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PERSEUS MINING LIMITED Interim / Quarterly Report 2009

Oct 29, 2009

46513_rns_2009-10-29_8ec5a70d-0b2f-48d4-a6cb-0ea51716f231.pdf

Interim / Quarterly Report

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QUARTERLY REPORT

30 October 2009

Exchanges :

ASX : PRU

Börse Frankfurt: P4Q

Issued Shares : 303.4M

Unlisted

Options : 11.4M

Cash at bank (Sept 09) $61M

Reserves:

Ghana

2.1Moz

Resources:

Ghana

4Moz

Ivory Coast

1Moz

SEPTEMBER 2009 QUARTERLY ACTIVITY REPORT

Highlights

Ayanfuri - Ghana

Significant progress has been made on the pre-development stage for the Ayanfuri Gold Project, including:

  • Fixed lump sum tender prices received for process plant engineering contract - three of the four prices were within the DFS estimate.

  • Perseus awarded Lump Sum Contract to a JV between South African companies DRA and Group Five for construction of Ayanfuri process facility. The tender price is lower than the feasibility estimate and the indicated construction timeline provides potential for early completion.

  • The Company has committed to immediate funding of design and equipment expenditure and expects to provide access to site in Q1 2010.

  • Indicative financing term sheets received and negotiations have commenced.

  • Mining Licence renewal application and Draft EIS presented to Ghanaian Government Authorities.

  • Recruitment of key personnel has commenced.

Exploration and resource drilling is continuing with three rigs currently on site. Highlights for the September quarter include:

  • Deeper drilling below existing pits confirms continuation of mineralisation below the limit of existing resource estimates.

  • High grade results were encountered over significant widths at Fobinso. Results for one deeper hole included 127m at 3.1g/t Au, including 37m at 6.8g/t Au.

Tengrela - Ivory Coast

A total of 9,643m of RC and diamond drilling and 10,062m of RAB drilling was completed on the Sissingue prospect and its extensions. Highlights for the quarter were:

  • High grade intercepts including 20m at 65.5g/t, 14m at 28.7g/t, 15m at 15.1g/t and 32.8m at 4.9g/t Au

  • RAB drilling discovered further mineralisation along strike to the north of Sissingue.

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Corporate

The Company has also expanded the Board of Directors with the appointment of two non-executive directors:

T. Sean Harvey - Based in Toronto, Canada, Mr. Harvey will use his extensive experience in the investment banking and resource sectors to assist the Company as it seeks to broaden global market awareness in North America. For the last 10 years Sean has been a senior officer or director of various TSX listed mining companies including current directorships of Andina Minerals Inc., Moto Goldmines Limited and previous directorships with Orvana Minerals Inc., TXV Gold Inc. and Atlantico Gold.

Michael Bohm - An experienced mining professional with extensive international corporate, project and operational management experience. A graduate of the WA School of Mines, Michael has worked as a mining engineer, mine manager, project manager and project director and has been directly involved in a number of project developments in the gold, nickel and diamond sectors. Michael has sat on the boards of ASX, TSX and AIM-listed companies, including previous directorships at Ashton Mining of Canada (TSX) and Sally Malay Mining Limited (ASX), and is currently the Managing Director of AIM-listed Herencia Resources plc.

In October Perseus announced a $58.5 million capital raising at $1.50 per share which was heavily sought after by leading Australian and international institutions. The $35.1 million Canadian portion of this raising is subject to Perseus listing on the Toronto Stock Exchange (“TSX”) within three months. The TSX listing will assist in expanding the Company’s shareholder base and provide added exposure to leading institutional resource investors.

Program for the December Quarter

During the December Quarter Perseus plans to:

At Ayanfuri

  • Complete the Environmental Impact Statement public hearing for Ayanfuri Gold Project.

  • Nominate a lead financier.

  • Continue infill and extensional drilling.

At Tengrela

  • Continue exploration resource drilling at Sissingue.

  • Commence detailed metallurgy for the Sissingue deposit.

  • Carry out follow up drilling of regional targets.

Overview

Perseus is an advanced West African gold explorer with its two most advanced projects at different stages of evaluation and development:

Ayanfuri – Part of the Central Ashanti Gold Project, Ayanfuri comprises a group of large gold deposits with reserves and resources totalling more than 5M ounces located in the central Ashanti gold belt in Ghana. The Ayanfuri feasibility study for Phase 1 development has been completed, confirming robust economics for the project, which is now at the pre-development stage.

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Tengrela – is an underexplored project with a current initial 1.0 million ounce open-ended gold resource on one of a number of prospects and significant upside potential. A preliminary economic scoping study was completed in February 2009 and resource drilling will continue throughout 2009.

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Ghana

Ayanfuri Gold Project Development

Engineering Tender

The eight-week long tender process for the ‘Lump Sum’ construction of the 5.5mtpa Ayanfuri process facility ended on 29 September 2009. Four conforming tenders were received, three of which were competitively priced and within the Definitive Feasibility Study (“DFS”) estimate of US$148M.

Perseus has subsequently issued a letter of intent to a Joint Venture (“JV”) between DRA Mineral Projects (Pty) Ltd (“DRA”) and Group Five Projects (Pty) Ltd, agents for Group Five Construction (Pty) Ltd (Group Five) on a Lump Sum turnkey basis.

The JV was selected as the combined strength of DRA and Group Five provides extensive relevant experience to the project. DRA are a well established and respected South African based design engineering group with more than 200 professional engineers, while Group Five employs over 12,000 people and has extensive gold process plant construction experience in Africa and more particularly in Ghana. The combined experience will provide a strong team dedicated to achieving the project milestones.

The successful tender included a process facility design identical to the DFS, at a cost less than the US$88M allocated to it in the DFS.

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The relatively low cost for the 5.5Mtpa process facility at Ayanfuri is achievable mainly due to the coarse grind size (P80 of 212 micron), small CIL circuit and quick construction time. The award provides for fine tuning of the capital costs before project documentation signing, at which stage the quantum of the potential saving to the DFS estimate can be advised.

The Company has agreed to fund up to US$30M for immediate expenditure requirements related to initial design, long lead items and site construction commencement.

Project Financing

Nine financial institutions submitted indicative terms sheets for funding participation in the project. Perseus’s financial adviser, Noah’s Rule, has confirmed an excellent level of competition amongst the financiers and the process of ‘short listing’ has commenced. The selection of the lead financier is scheduled to occur by the end of November 2009.

In August Perseus took an initial step in the execution of its Ayanfuri Project finance strategy by purchasing gold put options (“Puts”) maturing over 2012 and 2013 for US$9.1 million. The Puts are over 100,000 ounces, representing approximately 22% of planned production in that period, enabling the Company to sell those ounces at US$850/oz should the prevailing price be less, or at prevailing spot prices if they are higher, thus providing a cost effective method of underpinning Perseus’s project financing objectives whilst maintaining maximum flexibility and upside.

The purchase of the put options has significantly reduced the requirement for committed hedging (forward sales) to support the proposed debt. As a result, the Company expects committed hedging, if applied, will not exceed 10% of reserves.

Approvals

The draft Environmental Impact Statement has been submitted to the Ghanaian EPA and a request for a mining lease extension incorporating the DFS mine plan has been submitted to the Minerals Commission.

The Government approval process is progressing and the Company expects to be able to provide access to site for the JV in Q1 2010.

Management Additions

The Company is in the process of assembling its team for the construction and mining operation. During the last 3 months the Company has recruited a Principal Metallurgist and an Accra based Commercial Manager for the project.

Exploration

6,846m of RC and diamond drilling was completed at Ayanfuri and Grumesa during the September Quarter. A number of deeper drill holes have been completed to test below the limits of previous resource estimates.

Results to date at Ayanfuri have confirmed the continuation of gold mineralisation of generally similar tenor, except for the Fobinso deposit, where high grade gold mineralisation was encountered over a substantial width. Core hole FBDD041, the first deeper hole at Fobinso, returned 127m at 3.1g/t Au

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from 125m, including 37m at 6.8g/t Au from 126m. The true widths of the intercepts are about 110m and 32m respectively. Holes 40m on either side of core hole FBDD041 also encountered significant but weaker gold mineralisation. The high grade shoot is associated with strong quartz veining in a flexure zone within the granite host rock. Although apparently limited in strike length by drilling to date, this new high grade shoot is open at depth.

The current pit design at Fobinso is to about 100m vertical depth, however mineralisation intercepted in FBDD041 extends from 10m to 120m below that pit design.

Results for recent deeper Ayanfuri holes are contained in Table 1.

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Mining Licences - Ayanfuri Gold Project, Ghana

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Tengrela Gold Project (Ivory Coast)

A total of 9,643m of RC and diamond drilling and 10,062m of RAB drilling were completed at the Sissingue prospect in the September Quarter. The less than expected drill progress is currently being addressed with the addition of further rigs.

Further significant RC and diamond drill results for the September quarter included:

SRC 637 - open ended 68m at 21.3g/t Au from 10m including 20m at 65.5g/t Au from 58m; SRC 674 - 14m at 28.7g/t Au from 48m including 8m at 49.4g/t Au from 48m; SD 073 - 86m at 3.2g/t Au from 85m; SD 074 - 14.3m at 2.0g/t Au from 52m and 32.8m at 4.9g/t Au from 73m; SD 075 - 15m at 15.1g/t Au from 102m including 1m at 217.3g/t Au from 110m; SRC 638 - 78m at 1.7g/t Au from surface to the end of the hole; SD 076 - 13.5m at 3.8g/t Au from 45.7m, assays pending from 100m; SRC652 - 20m at 3.5g/t Au from 52m; SRC650 - 8m at 1.8g/t Au from 14m and 16m at 3.2g/t Au from 40m; SRC667 - 16m at 3.6g/t Au from 14m, and SRC676 - open ended 2m at 34.4g/t Au from 68m and 24m at 1.6g/t from 28m.

Drill hole SRC637 was sited 15m from previously announced SRC046, which intercepted 4m at 175g/t plus 24m at 4.3g/t Au, and 95m from SRC044 which intercepted 8m at 113.8g/t Au. Mineralisation intercepted in SRC637 and SRC046 is likely to be the same zone, whilst mineralisation intercepted in SRC044 is probably a separate zone. Significant intercepts from other recent holes are set out in Table 2.

RAB drilling 4.5 km along strike to the north of the previous northern limit of the Sissingue zone intercepted significant mineralisation, including 16m at 1.1g/t and 4m at 10.3g/t Au. Additional drilling will be undertaken between Sissingue and the recent discovery to test potential below transported cover.

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Central Sissingue Prospect – Tengrela Project, Ivory Coast

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Mark Calderwood Managing Director 30 October 2009

To discuss any aspect of this announcement, please contact Robert Williams at telephone +61 2 9332 4448 or email [email protected] or Mark Calderwood at telephone +61 8 9240 6344 or email [email protected]

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.

Statements regarding the Company’s plans with respect to its mineral properties are forward-looking statements. There can be no assurance that the plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that the Company will be able to convert Inferred resources to Indicated resources, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of the Company’s mineral properties.

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Table 1: Summary of Recent Deeper Drilling – Ayanfuri Gold Project Ghana

Hole
Deposit
East
North
Depth
Azm. Incl. From
To
Width
Au
(m)
(m)
(m)
(°) (°) (m)
(m)
(m)
g/t
ADD151
Fetish
3520
5160
601
270 -75 258
430
172
1
incl 277
288
11
4.6
incl 277
278
1
22
553
564
11
2.3


587
598
11
1.9
AKRDD231
Esuajah S
1750
6240
591.4
90 -82 386
406
20
1.4
431
447
16
1.1
454
470
16
1
485
497
12
1.4
524
549
25
1.7
560
575
15
1.1
AKRDD233
Esuajah N
2210
7280
510.5
90 -80 331
348
17
1.0
405
451
46
1.6
incl 437
447
10
4.2
incl 437
439
2
15.2
ABDD108
AF-Gap
26440
13980
359
180 -60 259
300
41
1.1
306
335
29
1.0
343
349
6
1.0
ABRDD384
AF-Ga
26400
13946
3663
180 -60 1948
345
1502
16

p


.
.

.
.
incl. 264
280
16
4.3
and 316
334
18
3.8
ABRDD385
AF-Gap
26360
13959
432
180 -57 224
234
10
0.8
239
243
4
1.4
250
263
13
0.8
287
295
8
1.1
304
308
4
1.9
337
388
51
1.3
ABRDD386
Abnabna
26030
13819
393.1
180 -60 199
216
17
0.9
228
283
55
1.7
incl. 279
280
1
18.2
289
322
33
1.4
335
341
6
1.3
363
378
15
1.6

9

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Table 1 (continued) Summary of Recent Deeper Drilling – Ayanfuri Gold Project, Ghana

Hole
Deposit
East
North
Depth
Azm.
Incl.
From
To
Width
Au
(m)
(m)
(m)
(°)
(°)
(m)
(m)
(m)
g/t
ABRDD387
AF-Gap
26050
13800
396.2
180
-67
174
195
21
1.4
237
275
38
1.1
208
218
10
1.1
227
231
4
2.0


247
359
112
1.3
incl. 255
256
1
65.2
ABRDD388
Abnabna
25970
13780
330.2
180
-65
194
223
29
1.4
incl. 222
223
1
17.2
237
299
62
1.2
incl. 297
298
1
12.5
306
320
14
0.9
ABRDD389
Abnabna
25990
13855
387.2
179
-55
248
252
4
1.2
265
271
6
1.2
276
302
26
1.3
incl. 301
302
1
12.8
309
327
18
1.0
337
354
17
0.8
FBDD041
Fobinso
27380
14070
270.5
179
-60
125
252
127
3.1
incl 127
164
37
68
.

.
incl. 128
131
3
11.1
and 141
150
9
12.5
and 160
164
4
12.0
FBDD042
Fobinso
27420
14080
260
180
-60
138
149
11
0.9
192
228
36
1.4
incl. 208
217
9
3.1
incl. 215
216
1
15.9
246
249
3
2.4
FBDD043
Fobinso
27340
14070
274
180
-60
153
166
13
1.0
172
181
9
1.1
187
195
8
1.0

Notes

  1. All mineralised intervals were sampled using diamond drill core sampled at 1m sample intervals and analysed using fire assay.

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– Table 2: Significant RC and Diamond Drill Intercepts Sissingue Prospect, Ivory Coast

Hole
East
North
Depth
Azm.
Incl.
From
To
Width
Au
(m)
(m)
(m)
(°)
(°)
(m)
(m)
(m)
g/t
SRC600
806560
1154440
80
270
-55
50
80*
30
1.2
SRC601
806525
1154580
50
270
-55
36
50*
14
1.9
SRC612
806260
1154800
80
270
-55
40
48
8
2.1
SRC614
806260
1155000
72
270
-55
4
16
12
1.0
SRC615
806220
1155000
30
270
-55
10
20
10
2.1
SRC621
806100
1154560
80
270
-55
8
32
24
1.7
incl. 28
30
2
12.4
76
78
2
34.7
SRC636
806636
1154320
54
90
-60
30
54
24
1.8
incl. 52
_54
_2

15.6*
SRC637
806606
1154320
80(3)
90
-60
10
78
68
21.3*
incl. 24
26
2
28.9
and 58
78
20
65.5
incl. 60
74
14
82.9
incl. 60
62
2
137.7
and 70
74
4
122.7
SRC638
806640
1154295
78
270
-55
0
78
78
1.7
incl. 60
62
2
17.3
SRC641
806660
1154340
70
270
-55
18
20
2
6.8
32
54
22
1.1
SRC642
806620
1154340
80
270
-55
6
40
34
1.1
SRC643
806680
1154300
66
270
-55
44
52
8
1.6
SRC644
806720
1154300
74
270
-55
54
64
10
1.4
SRC645
806760
1154300
72
270
-55
4
14
10
1.1
SRC646
806715
1154320
66
90
-60
62
66*
4
3.8
SRC648
806380
1154320
78
270
-55
60
78*
18
2.1
SRC649
806645
1154240
45
90
-50
20
28
8
2.6

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– Table 2 (cont): Significant RC and Diamond Drill Intercepts Sissingue Prospect, Ivory Coast

Hole
East
North
Depth
Azm.
Incl.
From
To
Width
Au
(m)
(m)
(m)
(°)
(°)
(m)
(m)
(m)
g/t
SRC650
806680
1154200
63
270
-50
14
22
8
1.8
40
56
16
3.2
SRC651
806775
1154003
35
270
-55
10
20
10
1.1
SRC652
806820
1154000
80
270
-55
52
72
20
3.5
incl. 52
54
2
15.6
SRC653
806805
1153960
35
270
-55
14
28
14
1.0
SRC665
806720
1154120
80
270
-60
18
30
12
2.0
SRC667
806642
1154123
90
270
-60
14
30
16
3.6
incl. 14
16
2
21.4
SRC669
806442
1154200
80
270
-50
32
52
20
2.0
SRC674
806875
1154080
90
270
-55
48
62
14
28.7
incl. 48
56
8
49.4
incl. 50
52
2
171.1
SRC675
806805
1154160
80
270
-55
36
38
2
6.0
SRC676
806117
1154120
70
270
-50
28
52
24
1.6
68
70
2
34.4*
SRC677
807080
1153880
68
270
-55
30
50
20
1.0
SRC682
807360
1153200
80
270
-55
50
60
10
2.5
SRC683
807340
1153230
80
270
-55
50
56
6
2.7
SRC686
807340
1153360
87
270
-55
30
32
2
7.4
SD073
806540
1154120
230.1
90
-52
85
171
86
3.2
incl. 85
86
1
23.7
and 107
108
1
35.1
and 129
135
6
8.7
and 169
170
1
10.4
SD074
806595
1154120
137.1
90
-51
31.5
37.5
6
1.7
52
66.3
14.3
2.0
73
105.8
32.8
4.9
incl 79
81
2
36.7
and 94
95
1
10.7
and 103
105.8
2.8
13.3

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– Table 2 (cont): Significant RC and Diamond Drill Intercepts Sissingue Prospect, Ivory Coast

Hole
East
North
Depth
Azm.
Incl.
From To
Width
Au
(m) (m)
(m)
(°)
(°)
(m) (m)
(m)
g/t
SD075
806865
1154000
137.1
270
-57
102 117
15
15.1
incl 110 111
1
217.3
SD076
806565
1154240
200.1
90
-52
45.7 59.2
13.5
3.8
incl 51.6 54
2.4
10.7
73 81
8
1.3
100 200
assays
pending


SD076
806565
1154240
200.1
90
-52
110 131
21
2.4
incl. 117 121
4
7.5
incl. 120 121
1
15.7
SD077
806600
1154320
119.2
90
-62
13.4 17.9
4.5
1.4
27 30
3
2.4
43.6 81
37.4
2.3
incl. 48.1 57.2
9.1
4.6
108 110
2
8.5
incl. 109 110
1
12.8
SRCOX001
806580
1154400
68.7
90
-60
68 68.7
0.7
21.8
SRCOX002
806620
1154200
699
90
60
0 92
92
09


.

-
.
.
.
28.2 43.6
15.4
2.7
incl. 33.7 34.7
1
18.4
52 53.9
1.9
17.8
60 62
2
11.3

Notes:

  1. RC results are fire assays of 2m composite samples; diamond results are fire assays from 1m samples.

  2. Intercepts of greater than 10 gram metres are reported.

  3. Only 78m of 80m hole were assayed due to the loss of the final sample, the last 2m of the hole has subsequently been resampled and assays are pending.

    • denotes open ended intercept

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- Table 3: Anomalous RAB Drill intercepts Sissingue

Hole
East
North
Depth
Azm.
Incl.
From
To
Width
Au
(m)
(m)
(m)
(°)
(°)
(m)
(m)
(m)
g/t
SRB752
803699
1161000
45
270
-60
20
36
16
1.1
SRB753
803679
1161000
35
270
-60
4
8
4
10.3
SRB873
807517
1155000
53
270
-60
8
12
4
1.6

Note: RAB results are fire assays from 4m composite samples.

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Table 4: Mineral Reserves (Gold) - Perseus Mining Limited Projects

Deposit Proven Proven Probable Probable Probable Total Total
Tonnes g/t Ounces Tonnes g/t Ounces Tonnes g/t Ounces
(million)
Au
Au (million)
Au
Au (million)
Au
Au
Ayanfuri
>0.5g/t(1)
18.4 1.4 828,000 37.2 1.1 1,313,000 55.5 1.2 2,141,000
Notes

1) Last updated on 30 July 2009

Table 5: Mineral Resources (Gold) - Perseus Mining Limited Projects (excluding reserves)

Deposit Measured & Indicated Measured & Indicated Measured & Indicated Inferred Inferred Total Total
Tonnes
(million)
g/t
Au
Ounces
Au
Tonnes
(million)
g/t
Au
Ounces
Au
Tonnes
(million)
g/t
Au
Ounces
Au
Ayanfuri
>0.8g/t(1)
15.8 1.5 764,000 30.2 1.5 1,441,000 46.0 1.5 2,205,000
Ayanfuri
0.4g/t- 0.8g/t(1)
14.1 0.6 267,000 31.9 0.7 691,000 46.0 0.6 958,000
Tengrela(2)
>1.0g/t
6.0 2.0 379,000 9.6 1.9 591,000 15.7 1.9 970,000
Grumesa
Sth>0.4 / 0.6g/t(3)
7.1 0.9 195,000 1.9 0.8 46,000 9.0 0.8 241,000
Grumesa
Nth>0.4g/t(4)
21.4 0.8 573,000 21.4 0.8 573,000
Totals>0.8g/t 28.9 1.4 1,338,000 41.7 1.5 2,078,000 70.7 1.5 3,416,000
Totals >0.4g/t 43.0 **1.2 ** 1,605,000 95.0 **1.1 ** 3,342,000 **138.1 ** **1.1 ** 4,947,000
Notes

1) Last updated on 30 July 2009

2) Maiden resource announced on 27 November 2008

3) Last updated on 30 April 2007

4) Last updated on 29 September 2006 5) The Company holds 90% of Ayanfuri, 90% of Grumesa and 80% of Tengrela after allowing for Government equity at mining stage

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15

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
Quarter ended (“current quarter”)
27 106 808 986 30 September 2009

Consolidated statement of cash flows

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
Net Operating Cash Flows
Current quarter
$A’000
Year to date
(3 months)
$A’000
-
(3,402)
-
-
(651)
-
401
(8)
-
-
-
(3,402)
-
-
(651)
-
401
(8)
-
-
(3,660) (3,660)
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 to other entities
1.11
Loans repaid by other entities
1.12
Other - Purchase of gold put options
1.12
Other
Net investing cash flows
1.13
Total operating and investing cash flows (carried
forward)
-
(833)
(118)
-
-
1
-
41
(10,889)
-
-
(833)
(118)
-
-
1
-
41
(10,889)
-
(11,798) (11,798)
(15,458) (15,458)

16

Appendix 5B Mining exploration entity quarterly report

1.13
Total operating and investing cash flows (brought
forward)
(15,458) (15,458)
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 (note below)
Net financing cash flows
20
-
-
-
-
(2,538)
20
-
-
-
-
(2,538)
(2,518) (2,518)
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
(17,976)
79,876
(1,274)
(17,976)
79,876
(1,274)
60,626 60,626

1.19 – Issue costs relating to capital raising concluded in prior period

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

Payments to related entities of the entity and associates of the related entities
1.23
Aggregate amount of payments to the parties included in item 1.2
1.24
Aggregate amount of loans to the parties included in item 1.10
Current quarter
$A'000
203
-
1.25 Explanation necessaryfor anunderstanding of thetransactions
A$’000
Directors fees, consultancy charges and remuneration
152
Accounting, secretarial and occupancy expenses 51

17

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

On 30 July 2009 Perseus announced the results of the Definitive Feasibility Study for the Ayanfuri Gold Project in Ghana. Consequently, in accordance with the terms of the purchase of the Ayanfuri Gold Project, Perseus Mining Limited issued 2 million shares and 2 million options to the vendor on 13 August 2009 for a total deemed value of $3.14 million.

  • 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

Estimated cash outflows for next quarter
4.1
Exploration and evaluation
4.2
Development
$A’000
6,000
17,000
Total 23,000

18

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
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
5.2
Deposits at call
5.3
Bank overdraft
5.4
Other (provide details)
738 1,293
59,888 78,581
- -
- -
Total: cash at end of quarter(item 1.22) 60,626 79,876

At 30 September 2009, the Company had US$2.258 million (approximately AUD$2.5 million 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

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
N/A.
N/A.

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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
Non-cash issue as
vendor
consideration
Exercise of options
300,487,088 300,487,088
2,000,000
30,000
2,000,000
30,000
92.5 cents
65 cents
92.5 cents
65 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
2,250,000
1,000,000
525,000
3,800,000
1,000,000
600,000
2,640,000
2,000,000
150,000
-
-
-
-
-
-
-
-
-
Exercise price
40 cents
80 cents
50 cents
$1.50
$1.00
$1.00
65 cents
60 cents
$1.30
Expiry date
30/11/2009
31/12/2009
01/04/2010
31/07/2010
31/12/2010
30/06/2011
23/01/2012
13/08/2011
29/09/2012
2,000,000
150,000
-
-
60 cents
$1.30
13/08/2011
29/09/2012
(30,000) - 65 cents 23/01/2012
- - - -
7.11
Debentures
(totals only)
- -
7.12
Unsecured notes
(totals only)
- -

20

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.

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Sign here: Print name: Mark Calderwood Managing Director

Date: 30 October 2009

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