PERSEUS MINING LIMITED — Interim / Quarterly Report 2011

Oct 28, 2010

Appendix 5B Mining exploration entity quarterly report

Appendix 5B

Mining exploration entity quarterly report

Name of entity

	PERSEUS MINING LIMITED
	ABN 27 106 808 986 Consolidated statement of cash flows		Quarter ended (“current quarter”)
			30 September 2010
				Year to date (3 months) $A’000 - (5,546) (43,494) - (1,991) - 895 - - - (50,136) - - (235) - - - - - - (235) (50,371)
	Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) Pre - 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
		- (5,546) (43,494) - (1,991) - 895 - - -		- (5,546) (43,494) - (1,991) - 895 - - -
		(50,136)		(50,136)
	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 Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - (235) - - - - - -		- - (235) - - - - - -
		(235)		(235)
		(50,371)		(50,371)

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(50,371)	(50,371)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other –share issue expenses Net financing cash flows	4,849 - - - - (46)	4,849 - - - - (46)
	4,803	4,803
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	(45,568) 185,592 (9,804)	(45,568) 185,592 (9,804)
	130,220	130,220

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

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		468
		-
1.25	Explanation necessaryfor an understandingof the transactions
	A$’000 Directors fees, consultancy charges and remuneration 379 Accounting, secretarial and occupancy expenses 89

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Appendix 5B Mining exploration entity quarterly report

Non-cash financing and investing activities

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

N/A.

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

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities (refer note below) 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	77,000	-
	-	-

The Company has a Committed Letter of Offer from Macquarie Bank Limited and Credit Suisse to provide a project finance facility of up to US$85 million (dependent on hedging levels) for the development of the Central Ashanti Gold Project in Ghana. With 210,000 ounces out of 230,000 ounces of gold hedging in place at 30 September, the maximum facility amount that can be drawn down (subject to execution of full form documentation and other conditions precedent) is US$75 million (equivalent to AUD$77 million at the 30 September 2010 exchange rate). At the date of this report the Company has completed its hedging requirements of 230,000 ounces to enable a draw-down of the full US$85 million (subject to execution of full form documentation and other conditions precedent).

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development (including pre-development) 4.3 Production 4.4 Administration	$A’000
	7,700
	36,500
	-
	1,800
Total	46,000

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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)	1,860	822
	128,360	184,770
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	130,220	185,592

At 30 September, the Company had US$2.279 million (approximately AUD$2.3 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. It also had US$5.2 million (approximately AUD$5.3 million at the date of this report) and AUD$0.7 million in bank accounts subject to pledge in relation to Letter of Credit facilities provided by a bank 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 Exercise of options Exercise of options	421,307,088	421,307,088
	3,200,000 75,000	3,200,000 75,000	$1.50 65 cents	$1.50 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	1,000,000 600,000 1,195,000 1,800,000 400,000 600,000 1,800,000 1,330,000 400,000	- - - - - - - - -	Exercise price $1.00 $1.00 65 cents 60 cents $1.80 $1.30 $2.13 $2.13 $2.45	Expiry date 31/12/2010 30/06/2011 23/01/2012 13/08/2011 31/03/2012 31/03/2012 14/01/2012 16/06/2013 29/07/2012
	400,000	- -	$2.45	29/07/2012
	(3,200,000) (75,000)	- -	$1.50 65 cents	31/07/2010 23/01/2012
7.11 Debentures (totals only)	-	-
7.12 Unsecured notes (totals only)	-	-

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Appendix 5B Mining exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared under accounting policies, which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement gives a true and fair view of the matters disclosed.

==> picture [142 x 58] intentionally omitted <==

Sign here: Print name: Mark Calderwood Managing Director

Date: 29 October 2010

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