PERSEUS MINING LIMITED — Interim / Quarterly Report 2012

Feb 14, 2012

PERSEUS MINING LIMITED ABN 27 106 808 986

Consolidated Interim Financial Statements For the three and six months ended 31 December 2011 (unaudited)

The accompanying unaudited consolidated interim financial statements for the three and six months ended 31 December 2011 have been prepared by management and approved by the Audit Committee on behalf of the Board of Directors of the Company. The Company’s auditors have not reviewed these financial statements. Readers are cautioned that these financial statements contain forward-looking information as described in the associated Management’s Discussion & Analysis. All amounts are stated in Australian dollars, except as otherwise stated.

Perseus Mining Limited and its controlled entities Unaudited Consolidated Statement of Comprehensive Income For the periods ended 31 December 2011

Notes Revenue Other income 4 Professional fees Employee benefits expense Depreciation and amortisation expense Impairment reversal of investment in associate Share of net losses of associate Loss on disposal of investment Loss on derivative financial instruments Other expenses 5 Profit / (loss) before income tax expense Income tax benefit 6 Net profit / (loss) after tax benefit / (expense) Other comprehensive profit / (loss) Exchange differences on translation of foreign operations Net changes in fair value of cash flow hedges Income tax relating to components of other comprehensive profit / (loss) 6 Total comprehensive profit / (loss) for the period Profit / (loss) attributable to: Owners of the parent Non-controlling interests Total comprehensive profit/(loss) attributable to: Owners of the parent Non-controlling interests Basic profit / (loss) per share Diluted profit / (loss) per share	Consolidated Three months ended Six months ended 31 Dec 201131 Dec 2010 31 Dec 201131 Dec 2010 $ $ $ $
	- - - - 7,279,067 739,395 10,965,362 1,636,070 (477,249) (317,420) (766,370) (731,800) (1,731,740) (3,722,858) (3,287,760) (5,733,639) (64,036) 11,327 (126,925) (117,138) - 3,118,384 - 3,118,384 (256,460) (243,164) (256,460) (243,164) - (932,840) - (932,840) (3,068) (23,655,365) (136,866) (23,655,365) (709,451) (5,080,248) (1,570,364) (15,766,236)
	4,037,063 (30,082,789) 4,820,617 (42,425,728) 8,869,969 - 8,865,124 -
	12,907,032 (30,082,789) 13,685,741 (42,425,728)
	(15,325,569) (8,424,798) (2,502,567) (27,859,308) 14,813,050 (25,330,959) (14,668,477) (25,330,959) 13,181,255 - 13,181,255 -
	25,575,768 (63,838,546) 9,695,952 (95,615,995)
	12,072,464 (27,539,495) 12,880,184 (39,728,480) 834,568 (2,543,295) 805,557 (2,697,248)
	12,907,032 (30,082,790) 13,685,741 (42,425,728)
	21,800,773 (58,958,947) 9,156,358 (90,644,227) 3,774,995 (4,879,599) 539,594 (4,971,768)
	25,575,768 (63,838,546) 9,695,952 (95,615,995)
	2.96 cents (7.07)cents 3.14 cents (10.00)cents
	2.94 cents (7.07)cents 3.12 cents (10.00)cents

The accompanying notes form part of these financial statements.

2

Perseus Mining Limited and its controlled entities Unaudited Consolidated Statement of Financial Position As at 31 December 2011

		CONSOLIDATED	CONSOLIDATED
	Notes	31 Dec 2011	30 June 2011
		$	$
Current Assets
Cash and cash equivalents	7	131,455,014	96,462,044
Receivables	8	10,151,639	8,546,771
Inventories	9	31,802,574	428,089
Other assets	10	3,581,529	3,081,520
Total Current Assets		176,990,756	108,518,424
Non-Current Assets
Deferred tax asset	6	21,863,178	-
Receivables	8	18,972,524	3,630,650
Other assets	10	312,078	42,193
Investments accounted for using the equity method	11	11,829,948	9,681,081
Property, plant and equipment		230,088,484	228,480,167
Mineral interest acquisition and exploration expenditure		47,663,842	32,245,535
Total Non-Current Assets		330,730,054	274,079,626
Total Assets		507,720,810	382,598,050
Current Liabilities
Payables		32,996,769	28,636,707
Derivative financial instruments	12	28,452,669	10,837,822
Borrowings	13	38,537,132	20,000,695
Total Current Liabilities		99,986,570	59,475,224
Non-Current Liabilities
Provision		6,717,019	4,461,842
Derivative financial instruments	12	46,543,601	48,471,820
Borrowings	13	42,872,369	57,804,344
Total Non-Current Liabilities		96,132,989	110,738,006
Total Liabilities		196,119,559	170,213,230
Net Assets		311,601,251	212,384,820
Equity
Issued capital	14	443,112,629	355,759,201
Reserves		(68,173,700)	(66,518,888)
Accumulated losses		(57,377,263)	(70,257,447)
Parent entity interest		317,561,666	218,982,866
Non-controlling interest		(5,960,415)	(6,598,046)
Total Equity		311,601,251	212,384,820

The accompanying notes form part of these financial statements.

3

Perseus Mining Limited and its controlled entities Unaudited Consolidated Statement of Changes in Equity For the period ended 31 December 2011

CONSOLIDATED

				Foreign	Hedging	Non-
			Share Based	Currency	Reserve	controlling	Non-
		Accumulated	Payments	Translation		Interest’s	controlling
	Issued Capital	Losses	Reserve	Reserve		Reserve	Interest	Total Equity
	$	$	$	$	$	$	$	$
6 months to 31 December 2011
Balance at 1 July 2011	355,759,201	(70,257,447)	16,242,006	(48,727,585)	(34,250,890)	217,581	(6,598,046)	212,384,820
Profit for the period	-	12,880,184	-	-	-	-	805,557	13,685,741
Currency translation differences	-	-	-	(2,404,653)	-	-	(117,241)	(2,521,894)
Share of currency translation difference of associated entity	-	-	-	19,327	-	-	-	19,327
Net change in fair value of cash flow hedges	-	-	-	-	(13,201,629)	-	(1,466,848)	(14,668,477)
Income tax relating to components of other comprehensive income /(loss)	-	-	-	-	11,863,129	-	1,318,126	13,181,255
Total comprehensive income/(loss) for the period	-	12,880,184	-	(2,385,326)	(1,338,500)	-	539,594	9,695,952
Shares issued during the period	89,121,209	-	-	-	-	-	-	89,121,209
Share issue expenses	(4,862,781)	-	-	-	-	-	-	(4,862,781)
Exercise of options	3,095,000	-	-	-	-	-	-	3,095,000
Fair value of options issued	-	-	2,069,014	-	-	-	98,037	2,167,051
Balance at 31 December 2011	443,112,629	(57,377,263)	18,311,020	(51,112,911)	(35,589,390)	217,581	(5,960,415)	311,601,251
6 months to 31 December 2010
Balance at 1 July 2010	346,615,812	(22,011,786)	10,998,301	(14,571,766)	-	217,581	(318,057)	320,930,085
Loss for the period	-	(39,728,480)	-	-	-	-	(2,697,248)	(42,425,728)
Currency translation differences	-	-	-	(27,654,187)	-	-	258,576	(27,395,611)
Share of currency translation difference of associated entity	-	-	-	(463,697)	-	-	-	(463,697)
Net change in the fair value of cash flow hedges	-	-	-	-	(22,797,863)	-	(2,533,096)	(25,330,959)
Total comprehensive income/(loss) for the period	-	(39,728,480)	-	(28,117,884)	(22,797,863)	-	(4,971,768)	(95,615,995)
Share issue expenses	(57,110)	-	-	-	-	-	-	(57,110)
Exercise of options	6,933,250	-	-	-	-	-	-	6,933,250
Fair value of options issued	-	-	3,685,311	-	-	-	87,911	3,773,222
Balance at 31 December 2010	353,491,952	(61,740,266)	14,683,612	(42,689,650)	(22,797,863)	217,581	(5,201,914)	235,963,452

The accompanying notes form part of these financial statements.

4

Perseus Mining Limited and its controlled entities Unaudited Consolidated Statement of Cash Flows For the periods ended 31 December 2011

			Consolidated	Consolidated
		Three months ended		Six months ended
	Notes	31 Dec 2011	31 Dec 2010	31 Dec 2011	31 Dec 2010
		$	$	$	$
Cash Flows from Operating Activities
Payments to suppliers and employees		(2,195,106)	(1,828,345)	(4,243,073)	(3,819,444)
Interest received		365,747	696,779	506,038	1,591,771
Net Cash used in Operating Activities		(1,829,359)	(1,131,566)	(3,737,035)	(2,227,673)
Cash Flows from Investing Activities
Payments for exploration and evaluation expenditure		(12,979,099)	(2,340,276)	(14,955,904)	(7,886,026)
Payments for acquisition of assets under
construction		(35,876,096)	(34,784,506)	(82,209,334)	(76,424,748)
Receipts from gold sales capitalised to development		45,525,819	-	48,697,839	-
Payments for acquisition of fixed assets		(379,516)	-	(1,728,594)	(1,490,836)
Payments for borrowing costs		(838,122)	(2,396,872)	(1,728,907)	(2,396,872)
Investments in associates		(2,386,000)	(1,190,000)	(2,386,000)	(1,190,000)
Receipts from/(Advances) to third parties		(77,277)	(739,053)	(161,700)	(739,053)
Funds received/(payments) for security deposit and
bank guarantee		153,707	1,122,352	1,037,388	516,881
Net Cash used in Investing Activities		(6,856,584)	(40,328,355)	(53,435,212)	(89,610,654)
Cash Flows from Financing Activities
Proceeds from share issues		89,121,209	-	89,121,209	-
Proceeds from exercise of options		752,000	2,084,500	3,095,000	6,933,250
Share issue expenses		(4,862,781)	(87,672)	(4,862,781)	(133,571)
Net Cash provided by Financing Activities		85,010,428	1,996,828	87,353,428	6,799,679
Net Increase/(Decrease) in Cash Held		76,324,485	(39,463,092)	30,181,181	(85,038,648)
Cash and cash equivalents at the beginning of the
financial period		53,561,082	130,212,634	96,462,044	185,591,726
Effects of exchange rate fluctuations on the balances
of cash held in foreign currencies		(1,569,447)	(1,953,598)	4,811,789	(11,757,134)
Cash and cash equivalents at the end of the Financial Period	7	131,455,014	88,795,944	131,455,014	88,795,944

The accompanying notes form part of these financial statements.

5

Perseus Mining Limited and its controlled entities Notes to the Unaudited Consolidated Financial Statements For the periods ended 31 December 2011

Contents of the Notes to the Consolidated Financial Statements

		Page
1	Summary of significant accounting policies	7
2	Critical accounting estimates and judgements	7
3	Segment information	9
4	Other income	11
5	Expenses	11
6	Income tax expense	11
7	Cash and cash equivalents	12
8	Receivables	12
9	Inventories	13
10	Other assets	13
11	Investments accounted for using the equity method	14
12	Derivative financial instruments	15
13	Borrowings	15
14	Issued capital and reserves	16
15	Contingencies	17
16	Commitments	17
17	Events occurring after the end of the reporting period	17

6

Perseus Mining Limited and its controlled entities Notes to the Unaudited Consolidated Financial Statements For the periods ended 31 December 2011

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of these consolidated interim financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated. The interim financial statements are for the consolidated entity consisting of Perseus Mining Limited (“Perseus” or the “Company”) and its subsidiaries (the “group” or the “consolidated entity”).

Basis of Preparation

Perseus Mining Limited is a listed public company, incorporated and domiciled in Australia. During the three and six months ended 31 December 2011 (the “periods” or “period”), the consolidated entity conducted operations in Australia, Ghana and Côte d'Ivoire.

These consolidated interim financial statements of the consolidated entity for the periods ended 31 December 2011 are general purpose financial statements prepared in accordance with the requirements of the Australian Corporations Act 2001 (Cth) , applicable accounting standards including AASB 134 ‘Interim Financial Reporting’, other authoritative pronouncements of the Australian Accounting Standards Board (‘AASB’) and Urgent Issues Group Interpretations.

These condensed interim financial statements do not include full disclosures of the type normally included in an annual financial report. Therefore, it cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the group as in the full financial report. It is recommended that these interim financial statements be read in conjunction with the annual financial report for the year ended 30 June 2011, and any public announcements made by the group during the periods in accordance with continuous disclosure requirements arising under the Corporations Act 2001.

The consolidated interim financial statements are presented in Australian dollars, which is Perseus Mining Limited’s functional and presentation currency.

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting periods.

Compliance with IFRS

The consolidated financial statements of the group also comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). Compliance with AASB 134 ensures compliance with IAS 34 ‘Interim Financial Reporting’.

New and amended standards adopted by the group

In the periods ended 31 December 2011, the group has reviewed all of the new and revised Standards and interpretations issued by the AASB that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July 2011. As a result of this review the Directors have determined that there is no change necessary to group accounting policies.

Historical cost convention

These consolidated interim financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets and liabilities (including derivative instruments) at fair value through profit or loss.

Critical accounting estimates

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 2.

2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including the expectations of future events that may have a financial impact on the consolidated entity and that are believed to be reasonable under the circumstances.

The group makes estimates and assumptions concerning the future. The resulting accounting will, by definition, seldom equal the actual results. The estimates and assumptions that have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

7

Perseus Mining Limited and its controlled entities Notes to the Unaudited Consolidated Financial Statements For the periods ended 31 December 2011

2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS – continued

(i) Exploration and evaluation expenditure

Management determines when an area of interest should be abandoned. When a decision is made that an area of interest is not commercially viable, all costs that have been capitalised in respect of that area of interest are written off. In determining this, assumptions, including the maintenance of title, ongoing expenditure and prospectively are made.

(ii) Impairment of assets In determining whether the recoverable amount of each cash generating unit is the higher of fair value less costs to sell or value-in-use against which asset impairment is to be considered, the group undertakes future cash flow calculations which are based on a number of critical estimates and assumptions including, for its assets under construction, forward estimates of:

• (i) Mine life including quantities of mineral reserves and resources for which there is a high degree of confidence of economic extraction with given technology;

• (ii) Estimated production and sales levels;

• (iii) Estimate future commodity prices;

• (iv) Future costs of production;

• (v) Future capital expenditure;

• (vi) Future exchange rates; and/or

• (vii) Discount rates applicable to the cash generating unit.

Variations to expected future cash flows, and timing thereof, could result in significant changes to the impairment test results, which in turn could impact future financial results.

(iii) Share-based payment transactions

The consolidated entity measures the cost of equity-settled transactions with employees and consultants by reference to the fair value of the equity instruments at the date at which they were granted. The fair value of options granted is determined using a Black-Scholes model.

(iv) Restoration and rehabilitation provisions

The value of the current restoration and rehabilitation provision is based on a number of assumptions including the nature of restoration activities required and the valuation at the present value of a future obligation that necessitates estimates of the cost of performing the work required, the timing of future cash flows and the appropriate discount rate. Additionally current provisions are based on the assumption that no significant changes will occur in relevant legislation covering restoration of mineral properties. A change in any, or a combination, of these assumptions used to determine current provisions could have a material impact to the carrying value of the provision.

(v) Derivative financial instruments

The group makes judgements on the effectiveness of all derivative financial instrument entered into, including forward metal contracts, metal options and foreign currency option contracts. Management’s assessment is that, unless otherwise disclosed the derivatives have been highly effective in offsetting changes in the fair value of the future cash flows against which they have been designated and as such are compliant with the hedge effectiveness requirements of AASB 139. Further information on the group’s use of derivative financial instruments, including carrying values, is set out in note 12.

(vi) Taxes

Judgement is required in determining whether deferred tax assets are recognised on the statement of financial position. Deferred tax assets, including those arising from unutilised tax losses, require management to assess the likelihood that the group will generate taxable earnings in future periods, in order to utilise recognised deferred tax assets. Estimates of future taxable income are based on forecast cash flows from operations and the application of existing tax laws in each jurisdiction. To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the group to realise the net deferred tax assets recorded at the reporting date could be impacted.

Additionally, future changes in tax laws in jurisdictions in which the group operates could limit the ability of the group to obtain tax deductions in future periods.

8

Perseus Mining Limited and its controlled entities Notes to the Unaudited Consolidated Financial Statements For the periods ended 31 December 2011

2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS – continued

(vii) Production start date

The group assesses the stage of each mine under construction to determine when a mine moves into the production stage being when the mine is substantially complete and ready for its intended use. The criteria used to assess the start date are determined based on the unique nature of each mine construction project, such as the complexity of a plant and its location. The group considers various relevant criteria to assess when the production phase is considered to commence and all related amounts are reclassified from ‘Mines under construction’ to ‘Mine properties’ and ‘Property, plant and equipment’. Some of the criteria used will include but are not limited to, the following:

• (i) Level of capital expenditure incurred compared to the original construction cost estimates;

• (ii) Completion of a reasonable period of testing of the mine plant and equipment;

• (iii) Ability to produce metal in saleable form (within specifications); and

• (iv) Ability to sustain ongoing production of metal.

When a mine development / construction project moves into the production stage, the capitalisation of certain mine development / construction costs ceases and costs are either regarded as forming part of the cost of inventory or expensed, except for costs that qualify for capitalisation relating to mining asset additions or improvements, underground mine development or mineable reserve development. It is also at this point that depreciation / amortisation commences.

3. SEGMENT INFORMATION

(a) Description of segments

Management has determined the operating segments based on the reports reviewed by the executive management team and board of directors that are used to make strategic decisions.

The group primarily reports on a geographical basis as its risks and rates of return are affected predominantly by differences in geographical areas in which it operates and this is the format of the information provided to the executive management team and board of directors.

The group operated principally in three geographical segments during the periods ended 31 December 2011 being Australia and the West African countries of Ghana and Côte d’Ivoire. The segment information is prepared in conformity with the group’s accounting policies.

The group comprises the following main segments:

Australia Investing activities and corporate management. Ghana Mineral exploration, evaluation and development activities. Côte d’Ivoire Mineral exploration and evaluation activities.

9

Perseus Mining Limited and its controlled entities Notes to the Unaudited Consolidated Financial Statements For the period ended 31 December 2011

3. SEGMENT INFORMATION – continued

(b) Segment information provided to the executive management team and board of directors

Total revenue Revenue Other income Reconciliation to total revenue and other income Results Operating profit / (loss) before income tax Income tax benefit / (expense) Net profit / (loss) Included within segment results: Share of net profit / (loss) of associate accounted for using the equity method Depreciation Loss on derivative financial instruments Revaluation / (devaluation) of gold put options Impairment reversal of investment in associate Options issued to employees, Directors and consultants Foreign exchange gain/(loss) Assets Segment assets Total assets includes: Investments in associates Additions to non-current assets (other than financial assets) Liabilities Segment liabilities	Australia 31 Dec 2011 $	Six months ending Australia Ghana Ghana Côte d’Ivoire 31 Dec 2010 31 Dec 2011 31 Dec 2010 31 Dec 2011 $ $ $ $	Côte d’Ivoire 31 Dec 2010 $	Consolidated Consolidated 31 Dec 2011 31 Dec 2010 $ $
	- **11,075,202 **	- - - - 1,577,753 (19,714) 58,317 (90,126)	- -	- - 10,965,362 1,636,070
	**11,075,202 **	1,577,753 (19,714) 58,317 (90,126)	-	10,965,362 1,636,070
	**6,252,284 **	(13,897,692) (1,070,181) (27,657,721) (361,486)	(870,315)	4,820,617 (42,425,728)
	(256,460) (34,249) - 349,570 - (935,388) 10,089,391 Six Months Ended 31 Dec 2011 125,447,792	(243,164) - - - (26,672) (67,172) (81,397) (25,504) - (136,866) (23,655,365) - (4,082,526) (201) (1,405,755) - 3,118,384 - - - (1,443,855) (366,033) (1,687,469) (33,806) (8,704,256) (46,385) (118,906) (90,127) Twelve Months Six Months Twelve Months Six Months Ended Ended Ended Ended 30 June 2011 31 Dec 2011 30 June 2011 31 Dec 2011 35,621,883 353,005,163 320,474,137 29,267,855	- (9,069) - - - (713,435) 29,223 Twelve Months Ended 30 June 2011 26,502,030	8,865,124 -
				13,685,741 (42,425,728)
				(256,460) (243,164) (126,925) (117,138) (136,866) (23,655,365) 349,369 (5,488,281) - 3,118,384 (1,335,227) (3,844,759) 9,952,879 (8,793,939) Six Months Twelve Months Ended Ended 31 Dec 2011 30 June 2011 507,720,810 382,598,050
	11,829,948 879,763 1,245,695	9,681,081 - - - 1,122,782 4,474,436 146,714,371 4,935,565 1,016,363 193,566,450 168,078,406 1,307,414	- 5,127,572 1,118,461	11,829,948 9,681,081 10,289,764 152,964,725 196,119,559 170,213,230

10

Perseus Mining Limited and its controlled entities Notes to the Unaudited Consolidated Financial Statements For the period ended 31 December 2011

			Consolidated	Consolidated
		Three months ended		Six months ended
	Notes	31 Dec 2011	31 Dec 2010	31 Dec 2011	31 Dec 2010
		$	$	$	$
54. OTHER INCOME
Interest revenue		232,698	729,379	472,234	1,626,055
Foreign exchange gains		7,125,160	-	9,952,879	-
Revaluation / (devaluation) of gold put options		(269,671)	-	349,369	-
Other revenue		190,880	10,015	190,880	10,015
		**7,279,067 **	739,395	**10,965,362 **	1,636,070

5. EXPENSES

Profit / (loss) from ordinary activities before income tax has been determined after:

Expenses
Other expenses include:
Bank fees	15,307	65,308	63,547	158,361
Insurance	115,002	84,775	300,074	100,736
Public relations	131,346	87,110	237,858	170,125
Stock exchange listing and compliance fees	12,201	161,287	111,170	280,818
Foreign exchange losses	-	2,431,121	-	8,793,939
Devaluation of gold put options	-	1,872,138	-	5,488,281
Travel	256,730	236,052	445,535	452,821

6. INCOME TAX EXPENSE

Previously unrecognised net deferred tax assets of $21,863,178 (31 Dec 2010: nil) have been recognised in the current period. The resulting credit associated with this has been recognised as an income tax benefit of $8,556,634 and as other comprehensive income of $13,181,255.

The income tax benefit that has been recognised in the statement of comprehensive income comprises $8,556,634 of deferred income tax benefit and $308,490 of current income tax benefit.

Deferred tax assets relating to the group’s operations in Ghana have been recognised during the period as construction of the Edikan Gold Mine has been completed, commissioning commenced and first gold poured. In addition, management are satisfied that the operations have achieved commercial production from 1 January 2012. Accordingly, management consider it is probable that the group will earn sufficient taxable income in Ghana to utilise the tax assets in the future.

11

Perseus Mining Limited and its controlled entities Notes to the Unaudited Consolidated Financial Statements For the period ended 31 December 2011

7. CASH AND CASH EQUIVALENTS

		Consolidated	Consolidated
		31 Dec 2011	30 June 2011
		$	$
Cash assets	(i)	10,608,721	1,841,096
Short term deposits	(ii)	120,846,293	94,620,948
		131,455,014	96,462,044

• (i) Cash at bank earns interest at floating rates based on daily bank deposit rates.

• (ii) Short-term deposits are made for varying periods of between one day and ninety days, depending on the immediate cash requirements of the group, and earn interest at the respective short-term deposit rates.

Risk exposure

The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of cash and cash equivalents mentioned above.

8. RECEIVABLES

Current Trade debtors (i) Sundry debtors (i) Other Receivable (ii) Non-current Other Receivable (ii) Loans to external party (iii) Security deposits (iv)	9,260,531 - 891,108 1,194,269 - 7,352,502
	10,151,639 8,546,771
	15,918,983 - 844,627 749,994 2,208,914 2,880,656
	18,972,524 3,630,650

Terms relating to the above financial instruments:

• (i) Trade and sundry debtors are non-interest bearing and generally on 30 day terms.

• (ii) Other receivable relates to a VAT refund from the Ghana Internal Revenue Service. This has been reclassified from current to non-current during the period.

• (iii) The loan relates to advances made to SOMICI SARL for exploration on the Tengrela South tenement where the group has agreed to fund exploration to feasibility stage. SOMICI SARL is an unrelated entity to the group and this advance is repayable by SOMICI SARL to the group.

• (iv) At 31 December 2011, the group has US$2.248 million (approximately A$2.209 million) held in bank deposits which are subject to a lien and are collateral for a bank guarantee that has been issued to the Ghana Environmental Protection Agency in relation to environmental rehabilitation provisions concerning the Edikan Gold Mine (“EGM”).

Fair value and foreign exchange and credit risk

Due to the nature of these receivables, their carrying amount is assumed to approximate their fair value. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of receivables mentioned above.

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Perseus Mining Limited and its controlled entities Notes to the Unaudited Consolidated Financial Statements For the period ended 31 December 2011

9. INVENTORIES

Ore stockpiles Gold in circuit Bullion on hand Materials and supplies	Consolidated 31 Dec 2011 30 June 2011 $ $ 18,457,096 - 1,370,720 - 5,116,928 - 6,857,830 428,089
	31,802,574 428,089

Inventory expense

No inventory expense has been recognised as an expense during the periods ended 31 December 2011 (31 Dec 2010: nil). There have been no write-downs of inventories to net realisable value during the periods ended 31 December 2011 (31 Dec 2010: nil).

10. OTHER ASSETS

Current Prepayments Financial assets at fair value through profit or loss (i) Non-current Financial assets at fair value through profit or loss (i)	3,561,277 3,081,289 20,252 231
	3,581,529 3,081,520
	312,078 42,193

(i) Terms and conditions relating to the above financial instruments:

On 26 August 2009, the group purchased a strip of Bullion Options pursuant to which the group has the right but not the obligation to sell a total of 100,000 ounces of gold to counterparties at a fixed price of US$850 per ounce in twenty four equal monthly amounts commencing on 27 January 2012 and ending on 27 December 2013. The put options were purchased for a consideration of US$9,140,000 (A$10,888,730).

On 13 May 2010, the group purchased a strip of Bullion Options pursuant to which the group has the right but not the obligation to sell a total of 20,000 ounces of gold to counterparties at a fixed price of US$1,100 per ounce in six equal monthly amounts commencing on 28 July 2011 and ending on 28 December 2011. The put options were purchased for a consideration of US$1,661,832 (A$1,820,521). The options matured unexercised during the period.

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Perseus Mining Limited and its controlled entities Notes to the Unaudited Consolidated Financial Statements For the period ended 31 December 2011

11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

			Ownership	interest	Published	fair value
		Country of	Dec 2011	June 2011	Dec 2011	June 2011
Name of associated entity:	Principal activity	incorporation	%	%	$	$
Manas Resources Limited	Gold Exploration	Australia	23.7	23.9	7,868,184	7,870,000
Burey Gold Limited	Gold Exploration	Australia	23.0	25.6	3,260,000	5,086,900

Manas Resources Limited (“Manas”)

On 30 September 2011 Perseus entered into a sub-underwriting agreement with respect to the shortfall of the exercise of options to subscribe for that number of shares which results in its shareholding interest in Manas remaining around its current holding. On 13 October 2011 Perseus subscribed for and was allotted 11,930,000 shares at a cost of $2,386,000 and, as a result of the 30 September 2011 exercise of options by Manas option holders, further shares were allotted and Perseus’s interest in Manas reduced from 23.9% to 23.7%.

Investment in associated entity – Manas Resources Limited	Consolidated 31 Dec 2011 30 June 2011 $ $ 8,161,220 5,957,660

Burey Gold Limited (“Burey”)

On the 30 June 2011 Perseus exercised 34,800,000 options for a total consideration of $1,740,000 and its interest in Burey increased from 19.9% to 25.6%. As a result of the exercise of the options, Perseus was issued 34,800,000 ‘piggy-back’ options. In July 2011, and as a result of the 30 June 2011 exercise of options by Burey option holders, further shares were allotted and Perseus’s interest in Burey decreased to 23.0%.

The “piggy-back” options to acquire shares in Burey have the following terms:

Number of options Exercise Price Maturity Date 34,800,000 $0.08 31 December 2012 Investment in associated entity - Burey Gold Limited	Consolidated 31 Dec 2011 30 June 2011 $ $ 3,668,728 3,723,421

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Perseus Mining Limited and its controlled entities Notes to the Unaudited Consolidated Financial Statements For the period ended 31 December 2011

12. DERIVATIVE FINANCIAL INSTRUMENTS

12. DERIVATIVE FINANCIAL INSTRUMENTS
Current Cash flow hedge liability Non-Current Cash flow hedge liability	Consolidated 31 Dec 2011 $ 30 June 2011 $ 28,452,669 10,837,822
	46,543,601 48,471,820

The group is party to derivative financial instruments in the normal course of business in order to hedge exposure to future price and currency fluctuations in the primary commodity markets in which it operates. This is done in accordance with the group's financial risk management policies

Forward metal contracts – cash flow hedges:

The group uses cash flow designated USD forward metal contracts to hedge movements in USD base metal prices on its anticipated sales of gold. At 31 December 2011 there were cash flow designated hedge contracts in place for 230,000 ounces of gold with settlements scheduled between March 2012 and December 2014. These hedge contracts were designated as effective cash flow hedges beginning 1 October 2010.

From 1 October 2010 the portion of the gain or loss on these hedging instruments that are determined to be an effective hedge are recognised and retained directly in equity. The ineffective portion will be recognised in the statement of comprehensive income.

13. BORROWINGS

Current Interest-bearing loan facility (i) Non-Current Interest-bearing loan facility (i)	38,537,132 20,000,695
	42,872,369 57,804,344

(i) The group drew down on its finance facility provided by Macquarie Bank Limited and Credit Suisse AG in June 2011. This is a secured loan facility with fixed repayments, with the balance repayable by September 2014. Currently interest is based on LIBOR plus a 3.75% margin pre completion.

Secured liabilities and assets pledged as security

The debt and hedge facilities provided by Macquarie Bank Limited and Credit Suisse AG are secured by a guarantee and indemnity from the Company covering all money due under the facilities as well as mortgages over certain of the Company’s assets including its shares in Kojina Resources Ltd (“Kojina”) and receivables under intercompany loan arrangements with subsidiaries. In addition, the security package includes fixed and floating charges over all of the assets and undertakings of both Kojina and Perseus Mining (Ghana) Limited (“PMGL”) including a first ranking mortgage over the EGM tenements.

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Perseus Mining Limited and its controlled entities Notes to the Unaudited Consolidated Financial Statements For the period ended 31 December 2011

14. ISSUED CAPITAL AND RESERVES

		Consolidated	Consolidated
		31 Dec 2011		31 Dec 2010
	$	Number	$	Number
Balance at the beginning of the period	355,759,201	425,617,088	346,615,812	418,032,088
Shares issued pursuant to exercise of options	3,095,000	1,460,000	6,933,250	4,805,000
Shares placements at issue price of $3.10 (Cdn$3.25) on 2 November 2011	77,395,694	25,000,000	-	-
Shares issued to underwriters pursuant to exercise of over-
allotment options at issue price of $3.13 (Cdn$3.25) per share	11,725,515	3,750,000	-	-
on 14 November 2011
Transaction costs arising from issue of securities for cash	(4,862,781)	-	(57,110)	-
Balance at the end of the period	443,112,629	455,827,088	353,491,952	422,837,088

(b) Share Options

Options to subscribe for ordinary shares in the Company have been granted as follows:

Exercise Period Note Exercise Price	Opening Balance 1 July 2011 Options Issued Options Exercised/ Cancelled/ Expired Closing Balance 31 Dec 2011 Number Number Number Number
On or before 14 January 2012 $2.13 On or before 23 January 2012 $0.65 On or before 31 March 2012 $1.80 On or before 31 March 2012 $1.30 On or before 16 June 2013 $2.13 On or before 29 July 2012 $2.45 On or before 6 October 2013 $3.00 On or before 14 October 2012 $3.00 On or before 14 October 2012 $3.45 On or before 3 November 2013 $3.20 On or before 15 June 2014 $3.00	1,050,000 - (1,000,000) 50,000 1,035,000 - (10,000) 1,025,000 400,000 - - 400,000 600,000 - - 600,000 1,330,000 - (450,000) 880,000 400,000 - - 400,000 450,000 - - 450,000 160,000 - - 160,000 280,000 - - 280,000 340,000 - (70,000) 270,000 2,390,000 - (100,000) 2,290,000
	8,435,000 - (1,630,000) 6,805,000

(c) Ordinary shares

Ordinary shares entitle the holder to participate in dividends as declared and, in the event of winding up of the Company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the Company.

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Perseus Mining Limited and its controlled entities Notes to the Unaudited Consolidated Financial Statements For the period ended 31 December 2011

15. CONTINGENCIES

The group has entered into three lump sum contracts for the design, supply, construction and services related to the development of the EGM. Notwithstanding the fixed price nature of the contracts, during and after the term of the contracts, claims may be made by the contractors for additional costs associated with changes in scope of work, valid extensions of time or similar.

There were no known contingent liabilities which were not provided for in the financial statements of the group as at 31 December 2011.

16. COMMITMENTS

(a) Exploration expenditure commitments

With respect to the group’s mineral property interests in Ghana and Côte d’Ivoire, statutory expenditure commitments specified by the mining legislation are nominal in monetary terms. However, as part of mineral licence application and renewal requirements, the group submits budgeted exploration expenditure. In assessing subsequent renewal applications, the mining authorities review actual expenditure against budgets previously submitted. The group’s budget expenditures for future periods are shown below. These amounts do not become legal obligations of the group and actual expenditure may and does vary depending on the outcome of actual exploration programs, and the costs and results from those programs.

Within one year One year or later and not later than five years Later than five years	Consolidated 31 Dec 201130 June 2011 $ $ 1,050,000 1,050,000 1,400,000 5,400,000 950,000 1,550,000
	3,400,000 8,000,000

(b) Capital commitments

In March 2007, the Company’s subsidiary, Kojina Resources Limited (“Kojina”), exercised an option to purchase all of the issued capital of PMGL (formerly Central Ashanti Gold Ltd), a Ghanaian company which is the holder of the EGM. In addition to the consideration paid, Kojina is liable to pay a royalty of 0.25% of gold refined from the tenement areas from commercial mining operations to Strategic Systems Pty Ltd who has subsequently assigned this entitlement to Waratah Investments Limited. PMGL itself had acquired the EGM from the former owner, AGC. All consideration payable under the contract to purchase the EGM licences, has been paid other than a royalty on gold produced from the leases of 2% if the gold price is below US$350/oz, 2.5% if the gold price is over US$350 but below US$500/oz and 3% if the gold price exceeds US$500/oz on resources existing on the Edikan Mining Licences when PMGL entered in the contract with AGC, or a royalty at half of those rates on new resources identified by PMGL on those licences. By deed of assignment dated 30 June 2011 AGC assigned all of its interest in this royalty to Franco-Nevada Corporation.

The group has also assumed responsibility for all rehabilitation of the Edikan Mining leases, which are currently estimated to cost approximately US$6.8 million and a provision has been recorded for this at balance date.

In December 2011, the Company placed an order for the construction of the SAG mill for the Sissingué Gold Mine in Côte d’Ivoire. The commitments under this contract were for approximately A$3.3 million and EUR 1.8 million.

17. EVENTS OCCURING AFTER THE END OF THE REPORTING PERIOD

Since the end of the financial period and to the date of this report no matter or circumstance has arisen that has significantly affected, or may significantly affect, the operations of the consolidated entity, the results of those operations or the state of affairs of the consolidated entity in subsequent financial periods other than:

• a) On 10 January 2012, the Company declared that commercial production has commenced at the EGM on 1 January 2012. Accordingly, from 1 January all revenue, expenses and borrowing costs associated with the EGM will be recognised in the income statement.

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