PERSEUS MINING LIMITED — Interim / Quarterly Report 2012

Oct 15, 2012

ASX/TSX: PRU www.perseusmining.com

Review of September Quarter 2012

Mark Calderwood - CEO

16 October 2012

Cautionary Statements

Forward-Looking Statements

Statements in this presentation regarding the Company's plans with respect to its mineral properties are or may be 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 or Indicated resources to Measured 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.

Competent Person's Statement

The information in this presentation that relates to exploration results, mineral resources or ore reserves is based on information compiled by Mr. Mark Calderwood, who is a Chartered Professional 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' and qualified person pursuant to National Instrument 43-101 of the Canadian Securities Administration. Mr Calderwood consents to the inclusion in this presentation of matters based on this information in the form and context in which it appears.

Highlights

• Gold production of 52,610 oz from Edikan ("EGM") during the Quarter was slightly under guidance of 55-60,000oz. Adjusted cash costs of US$475/oz compare favourably to guidance of US$575/oz
• Guidance for the December 2012 Quarter remains unchanged at 65,000oz to 70,000oz of gold production at adjusted cash cost of $575/oz. Full year guidance also unchanged at 245-265,000 oz at $600/oz
• Exploitation Permit granted for Sissingué Gold Mine development. Project go ahead on hold pending clarification of fiscal terms
• 23,719m of drilling completed in Ghana and Côte d'Ivoire including significant intercepts from new prospects
• Available cash balance of A$108.8M plus 8,261oz of gold on site and at refinery at 30 September 2012
• Debt facility converted to a "revolver" and up-scaled to US$100M to provide a buffer against contingencies at Sissingué

• Gold Production
  • Production 52,610oz in line with June quarter and slightly under guidance
  • Cash Cost US$475/oz (post adjustment for stockpile and waste stripping)
  • Mill throughput up 12% on June Quarter throughput rate ~6.0MTPA (at 90% availability)
  • 259 hours of crushing time lost due to two shutdowns due to a rare event related the crusher head nut.
• Gold sales 50,785 oz at weighted average price of US$1,463/oz
  • 30,000oz at US$1,225/oz delivered to hedge contracts, balance sold at spot prices
  • Royalty expense US$5.0M

	SEP QTR 2012	Guidance
Gold Production	52,610oz	55,000 -60,000oz
Cash Cost	US$475/oz	US$575/oz
Cash Cost + royalty	US$569/oz	-

• Mining
  • 4.1Mbcm of ore + waste mined (up 13% from June Qtr)
  • 2.Mt of ore (down 4% from June Qtr) at 1.2g/t Au
  • Strip Ratio 4.7:1 (bcm:bcm)
  • Ore stockpile increased to 4.4Mt at 0.8g/t containing 102Koz of gold
  • Mining cost average US$2.89/t of material (up 7% from June Qtr reflecting deeper, harder ore)
• Processing
  • 1.3Mt (up 12% from June Qtr)
  • Sept processing rate 761dtph (up 4% from June Qtr)
  • Recovery 87.6%
  • Processing cost US$9.70/t (up 4% from June Qtr) reflecting maintenance costs
• Other Expenditure
  • Overheads US$1.7M per month (up 21% from June Qtr)
  • Royalties US$5.0M
  • Capital Expenditure US$6.1M incl expenditure on tailings dam, haul road and community Perseus Mining: Third Quarter 2012 |5

Edikan Gold Mine - Processing Issues & Improvements

• Processing issues
  • Two unscheduled shutdowns for crusher significantly impacted gold production during the quarter, lost 259 hours of crushing time.
  • Lost 70 hours of milling time due to failure of supply chain
  • Preventative maintenance programme has reduced occurrence of unscheduled shutdowns and improved through put rates.
  • Average daily production is steadily increasing

Month	Days of mill throughput exceeding:				Gold Produced
	17.5kt/d1	19kt/d	20kt/d	dayslost2	kt/davg.3	averageoz/day4	days+700oz5
April	9	1	0	1	14.0	626	13
May	8	1	0	1	14.4	601	11
June	1	0	0	3	11.5	505	4
July	5	2	1	6	15.8	650	9
August	12	7	2	0	15.7	628	13
September	11	7	1	5	16.0	688	17
October12th	10	10	6	0	19.2	764	10

Edikan Gold Mine - Production Outlook

• Unchanged Production Guidance
  • December Quarter 65 to 70,000oz at US$650/0z
  • FY 2013 245 to265,000 oz at US$600/oz

Mining

• Ore from high grade AF-Gap and low grade Fobinso
• Dewatering Fetish pit for mining in late 2012/early 2013
• Revisit mine planning to optimise value of the project

Processing

• Continue to increase mill availability through preventative maintenance programme and improvements to supply chain
• Continue to increase daily throughput
• Reduce unit operating costs

Capital Projects

• Fully commission oxide feed circuit to boost processing capacity
• Start debottlenecking and project to increase throughput capacity to 8MTPA
• Continue work on crop compensation and village move

Sissingué Gold Project

Permitting & Fiscal Arrangement

• Exploitation Permit granted
• Mining Convention tabled but still under review by authorities
• Development approval on hold pending clarity on fiscal terms in particular, suggestion of "Super Profits" Tax need to be clarified

Project Approval

• Undertaking a full review of project operating and capital budgets moderate cost increases relative to DFS
• Financing plan enhanced by debt restructure
• Early works underway and full scale development expected in December Qtr

Timetable

• 12-month build from start of construction
• On target for Dec Qtr 2013 start of commissioning
• Capital Expenditure of US10.5M to Sept 30 2012

Ghana - Exploration

• 5,115m of drilling completed during Quarter
• Exploration Results
  • Dadieso 32.5 m @ 3.5g/t Au from 39.6m and 11.1m @1.5g/t from 82.7m
  • Nkonya 12.8m @ 2.9g/t, 8.9m @2.5g/t
• Re-logging of diamond drill core and RC cuttings as part of a broad review of geology and mineralisation controls
• Planned Mineral Reserve Upgrade

Côte d'Ivoire - Exploration

• 18,604 m of drilling completed
• Exploration Results from Sissingué deposit included:
  • 11m @7.5g/t from 274
  • 6.5m @ 10.2g/t from 258.6m
  • 47.5m @1.4g/t from 37.5m
• Extensional drilling at Sissingué included:
  • 10m @5.1g/t from 38m and
  • 4m @ 81.8g/t from 2m
• Papara drilling included 2m @ 10.8g/t and 2m @18.7 g/t
• Logbog, included 4m at 13.1g/t from 10m, 2m at 37.8g/t
• Mbengué Permit
  • 22,000m aircore programme has started to test anomaly 7 km north of Tongon
  • Drilling intersected quartz veined diorite to granodiorite
• Planned Mineral Resource upgrade in January 2013 to include 2,000m of recent infill drilling

• Available cash at 30 September 2012 was $108.8M and bullion holdings on site and at refinery totaled 8,261oz of gold
• Restructured, upsized and extended term of debt facility to a revolving line of credit with a limit of US$100M and term to December 2015
• Debt facility currently drawn to US$54 million and hedge commitment to 230,000oz at average of US$1,365/oz
• Full Management Discussion and Analysis (MD&A) and Financial Statements for the three months to 30 September 2012 to be released to ASX and TSX on about 9 November2012

ASX/TSX: PRU www.perseusmining.com

Mark Calderwood MD/CEO +61 8 9240 6344

Jeff Quartermaine CFO +61 8 9240 6344

Nathan Ryan Investor Relations +61 420 582 887

Rebecca Greco Investor Relations +1 416 822 6483