at 5.0g/t, 129m at 1.8g/t, 118m at 1.9g/t and 119m at 1.7g/t Au;

Esuajah South - 92m at 2.7g/t, 98m at 2.6g/t, 72m at 2.1g/t, 31m 3.1g/t Au;

Abnabna - 105m at 2.3g/t, and 49m at 2.7g/t Au; and

Fobinso - 20m at 5.6g/t Au.

Exploration drilling on the new discovery at Mampon, and the northern extensions to Fobinso and Fetish returned several significant intercepts including:

Mampon - 21m at 2.7g/t, 16m at 3.2g/t, and 14m at 2.3g/t Au;

Fobinso Nth Ext.- 31m at 2.2g/t, 20m at 2.2g/t, 14m at 1.8g/t and 7m at 4.1g/t Au; and

Fetish Nth - 17m at 2.6g/t, and 21m at 1.1 g/t Au.

Sterilization drilling provided discovery of a new zone of mineralisation with the two intercepts to date including 2m at 48.6g/t Au and 4m at 2.2g/t Au. This small zone should not interfere with proposed infrastructure and it could be mined prior to waste dumping from the larger pits.

Tengrela – Ivory Coast

• Drilling continues to outline extensive gold mineralisation on the 5.6km long Sissingue prospect, the area for the initial resource estimate has been extended to 1,000m and over 320 holes have been drilled for 35,000m. Gold mineralisation remains open to the north and south of the initial resource area and total known strike of gold mineralisation at Sissingue is 5.6km.

Better new intercepts include:

Extensional RC holes - 8m at 46.8g/t, 30m at 4.0g/t, 10m at 4.1g/t and 40m at 1.1g/t Au;

Infill and deeper holes - 100.5m at 2.6g/t, 128.8m at 1.7g/t, 32m at 3.0g/t and 35m at 2.1g/t Au;

Deeper diamond drill holes typically contain multiple significant intercepts (see table 9 below)

Initial resource estimate on schedule for release in Q4 2008.

• RAB drilling at the Katara prospect has defined further anomalous to significant gold mineralisation

Program for the Next Three Months

During the December Quarter Perseus proposes to:

• publish a maiden resource estimate for the Tengrela project;
• resolve optimum grind size and process route for the Ayanfuri DFS;
• complete phase-1 reserve drilling at Ayanfuri and continue resource drilling on Tengrela projects; and
• continue scoping study on the Sissingue deposit.

With the Ayanfuri phase-1 reserve drilling substantially completed and drilling completed for the maiden resource estimate at Tengrela, the Company has significantly scaled back drilling and as a result exploration expenditure will decrease by about 70%.

The Company has accumulated about 150,000m of new drill data which will be used in the Ayanfuri resource update and Tengrela maiden resource estimate over the coming months.

Overview

Active exploration continues to enhance Perseus's key projects in West Africa, with its resource base of 4.7Moz of gold (1.94Moz Indicated and 2.78Moz Inferred) expected to increase substantially during the December Quarter.

Perseus is undertaking feasibility studies on the Ayanfuri and Grumesa gold deposits in Ghana, with completion of the Ayanfuri DFS expected in the first half of 2009 and production anticipated to commence in 2011 or earlier if long lead items are ordered in advance.

The Tengrela project in northern Ivory Coast contains nine regionally significant gold anomalies, only five of which have been tested by drilling so far. The Sissingue East Zone within the 7km long Sissingue soil anomaly has already demonstrated the potential to host a significant gold deposit, based on multiple zones of gold mineralisation delineated within a 250m wide and 1,000m long, open ended zone.

Ayanfuri Project (Central Ashanti Belt - Ghana)

Ayanfuri Gold Project (Ghana)

Feasibility Study

The preliminary economic assessment ("PEA") stage of the DFS, completed in September 2008 has determined the current 'base case' throughput of 4.5mtpa is preferable to the 3mtpa starting point for the study. The updated 'base case' results are as follows:

• Optimisations and pit designs completed in September 2008 using gold prices of US$750/oz (with one pit modeled at US$700/oz) and US$850/oz identified between 1.9Moz and 2.6Moz of 'in pit resources', prompting an increase in this 'base case' processing rate to 4.5Mtpa. The more conservative US$750 pit shells were adopted for scheduling for the cash flow model.
• Processing plant crushing and grinding remains as primary crusher and single stage SAG mill. Test-work indicated that an increase in residence time to 48 hours would lead to a 2% increase in gold recoveries and enhance project profitability. Definitive metallurgical test-work currently under way will review the residence time and it is expected to see the optimal residence time reduced.
• The key economic indicators resulting from the value engineering work to date using US$850 gold price:
  • o Payback period of 2 years 1 month and cash costs US$393/oz over the payback period.
  • o The capital cost estimate is US$175M including owner costs, contingencies and escalation allowance.
  • o The 4.5Mtpa option takes into account an initial 10 years of production.
  • o Average cash cost of US$430 per oz for years 1 to 5 and US$495 per oz for years 6 to 10.

The Company has identified a number of areas likely to improve the forecast project economics considerably, including:

• Inclusion of the smaller, less well defined Chirawewa, Dadieso and Mampon deposits, and extensions to Abnabna, AF-Gap, Fobinso and Fetish resources to take into account work since the April 2008 resource estimates.
• Further grind size optimisation, taking into account the favorable metallurgical characteristics of the ore, power costs and feed grade. Indications are that the grind size may be relaxed with limited effect on recovery, but significantly increasing throughput with minimal additional operating cost. Recovery test-work at varied grind sizes will evaluate this opportunity.
• Assessment of secondary and tertiary crushing options, including the use of a High Pressure Grinding Rolls crusher ("HPGR"), has the potential to reduce power consumption and mill feed size, thereby increasing economic mineralisation at reduced cutoff grades and reducing operating costs.
• The current 'base case' assumes contract mining of ore and waste. Given the large volume of marginal grade material which is sensitive to operating costs, owner mining has the potential to further reduce operating costs and increase the mineable resources.

	'Base Case'				$850 Optimisations		$950 Optimisations
	Waste(Mt)	Resource(Mt)	Cont. Au(ounces)	Waste(Mt)	Resource(Mt)	Cont. Au(ounces)	Waste(Mt)	Resource(Mt)	Cont. Au(ounces)
Abna-Af
Gap-Fobinso	54.86	24.07(1)	1,123,631	78.91	32.83	1,378,776	90.61	36.21	1,469,405
Esuajah Sth	2.05	1.19(2)	71,173	48.16	7.00	416,232	50.11	7.23	427,848
Esuajah Nth	17.18	14.21(3)	509,494	21.66	15.73	561,476	22.94	17.23	598,277
Fetish	8.31	6.16(4)	231,777	10.89	6.26	225,235	12.15	6.86	240,611
	82.39	45.64	1,936,075	159.62	61.82	2,581,719	175.80	67.54	2,736,141

Table 1: Optimisation Summary

Notes

(1) Actual pit design on nominal US$750 pit shell, 66% Indicated and 34% Inferred resources

(2) US$700 optimisation shell, 100% Indicated resources

(3) US$750 optimisation shell, 54% Indicated and 46% Inferred resources

(4) US$750 optimisation shell, 100% Inferred resources

Details of current 'base case'

Mining

The mine design used multiple open pits developed in sequence, with ore delivered to the processing plant at 4.5mtpa. Mining is expected to commence about 4 months prior to commissioning, resulting in total movement of 370,000 tonnes of ore and 2.4Mt of pre-strip waste. Life of mine waste to ore ratio using a 0.55g/t Au cut-off for ore is estimated to be 1.8:1.

The total mining cost was estimated to be US$370M, representing an average cost of US$8.11 per tonne of ore mined, including capitalised pre-strip. The relatively low mining cost is a result of the low waste to ore strip ratio.

Metallurgy

Metallurgical test-work has been conducted for the base case grind size for the main known deposits at Ayanfuri using the moderately course base case grind size of 80% passing 106µm.

Test-work has demonstrated the simple free milling ore which is not complex in nature, has no specific metallurgical processing issues and has demonstrated high gravity gold recoveries of towards 30% and total gold recoveries of about 93% for fresh granite deposits and 98% for the transitional and oxide material using the base case 106µm grind and 48 hours residence time.

Crushing and milling work indices indicate moderate competency and abrasion characteristics typical of fresh ore types. Ayanfuri mineralised rock types are not expected to cause significant comminution issues, with modelling confirming amenability to a single stage crush and SAG mill comminution circuit. The potential savings in power costs and increased mill throughput by introducing the HPGR crushing system are being investigated and could lead to changes in the proposed processing method.

Further potential leaching improvements will be investigated to enhance overall gold recoveries for fresh rock ore types.

Reagent consumption test-work has demonstrated low levels of lime of approximately 0.25kg/t and moderate levels of cyanide of approximately 0.53kg/t are required for effective leaching kinetics and gold extraction.

Other test-work has demonstrated low viscosity, high settling rates and densities, and fast carbon loading kinetics. The detoxification test-work has confirmed a very clean ore with simple detoxification and low reagent requirements reflecting the low cyanide consumption.

Variability test-work has replicated composite tests in respect to comminution characteristics and high gold recoveries for the granite hosted deposits. Some limited further variability test-work will be required to enable the DFS level study to incorporate samples from the expanded project resources.

Processing

The Ayanfuri 'base case' gold plant design criteria assume a primary crushing circuit, single stage SAG mill followed by gravity separation, CIL leaching, electrowinning and gold smelting. The tails will be detoxified prior to release to storage.

Due to the ore being hosted in granite rocks, the reagent consumptions are typically low with clean tails being generated.

Operating Cost

The operating cost estimate has been compiled by Perseus based on test work data and costs obtained from similar projects in the region.

Cost Department	Annual Average$US(000)/yr	$US/t	% Total
Process & Admin	45,981	10.22	55.9
Mining Contractor	25,062	5.57	30.4
Owner Mining*	11,253	2.50	13.7
Total	82,296	18.29	100.0

Table 2: Operating Cost Summary Yrs 1 to 10

*Owner Mining costs cover grade control, owner's mining and management, administration costs, pit dewatering, rehandling, overhaul, rehabilitation and miscellaneous mining contractor works.

Capital Cost

The capital cost estimate for the 4.5mtpa option was prepared by consultants Mintrex and is presented in United States dollars to an accuracy level of +/-25%.

The estimate has been developed from a combination of quantity take-offs, factoring costs from similar recent projects in the region and obtaining budget prices for major equipment.

		Table 3: Capital Cost Summary, US$,000
--	--	-----------------------------------------	--

Main Area	Costs
Treatment Plant Costs	96,764
Infrastructure	16,643
Management Costs	12,154
Total	125,561
Owner's Project Costs	24,443
Contingency	15,000
Escalation During Construction	7,500
Total	172,504

Economic Assessment

The DFS to date has capital costs and operating costs in sufficient detail to be considered a Prefeasibility Study, allowing for the Ghanaian fiscal environment. Following is a summary of the economic assessment of the project.

Gold price	$750/oz	$850/oz(2)	$950/oz(2)
		'base case'
Ore processed tonnes @ g/t Au	36.1Mt @1.49g/t	36.1Mt @1.49g/t	36.1Mt @1.49g/t
	&	&	&
	LG 9.5Mt @0.69g/t	LG 9.5Mt @0.69g/t	LG 9.5Mt @0.69g/t
Strip Ratio	1.8:1	1.8:1	1.8:1
Processing rate	4.5mtpa	4.5mtpa	4.5mtpa
Capital Cost	$ 172.5M	$ 172.5M	$ 172.5M
Mining Costs	$7.98/t ore $201/oz	$7.98/t ore $201/oz	$7.98/t ore $201/oz
Process Recovery (average)	93.2%	93.2%	93.2%
Processing Costs	$9.61/t ore $243/oz	$9.61/t ore $243/oz	$9.61/t ore $243/oz
Administration Costs	$0.61/t ore $15.44/oz	$0.61/t ore $15.44/oz	$0.61/t ore $15.44/oz
Cash Operating Cost/oz Average	$460/oz	$460/oz	$460/oz
Payback period	3 yrs 2 months	2 yrs 1 month	1 yrs 8 months
Tax paid	$70.5M	$113.4M	$156.4M
Royalties paid	$64.3M	$72.8M	$81.4M
Free cash (before capital and tax)	$454.4M	$626.2	$798.0M
Free cash (after capital and tax)	$211.4M	$340.3M	$496.1M
IRR	24.2%	36.1%	47.2%

Table 4: Economic Assessment in US Dollars

1. The above economic assessment summary does not take into account resources from the Chirawewa, Dadieso and Mampon deposits and extensional drilling on the other deposits since April 2008.

2. The US$950/oz and US$850/oz scenarios do not reflect a pit expansion which would result in longer mine life and higher production if the higher gold price was used to redesign the pits. They reflect only the effect of the rising price on mining the currently designed pits.

Exploration

Infill and extensional drilling for the initial reserve estimate is near completion. Approximately 100,000m of new drilling data will be used in the mineral resource estimates update process expected to commence in January 2009.

Exploration drilling on the new discovery at Mampon, and the northern extensions to Fobinso and Fetish continued to return significant intercepts. Sterilization drilling discovery a new zone of mineralisation with the two intercepts to date including 2m at 48.6g/t Au and 4m at 2.2g/t Au, assays are pending for further holes drilled to follow up the new zone.

Table 5: Mineral Resources (Gold) - Ayanfuri Gold Project 30 April 2008 (>0.8g/t Au)

		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)	6,429,000	1.2	249,200	5,796,000	1.1	199,1 00	12,225,000	1.1	448,200
Esuajah South(1)	4,591,000	1.8	263,500	3,370,000	2.2	238,000	7,961,000	2.0	501,500
Abnabna	15,230,000	1.6	760,900	13,306,000	1.4	608,100	28,536,000	1.5	1,369,000
Fobinso(1)
Fetish(1)	4,809,000	1.1	176,200	10,930,000	1.5	543,500	15,739,000	1.4	719,700
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)				2,720,000	1.8	153,400	2,720,000	1.8	153,400
Totals	31,399,000	1.5	1,478,300	37,522,000	1.5	1,825,000	68,921,000	1.5	3,303,300

Notes

• 1 Runge Ltd April 2008 Estimate based on Perseus, Cluff and AGC drill data. Reported at 0.8g/t cutoff and 0.8 -1.2g/t cutoff for Esuajah South
• 2 Perseus Mining May 2006 Estimate based on Cluff and AGC drill data. Reported at 0.8g/t cutoff
• 3 Perseus Mining June 2007 Estimate based on Perseus and AGC drill data. Reported at 1.2g/t cutoff
• 4 Rounding applied to totals

	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)	4,295,000	0.6	88,000	8,035,000	0.6	161,900	12,329,000	0.6	249,900
Esuajah South(1)	934,000	0.7	19,500	820,000	1.0	25,300	1,755,000	0.8	44,900
Abnabna	3,877,000	0.6	76,400	5,889,000	0.6	113,500	9,766,000	0.6	189,800
Fobinso(1)
Fetish(1)	2,693,000	0.7	56,300	2,410,000	0.7	52,000	5,103,000	0.7	108,300
Dadieso(2)				1,142,000	0.9	34,100	1,142,000	0.9	34,100
Totals	11,799,000	0.6	240,200	18,296,000	0.7	386,800	30,095,000	0.7	627,000

Table 6: Mineral Resources (Gold) ‐ Ayanfuri Gold Project 30 April 2008 (Low Grade)

Notes

1 Runge Ltd April 2008 Estimate based on Perseus, Cluff and AGC drill data. Reported at 0.4g/t cutoff and 0.4 -0.8g/t cutoff for Esuajah South

2 Perseus Mining June 2007 Estimate based on Perseus and AGC drill data. Reported at 0.8g/t cutoff

3 Rounding applied to totals

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 (4.3Moz).

Sissingue

The principal focus of activity is currently on the Sissingue prospect, which has now been fenced drilled over a 1,000m strike length, out of a known strike of 5.6 km. Of the 437 RC and diamond holes drilled to date, 326 holes occur within 1,000m by 750m area representing the initial resource block*, defining multiple gold mineralised zones, with the largest, "Sissingue East", now traced for an open 1,000m strike and a width of up to 300m. The Sissingue East zone is made up of a number of close spaced sub-zones of mineralisation that have returned numerous medium to very high grade intercepts. Mineralisation extends to greater than 300m depth and in places, bulks out over widths of more than 100m. Recent results are contained in Tables 9 and 10 below.

A diamond rig and an RC rig are currently resource drilling the Sissingue prospect and a RAB rig is evaluating other targets on the 884sq km Tengrela project.

A resource estimate is currently in preparation for the 1000m long initial resource block and is expected to be completed during the December Quarter.

High gold recoveries and favourable metallurgy from initial testwork enhance the potential demonstrated by drilling results to date at Sissingue. More comprehensive metallurgical assessment will commence shortly as part of an Options Study to be undertaken at the completion of the maiden resource estimate.

Katara

Wide spaced RAB drilling has been completed over the Katara soil anomaly, located 20km south of Sissingue. A number of anomalous to significant intercepts were made over a strike of 1,000m with the strongest insitu mineralisation occurring within the central 500m by 150m area. Previously reported intercepts from Katara include 20m at 2.9g/t, 6m at 2.1g/t and 16m at 1.0g/t Au. Recent intercepts from along strike included 8m at 3.7g/t, 16m at 1.4g/t and 25m at 0.5g/t Au. These results are comparable to early RAB drilling at Sissingue.

* Resource block refers to the area of systematic drilling for the maiden resource estimate, expected in Q4 2008.

Mark Calderwood Managing Director

31 October 2008

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.

Hole	Deposit	East	North	Depth	Azm.	Incl.	From	To	Width	Au
		(m)	(m)	(m)	(˚)	(˚)	(m)	(m)	(m)	g/t
ABDD098	AF Gap	26420	13940	299	182	-49	124	136	12	1.2
							141	153	12	3.2
						incl.	141	142	1	14.3
						and	149	150	1	11.6
							160	278	118	1.9
						incl.	201	205	4	13.9
						and	270	271	1	11.0
ABDD099	AF Gap	26420	13981	344	180	-50	201	202	1	9.8
							209	338	129	1.8
						incl.	247	250	3	8.3
						and	273	274	1	16.0
						and	322	323	1	12.3
ABDD105				160	359	-50	80	82	2	3.6
	Abnabna	25870	13500				117	121	4	1.4
							130	148	18	5.8
						incl.	131	132	1	61.0
				90
ABRC344	AF Gap	26240	13680		180	-50	4	41	37	1.5
				248.8			45	88	43	1.6
ABRDD320	Abnabna	25856	13691		179	-50	73	94	21	3.7
						incl.	76	77	1	18.8
						and	88	90	2	13.9
							99	110	11	0.8
							189	196	7	1.2
							207	230	23	2.4
						incl.	209	210	1	28.0
ABRDD321	AF Gap	26090	13790	381.1	179	-70	133	146	13	0.7
							166	167	1	5.5
							176	207	31	0.7
							211	212	1	6.3
							236	239	3	2.0
							243	362	119	1.7
						incl.	250	252	2	21.4
						and	336	337	1	20.2
ABRDD326	AF Gap	26051	13720	249.1	178	-70	87	92	5	1.3
							148	166	18	0.9
							193	216	23	1.1
							220	221	1	15.1
							275	320	45	1.3
ABRDD331	AF Gap	26460	13940	279	180	-50	112	125	13	1.3
							172	178	6	1.1
							187	199	12	3.1
						incl.	187	189	2	13.1
							204	227	23	1.2
						incl.	216	217	1	14.0
							242	272	30	1.6
ABRDD333	AF Gap	26140	13760	245.5	170	-60	40	64	24	1.3
							90	103	13	3.1
						incl.	95	96	1	14.2
						and	101	102	1	16.0
							126	143	17	1.0
							169	179	10	1.6
							184	235	51	2.1
						incl.	201	204	3	14.2
							246	254	8	0.9

Table 7: Significant Recent Infill and Extensional Drilling, Ayanfuri Gold Project

Hole	Deposit	East	North	Depth	Azm.	Incl.	From	To	Width	Au
		(m)	(m)	(m)	(˚)	(˚)	(m)	(m)	(m)	g/t
ABRDD334	Abnabna	25950	13480	251.8	360	-50	163	181	18	1.6
						incl.	170	171	1	13.0
							201	250	49	2.7
						incl.	201	202	1	13.1
							225	227	2	31.2
ABRDD338	Abnabna	25770	13659	201	179	-50	73	178	105	2.3
						incl.	73	74	1	10.1
						and	92	101	9	6.3
						incl.	100	101	1	27.3
						and	117	122	5	5.5
						and	176	177	1	11.5
ABRDD340	AF Gap	26320	13792	177	179	-50	67	160	93	5.0
						incl.	68	70	2	73.4
						incl.	68	69	1	133.9
						and	94	95	1	48.5
						and	107	108	1	15.1
						and	127	129	2	19.7
						and	159	160	1	14.2
ABRDD342	Abnabna	25830	13480	175	359	-50	50	66	16	1.2
							76	88	12	3.1
						incl.	86	88	2	10.2
							96	105	9	0.7
							110	130	20	2.0
						incl.	129	130	1	16.6
							158	170	12	0.7
ABRDD356	Abnabna	26030	13780	250			100	102	2	3.8
							148	160	12	1.4
							167	246	79	1.2
						incl.	221	222	1	18.0
ADD123	Esuajah S.	1831	6220	229.8	92	-50	139	211	72	2.1
						incl.	194	198	4	16.4
ADD124	Esuajah S.	1870	6300	21	90	-50	124	155	31	1.2
							161	200	39	1.9
						incl.	191	192	1	11.7
ADD125	Esuajah S.	1830	6300	245.7	92	-50	130	139	9	2.0
							150	154	4	1.4
							172	177	5	1.1
							189	242	53	2.0
						incl.	215	216	1	17.0
						and	229	231	2	12.3
ADD126	Esuajah S.	1790	6300	300.5	91	-50	193	285	92	2.7
						incl.	216	221	5	10.6
						and	228	229	1	12.7
						and	283	285	2	8.1
ADD128	Esuajah S.	1830	6180	230.1	91	-50	132	187	55	1.9
						incl.	182	185	3	9.2
ADD129	Esuajah S.	1868	6260	205.7	92	-45	97	129	32	0.8
							148	153	5	7.3
						incl.	150	151	1	30.9
							165	166	1	5.7
							124	130	6	1.2
							142	229	87	0.8

Table 7: Significant Recent Infill and Extensional Drilling, Ayanfuri Gold Project (cont.)

Hole	Deposit	East(m)	North(m)	Depth(m)	Azm.(˚)	Incl.(˚)	From(m)	To(m)	Width(m)	Aug/t
ADD131	Esuajah S.	1826	6280	275.9	93	-55	159	257	98	2.6
						incl.	159	160	1	21.4
						and	166	169	3
										10.8
						and	201	202	1	15.3
						and	216	221	5	9.9
						and	251	252	1	18.9
ADD132	Esuajah S.	1861	6240	214.9	95	-50	145	176	31	3.1
						incl.	157	164	7	7.0
							182	206	24	1.8
AFRDD082	Fobinso	27380	13994	180	180	-60	59	61	2	7.2
							71	91	20	5.6
						incl.	88	90	2	47.8
							164	172	8	1.1
AFRDD086	Fobinso	27360	14040	204	180	-50	94	99	5	1.6
							110	140	30	1.2
							147	168	21	1.7
							188	195	7	5.5
						incl.	194	195	1	33.7

Table 7: Significant Recent Infill and Extensional Drilling, Ayanfuri Gold Project (cont.)

* denotes ended in mineralisation

Only holes that have grams x metre intercepts totaling more than 100, reported

Table 8: Significant Exploration Drill Intercepts at Mampon, Fetish and Fobinso Prospects

Ayanfuri Gold Project

Hole		East	North	Depth	Azm.	Incl.	From	To	Width	Au
		(m)	(m)	(m)	(˚)	(˚)	(m)	(m)	(m)	g/t
ADD137	Fetish	5320	3520	342.9	273	-50	234	235	1	6.8
							251	272	21	1.1
							275	276	1	6.2
							293	299	6	3.0
ADD139	Fetish	3410	5480	242.3	271	-50	208	225	17	2.6
						incl.	223	224	1	15.0
AFRDD080	Fobinso	27640	14040	201.2	180	-50	168	199	31	2.2
						incl.	174	179	5	5.9
						and	186	189	3	6.1
AFRDD081	Fobinso	27720	14049	197.7	180	-50	158	165	7	4.1
						incl.	162	163	1	21.5
FBDD032	Fobinso	27719	14110	248	182	-50	186	187	1	5.2
							210	217	7	2.7
							225	226	1	9.1
FBDD033	Fobinso	27680	14080	242	182	-50	195	215	20	2.2
						incl.	195	196	1	15.0
							221	229	8	0.8
FBDD034	Fobinso	27640	14011	152.4	179	-42	122	136	14	1.8
MPRC038	Mampong	24480	13420	72	180	-50	62	64	2	2.7
MPRC039	Mampong	25240	13445	84	179	-50	65	68	3	1.1
							91	97	6	1.8
MPRC042	Mampong	24560	13460	114	179	-50	13	34	21	2.7
						incl.	27	30	3	14.8
MPRC043	Mampong	24480	13439	83	179	-50	12	24	12	1.4
							49	55	6	1.0
							78	83	5	1.8
MPRC044	Mampong	24724	13419	80	180	-50	52	66	14	2.3
						incl.	63	66	3	6.4

Table 8: Significant Exploration Drill Intercepts at Mampon, Fetish and Fobinso Prospects Ayanfuri Gold Project (cont.)

Hole		East(m)	North(m)	Depth(m)	Azm.(˚)	Incl.(˚)	From(m)	To(m)	Width(m)	Aug/t
MPRC056	Mampong	25160	13405	50	180	-50	6	16	10	1.1
MPRC057	Mampong	25160	13445	90	180	-50	42	58	16	3.2
						incl.	50	54	4	10.6
ASH026	Sterlization	26520	13340	60	180	-55	32	34	2	48.6
ASH029	Sterlization	26320	13340	60	180	-55	24	28	4	2.2

Table 9: Summary of Diamond Drill Intercepts, Tengrela Gold Project, Ivory Coast

Hole	East	North	Depth	Azm.	Incl.	From	To	Width	Au
	(m)	(m)	(m)	(˚)	(˚)	(m)	(m)	(m)	g/t
SD025	806420	1154400	293	90	-50	201	216	15	1.4
						226	232	6	0.8
						254273	267278	135	1.60.6
						284	285	1	3.3
SD026	806600	1153920	265	90	-50	22.5	24	1.5	1.2
SD028	806520	1154000	250	90	-50	190	192	2	1.1
SD029	806540	1154400	230	90	-50	13.5	15	1.5	1.3
						107	113	6	1.5
						117	121	4	2.1
						128	149	21	1.2
						152	153	1	1.4
						202	206	4	1.0
SD030	806460	1154400	320	90	-50	10.5	15	3.5	0.8
						149	161	12	1.9
						168	171	3	2.1
						177	183	6	11.7
					incl.	180	183	3	21.1
						198	201	3	1.0
						207	213	6	2.2
						215	216	1	1.3
						229	235	6	0.7
						238	244	6	5.5
						249	257	8	1.0
						305	306	1	1.4
SD031	806570	1154560	275	90	-50	13.5	15	1.5	3.6
						51	54	3	2.8
						58.5	102	43.5	1.4
						107	109	2	6.6
						118	121	3	1.1
						167	168	1	6.0
SD032	806450	1154560	285.5	85	-50	111	112	1	3.8
						121187	122188	11	3.11.5
SD037	806574	1154120	172	100	-50	46.5	147	100.5	2.6
					incl.	55.5	116	60.5	3.1
					and	120	128	8	3.3
SD038	606500	1154120	262	90	-50	121	156	35	2.1
					incl.	142	143	1	10.5
						173	210	37	1.6
					incl.	207	209	2	9.8
						223	226	3	3.3

Hole	East(m)	North(m)	Depth(m)	Azm.(˚)	Incl.(˚)	From(m)	To(m)	Width(m)	Aug/t
SD039	806740	1154200	350	270	-50	24116	30129	613	1.73.8
					incl.	121	122	1	26.9
					and	128	129	1	17.2
						138	157	19	0.6
						162	193	31	1.8
					incl.	188	189	1	16.8
						203	216	13	1.1
						225	240	15	2.5
					incl.	237	238	1	28.1
						256	330	74	0.6
					incl.	260	261	1	12.0
SD040	806780	1154200	349	270	-50	40.5	42	1.5	3.8
						75	85.5	10.5	0.9
						144	145	1	1.3
						157	158	1	3.0
						188	196	8	0.6
						207	239	32	3.0
					incl	219	220	1	19.0
					and	226	227	1	43.0
						253	254	1	2.2
						280	281	1	1.1
						286	290	4	1.3
						333	338	5	1.6
SD041	806700	1154200		270	-50	33	34.5	1.5	1.3
						51	85.5	34.5	0.7
						94.5	223.3	128.8	1.7
					incl.	95.5	96.3	0.8	61.9
					incl.	122.3	123.3	1	13.4
						128.3	146.3	18	3.4
					incl.	128.3	129.3	1	18.9
					and	143.3	144.3	1	19.9
						157.8	158.8	1	12.5
						231.9	238.5	6.6	2.5
						250	257	7	1.0
						289.8	303.3	13.5	0.9
						310	338	28	1.6
						348	352.5	4.5	1.0
						357.2	358.2	1	2.8

Table 9: Summary of Diamond Drill Intercepts, Tengrela Gold Project, Ivory Coast (cont.)

Notes

Half core samples analyzed by fire assay method.

Intercepts containing one or more assays above 1g/t Au included.

	Table 10: Summary of Recent RC Drill Intercepts, Tengrela Gold Project, Ivory Coast
--	-------------------------------------------------------------------------------------	--	--

Hole	East(m)	North(m)	Depth(m)	Azm.(˚)	Incl.(˚)	From(m)	To(m)	Width(m)	Aug/t
SRC207	806660	1154720	80	279	-60	56	80*	24	0.6
SRC208	806700	1154720	84	270	-60	36	54	18	0.6
						68	76	8	1.6
SRC210	806100	1154560	84	90	-60	30	34	4	1.4
SRC211	806080	1155380	82	270	-60	62	64	2	1.9
SRC212	806040	1155380	84	270	-60	8	22	14	0.9
						34	38	4	1.3
SRC215	806000	1155380	80	270	-60	6	8	2	1.1
						18	20	2	1.1
						50	52	2	1.1

Table 10: Summary of Recent RC Drill Intercepts, Tengrela Gold Project, Ivory Coast (cont.)

Hole	East(m)	North(m)	Depth(m)	Azm.(˚)	Incl.(˚)	From(m)	To(m)	Width(m)	Aug/t
SRC218	806200	1155220	79	270	-60	12	52	40	1.1
						60	62	2	2.3
						72	79*	7	2.7
SRC219	806160	1155220	80	270	-60	2	4	2	1.1
						10	14	4	1
SRC223	805960	1155220	80	270	-60	53	55	2	1.4
SRC224	806800	1153760	80	270	-60	29	31	2	1.5
SRC227	806820	1153920	60	270	-60	26	34	8	2.4
SRC230	806860	1153840	48	270	-60	36	44	8	46.8
				incl.		36	38	2	165.5
				and		40	42	2	18.6
SRC231	806820	1153840	70	270	-60	2	4	2	1.1
						8	10	2	1.0
SRC234	807000	1153880	80	270	-60	56	60	4	1.5
SRC235	806840	1154000	90	270	-60	2	4	2	3.8
						76	88	12	2.0
SRC237	806780	1154080	60	270	-60	48	60*	12	2.2
				incl.		50	52	2	7.7
SRC239	806820	1154120	82	270	-60	42	48	6	1.2
SRC240	806780	1154160	72	270	-55	10	12	2	1.3
						48	54	6	0.7
SRC243	806140	1154120	88	270	-50	44	48	42	1.2
						54	56	6	0.7
						82	88	4	1.3
SRC244	806100	1154120	50	270	-50	4	6	6	2.0
SRC245	806120	1150040	60	270	-50	1410	2016	6	0.60.9
SRC246	806160	1154040	80	270	-50	30	32	2	1.7
						52	60	8	2.1
						66	80*	14	1.9
SRC247	806140	1154360	80	270	-55	44	46	20	1.1
SRC248	806140	1154440	57	270	-55	42	44	2	1.3
SRC250	806100	1154480	84	270	-55	14	18	4	1.4
						66	68	2	1.1
SRC257	806320	1154400	60	270	-55	8	10	2	2.4
SRC258	806360	1154400	90	270	-55	54	84	30	4.0
					incl.	68	78	10	8.9
SRC259	806340	1154360	60	270	-55	16	18	2	2.1
						32	42	10	4.1
					incl.	40	42	2	13.8
SRC261	806420	1154240	60	270	-55	14	18	4	0.9
						36	40	4	3.1
						50	58	8	1.0
SRC262	806000	1155520	80	270	-60	28	36	8	0.9
SRC265	806120	1155520	80	270	-60	44	46	2	5.2
						56	62	6	1.1
SRC269	806480	1154800	72	270	-55	56	64	8	0.9
SRC270	806440	1154800	80	270	-55	6	22	16	0.6

Notes

* denotes open ended intercept

Intercepts containing one or more assays above 1g/t Au included

Hole	East	North	Depth	Azm.	Incl.	From	To	Width	Au
	(m)	(m)	(m)	(˚)	(˚)	(m)	(m)	(m)	g/t
KATRB071	806008	1130600	40	90	-60	12	16	4	0.5
KATRB077	806130	1130600	30	90	-60	24	30*	6	0.4
KATRB079	806164	1130600	32	90	-60	4	12	8	0.5
KATRB142	806163	1130400	38	90	-60	28	36	8	0.8
KATRB153	806194	1131200	45	90	-60	16	20	4	0.6
KATRB170	806196	1130800	38	90	-60	0	8	8	3.7
					incl.	4	8	4	7.1
						24	32	8	0.8
					incl.	24	28	4	1.3
KATRB173	806254	1130800	29	90	-60	4	29*	25	0.5
					incl.	16	24	8	1.0
KATRB178	806104	1130900	30	90	-60	12	16	4	0.6
KATRB181	806169	1130900	43	90	-60	0	16	16	1.4
					incl.	4	12	8	2.6
KATRB189	806056	1131100	15	90	-60	0	12	12	0.9
					incl.	0	4	4	1.9
KATRB194	806186	1131100	25	90	-60	20	25*	5	0.5
KATRB195	806201	1131100	21	90	-60	4	12	8	0.5
KATRB196	806214	1131100	37	90	-60	0	4	4	0.9
						32	37*	5	0.6
KATRB197	806122	1130900	36	90	-60	4	8	4	0.7

Table 11: Summary of RAB Drill Intercepts, Katara Prospect, Tengrela Gold Project, Ivory Coast

Notes

* denotes open ended intercept

Intercepts containing one or more 4m assays above 0.5g/t Au included

Table 12: Summary of Recent RC Drill Intercepts, Grumesa Project, Ghana

DHID	East	North	Depth	Azm.	Incl.	From	To	Width	Au
	(m)	(m)	(m)	(˚)	(˚)	(m)	(m)	(m)	g/t
KRC751	60158	91120	40	90	-60	2	24	22	0.5
KRC755	60140	91161	60	90	-60	30	44	14	0.6
						56	58	2	1.0
KRC758	60080	91161	60	90	-60	24	54	30	0.8
KRC760	60040	91161	60	90	-60	24	38	14	0.6
KRC761	60023	91161	60	90	-60	2	14	12	1.0
						52	60	8	0.6
KRC762	59981	91161	60	90	-60	34	60	26	0.4
KRC763	60004	91161	60	90	-60	14	24	10	0.4
						44	54	10	0.6
KRC766	59922	91160	60	90	-60	20	36	16	0.5
KRC767	59902	91160	60	90	-60	8	12	4	1.6
						36	42	6	1.8
KRC769	59862	91160	60	90	-60	26	30	4	1.0
						50	58	8	0.6
KRC772	60098	91241	60	90	-60	20	34	14	0.6
KRC773	60081	91241	60	90	-60	46	58	12	0.4
KRC778	59980	91241	60	90	-60	2	20	18	0.6
						34	52	18	0.6

Month	AF_dd(1)	AF_rc(2)	GRU_rc(3)	TEN_dd(4)	TEN_rc(5)	TEN_rab(6)	Total
Jan	3,679	631	1,380	403	725	314	7,132
Feb	4,654	7,527	1,620	1,105	1,466	2,729	19,101
Mar	2,821	1,875	2,280	1,673	1,319	2,128	12,096
2008 Q1	11,154	10,033	5,280	3,181	3,510	5,171	38,329
Apr	3,413	4,704	-	1,835	1,017	-	10,969
May	4,271	4,182	3,232	1,799	536	2,687	16,707
Jun	6,407	1,727	2,229	2,056	786	2,601	15,806
2008 Q2	14,091	10,613	5,461	5,690	2,339	5,288	43,482
July	6,692	1,457	1,460	1,508	825	1,151	13,093
Aug	6,826	4,924	-	2,103	2,303	2,128	18,284
Sept	5,634	6,268	-	3,080	3,383	-	18,365
2008 Q3	19,152	12,649	1,460	6,691	6,511	3,279	49,742

Table 13: Meters Drilled (Jan-July 2008)

Notes

1. Ayanfuri diamond drilling

2. Ayanfuri reverse circulation ("RC") drilling

3. Grumesa RC drilling

4. Tengrela diamond drilling

5. Tengrela RC drilling

6. Tengrela rotary air blast ("RAB")drilling

Appendix 5B

Mining exploration entity quarterly report

Name of entity

PERSEUS MINING LIMITED

ABN Quarter ended ("current quarter")

27 106 808 986 30 September 2008

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(b) development(c) production	(7,702)--	(7,702)--
	(d) administration	(617)	(617)
1.3	Dividends received	-	-
1.4	Interest and other items of a similar nature
	received	154	154
1.51.6	Interest and other costs of finance paidIncome taxes paid	(7)-	(7)-
1.7	Other –	-	-
	Net Operating Cash Flows	(8,172)	(8,172)
	Cash flows related to investing activities
1.8	Payment for purchase or renewal of:
	(a) prospects(b) equity investments	--	--
	(c) other fixed assets	(338)	(338)
1.9	Proceeds from sale of:(a) prospects	-	-
	(b) equity investments	-	-
	(c) other fixed assets	-	-
1.10	Loans to other entities	(2)	(2)
1.11	Loans repaid by other entities	769	769
1.12	Other - decrease in cash due to deconsolidation of
	Kyrgyz subsidiaries	(143)	(143)
1.12	Other - Environmental bond deposit	(521)	(521)
	Net investing cash flows	(235)	(235)
1.13	Total operating and investing cash flows (carriedforward)	(8,407)	(8,407)

1.13	Total operating and investing cash flows (broughtforward)	(8,407)	(8,407)
1.14	Cash flows related to financing activitiesProceeds from issues of shares, options, etc.	80	80
1.15	Proceeds from sale of forfeited shares	-	-
1.161.17	Proceeds from borrowingsRepayment of borrowings	--	--
1.18	Dividends paid	-	-
1.19	Other –share issue expenses	53	53
	Net financing cash flows	133	133
	Net increase (decrease) in cash held	(8,274)	(8,274)
1.201.21	Cash at beginning of quarter/year to dateExchange rate adjustments to item 1.20	19,297265	19,297265
1.22	Cash at end of quarter	11,288	11,288

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	311
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
196
115

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.

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

Estimated cash outflows for next quarter

	Total	5,000
4.2	Development	-
4.1	Exploration and evaluation	5,000
		$A'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	792	711
5.2	Deposits at call	10,496	18,586
5.3	Bank overdraft	-	-
5.4	Other (provide details)	-	-
	Total: cash at end of quarter (item 1.22)	11,288	19,297

At 30 September 2008, the Company had US$2.258 million (approximately AUD$3.6m at the date of this report) 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 some Ghana mineral permits. 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	Interestat end ofquarter
6.1	Interests in miningtenementsrelinquished, reducedor lapsed	N/A.
6.2	Interests in miningtenements acquiredor increased	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)	Amount paid upper security (cents)
7.1	Preference+securities(description)	-	-	-	-
7.2	Changes duringquarter	-	-	-	-
7.3	+Ordinarysecurities	174,754,267	174,754,267
7.4	Changes duringquarter
	Exercise of options	400,000	400,000	20 cents	20 cents
7.5	+Convertible debtsecurities(description)	-	-	-	-
7.6	Changes duringquarter	-	-	-	-
7.7	Options(description andconversion factor)	12,705,969700,000525,000150,000610,0003,800,000400,0001,080,000	10,405,969-------	Exercise price20 cents26 cents50 cents65 cents$1.00$1.50$1.30$1.15	Expiry date31/03/200901/12/200801/04/201030/05/201012/07/201031/07/201026/10/201026/02/2011
7.8	Issued duringquarter	50,000150,000150,000	---	$1.15$1.50$1.50	31/03/201110/07/201110/07/2011
7.9	Exercised duringquarter	(400,000)	(400,000)	20 cents	31/03/2009
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 2008