PERSEUS MINING LIMITED — Interim / Quarterly Report 2012

Apr 17, 2012

For the period ending 31 March 2012

Solid March 2012 Quarter Performance Production Ramp-up on Target

Highlights

Operations - Edikan Gold Mine ("EGM"), Ghana

Key Operating Metrics	Units	March 2012 Quarter	Dec 2011 Qtr
		Actuals	Guidance	Actuals
Recovered gold	oz	38,796	35 - 40,000	35,801
(1)Cash costsCash costs including royalties	US$/ozUS$/oz	723830	950-	n/an/a
Average gold sales price	US$/oz	1,513(2)	-	1,667

1) Cash costs are C1 cash costs as per Brook Hunt definition, and include direct operating costs after adjusting for US$9.8M of costs of deferred waste stripping and ore inventory movements.

2) Includes both spot and forward sales of gold.

• Strong mill performance following the scheduled maintenance shutdown in February 2012. March monthly production totalled 19,026oz of gold from 435,575t of ore at an adjusted cash cost of US$576/oz, including mining costs of $2.80/t mined and processing costs of $7.15/t milled.
• Given production rates and costs in March and April 2012, the June 2012 quarter guidance of 50,000oz to 55,000oz at a cash cost of $690/oz remains unchanged.

Development - Sissingué Gold Project - Côte d'Ivoire

• Regulatory approval of the Environmental and Social Impact Assessment enabling early development works to proceed on the site of the Sissingué Gold Project.
• Exploitation Licence approved for issue subject to negotiation of applicable fiscal regime.
• Tendering process for early development works and detailed plant design work well advanced.

Exploration – Ghana and Côte d'Ivoire

• 67,634m of drilling completed including 40,775m in Ghana and 26,859m Côte d'Ivoire.
• Significant drill intercepts from several new prospects.
• 341,000oz increase in Measured and Indicated (M&I) Mineral Resources at EGM. Before mining depletion, total M&I Mineral Resources increased to 6.8Moz, Inferred Mineral Resources 2.2Moz.

Corporate

• Available cash balance of A$117.1M plus 970oz of gold on hand at 31 March 2012.
• Bank debt reduced from US$85.0M to US$74.0M.
• 1 Total gold hedging commitments reduced from 230,000oz to 210,000oz at an average price of US$1,253/oz.

Ghana

Edikan Gold Mine

Summary

Gold production of 38,796 oz during the March 2012 Quarter (the "Quarter") was within guidance of 35- 40,000oz. Adjusted cash costs of US$723/oz compare favourably to guidance of US$950/oz.

Guidance for the June 2012 Quarter remains unchanged at 50,000oz to 55,000oz of gold production at adjusted cash cost of $690/oz.

Key Quarterly Production Statistics

Parameter	Unit	MarchQuarter	December Quarter
		2012	2011
Total material mined	bcm1	4,760,351	3,679,706
Waste to Ore Strip Ratio	bcm:bcm	4.2	3.3
Ore mined
Oxide	wmt2	907,846	779,022
Primary	wmt	1,294,328	1,016,494
Grade mined
Oxide Ore	g/t Au3	1.0	1.1
Primary Ore	g/t Au	1.3	1.0
Ore Stockpiles (closing balance)
Quantity	wmt	2,703,000	1,669,000
Grade	g/t Au	0.9	0.9
Mill Throughput	dmt4	1,027,540	1,086,899
Head grade	g/t Au	1.40	1.26
Gold recovery	%	83.7	81.0
Recovered gold	oz	38,796	35,801
Gold Poured	oz	38,615	36,218

1. Denotes bank cubic metres 2. Denotes wet metric tonnes 3. Denotes grams/tonne of gold 4. Denotes dry metric tonnes

Mining

The total of 4,760,351 bcm of ore and waste mined during the Quarter included 907,846t of oxide ore at 1.0g/t Au and 1,294,328t of transition and primary ore at 1.3g/t Au. The 29% increase in mine production relative to the previous quarter reflected an increase in mining activity associated with the commencement of cutbacks for the final AF Gap and Fobinso pits. Accordingly, the 4.2 waste to ore strip ratio for the Quarter was higher than the life of mine strip ratio of 3.3.

As a consequence of the increased mining activity during the Quarter, ore stockpiles (including both high and low grade ore but not mineralised waste) increased to 2,195,000t of oxide ore at 0.9g/t Au and 508,000t of primary ore at 1.0g/t Au. Mine reconciliation remains positive relative to the Mineral Resource model which is the principal reason for the larger than expected oxide ore stockpiles. Mill to grade control grade reconciliation also remains positive at an estimated 3.7% year to date.

Mining in the relatively high grade AF-Gap pit has reached transitional and primary ore while high grade transitional ore is currently being produced from the Fobinso pit. Mining of the Stage 1 pit at Abnabna is nearing completion.

Processing

Prior to the planned maintenance shutdown of the processing plant in mid-February, the mill throughput rate averaged 11,265dmt per day. Post the shut-down, this rate increased to 13,330dmt per day for the balance of February. In March, mill throughput rates increased further to an average of 14,050dmt per day resulting in a total of 19,026oz of gold being produced from 435,575dmt of ore.

Gold recoveries from blended oxide transition and sulphide ore increased to 83.7% during the Quarter.

During March, two daily throughput records and six daily gold production records were set for the mine. Subsequent to the end of the Quarter, both the daily throughput rate and gold production records set in March have been eclipsed in April as the performance of the processing facility continues to improve. Unplanned mill shut-downs reduced significantly from 379hrs combined in January-February to 99hrs in March as a result of a number of issues being dealt with during the 8 day shut-down in February. Power supply was at 98% net availability.

The performance of the processing facility during the Quarter continues to validate the efficacy of the Edikan process flow sheet that allows for a very low reagent unit consumption, with total cyanide consumption at 0.08kg/t, steel ball consumption of 0.9kg/t and power usage of about 23.5kW/t in January and February dropping to 19kW/t in March with increased throughput.

Parameter	Units	Total
Total gold sales	oz	45,490
Average sales price	US$/oz of gold sold	1,513
Gross Cash Costs	US$/oz	975
Including:
Mining cost	US$/tonne of material mined	2.59
Processing cost	US$/tonne of ore milled	8.63
Admin & Refining	US$M / month	1.20
Accounting Adjustment	US$M	(9.8)
Adjusted Cash Costs	US$/oz	723
Royalties	US$/oz	107
Adjusted Cash Costsincluding royalties	US$/oz	830
Sustaining capital and plant upgrade costs	US$M	8.8

Of the 45,490oz of gold that were sold during the Quarter at an average delivered price of US$1,513/oz, 25,490oz were sold at spot gold prices averaging US$1,745/oz. The Company also delivered 20,000oz of gold into forward sales contracts at an average of US$1,217/oz. This reduced the Group's outstanding hedge commitment to 210,000oz of gold, to be delivered in quarterly instalments, the last in the December 2014 Quarter, at an average price of US$1,253/oz.

The adjusted cash cost for the Quarter of US$723/oz compared favourably to guidance of US$950/oz. This was due to higher than expected grades, lower than forecast unit mining costs and overheads that more than compensated for higher unit milling costs arising from lower than forecast mill throughput in the early part of the Quarter. Following the scheduled maintenance shutdown in February 2012, mill performance improved significantly in March 2012 as noted above, resulting in monthly processing costs of $7.15/tonne milled.

The adjustment to gross cash costs of US$9.8 million reflected costs incurred on stockpiling ore and deferred costs of waste stripping, consistent with the increase in mining activity that occurred during the quarter as previously discussed.

A total of US$8.8M of capital was expensed during the Quarter including US$5.3M on tailings dam modifications to meet EPA requirements.

During the Quarter, the first scheduled debt repayment took placed with US$11.0M of project debt being repaid to lenders Macquarie Bank Limited and Credit Suisse AG, reducing the balance of outstanding debt to US$74.0M.

Subsequent to the end of the Quarter, the Company has received advice confirming previously announced changes to Ghanaian tax regime that will take effect from 9 March 2012. The changes that impact the EGM include an increase in the corporate tax rate from 25% to 35% and a change in the method of computation of capital allowances from the reducing balance method to a straight line method over five years.

Exploration

A total of 40,775m of drilling was completed on the Edikan mining leases and the neighbouring Dunkwa license during the Quarter. Four rigs are active, with one rig evaluating district exploration targets at Dunkwa and three rigs engaged on resource infill and extensional drilling at Edikan. Assay turnaround has improved significantly in Ghana.

Drilling is shifting from principally resource/reserve drilling to a larger component of near-mine and district exploration drilling. Resource/reserve drilling will continue at Edikan, with several resource and reserve updates to be released in 2012. However, increasing emphasis on target generation, with continuing infill and extensional geochemical sampling, IP geophysical surveys, geological and regolith mapping, data compilation, analysis and interpretation, is expected to result in multiple new targets for ongoing exploration drill testing in 2012.

Recent near-mine exploration drilling at Edikan has returned several significant intercepts from new targets, including Besem Gap prospect (700m east of the Esuajah North deposit), the Wampem soil anomaly (2.8 kilometers northeast of Esuajah North) and NPRC049 which tested gold in soil anomalism 150m west of the Bokitsi-Nkonya structure and situated 1.6km southwest of the Bokitsi South Extension deposit, attesting to the exploration potential remaining on the Edikan mining leases.

Deeper drilling at the Fetish deposit at Edikan Gold Mine (EGM) in Ghana continues to confirm strong gold mineralisation at depth, including:

EFRDD046	-44m at 3.0g/tfrom 327m and 14m at 2.4g/t Au from 420m.
EFRDD047	-24m at 4.3g/tAufrom 397m.
EFRDD048	-15m at 3.3g/tfrom 256m, 11m at 4.8g/tfrom 294mand 18m at 1.4g/t Au from 308m.
EFDD127	-5m at 11.4g/tfrom 288m, 23m at 1.1g/t from 303m and 19m at 1.2g/t Au from 347m.

Deeper drilling at Esuajah South & Esuajah North at EGM confirmed gold mineralisation at depth, including:

• AKRDD252 11m at 1.0g/t from 352m, 78m at 3.4g/t from 373m and 16m at 4.0g/t Au from 469m.
• ENRDD028 8m at 1.5g/t from 308m, 29m at 1.6g/t from 330m, 1m at 14.8g/t from 353m and 16m at 1.9g/t Au from 385m.

Exploration drilling at EGM returned significant results from multiple prospects, including:

• ENS121 Besem Gap 30m at 2.3g/t Au from 90m. ENS141 - Besem North 24m at 1.8g/t Au from 60m.
• ENS143 Besem North 28m at 1.6g/t Au from 52m.
• WPRC028 Wampem 12m at 4.8g/t Au from 8m.
• CHRC159 Chirawewa South 26m at 3.5g/t Au from 16m.

Details of the intercepts are included in the ASX release of 29 March 2012.

Esuajah North Resource Estimate

A revised resource estimate for Esuajah North was completed by Runge Limited in March 2012. Measured & Indicated resources at a 0.8g/t Au cut-off increased by 51% to 15.1Mt at 1.2g/t Au and at a 0.4g/t Au cutoff increased 59% to 32.7Mt at 0.9g/t Au containing 920,000oz of gold. Inferred resources decreased from 9.3Mt at 0.7g/t to 6.3Mt at 0.8 g/t Au containing 168,000oz of gold. Details of the Mineral Resources are contained in the ASX release on 29 March 2012.

The 400m-long Esuajah North deposit averages more than 100m in width and contains Measured and Indicated resources of 3,400oz per vertical metre for the first 150m below the existing shallow pit.

The Company's Measured and Indicated resource base at Edikan is now 5.6Moz of gold and the Inferred resource base is 1.7Moz before adjustment for mining depletion.

Reserve Estimate

The Company is undertaking updated pit designs for Fetish and Esuajah North and initial designs for Chirawewa and Bokitsi which will be incorporated in the planned June quarter 2012 Mineral Reserve upgrade.

Côte d'Ivoire

Tengrela Gold Project

Exploration

The Company currently has six drill rigs operating and completed 26,859m of drilling on various prospects on the Tengrela Gold Project during the Quarter. While assay turnaround remains poor, from the limited number of holes where results were received several anomalous exploration intercepts were recorded, including 4m at 33.5g/t Au at Sissingué East, 14m at 5.9g/t and 13m at 2.4g/t Au at Podio, 4m at 10g/t Au at Sissingué North and 4m at 10.0g/t Au from Zing.

Infill drilling on the Sissingué deposit returned significant results, including:

SD194	-58m at 3.1g/tAu from 85m.
SD196	-42m at 1.7g/tfrom 75m, 8.6m at 1.0g/t from 121m and 8m at 1.8g/t Au from 137m.
SD197	-22.5m at 2.7g/tAu from 52.5m.
SD191	-10m at 4.9g/tAu from 173m.
SD192	-2.2m at 26.7g/tAu from 83m.

Exploration drilling at Tengrela returned significant results from multiple prospects, including:

SAC232	-Sissingué East4m at 33.5g/tAufrom 72m.
PDD004	-Podio1.7m at 5.1g/t from 101m,13m at 2.4g/t from 115mand8m at 3.6g/tAufrom 162m.
PLC099	-Podio14m at 5.9g/tAu from 60m.
ZAC033	-Zing4m at 10.0g/tAufrom 24m.
SRB1496	-Sissingué North4m at 10.0g/tAu from 8m.
KAC202	-Kanakono19m at 2.0g/tAu from 40m to end of hole.

Details of the intercepts are included in the ASX release of 27 March 2012.

Gold with quartz stringer at contact between conglomerate and sediments from SD223 -120.18m. The core was recovered from the base of the current proposed Sissingué pit at Tengrela where only limited deeper drilling has been completed to date.

Project Implementation – Sissingué Deposit

Permitting

The Ivorian National Environmental Agency (ANDE) has approved the Environmental and Social Impact Assessment of the Sissingue Gold Project paving the way for the commencement of early development works at the project site.

The Company has been advised that following approval of the Company's Definitive Feasibility Study by an inter-departmental committee of the Ivorian government, an Exploitation Licence can be issued after completion of negotiation of the fiscal regime that will apply to the project.

Negotiation of fiscal terms for the development will commence in the June 2012 quarter.

Early Works

Tender enquiries for early works have been issued and responses have been received. Physical work on site is expected to commence in the September 2012 quarter pending satisfactory advancement of negotiations described above.

Plant Design

An Australian engineering firm, GR Engineering Services ("GRES"), in conjunction with the Perseus's Projects Team, has completed the process portion of the plant design. GRES has completed all equipment specifications for all mechanical equipment in the plant and has also issued tender enquiry packages for the supply of all mechanical equipment. Receipt of pricing from suppliers is well advanced allowing the progressive selection of preferred tenderers.

GRES are expected to have sufficient design work completed during the June quarter to allow tendering of packages for fabrication and construction.

Perseus Mining Group

Program for the June 2012 quarter

Edikan Gold Mine

• Continue production ramp-up targeting gold production of 50-55,000oz at cash cost of US$690/oz
• Complete Reserve upgrade
• Continue exploration

Sissingué Gold Project Development

• Negotiate Exploitation Permit terms
• Complete contractor selection for 'early works'
• Advance detailed plant design

EGM Mining Leases

Tengrela Gold Project – Exploration licences

Mark Calderwood Managing Director

17 April 2012

To discuss any aspect of this announcement, please contact:

Mark Calderwood at telephone +61 8 9240 6344 or email calderwoodm@perseusmining.com Nathan Ryan at telephone +0420 582 887 or email nathan.ryan@nwrcommunications.com.au Rebecca Greco at telephone +1 416 822 6483 or email fighouse@yahoo.com (Toronto)

Company Overview

Perseus is a successful West African gold producer and explorer with a mine in Ghana and a second project in Côte d'Ivoire at the permitting and construction tender stage:

• EGM The EGM comprises a group of large gold deposits located in the Ashanti gold belt in Ghana. Commissioning was completed in December 2011 after gold production commenced in August 2011. Subject to mining depletion, current Mineral Reserves stand at 3.3Moz, additional Indicated Mineral Resources total 2.3Moz and Inferred Mineral Resources total 1.7Moz, inclusive of Mineral Resources on the nearby Grumesa licence.
• TGP The TGP in Côte d'Ivoire is an under-explored project with a current open-ended gold resource containing Reserves of 0.66Moz, an additional 0.28Moz of Measured and Indicated Mineral Resources and 0.26Moz of Inferred Mineral Resources at Sissingué, one of a number of prospects identified on the project. The Sissingué definitive feasibility study was completed in November 2010. Production at TGP is targeted for 2013.

Competent Person Statement: 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 Charted 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 to qualify as a "Qualified Person" under National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). 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. For a description of Perseus's data verification process, quality assurance and quality control measures, the effective date of the mineral resource and mineral reserve estimates contained herein, details of the key assumptions, parameters and methods used to estimate the mineral resources and reserves set out in this report and the extent to which the estimate of mineral resources or mineral reserves set out herein may be materially affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues, readers are directed to the technical report entitled "Technical Report – Central Ashanti Gold Project, Ghana" dated May 30, 2011 and the technical report entitled "Technical Report – Tengrela Gold Project, Ivory Coast" dated December 22, 2010 in respect of the Edikan Gold Mine (formerly the Central Ashanti Gold Project) and the Tengrela Gold Project, respectively.

Caution Regarding Forward Looking Information: This report contains forward-looking information which is based on the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management of the Company believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Assumptions have been made by the Company regarding, among other things: the price of gold, continuing commercial production at the Edikan Gold Mine without any major disruption, development of a mine at Tengrela, the receipt of required governmental approvals, the accuracy of capital and operating cost estimates, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used by the Company. Although management believes that the assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual market price of gold, the actual results of current exploration, the actual results of future exploration, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents. The Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable. Assumptions have been made regarding, among other things, the Company's ability to carry on its exploration and development activities, the timely receipt of required approvals, the price of gold, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers should not place undue reliance on forwardlooking information. Perseus does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

	Measured Resources1			Indicated Resources1			Measured + IndicatedResources
Deposit	Tonnes	Au	Au	Tonnes	Au	Au	Tonnes	Au	Au
	Mt	g/t	Ounces	Mt	g/t	Ounces	Mt	g/t	Ounces
Abnabna/AFGap/Fobinso	49.4		1.2 1,850,000	23.2		0.9 666,000	72.6		1.1 2,515,000
Esuajah South	8.3	1.8	482,000	6.2		1.7 336,000	14.5	1.8	818,000
Esuajah North	17.2	0.9	498,000	15.4		0.8 422,000	32.7	0.9	920,000
Fetish	8.8	0.9	255,000	20.6		1.1 717,000	29.4	1.0	972,000
Chirawewa				4.5		1.1 167,000	4.5	1.1	167,000
Bokitsi				2.6		2.5 212,000	2.6	2.5	212,000
Mampong
Dadieso
Total	83.7		1.1 3,085,000	72.5		1.1 2,520,000	156.3		1.1 5,604,000

Table 1: EGM, Summary of Total Measured and Indicated Mineral Resources

1 Last updated in March 2012 and does not allow for mining depletion.

Table 2: EGM, Summary of Total Inferred Mineral Resources

	Inferred Resources1
Deposit	Tonnes	Au	Au
	Mt	g/t	Ounces
Abnabna/AFGap/Fobinso	11.1	1.0	362,000
Esuajah South	5.3	1.3	224,000
Esuajah North	6.3	0.8	168,000
Fetish	7.5	1.0	248,000
Chirawewa	8.7	0.9	249,000
Bokitsi	1.6	1.7	89,000
Mampong	6.9	0.9	210,000
Dadieso	3.2	1.6	161,000
Total	50.6	1.1	1,711,000

1 Last updated in March 2012.

Table 3: Total Mineral Resources (Including Reserves)

		Measured			Indicated			Inferred
Deposit	Tonnes	g/t	Ounces	Tonnes	g/t	Ounces	Tonnes	g/t	Ounces
(cut-off g/t Au)	(million)	Au	Au	(million)	Au	Au	(million)	Au	Au
			(,000)			(,000)			(,000)
EGM-(previously
(1)CAGP)
>0.8g/t	49.5	1.5	2,378	38.2	1.3	1,603	24.9	1.4	1,111
(1)EGM
0.4g/t - 0.8g/t	34.2	0.7	718	34.5	0.6	706	25.7	0.7	602
(2)Grumesa
(3)>0.4				25.1	0.6	471	16.4	0.5	247
(4)Tengrela
>1.0g/t	0.9	3.2	90	9.1	2.5	706	3.3	1.7	171
(4)Tengrela
0.5-1.0g/t	0.04	0.8	1	5.5	0.8	134	3.6	0.7	86
Totals >0.8g/t
(1.0g/t Tengrela)	50.4	1.5	2,468	47.3	1.5	2,309	28.2	1.4	1,282
Totals >0.4g/t
(0.5g/t Tengrela)	84.6	1.2	3,187	112.4	1.0	3,620	73.9	0.9	2,217

Notes

1 Last updated in March 2012 and does not allow for mining depletion.

2 Last updated in December 2010.

3 Primary reported above a 0.4g/t Au cut-off, oxide/transition report above a 0.2g/t Au cut-off.

4 Last updated in November 2010.

5 The Company holds 90% of EGM, 90% of Grumesa and 85% of Tengrela after allowing for Government equity at mining stage.

Table 4: Total Mineral Reserves

Deposit	Proven				Probable		Total
	Tonnes	g/t	Ounces	Tonnes	g/t	Ounces	Tonnes	g/t	Ounces
	(million)	Au	Au(,000)	(million)	Au	Au(,000)	(million)	Au	Au(,000)
EGM>0.4g/t (1,2)	47.7	1.3	1,974	39.2	1.0	1,300	86.9	1.2	3,273
Tengrela>0.55g/t (3)				9.7	2.1	657	9.7	2.1	657
Total	47.7	1.3	1,974	48.9	1.3	1,957	96.6	1.3	3,930

Notes

1 >0.4g/t Au cut-off for Abnabna-Fobinso, >0.5g/t Au cut-off for all other deposits.

2 Last updated in December 2010, does not allow for material mined.

3 Last updated in November 2010.