PERSEUS MINING LIMITED — Interim / Quarterly Report 2014

Aug 11, 2014

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I NVESTOR OVERVI EW & UP DATE

13- 15 Aug ust 2014

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Jeff Quartermaine Managing Director & CEO

ASX/TSX: PRU

www.perseusmining.com

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Cautionary Statements

Forward-Looking Statements

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 Tengréla, 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 forward-looking information. Perseus does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Competent Person’s Statement

All Production targets for the Edikan Gold Mine (EGM) referred to in this presentation are underpinned by estimated Ore Reserves which have been prepared by competent persons in accordance with the requirements of the JORC Code.

The information in this presentation that relates to EGM and Sissingué Gold Project Ore Reserves and Mineral Resources is based on, and fairly represents, information and supporting documentation compiled by Mr Kevin Thomson, a Competent Person who is a Professional Geoscientist with the Association of Professional Geoscientists of Ontario. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. The information in this presentation that relates to exploration results at its Bokitsi South deposit in Ghana was first reported by the Company in compliance with the JORC Code 2012 in market releases on 19 June 2014 and 7 July 2014. The Company confirms that it is not aware of any new information or data that materially affects the information in those market announcements. The information in this presentation that relates to exploration results at the Bélé deposit on the Mahalé exploration licence in Côte d’Ivoire was first reported by the Company in compliance with JORC 2012 in its December 2013 Quarterly Activities Report dated 28 January 2014 .The Company confirms that it is not aware of any new information or data that materially affects the information included in that market announcement. The information in this presentation that relates to other exploration results was first reported in the Company’s June 2014 Quarterly Activities Report dated 29 July 2014. The Company confirms that it is not aware of any new information or data that materially affects the information included in that market announcement.

Mr Thomson is a full time employee of the Company. Mr Thomson has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, 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 Thomson 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’ 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 - Tengréla Gold Project, Côte d’Ivoire’’ dated December 22, 2010 in relation to the Edikan Gold Mine (formerly the Central Ashanti Gold Project) and the Tengréla Gold Project respectively.

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Perseus in a snapshot

• West African focused ASX/TSX listed gold explorer, developer and producer

• Highly motivated to deliver improved total shareholder returns

• Currently producing ~200,000oz gold pa with projected organic growth in production and cashflows

• Debt free balance sheet includes cash & bullion of ~ A$49m at 30 June 2014

• Experienced and capable board and management team

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Perseus’s West African Projects
Mauritania Mali
Niger
Senegal
Burkina
M A L I Guinea Faso Benin
70Moz Nigeria
Togo
B U R K I N A F A S O
Ghana Ghana
Côte d’Ivoire
Sissingué
G U I N E A
S I E R R A G H A N A
L E O N E
C Ô T E D ' I V O I R E
L I B E R I A 170Moz
Edikan
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Group Mineral Resources and Reserves*

7.1Moz of Gold in Measured & Indicated Mineral Resources (87% in Ghana) (207Mt at 1.1g/t)

INCLUDING

3.8Moz

(82% in Ghana)

of Gold in Proven & Probable Reserves (97Mt at 1.2g/t)

PLUS

3.0Moz

(90% in Ghana)

Gold in Inferred Mineral Resources (101Mt at 1.1g/t)

• As at 30 August 2013

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Financial Position at 30 June 2014

• Available cash and bullion on hand of A$48.7M

• Company debt free

• Hedge position of 125,000oz of gold <(5% of Ore Reserves) hedged at US$1,468/oz to Dec 2015 valued at US$19.0M

• VAT receivable owing from Ghanaian Government reduced materially to ~US$15M at 17 July 2014

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Key investment parameters

• 526.66m outstanding ordinary shares

• 534.64m shares fully diluted

• Share ownership spread between Australia (~45%), US & Canada (~42%, Europe (~10%), Asia(~3%)

• High quality share register with top 25 investors owning ~51% of issued capital

• Average daily turnover (3 months)

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• ASX 4.25 million TSX 0.30 million

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Corporate Plan

• Objective is to maximise total shareholder returns

• Strategy is to organically grow cash flows through successful exploration, effective development and efficient operation of multiple gold mines in diverse geopolitical settings within West Africa

• Key short – medium term tactics include:

• Optimise operating performance of the Edikan Gold Mine in Ghana

• Develop and commission a second mine, Sissingué Gold Mine in Côte d’Ivoire

• Expand size and quality of Mineral Resource base through successful, cost efficient near mine and regional exploration programmes

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Edikan Performance Improvement

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Edikan Site Layout

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Reserves
5km radius
Resources
Esuajah
Esuajah North
Abnabna
South Current production pits
Fobinso
M I L L S I T E
Fetish
Bokitsi
Chirawewa
Mampong
Dadieso
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Edikan Performance Improvement

Gold production is a function of:

• Mill throughput rate

• Mill run time

Unit costs are a function of:

• Cost Base including:

Mining (55%) Processing (35%) and G&A (10%)

• Mill feed grade

• Gold Recovery

• Production rates including Tonnes mined

Tonnes milled and Gold produced

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Production Performance - Processing

June 2014 Quarter

Mill Run Time

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100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
Actual
10.0
0.0
SAG mill run time, %
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• Run time affected by:

• (i) 7-day production loss (fire) (ii) 3-day production loss (CT failure – Gridco yard)

• Underlying positive trend - 91% excluding time loss with these two incidents

• Target rate going forward 90%

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Production Performance - Processing

June 2014 Quarter

Mill Feed Rate

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1000
950
900
850
800
750
700
650
600
550 Actual
500
SAG mill feed rate, t/h
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• Mill feed rate affected by GRIDCO load shedding requirements

• Mill feed rate limited by SAG mill discharge screen capacity (problem since solved)

• Target rate going forward 950t/h based on:

• (i) 830 t/h primary ore and

• (ii)120 t/h oxide ore

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Production Performance - Processing

Head Grade

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1.80
1.70
1.60
1.50
1.40
1.30
1.20
1.10
1.00
0.90
0.80 Actual
0.70
Head Grade, g/t
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June 2014 Quarter

• Mill feed grade improved in line with expectations

• Significant improvement in mined grade but need to blend with low grade stockpiles

• Working on minimising mine call factor on fringes of main chutes in the AFG Pit to improve mill feed grade

• Target for FY 2015 1.13g/t with gradual improvement as the year progresses

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Production Performance - Processing

June 2014 Quarter

Gold Recovery

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100.0
95.0
90.0
85.0
80.0
75.0
70.0 Actual
65.0
Gold recovery, %
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• Recovery steadily improving – gravity +2.8%, flotation +2.1%, CIL steady

• Some changes to usage of consumables - copper sulphate addition and collector increased

• Improved gravity circuit operation

• Targeted recovery of 87% combining 88% for fresh ore (Western Pits) and 61% for oxide ore and 73% for transitional ore.

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Cost Performance - Mining

• Key to improving Edikan’s all-in site unit cost is materially reducing mining costs

• Existing mining contract expires in May 2016 but may be terminated earlier. Have reduced material movements and shifts worked in FY2015

• Currently examining pros and cons of alternative mining strategies including:

o negotiating a reduction in rates from existing contractor;

• repackaging and retendering mining work to both local and foreign mining contractors

• o switch to owner mining

• Deferred waste stripping in Fobinso final pit until mining strategy confirms lower costs. Also need mining strategy confirmed before commencing work in eastern pits (Fetish and Bokitsi)

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Cost Performance - Processing

• Processing cost increases in June 2014 Quarter mainly the result of higher than expected maintenance costs including fire damage repair

• Improvements are available through tighter cost control e.g. reduce use of contractors, cranes and maintenance materials during scheduled shutdowns

• Improvements in price of some consumables and also logistics are targeted

• Examining changes to work practices to reduce overtime and penalty rate payments

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Re-optimising Mine Plans

• Aim is to maximise the net present value of cash flows from operations

• Finalising re-estimate of Edikan Mineral Resources taking into account, mining diminution, recent drilling and revised assumptions

• Updated Mineral Resource used for pit re-optimisation and scheduling with adjusted assumptions reflecting recent experience and cost (particularly in mining) forecasts

• Pit development to be rescheduled where mill feed grade improvements are available

• Updated LOMP and Mineral Reserve expected in December 2014 Quarter. Not expected to change FY2015 production and cost guidance

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FY2015 Guidance

Parameter Units December 2014 June 2015 2015 Half Year Half Year Financial Year Gold Production Ounces 95,000-105,000 115,000-125,000 210,000-230,000 All-In Site Costs* US$/oz 1,160-1,280 1,050-1,150 1,100-1,200

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• All-in site costs includes production cost + royalty + sustaining and development capital

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Near mine exploration programmes

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Near mine exploration programmes

• Near mine exploration programmes targeting higher grade mineralisation to become mill feed in the short to medium term

• Immediate success at the Bokitsi deposit

• Drilling completed at Pokokrum where small deposits have been located – warrants further drilling

• Part way through drilling Mampong deposit

• Interesting soil anomaly at Agyakusu which needs follow up drilling as does Chirawewa deposit once old pit de-watered

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Bokitsi South Vertical Longitudinal Section

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Enhancements to onsite management team

• Effective management team, a critical success factor for Edikan

• John Seaward appointed as Executive General Manager at Edikan

• Seasoned mining professional who has worked for corporates and mining contractors in West Africa

• Formerly GM at Bisha (Nevsun), Chirano (Kinross), as well as senior roles at Bogoso & Wassa (Golden Star)

• Experience invaluable in establishing new mining regime

• Recent changes to some departmental line managers

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Sissingué Gold Mine Development

• Sissingué Gold Mine development proposal expected to be complete in January 2015

• Aim to maximise project NPV. Proposal likely to involve changes to project scale and capital cost

• Completed re-assessment of project metallurgy with positive results

• Completed economic analysis of alternative process flow sheets

• Feasibility Study to be revised in H2 2014.

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Sissingué Gold Mine development

• Conducting regional exploration with the aim of identifying additional mill feed to extend LoM beyond current Reserve

• Encouraging results at the Bélé deposit on the Mahalé tenement, 30Kms from Sissingué.

• Further work required to delineate Mineral Resource at Bélé

• New Mining Code promulgated in March 2014 provides for fiscal stability for holders of exploitation permits

• Re-engagement with Government on Mining Convention scheduled for later this Quarter

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CIV – Regional Exploration (Bélé)

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Conclusion

Perseus focussed on matters within its control with the aim of restoring investor confidence

• Foundation established at Edikan from which to leverage future organic growth in earnings

• Productivity improvement programmes at Edikan generating tangible results

• Opportunities for organic growth at Edikan

• Near mine exploration success at Edikan improving asset quality by providing higher grade mill feed

• Sissingué development moving off the “back burner” and about to add tangible value

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Contact

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ASX/TSX: PRU www.perseusmining.com

Jeff Quartermaine Managing Director & CEO +61 8 6144 1700 Nathan Ryan Investor Relations (Australia) +61 420 582 887

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