PERSEUS MINING LIMITED — Interim / Quarterly Report 2014

May 14, 2014

PERSEUS MINING LIMITED ABN 27 106 808 986

Consolidated Interim Financial Statements For the three and nine months ended 31 March 2014 (unaudited)

The accompanying unaudited consolidated interim financial statements for the three and nine months ended 31 March 2014 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 period ended 31 March 2014

For the period ended 31 March 2014
Notes Revenue Other income 4 Changes in inventories of finished goods and work in progress Direct costs of mining and processing Royalties Employee benefits expense Depreciation and amortisation expense Foreign exchange loss Finance cost Impairment of investment in associate Share of net losses of associate Loss on derivative financial instruments Other expenses (Loss) / profit before income tax expense Income tax benefit / (expense) 6 (Loss) / profit after income tax Other comprehensive income Items that may be reclassified subsequently to profit or loss Exchange differences on translation of foreign operations Net changes in fair value of cash flow hedges Net changes in fair value of financial assets Income tax benefit / (expense) relating to cash flow hedges Total comprehensive (loss) / income for the period (Loss) / profit attributable to: Owners of the parent Non-controlling interests Total comprehensive (loss) / income attributable to: Owners of the parent Non-controlling interests Basic (loss) / profit per share Diluted (loss) / profit per share	Consolidated Three months ended Nine months ended 31 Mar 201431 Mar 2013 31 Mar 201431 Mar 2013 $’000 $’000 $’000* $’000
	63,398 77,238 198,674 224,303 864 16 949 130 (2,850) (14,569) 2,508 4,518 (41,984) (38,863) (136,241) (99,490) (4,268) (4,833) (12,775) (14,884) (8,772) (7,401) (23,469) (17,940) (9,374) (6,790) (30,086) (20,535) (14,243) (1,192) (14,092) (9,291) (346) (775) (1,258) (2,342) - - (2,225) (782) - - - (473) - (9) - (77) (1,077) (1,465) (5,180) (4,509)
	(18,652) 1,357 (23,195) 58,628 2,650 (1,721) 3,168 (25,763)
	(16,002) (364) (20,027) 32,865
	(6,965) (2,325) 1,382 (1,405) (12,874) 23,804 (14,037) 19,848 163 - 814 - 4,506 (8,284) 4,913 (6,900)
	(31,172) 12,831 (26,955) 44,408
	(15,685) (582) (19,517) 28,306 (317) 218 (510) 4,559
	(16,002) (364) (20,027) 32,865
	(29,776) 11,092 (25,470) 38,622 (1,396) 1,739 (1,485) 5,786
	(31,172) 12,831 (26,955) 44,408
	(3.34) cents (0.13) cents (4.18) cents 6.18 cents (3.34) cents (0.14) cents (4.18) cents 6.17 cents

The accompanying notes form part of these financial statements.

• Certain amounts shown here do not correspond to the March 2013 financial statements and reflect adjustments made as detailed in Note 1.

2

Perseus Mining Limited and its controlled entities Unaudited consolidated statement of financial position As at 31 March 2014

Notes Current Assets Cash and cash equivalents 7 Receivables 8 Income tax benefit Inventories 9 Other assets 10 Derivative financial instruments 12 Total current assets Non-current assets Receivables 8 Other assets 10 Investments accounted for using the equity method 11 Property, plant and equipment Mine properties Mineral interest acquisition and exploration expenditure Derivative financial instruments 12 Total non-current assets Total assets Current liabilities Payables Total current liabilities Non-current liabilities Provision Deferred tax liability Total non-current liabilities Total liabilities Net assets Equity Issued capital 14 Reserves Retained earnings Parent entity interest Non-controlling interest Total Equity	Consolidated 31 Mar 2014 30 June 2013 Restated $’000* $’000
	42,510 35,480 8,403 8,203 3,143 - 41,549 31,058 6,053 10,345 3,364 2,548
	105,022 87,634
	49,667 53,101 2,274 4,181 652 652 202,524 211,343 181,100 156,411 32,954 47,311 20,252 29,747
	489,423 502,746
	594,445 590,380
	59,357 53,085
	59,357 53,085
	7,460 7,983 41,668 47,468
	49,128 55,451
	108,485 108,536
	485,960 481,844
	476,431 445,404 5,755 11,659 (3,848) 15,669
	478,338 472,732 7,622 9,112
	485,960 481,844

The accompanying notes form part of these financial statements.

• Certain amounts shown here do not correspond to the June 2013 financial statements and reflect adjustments made as detailed in Note 1.

3

Perseus Mining Limited and its controlled entities Unaudited consolidated statement of changes in equity

For the period ended 31 March 2014

Consolidated
Issued Capital Retained Earnings / (Accumulated Losses) Share Based Payments Reserve Foreign Currency Translation Reserve Asset Revaluation Reserve Hedging Reserve Non- controlling Interest’s Reserve	Non- controlling Interest Total Equity
$’000 $’000 $’000 $’000 $’000 $’000 $’000	$’000 $’000
9 months to 31 March 2014 Balance at 1 July 2013 445,404 15,267 18,865 (31,454) (651) 24,631 218 Changes in accounting policies (see note 1) - 402 - 50 - - -	9,062 481,342 50 502
Balance at 1 July 2013 (restated) 445,404 15,669 18,865 (31,404) (651) 24,631 218* Loss for the period - (19,517) - - - - - Currency translation differences - - - 1,445 - - - Share of currency translation difference of associated entity - - - - - - - Net change in fair value of financial assets - - - - 814 - - Net change in fair value of cash flow hedges - - - - - (12,633) - Income tax relating to components of other comprehensive income / (loss) - - - - - 4,421 -	9,112 481,844 (510) (20,027) (63) 1,382 - - - 814 (1,404) (14,037) 492 4,913
Total comprehensive income / (loss) for the period - (19,517) - 1,445 814 (8,212) -	(1,485) (26,955)
Shares issued during the period 32,286 - - - - - - Share issue expenses (1,259) - - - - - - Share basedpayments - - 49 - - - -	- 32,286 - (1,259) (5) 44
Balance at 31 March 2014 476,431 (3,848) 18,914 (29,959) 163 16,419 218	7,622 485,960
9 months to 31 March 2013 Balance at 1 July 2012 445,450 (23,102) 18,449 (51,824) - (28,697) 218 Profit for the period (restated – see note 1) - 28,306 - - - - - Currency translation differences - - - (1,235) - - - Share of currency translation difference of associated entity - - - (104) - - - Net change in fair value of cash flow hedges - - - - - 17,863 - Income tax relating to components of other comprehensive income / (loss) - - - - - (6,210) -	(626) 359,868 4,559 32,865 (66) (1,301) - (104) 1,985 19,848 (690) (6,900)
Total comprehensive income / (loss) for the period - 28,306 - (1,339) - 11,653 -	5,788 44,408
Shares issued during the period - - - - - - - Share issue expenses (128) - - - - - - Share basedpayments - - 256 - - - -	- - - (128) (12) 244
Balance at 31 March 2013 445,322 5,204 18,705 (53,163) - (17,044) 218	5,150 404,392

The accompanying notes form part of these financial statements.

• Certain amounts shown here do not correspond to the June 2013 financial statements and reflect adjustments made as detailed in Note 1.

4

Perseus Mining Limited and its controlled entities Unaudited consolidated statement of cash flows For the period ended 31 March 2014

Notes Operating activities Receipts in the course of operations Payments to suppliers and employees Interest received Payments for borrowing costs Net cash from / (used in) operating activities Investing activities Payments for exploration and evaluation expenditure Payments for acquisition of property, plant and equipment Payments for acquisition of assets under construction Proceeds on disposal of property, plant and equipment Purchase of gold put options Investment in unlisted entity Funds received / (payments) for security deposits and bank guarantees Net cash used in investing activities Financing activities Proceeds from share issues Repayment of borrowings Share issue expenses Net cash from / (used in) financing activities Net increase / (decrease) in cash held Cash and cash equivalents at the beginning of the financial period Effects of exchange rate fluctuations on the balances of cash held in foreign currencies Cash and cash equivalents at the end of the period	Consolidated Three months ended Nine months ended 31 Mar 2014 31 Mar 201331 Mar 201431 Mar 2013 $’000 $’000 $’000 $’000
	63,411 69,636 194,373 210,708 (62,749) (54,304) (195,264) (159,752) 2 17 28 180 (16) (295) (271) (2,406)
	648 15,054 (1,134) 48,730
	(1,638) (2,617) (6,802) (9,765) (2) (257) (345) (864) (2,106) (12,702) (14,311) (33,308) 1 - 82 - - - (179) - (50) - (50) - - - - (6,914)
	(3,795) (15,576) (21,605) (50,851)
	32,286 - 32,286 - - - - (60,554) (1,259) (128) (1,259) (128)
	31,027 (128) 31,027 (60,682)
	27,880 (650) 8,288 (62,803) 16,016 39,674 35,480 105,497 (1,386) (615) (1,258) (4,285)
	42,510 38,409 42,510 38,409

The accompanying notes form part of these financial statements.

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Perseus Mining Limited and its controlled entities Notes to the unaudited consolidated financial statements For the period ended 31 March 2014

Contents of the notes to the financial statements

		Page
1	Summary of significant accounting policies	7
2	Critical accounting estimates and judgements	8
3	Segment information	10
4	Other income	12
5	Expenses	12
6	Income tax benefit	12
7	Cash and cash equivalents	12
8	Receivables	13
9	Inventories	13
10	Other assets	14
11	Investments accounted for using the equity method	14
12	Derivative financial instruments	15
13	Financial instruments	15
14	Issued capital	18
15	Contingencies	19
16	Commitments	19
17	Events occurring after the end of the reporting period	20

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Perseus Mining Limited and its controlled entities Notes to the unaudited consolidated financial statements For the period ended 31 March 2014

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 nine months ended 31 March 2014 (the “period”), the consolidated entity conducted operations in Australia, Ghana and Côte d'Ivoire.

These consolidated interim financial statements of the consolidated entity for the period ended 31 March 2014 are general purpose condensed financial statements prepared in accordance with the requirements of the Australian Corporations Act 2001 (Cth) and AASB 134 ‘Interim Financial Reporting’.

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 2013, 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. These consolidated interim financial statements are rounded off to the nearest thousand dollars ($’000), unless otherwise indicated.

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

New and amended standards and interpretations adopted by the group

In the period ended 31 March 2014, the group has adopted 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 before 1 July 2013. The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the group’s annual consolidated financial statements for the year ended 30 June 2013, except for the adoption of new and amended standards and interpretations noted below:

From 1 July 2013 the group applied AASB Interpretation 20 Stripping costs in the production phase of a surface mine . The change in accounting policy has been applied to the earliest period presented and therefore there has been a restatement of certain 31 March 2013 and 30 June 2013 closing balances as follows:

As of and for the period ended 31 March 2013: Decrease in depreciation and amortisation expenses of $3,068,000 Increase in changes in inventories of finished goods and work in progress of $241,000 Increase in direct costs of mining and processing of $899,000 Increase in income tax expense of $677,000 Increase in profit after tax of $1,261,000 The effect on earnings per share related to the restatement in March 2013 was an increase of $0.0025.

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Perseus Mining Limited and its controlled entities Notes to the unaudited consolidated financial statements For the period ended 31 March 2014

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued

As of and for the year ended 30 June 2013: Increase in inventories of $381,000 Increase in mine properties of $391,000 Increase in deferred tax liability of $270,000 Increase in reserves of $50,000 Increase in retained earnings of $402,000 Increase in non-controlling interest of $50,000

The effect on earnings per share related to the restatement in 2013 was a reduction of $0.001.

Prior to the implementation of Interpretation 20 the group capitalised excess stripping costs incurred during production based on the strip ratio method. Stripping ratios are a function of the quantity of ore mined compared with the quantity of overburden, or waste required to be removed to mine the ore. For each individual pit and interim pit (“component”) the actual strip ratio was compared to the life of component strip ratio and costs were deferred to the extent that the current period ratio exceeded the life of component strip ratio. The deferred costs were then expensed to the income statement in the period where the current ratio fell below the life of component ratio.

Following the application of Interpretation 20, the group is now required to amortise the deferred waste asset over the expected useful life of the identified component of the ore body that has been made more accessible by the activity. The group amortises the deferred waste asset on a unit of production basis over the economically recoverable reserves of the component concerned. The unit of measure is bank cubic meters of ore mined. The group already identified each component of the ore body via the use of interim pits and as such the requirement of Interpretation 20 to separately identify components of each ore body had no effect on the group at the date of application of the interpretation.

From 1 July 2013 the group applied AASB 13 Fair Value Measurement . The group has reassessed its policies for measuring fair values, in particular, its valuation inputs such as non-performance risk for fair value measurements of assets and liabilities. AASB 13 also requires additional disclosures.

Application of AASB 13 has not materially impacted the fair value measurements of the group. Additional disclosures where required, are provided in the individual notes relating to the assets and liabilities whose fair values were determined. Fair value hierarchy is provided in Note 13.

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.

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.

(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 prospectivity are made.

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Perseus Mining Limited and its controlled entities Notes to the unaudited consolidated financial statements For the period ended 31 March 2014

2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS – continued

(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 forward estimates of:

• (i) Mine life including quantities of mineral ore 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 and the fair value of performance rights granted is determined using a Monte Carlo simulation 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 instruments 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.

(vii) Unit-of-production method of depreciation / amortisation

The group uses the unit-of-production basis when depreciating/amortising life of mine specific assets, which results in a depreciation/amortisation charge proportional to the depletion of the anticipated remaining life of mine production. Each item’s economic life, which is assessed annually, has due regard to both its physical life limitations and to present assessments of economically recoverable reserves of the mine property at which it is located. These calculations require the use of estimates and assumptions, including the amount of recoverable reserves and estimates of future capital expenditure. The group amortises mine property assets utilising tonnes of ore mined and mine related plant and equipment over tonnes of ore processed.

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Perseus Mining Limited and its controlled entities Notes to the unaudited consolidated financial statements For the period ended 31 March 2014

2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS – continued

(viii) Deferred stripping expenditure

The group defers stripping costs incurred during the production stage of its operations. Significant judgement is required to distinguish between production stripping that relates to the extraction of inventory and what relates to the creation of a deferred waste asset.

The group also identifies the separate components of the ore body. An identifiable component is a specific volume of the ore body that is made more accessible by the stripping activity. Significant judgement is required to identify these components, and to determine the expected volumes of waste to be stripped and ore to be mined in each component. Changes in a mine’s life and design will usually result in changes to the expected stripping ratio (waste to mineral reserves ratio).

Changes in other technical or economical parameters that impact reserves will also have an impact on the life of component ratio even if they do not affect the mine’s design. Changes to the life of mine are accounted for prospectively.

(ix) Inventory

Net realisable value tests are performed at least quarterly and represent the estimated future sales price of the product based in prevailing spot metals prices at the reporting date, less estimated costs to complete production and bring the product to sale. Stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, the number of contained gold ounces based on assay data, and the estimated recovery percentage based on the expected processing method. Stockpile tonnages are verified by periodic surveys.

(x) Reserves and resources

Ore reserves are estimates of the amount of ore that can be economically and legally extracted from the group’s mining properties. The group estimates its ore reserves and mineral resources based on information compiled by appropriately qualified persons relating to the geological data on the size, depth and shape of the ore body and this requires complex geological judgements to interpret data. The estimation of recoverable reserves is based upon factors such as estimates of foreign exchange rates, commodity prices, future capital requirements, and production costs along with geological assumptions and judgements made in estimating the size and grade of the ore body. Changes in the reserve or resource estimates may impact upon the carrying value of exploration and evaluation assets, mine properties, property, plant and equipment, goodwill, provision for rehabilitation, recognition of deferred assets, and depreciation and amortisation charges.

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 period ended 31 March 2014 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 Mining, mineral exploration, evaluation and development activities. Côte d’Ivoire Mineral exploration, evaluation and development activities.

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Perseus Mining Limited and its controlled entities Notes to the unaudited consolidated financial statements

For the period ending 31 March 2014

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 Included within segment results: Share of net profit / (loss) of associate accounted for using the equity method Impairment of investment in associate Impairment of available-for-sale financial asset Depreciation and amortisation Gain / (loss) on derivative financial instruments Revaluation / (devaluation) of gold put options Share based payments 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 Australia 31 Mar 2014 31 Mar 2013 $’000 $’000	Ghana 31 Mar 2014 $’000	Ghana 31 Mar 2014 $’000		Nine months ending Ghana Côte d’Ivoire 31 Mar 2013 31 Mar 2014 $’000 $’000	Nine months ending Ghana Côte d’Ivoire 31 Mar 2013 31 Mar 2014 $’000 $’000	Nine months ending Ghana Côte d’Ivoire 31 Mar 2013 31 Mar 2014 $’000 $’000	Côte d’Ivoire 31 Mar 2013 $’000	Côte d’Ivoire 31 Mar 2013 $’000	Consolidated Consolidated 31 Mar 2014 31 Mar 2013 $’000 $’000
	- - 107 104	198,674 842			224,303 26		- -	- -		198,674 224,303 949 130
	107 104	199,516			224,329		-	-		199,623 224,433
	(13,151) (16,517)	(8,460)			75,629		(1,584)	(484)		(23,195) 58,628
	- (473) (2,225) (782) - - (665) (643) - - - (47) (2) (245) (2,825) (6,431) As at As at 31 Mar 2014 30 June 2013 57,306 29,172	- - - (29,311) - (181) (10) (11,262) As at 31 Mar 2014 **473,304 **			- - - (19,823) (77) - - (2,950) As at 30 June 2013 503,209	31	- - - (110) - - (9) (5) As at Mar 2014 63,835	- - - (69) - - - 90 As at 30 June 2013 57,999		3,168 (25,763)
										(20,027) 32,865
										- (473) (2,225) (782) - - (30,086) (20,535) - (77) (181) (47) (21) (245) (14,092) (9,291) As at As at 31 Mar 2014 30 June 2013 594,445 590,380
	652 652 335 394 900 2,480		- 20,831 107,000		- 54,978 104,654		- 3,406 585		- 16,228 1,402	652 652 24,572 71,600 108,485 108,536

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Perseus Mining Limited and its controlled entities Notes to the unaudited consolidated financial statements For the period ending 31 March 2014

4. OTHER INCOME Notes 5 Interest revenue Gain on derivative financial instruments 45. EXPENSES Finance costs: Unwinding of discount on rehabilitation provision Interest and finance charges paid / payable Other costs: Devaluation of gold put options Loss on disposal of property, plant and equipment Depreciation and amortisation: Amortisation of stripping asset Other depreciation and amortisation	Consolidated Three months ended Nine months ended 31 Mar 2014 31 Mar 2013 31 Mar 2014 31 Mar 2013 $’000 $’000 $’000 $’000 91 16 116 130 773 - 833 -
	864 16 949 130
	- - 14 7 346 775 1,244 2,335
	346 775 1,258 2,342
	40 - 181 47 9 - 1,062 - 2,918 1,829 11,319 5,447 6,456 4,961 18,767 15,088
	9,374 6,790 30,086 20,535

6. INCOME TAX BENEFIT

The income tax benefit that has been recognised in the statement of comprehensive income comprises $3,167,551 primarily relating to the EGM loss for the period.

7. CASH AND CASH EQUIVALENTS

7. CASH AND CASH EQUIVALENTS
Cash assets (i) Short term deposits (ii)	Consolidated 31 Mar 2014 30 June 2013 $’000 $’000 6,741 18,959 35,769 16,521
	42,510 35,480

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

• (ii) Short-term deposits are made for varying periods, 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.

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Perseus Mining Limited and its controlled entities Notes to the unaudited consolidated financial statements For the period ending 31 March 2014

8. RECEIVABLES Current Trade debtors (i) Sundry debtors (i) Non-current Other receivable (ii) Security deposits (iii)	Consolidated 31 Mar 201430 June 2013 $’000 $’000 5,711 7,975 2,692 228
	8,403 8,203
	39,466 42,783 10,201 10,318
	49,667 53,101

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 Revenue Authority (“GRA”). GRA have commenced repayment of this receivable to the group. The method of recovery of the remaining receivable is currently under negotiation.

• (iii) At 31 March 2014, the group has US$9.4 million (approximately A$10.2 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 EGM.

Fair value and foreign exchange and credit risk

Due to the short term nature of the current receivables, their carrying amount is assumed to approximate their fair value. Long term receivables are evaluated by the group based on parameters such as individual creditworthiness of the customer and specific country risk factors. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of receivables mentioned above.

The other receivable relating to a VAT refund from the GRA is immediately repayable on demand in Ghanaian Cedis (“GHS”), is unsecured and bears no interest. The GRA has confirmed the amount owing in GHS and has commenced repayment of this receivable to the group. Management is engaged in discussions with the GRA regarding the recovery of the remaining VAT refund and although no time frame has been agreed upon as yet, the directors are of the view that the debt will eventually be recovered. The fair value of the receivable, determined using a 10% discount rate and assuming it takes a year to recover the receivable in full, is approximately $35.9 million (30 June 2013: $38.9 million).

9. INVENTORIES

9. INVENTORIES
Ore stockpiles – at cost Ore stockpiles – at net realisable value Gold in circuit Bullion on hand Materials and supplies	Consolidated 31 Mar 2014 30 June 2013 $’000 $’000 2,277 10,730 10,366 - 6,065 844 - 4,844 22,841 14,640
	41,549 31,058

Inventory expense

The inventory expense during the nine month period ended 31 March 2014 was $178.5 million (30 June 2013: $204.0 million). The write up of inventories due to an increase in net realisable value recognised during the period ended 31 March 2014 amounted to $8.6 million (30 June 2013 write down: $21.2 million) and is included in ‘changes in inventories of finished goods and work in progress’ in the statement of comprehensive income.

13

Perseus Mining Limited and its controlled entities Notes to the unaudited consolidated financial statements For the period ending 31 March 2014

10. OTHER ASSETS Current Prepayments Financial assets at fair value through profit and loss (ii) Non-current Prepayments Available for sale financial assets (i)	Consolidated 31 Mar 2014 30 June 2013 $’000 $’000 5,231 10,345 822 -
	6,053 10,345
	325 871 1,949 3,310
	2,274 4,181

Terms and conditions relating to the above financial instruments:

(i) The group’s investment in Manas Resources Limited ($1.899 million) is recognised as an available for sale financial asset.

(ii) The group uses spot deferred USD metal sales contracts to hedge movements in USD precious metal prices on its anticipated sales of gold. At 31 March 2014 there were contracts in place for 13,000 ounces of gold with short-term settlements. The gain or loss on the mark to market of these contracts is recognised in the statement of comprehensive income.

11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

			Ownership	interest	Published	fair value
		Country of	Mar 2014	June 2013	Mar 2014	June 2013
Name of associated entity:	Principal activity	incorporation	%	%	$’000	$’000
Burey Gold Limited	Gold Exploration	Australia	23.0	23.0	1,060	652

Burey Gold Limited (“Burey”)

Investment in associated entity - Burey	Consolidated 31 Mar 2014 30 June 2013 $’000 $’000 652 652

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Perseus Mining Limited and its controlled entities Notes to the unaudited consolidated financial statements For the period ending 31 March 2014

12. DERIVATIVE FINANCIAL INSTRUMENTS

12. DERIVATIVE FINANCIAL INSTRUMENTS
Current Cash flow hedge asset Non-Current Cash flow hedge asset	Consolidated 31 Mar 2014 $’000 30 June 2013 $’000 3,364 2,548
	20,252 29,747

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 precious metal prices on its anticipated sales of gold. At 31 March 2014 there were cash flow designated hedge contracts in place for 116,000 ounces of gold with settlements scheduled between June 2014 and December 2015. 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.

The amount reclassified during the year to the income statement was a gain of $2,674,907 (30 June 2013 loss: $22,829,232).

13. FINANCIAL INSTRUMENTS

Set out below is an overview of financial instruments, other than cash and short-term deposits, held by the group as at 31 March 2014:

Financial assets: Receivables Gold put option contracts Gold forward contracts Derivative financial instruments Total current Receivables Equity instruments Derivative financial instruments Total non-current Total Financial liabilities: Payables Total current Total	Loans and receivables Available-for- sale Fair value through profit and loss Fair value through other comprehensive income $’000 $’000 $’000 $’000 8,403 - - - - - - - - - 822 - - - - 3,364
	8,403 - 822 3,364 49,667 - - - - 1,949 - - - - - 20,252
	49,667 1,949 - 20,252
	58,070 1,949 822 23,616
	59,357 - - -
	59,357 - - -
	59,357 - - -

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Perseus Mining Limited and its controlled entities Notes to the unaudited consolidated financial statements For the period ending 31 March 2014

13. FINANCIAL INSTURMENTS – continued

Fair values

Set out below is a comparison of the carrying amounts and fair values of financial instrument as at 31 March 2014:

Financial assets: Receivables Gold put option contracts Gold forward contracts Derivative financial instruments Total current Receivables Equity instruments Derivative financial instruments Total non-current Total Financial liabilities: Payables Total non-current Total	Carrying amount Fair value $’000 $’000 8,403 8,403 - - 822 822 3,364 3,364
	12,589 12,589 49,667 46,079 1,949 1,949 20,252 20,252
	71,868 68,280
	84,457 80,869
	59,357 59,357
	59,357 59,357
	59,357 **59,357 **

Fair value hierarchy

All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 — Quoted market prices in an active market (that are unadjusted) for identical assets or liabilities Level 2 — Valuation techniques (for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable)

• Level 3 — Valuation techniques (for which the lowest level input that is significant to the fair value measurement is unobservable)

For financial instruments that are recognised at fair value on a recurring basis, the group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

There were no transfers between categories during the period.

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Perseus Mining Limited and its controlled entities Notes to the unaudited consolidated financial statements For the period ending 31 March 2014

13. FINANCIAL INSTURMENTS – continued

As at 31 March 2014, the group held the following financial instruments measured at fair value:

Financial assets: Gold put option contracts Gold forward contracts Equity instruments Derivative financial instruments Total	Level 1 Level 2 Level 3 Total $’000 $’000 $’000 $’000 - - - - - 822 - 822 1,899 - 50 1,949 - 23,616 - 23,616
	1,899 24,438 50 **26,387 **

Valuation techniques

The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and available-for-sale securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Specific valuation techniques used to value financial instruments include;

• Quoted market prices or dealer quotes for similar instruments.

• The fair value of forward exchange contracts is determined using forward exchange market rates at the end of the reporting period.

• Other techniques, such as estimated discounted cash flows, are used to determine fair value for the remaining financial instruments.

The net fair value of cash and cash equivalents and non-interest bearing financial assets and liabilities of the group approximate their carrying values. The carrying values (less impairment provision if provided) of trade receivables and payable are assumed to approximate their fair values due to their short-term nature. The carrying amount of financial liabilities approximates their fair values for which, for disclosure purposes, are estimated by discounting the future contractual cash flows at the current market interest rate that is available to the group for similar financial instruments. Information about the fair value of the other receivable of VAT is provided in note 8.

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Perseus Mining Limited and its controlled entities Notes to the unaudited consolidated financial statements For the period ending 31 March 2014

14. ISSUED CAPITAL

		Consolidated	Consolidated
	31 Mar	2014	31 Mar	2013
	$’000	Number	$’000	Number
Balance at the beginning of the period	445,404	457,962,088	445,450	457,962,088
Share placement at issue price of $0.47 on 24 February 2014	32,286	68,694,313
Transaction costs arisingfrom issue of securities for cash	(1,259)	-	(128)	-
Balance at the end of the period	476,431	526,656,401	445,322	457,962,088

(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 2013 Options Issued Options Exercised/ Cancelled/ Expired Closing Balance 31 Mar 2014 Number Number Number Number
On or before 6 October 2013 $3.00 On or before 3 November 2013 $3.20 On or before 15 June 2014 $3.00	250,000 - (250,000) - 200,000 - (200,000) - 1,540,000 - (100,000) 1,440,000
	1,990,000 - (550,000) 1,440,000

(c) Performance rights

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

Grant date Expiry date Exercise price	Opening balance 1 July 2013 Performance rights issued Performance rights exercised/ cancelled/ expired Closing Balance 31 Mar 2014 Number Number Number Number
25 November 2012 31 December 2015 $nil 1 January 2013 31 December 2015 $nil 1 January 2014 30 June 2015 $nil 1 January 2014 31 December 2016 $nil	600,000 - (300,000) 300,000 2,435,629 - (721,816) 1,713,813 - 2,625,000 - 2,625,000 - 2,625,000 - 2,625,000
	3,035,629 5,250,000 (1,021,816) 7,263,813

(d) 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 ending 31 March 2014

15. CONTINGENCIES

Consistent with industry practice in Ghana, Perseus Mining (Ghana) Limited (“PMGL”) is currently undergoing a tax audit in connection with its 30 June 2010, 2011 and 2012 income tax returns. Various matters are currently being discussed as part of the audit process and to date the GRA have not issued PMGL with a formal report on its findings. Based on management's understanding of the matters currently under discussion they do not believe that the group will ultimately have any material exposure as a result of the current tax audit.

There were no other known contingent liabilities identified as at 31 March 2014.

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 Mar 201430 June 2013 $’000 $’000 950 950 1,750 1,750 1,000 1,000
	3,700 3,700

(b) Capital commitments

The group is responsible for all rehabilitation of the EGM mining leases, which are currently estimated to cost approximately US$6.8 million and a provision has been recorded for this at balance date.

(c) Operating lease commitments

The company leases office premises under normal commercial arrangements. The lease is for a period of 5 years beginning 1 April 2012. The company is under no legal obligation to accept a renewal of the lease once the lease term has expired.

Future minimum lease payments payable under non-cancellable operating leases at 31 March 2014 are as follows:

Within one year One year or later and not later than five years Later than five years	Consolidated 31 Mar 201430 June 2013 $’000 $’000 390 379 827 1,119 - -
	1,217 1,498

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Perseus Mining Limited and its controlled entities Notes to the unaudited consolidated financial statements For the period ending 31 March 2014

17. EVENTS OCCURING AFTER THE END OF THE REPORTING PERIOD

Since the end of the 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) Fire at EGM Processing Plant - On Wednesday April 9, 2014, a fire occurred in the processing plant at the EGM while the plant was shut down for scheduled maintenance. Perseus’s Emergency Response Team was activated and the fire was brought under control within an hour.

The fire caused no significant injuries and there was no adverse impact on the environment. The fire occurred in the upper cyclone area of the process plant (levels above Knelsons and gravity screens). Cyclone Process Equipment and associated support structures and mechanical and electrical installations were damaged, including:

• 7 of the 10 cyclones were fully burnt externally and internally;

• 8 cyclone actuator valves were burnt and destroyed;

• The rubber lining in the cyclone underflow pipe work and cyclone launder channels was badly burnt and or destroyed;

• The cyclone support steelwork suffered fire damage, one large grillage support beam was slightly deformed and many cyclone support channels were badly bent and deformed;

• All cyclone junction boxes, cabling, solenoid valves, electrical cabling and air pipe work in the vicinity were destroyed;

• Consequential damage occurred to PLC fuses due to short circuits from the fire.

As soon as practical following receipt of approval by the Ghana Minerals Commission, work commenced on clearing debris and carrying out repairs to the damaged equipment and structures. All of the materials and equipment required to complete the repairs were either held in stock or could be acquired or borrowed locally which meant that repairs were not impeded by supply issues.

Repairs including testing and preparations to enable re-starting the plant were completed and the plant re-started at 17.00hrs GMT on Wednesday April 16, 2014, seven days after the fire occurred.

Since the restart of processing operations, the plant has been running approximately 92% of the time and while some minor problems have been encountered with the operation of the cyclones which has impacted gold recoveries, the plant was operating at pre-fire performance levels by the end of April 2014.

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