PERSEUS MINING LIMITED — Interim / Quarterly Report 2014

Jan 27, 2014

ACTIVITIES REPORT FOR DECEMBER 2013 QUARTER

Executive Summary

Perseus Mining Limited (ASX/TSX: PRU) (“Perseus” or the “Company”) reports on its activities for the three month period ended 31 December 2013 (the “Quarter”).

Operations - Edikan Gold Mine (“EGM”), Ghana

• Gold production of 48,360oz in the Quarter, 6% higher than the previous quarter. For the six months to December 2013 (the “Half Year”), gold production totalled 94,190oz, in line with production guidance of 91,000oz to 101,000oz for the period;

• Total all-in site unit costs (including production, royalties, development and sustaining capital) were US$1,228/oz during the Quarter, 8.5% less than the prior quarter. For the Half Year; all-in site unit costs were US$1,283/oz, 2.6% higher than the upper end of cost guidance of US$1,250/oz;

• Material improvements continued to be achieved during the Quarter in the availability and metallurgical performance of the process plant, as well as the unit costs of gold production;

• Gold production guidance for the six months ending 30 June 2014 (“the June Half Year”) is unchanged at 99,000oz to109,000oz at an all-in site cost in the range of US$1,050 to US$1,250/oz. For the full financial year ending 30 June 2014, gold production guidance is also unchanged at 190,000oz to 210,000oz at an all-in site cost in the range of US$1,050 to US$1,250/oz;

• A total of 44,617oz of gold was sold during the Quarter at an average sales price of US$1,318/oz;

Development - Sissingué Gold Project (“Sissingué”), Côte d’Ivoire

• Perseus remains committed to its decision to defer development of Sissingué pending an assessment of the mineral potential of the nearby Mahalé prospect and / or more favourable market conditions;

Exploration – Ghana and Côte d’Ivoire

• 28,568m of drilling completed in Côte d’Ivoire;

• Significant drill intercepts from multiple prospects at the Mahalé Project in Côte d’Ivoire;

Corporate

• Available cash and bullion of $28.2M as at 31 December 2013 (excluding $10.6M in escrow and VAT receivable);

• Forward sales contracts for 124,000oz of gold at a weighted average price of US$1,463/oz were “in the money” by approximately US$31.6M at 31 December 2013;

• Material progress made towards resolution of an outstanding VAT liability of GHC93.0M (or US$39.4M) owed to Perseus Mining (Ghana) Limited by the Ghanaian Government.

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For the period ended 31 December 2013

QUARTERLY REPORT

Operations

Edikan Gold Mine - Ghana

Summary

Gold production in the Quarter amounted to 48,360oz, 6% more than in the September 2013 quarter. Total all-in site costs (including production, royalties, development and sustaining capital) were US$1,228/oz, an improvement of nearly 8.5% relative to the September 2013 quarter.

Table 1: Key Production and Financial Statistics

Parameter	Unit	September 2013 Quarter	December 2013 **Quarter **	December 2013 **Half Year **
Total material mined:			2,879,791 7,424,205
 Volume bcm1		2,562,917		5,442,708
 Weight tonnes		6,960,972		14,385,177
Ore mined:
 Oxide tonnes		42,178	5,614	47,792
 Primary tonnes		1,747,592	1,365,183	3,112,775
Ore grade mined:
 Oxide g/t gold2		1.0	0.6	1.0
 Primary g/t gold		1.0	1.0	1.0
Strip ratio t:t Ore stockpiles:		2.9	4.4	3.6
 Quantity tonnes		4,472,546	3,921,802	3,921,802
 Grade g/t gold		0.6	0.5	0.5
Ore crushed wet tonnes Ore milled dry tonnes Milled head grade g/t gold Gold recovery % Gold produced ounces (oz) Gold sales3 oz Average sales price US$/oz Unit Costs: Mining cost US$/t mined Processing cost US$/t milled G & A cost US$M/month All-In Site Cash Cost Production cost US$/oz Royalties US$/oz Sub-total US$/oz Capital costs: Inventory and stripping US$/oz Sustaining capital US$/oz Sub-total US$/oz Total All-In Site Cost US$/oz		1,577,104	1,661,562 1,791,410 1.00 84.4 48,360 44,617 1,318 3.71 10.77 1.62 1,038 75 1,113 30 85 115 1,228	3,328,666
		1,628,900		3,420,310
		1.05		1.02
		83.4		83.9
		45,830		94,190
		49,069		93,686
		1,342		1,330
		4.16		3.93
		11.61		11.17
		1.63		1.62
		1,252		1,142
		92		83
		1,344		1,225
		(101)		(34)
		99		92
		(2)		58
		1,342		1,283
Site Exploration Cost US$M		0.5	-	0.5

Notes: 1. Denotes bank cubic metres 2. Denotes grams of gold/tonne of ore 3. Gold sales are recognised in Perseus’s accounts when the contracted gold refiner takes delivery of gold in the gold room. For accounting purposes, the sales price is the spot price of gold on the day of transfer, adjusted to reflect the realised gold price.

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QUARTERLY REPORT

For the period ended 31 December 2013

Mining

A total of 2,879,791bcm of ore and waste was mined during the Quarter, nearly 12% more than in the September 2013 quarter. The ore mined included 5,614t of oxide ore at 0.6g/t gold and 1,365,183t of transitional and primary ore at 1.0g/t gold. The quarter-on-quarter increase in total material movements reflected a 25% increase in waste movements (associated with stripping of the AG Stage 3 pit) combined with a 24% decrease in the quantity of ore mined relative to the prior period.

During the Quarter, the ROM ore stockpiles that include both high and low grade ore (but not mineralised waste) plus crushed ore decreased by 550,744 tonnes to 3,921,802t grading 0.5g/t gold, and containing approximately 68,321oz of gold. The reduction in stockpile reflected the plan to process stockpiled ore to offset reduced ore production while mining focussed on stripping Stage 3 of the AG Pit. These ore stockpiles were made up of approximately 42% oxide ore and 58% transitional/primary ore. Approximately 5% of the stockpiled ore is classified as medium/high grade, containing greater than 0.6g/t gold, while 95% of the ore is classified as low grade containing 0.4 to 0.6g/t gold.

Processing

Gold production of 48,360oz during the Quarter was 6% above September 2013 quarter production, notwithstanding the fact that the head grade of ore treated (1.00g/t gold) was approximately 5% lower than in the September 2013 quarter (1.05g/t) .The reduction in head grade was in line with expectations and was a reflection of the strategy of processing a blend of ore drawn from stockpiles and the existing open pits in FY2014.

The effect on production of the decreased head grade was offset by an improvement in the gold recovery rate (84.4% compared to 83.4%) and improvements in the availability and usage of the process plant, including the primary crusher, oxide circuit and SAG mill. These parameters are summarised below.

Table 2: Plant Performance Statistics

Description Unit	June 2013 Quarter	September 2013 Quarter 1,577,104 56% 1,229 1,284 170,463 68% 1,496 114 1,628,900 84% 1,863	December 2013 Quarter
Primary Crusher Tonnes crushed1 Wmt1 Run time % Run time hrs Throughput rate wmtph Oxide Feed Circuit Tonnes fed dmt Run time % Run time hrs Throughput rate dmtph SAG Mill Tonnes milled Dmt2 Run time % Run time hrs
	1,158,829		1,661,562
	46%		58%
	1,001		1,285
	1,158		1,293
	202,473		246,836
	59%		67%
	1,288		1,487
	157		166
	1,511,162		1,791,410
	75%		85%
	1,739		1,877
Throughput rate dmtph	869	874	**954 **

Notes: 1. Denotes wet metric tonnes 2. Denotes dry metric tonnes

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QUARTERLY REPORT

For the period ended 31 December 2013

All-In Site Costs

Total all-in site cash costs (including production, royalties, investment in pre-stripping and inventory, development and sustaining capital) for the Quarter were US$1,228/oz which was 8.5% lower than in the September 2013 quarter. This improvement in costs was the result of an 11% decrease in unit mining costs and a 7% decrease in unit processing costs.

In terms of all-in site cost for the December Half Year, the improvement in unit costs achieved during the Quarter was insufficient to offset the impact of higher than expected costs in the September 2013 Quarter and as a consequence, for the December Half Year, the total all-in site cash costs (including production, royalties, development and sustaining capital) were US$1,283/oz, slightly above the upper end of the cost guidance range for the Half Year of US$1,050 to 1,250/oz.

Details of site operating costs for the financial year to date are as follows:

Table 3 – Site Costs

Table 3 –Site Costs
Cost Centre	Units	September 2013 Quarter 6,960,972 1,628,900 45,830 4.16 11.61 1.63 1,252 92 1,344 43 (144) 99 (2)	December 2013 Quarter	December Half Year
	Tonnes Tonnes ounces US$/t material mined US$/t processed US$/month US$/oz US$/oz US$/oz US$/oz US$/oz US$/oz US$/oz
Physical Parameters:
Total material mined Ore processed Gold recovered			7,424,205	14,385,177
			1,791,410	3,420,310
			48,360	94,190
Productivity Indicators:
Mining cost Processing cost G&A			3.71	3.93
			10.77	11.17
			1.62	1.62
All-In Site Cash Costs:
Cash production costs Royalty Sub-total Capital investmentin pre-stripping Capital investmentin inventory Other Development & Sustaining Capital Sub-total			1,038	1,142
			75	83
			1,113	1,225
			(97)	(29)
			67	(5)
			85	92
			115	58
Total All-InSite Cash Cost	US$/oz	1,342	1,228	1,283

*Note: Investment or (reduction) as the case may be.

Of the US$85/oz spent on sustaining capital during the Quarter, approximately 50% related to payments associated with community relations activities including crop compensation committed in prior periods for areas that will be affected by mining of the eastern pits and purchase of land for relocation housing. The remaining 50% related to an assortment of expenditure relating to plant upgrades, security and site upgrade projects. This allocation of sustaining capital was very similar to that in the prior quarter.

EGM Production and Cost Guidance

Gold production and site cost guidance for the six months and twelve months ending 30 June 2014 remains unchanged from that previously provided to the market. Details are as follows:

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For the period ended 31 December 2013

QUARTERLY REPORT

Table 4: June 2014 Half Year and Full Financial Year 2014 Production and Cost Guidance	Table 4: June 2014 Half Year and Full Financial Year 2014 Production and Cost Guidance	Table 4: June 2014 Half Year and Full Financial Year 2014 Production and Cost Guidance
Parameter	Units	Six Months to 30 June 2014 Twelve Months to 30 June 2014
Gold Production All-In Site Cash Costs	Ounces US$/oz	99,000 - 109,000 190,000-210,000 1,050 – 1,250 1,050 – 1,250

Project Development

Sissingué Gold Project – Côte d’Ivoire

Perseus has deferred commencement of development of Sissingué pending a reassessment of the mine plan in the light of lower gold prices and clarification of a number of issues, including:

1. Finalisation of the new mining code in Côte d’Ivoire;

2. The granting of a request to extend the date for first production specified in the Sissingué Exploitation Permit beyond August 2014;

3. Exploration of nearby exploration licence areas such as Mahalé with the view to delineating new gold deposits that could be processed at the proposed Sissingué gold facility;

4. Complete a review of the capital and operating cost estimates for Sissingué applying current cost and revenue expectations to revise mine planning scenarios.

Exploration

Ghana

During the Quarter, minimal amounts were spent by Perseus on exploration activities in Ghana at the EGM and on adjoining licence areas.

Exploration activities were limited to geological mapping and prospecting plus data interpretation for planning of future Resource / Reserve drilling programs at the EGM. No drilling occurred during the Quarter.

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QUARTERLY REPORT For the period ended 31 December 2013

Côte d’Ivoire

During the Quarter, a total of US$1.5M was spent by Perseus on exploration activities in Côte d’Ivoire as follows:

Mahalé Licence

A total of 28,568m (16,435m September 2013 Quarter) was drilled at the Bélé anomaly on the Mahalé licence during the Quarter consisting of 12,871m (132 holes) of reverse circulation (“RC”) drilling, 11,875m (441 holes) of scout Air Core (“AC”) drilling plus 3,872m of shallow rotary air blast (“RAB”) drilling to nest for near-surface geochemical anomalies, representing 670 sample points. The Mahalé Project is located 30-40km west-southwest of the Sissingué Gold Project as shown below.

Perseus’s RAB rig was utilized to drill auger-style vertical holes into saprolite to 5.5m depths on average, on a nominal grid spacing of 100m X 100m across the Bélé soil anomaly to identify targets for follow-up drilling with AC and RC drills. Fences of wide-spaced AC drill holes were drilled in select areas of the Bélé prospect as a first pass drill test of gold in soil and/or auger anomalism (Figure 1).

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QUARTERLY REPORT

For the period ended 31 December 2013

First pass RC drilling was conducted to test AC drilling and auger anomalism at depth at the Bélé East, West and Central prospects. Although essentially an exploratory RC drilling campaign, RC drill hole spacing was fairly tight locally, down to 40m X 40m spacing, in order to better understand the nature, geometries and continuity to the mineralisation. A number of significant RC drill intercepts were returned from the Bélé East, West, and Central prospects, which is encouraging and suggests that a fairly extensive mineralising system is present at Bélé along the margins of a granitic intrusive that is estimated to be 3 kilometers in width, east-to-west, and at least 2 kilometers in a north-south direction. A number of significant RC intercepts are open-ended to depth and to varying degrees along strike. However, further drilling will be required in order to delineate a potentially economically viable resource, if one is present (Refer to Figure 1).

Further work at Bélé will commence in early 2014 with a program of ground geophysics, gradient IP and magnetics, before commencing further drilling. Given that the gold anomalism appears to be associated with the presence of pyrite, IP chargeability should be an effective tool to search for the extensions of gold mineralized zones and possibly locate additional targets for drill testing. Most of the area shown in Figure 1 will be targeted for ground geophysics.

Significant RC and AC drill intercepts returned during the Quarter are listed in Table 1 of Attachment 1, with the highlights as below. As of December 31, 2013 assays were still pending for 43 RC, 82 AC and 180 auger drill holes.

Significant RC intercepts attained at Bélé included:

Bélé East

Bélé East
MHRC019 - MHRC024 - MHRC026 - MHRC035 - Bélé West		54m at 2.1g/t gold from 24m including 4m at 11.8g/t gold from 50m and 2m at 30.2g/t gold from 58m 14m at 6.2g/t gold from 82m including 4m at 10.7g/t gold from 88m 20m at 1.8g/t gold from 50m including 2m at 7.7g/t gold from 54m 30m at 1.2g/t gold from 10m including 12m at 2.3g/t from 12m plus 30m at 0.6g/t from 60m
MHLC007	-	16m at 2.1g/t gold from 24m
MHLC011	-	24m at 1.6g/t gold from 70m
MHLC022	-	6m at 5.1g/t gold from 60m
MHLC025	-	12m at 4.3g/t gold from 8m including 2m @ 20.0g/t from 10m

Bélé Central MHRC046 - 2m at 6.9g/t gold from 30m plus 10m at 14.7g/t from 74m including 2m at 61.4g/t gold from 78m

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QUARTERLY REPORT

For the period ended 31 December 2013

Mbengué and Napié Licenses

There were no exploration activities on the Mbengué and Napié Licenses during the Quarter.

Processing, imaging and interpretation products from the airborne magnetics and radiometrics surveys flown over Mbengué and Napié were received late in the Quarter and are under review to prioritise further exploration drilling on both projects.

Tengréla Licences

No exploration work was conducted on the Tengréla South or Sissingué license areas during the Quarter.

Burkina Faso

During the Quarter the Company entered into a farm-in agreement with West African Gold Limited (“WAG”), an Australian unlisted junior explorer, in respect of four exploration permits (Koutakou, Barga, Touya and Tangaye) in the orth of Burkina Faso. Under the terms of the agreement Perseus must spend a minimum of US$250,000 during the first year on exploration. Perseus may earn a 50% interest in the permits by spending US$2M and up to an 80% interest by spending an additional US$2M within 5 years. The map below shows the locations of WAG’s tenements that are covered by the farm-in agreement.

==> picture [334 x 378] intentionally omitted <==

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For the period ended 31 December 2013

QUARTERLY REPORT

Figure 1 – Drilling Plan – Belé Prospect

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QUARTERLY REPORT

For the period ended 31 December 2013

Corporate

Cash, Bullion

Based on the gold price on 31 December 2013 of US$1,201.50/oz and an A$:US$ exchange rate of 0.8874, the total value of cash and bullion on hand at the end of the December 2013 Quarter was $28.2M, approximately $0.9M more than at the end of the September 2013 quarter ($27.3M). In addition to the above, the Group had a further $10.6M of cash on deposit in escrow accounts providing security for various matters including future environmental commitments.

The Group’s available cash balance as at 31 December 2013 was $16.0M (30 September 2013:$23.1M). In addition, 8,984 oz of gold were held either on site, in the process of being refined or in the Company’s metal account on the 31 December 2013, (30 September 2013: 2,922oz). Based on the parameters described above, this bullion was valued at $12.2M at 31 December 2013.

Gold Sales and Price Hedging

Of the 44,617oz of gold sold during the Quarter (September 2013 Quarter: 49,069oz) at a weighted average delivered price of US$1,318/oz, (September 2013: US$1,342/oz) a total of 23,000oz were delivered into forward sales contracts at an average price of US$1,263/oz with the remaining gold sales occurring at prevailing spot prices.

As at 31 December 2013, the Company’s gold price hedging position included 124,000oz of gold deliverable in quarterly instalments up to and including 31 December 2015 at a weighted average price of US$1,463/oz. This includes a total of 70,000oz of gold deliverable in quarterly instalments during the 2015 calendar year at an average price of US$1,600/oz. The Company also held options to sell a further 9,000 oz of gold at a price of US$1,150/oz at any time up to 10 January 2014, and 9,000 oz of gold at a price of US$1,100/oz at any time up to 31 January 2014.

The total hedge position was “in the money” to the extent of US$31.6M as at 31 December 2013 (30 September 2013: US$14.4M). In the March 2014 Quarter, 8,000oz of gold is scheduled to be delivered at an average price of US$1,269/oz under the hedge programme.

VAT Receivable

Having received cash refunds totalling GHC6.2M to date, during the Quarter, the Company sought to negotiate a factoring deal with a number of financial intermediaries in relation to the outstanding GHC93M (US$39.4M) VAT receivable owed to the Company by the Ghanaian Government. These negotiations were unsuccessful in reaching agreement on terms that were acceptable to Perseus. However, as an alternative, the Company mandated a Ghanaian legal firm that specialises in revenue law to intervene directly with the Government on the Company’s behalf.

This intervention by Perseus’s legal team has resulted in:

• The Ghana Revenue Authority has advised in writing their decision to issue GHC60M of Treasury Credit Notes to cover that part of the obligation that has been formally audited and approved.

• Discussions with the Government to include a cash component in the final settlement mix have reached an advanced stage.

• Negotiations are continuing to ensure that through administrative measures available to the Government, the VAT receivable does not increase in future.

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QUARTERLY REPORT

For the period ended 31 December 2013

Working Capital Debt Facility

During the Quarter, discussions were conducted with the Company’s bankers on the provision of a US$25M stand by debt facility to be used as required to fund working capital. A term sheet was negotiated and Credit Committee approval for the term sheet was received and preparation of detailed loan documentation was commenced.

On close examination of the detailed terms of the debt facility, the Company formed the view that on balance, while the facility was available, it was preferable to remain unencumbered in an environment of uncertain gold prices, and therefore decided not to proceed with implementation of the debt facility at this time.

Program for the March 2014 Quarter

Edikan Gold Mine

• Produce gold at a total all-in site cash cost that is in line with Half Year guidance;

• Continue to fine tune plant metallurgical performance and maximise SAG mill throughput;

• Continue training of operating and maintenance staff; and

• Continue to implement business improvement initiatives across all departments of the EGM and realise projected cost savings.

Sissingué Gold Mine Development Project

• Review of project cost structure and development options; and

• Review project economics and financing alternatives.

Tengréla Gold Exploration Project

• Continue exploration for Mineral Resources on Mahalé, Mbengué and Napié exploration licences.

Jeff Quartermaine Managing Director and Chief Executive Officer

28 January 2014

To discuss any aspect of this announcement, please contact:

Managing Director: Jeff Quartermaine at telephone +61 8 6144 1700 or email jeff.quartermaine@perseusmining.com;

Investor Relations: Nathan Ryan at telephone +61 420 582 887 or email nathan.ryan@nwrcommunications.com.au .

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For the period ended 31 December 2013

QUARTERLY REPORT

Competent Person Statement : The information in this report and attachments 1 and 2 that relates to exploration results is based on, and fairly represents, information and supporting documentation prepared by Mr Kevin Thomson, a Competent Person who is a Professional Geoscientist with the Association of Professional Geoscientists of Ontario. Mr Thomson is an employee of a subsidiary 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 2012 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.

Caution Regarding Forward Looking Information : This report contains forward-looking information which is based on the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management of the Company believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Assumptions have been made by the Company regarding, among other things: the price of gold, continuing commercial production at the Edikan Gold Mine without any major disruption, development of a mine at 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 forwardlooking information. Perseus does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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For the period ended 31 December 2013

QUARTERLY REPORT

ATTACHMENT 1 – DECEMBER QUARTER DRILLING RESULTS

Table 1: Mahalé Project, Côte d’Ivoire, December Quarter Exploration Drilling Results

Hole	Prospect	East North RL Depth Azm. Incl.	From	To Width Au
		(m) (m) (mASL) (m) (°) (°)	(m)	(m) (m) g/t
MHAC422	Bélé East	770,148 1,137,160 375 42 90 -55	16	36 20 1.31
MHAC559	Bélé Central	769,273 1,137,160 374 30 90 -55	0	8 8 1.7
MHAC614	Bélé East	770,065 1,137,320 371 42 90 -55	8	16 8 1.6
MHLC001	Bélé West	767,780 1,137,200 370 102 90 -50	50	60 10 1.2
MHLC002	Bélé West	767,830 1,137,200 370 100 90 -50	20	32 12 0.9
MHLC003	Bélé West	767,880 1,137,200 370 100 90 -50	30	34 4 2.2
			86	88 2 4.3
MHLC006	Bélé West	768,300 1,137,400 375 102 90 -50	12	24 12 1.2
MHLC007	Bélé West	768,260 1,137,400 375 102 90 -50	24	40 16 2.1
MHLC008	Bélé West	768,220 1,137,400 375 96 90 -50	46	56 10 1.2
MHLC010	Bélé West	768,180 1,137,440 374 114 90 -50	92	110 18 0.9
MHLC011	Bélé West	768,220 1,137,440 374 116 90 -50	42	48 6 1.0
			70	94 24 1.6
MHLC012	Bélé West	768,260 1,137,440 374 120 90 -50	60	72 12 0.6
			108	110 2 3.1
MHLC013	Bélé West	768,300 1,137,400 374 105 90 -50	44	56 12 2.4
		incl.	46	48 2 7.4
MHLC015	Bélé West	768,380 1,137,440 374 120 90 -50	10	26 16 1.0
MHLC022	Bélé West	768,000 1,137,320 377 110 90 -50	60	66 6 5.1
MHLC025	Bélé West	768,150 1,137,320 377 102 90 -50	8	20 12 4.3
		incl.	10	12 2 20.0
MHLC032	Bélé West	767,890 1,137,240 382 102 90 -50	36	44 8 1.8
		incl.	38	40 2 5.4
			82	86 4 1.0
			92	98 6 0.8
MHLC033	Bélé West	767,940 1,137,240 382 100 90 -50	12	20 8 1.0
			62	68 6 0.8
MHLC038	Bélé West	768,380 1,137,480 373 102 90 -50	46	60 14 1.0
MHLC039	Bélé West	768,430 1,137,480 373 87 90 -50	34	42 8 1.4
MHLC040	Bélé West	768,480 1,137,480 373 100 90 -50	18	30 12 1.4
MHLC042	Bélé Central	768,770 1,137,560 371 102 90 -50	10	14 4 1.5
			54	56 2 4.5
MHRC018	Bélé East	770,140 1,136,960 372 92 90 -55	84	90 6 2.3
MHRC019	Bélé East	770,180 1,136,960 372 96 90 -55	30	36 6 1.3
			42	96* 54 3.6
		incl	50	54 4 11.8
		and	58	60 2 30.2
MHRC021	Bélé East	770,180 1,137,000 372 90 90 -55	2	8 6 2.1
			56	66 10 1.6
MHRC024	Bélé East	770,140 1,137,040 372 96 90 -55	66	78 12 0.6
			82	96 14 6.2
		incl	88	92 4 10.7
MHRC025	Bélé East	770,180 1,137,040 372 94 90 -55	12	22 10 0.5
			68	72 4 4.6
MHRC026	Bélé East	770,220 1,137,040 372 90 90 -55	50	70 20 1.8
		incl.	54	56 2 7.7
MHRC028	Bélé East	770,180 1,137,160 376 98 270 -50	22	34 12 1.1
			84	96 12 0.5
MHRC034	Bélé East	770,245 1,136,920 372 84 270 -50	24	28 4 1.7
			48	56 8 1.9

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For the period ended 31 December 2013

QUARTERLY REPORT

Hole	Prospect	East North RL Depth Azm. Incl.	From	To Width Au
		(m) (m) (mASL) (m) (°) (°)	(m)	(m) (m) g/t
MHRC035	Bélé East	770,285 1,136,920 372 90 270 -50	10	40 30 1.2
		incl.	12	24 12 2.3
			60	90* 30 0.6
MHRC036	Bélé East	770,330 1,136,920 372 96 270 -50	16	30 14 0.8
			58	72 14 1.5
			82	96 14 0.8
MHRC038	Bélé East	770,220 1,137,160 376 106 90 -50	84	90 6 3.0
MHRC046	Bélé Central	769,627 1,136,960 373 90 ` -50	30	32 2 6.9
			74	84 10 **14.7 **
		incl.	78	80 2 61.4
MHRC056	Bélé Central	769,540 1,137,040 374 100 90 -50	16	26 10 1.2

• denotes hole ended in mineralisation.

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QUARTERLY REPORT

For the period ended 31 December 2013

ATTACHMENT 2 – JORC CODE, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria	JORC Code Explanation	Commentary
Sampling techniques	 Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.  Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.  Aspects of the determination of mineralisation that are Material to the Public Report.  In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	 Reverse Circulation (RC) drill holes (MHLC and MHRC holes) were routinely sampled at 1m intervals down the hole. RC samples were collected at the drill rig by riffle splitting drill spoils to collect a nominal 1-2 kg sub sample and composited into 2m samples for assay.  Air core (AC) drill holes (MHAC holes) were routinely sampled at 1m intervals down the hole. AC samples were collected at the drill rig by riffle splitting drill spoils to collect a nominal 0.75-1 kg sub sample and composited into 4m samples for assay.  Auger-type sampling was conducted with a RAB rig by drilling vertical holes into the saprolite, 5.5m deep on average, with a nominal 100m X 100m grid pattern. Approximately 1.5-2kg samples were obtained from the bottom 1 meter drilled for assay.  Routine standard reference material, sample blanks, and sample field duplicates were inserted/collected at every 12th sample in the sample sequence on average in order to gauge and ensure sample representivity and quality of results from the laboratory.  All 2m composited RC samples were submitted to Bureau Veritas Cote d’Ivoire for preparation and analysis by 30g Fire Assay.  All 4m composited AC samples were submitted to Bureau Veritas Cote d’Ivoire for preparation and analysis by 1 kg BLEG analysis with AAS finish.  All 1m samples from the auger-style RAB drilling were were submitted to Bureau Veritas Cote d’Ivoire for preparation and analysis by 1 kg BLEG analysis
Drilling techniques	 Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	 All RC holes were completed by reverse circulation (RC) drilling techniques with a hole diameter of 5.5 inch and a face sampling down hole hammer.  All AC holes were completed by air core (AC) drilling techniques with a hole diameter of 5.5 inch using a face sampling tungsten blade AC drill bit.  All Auger-style holes were completed by RAB drilling techniques with a hole diameter of 4.5 inch using a face sampling tungsten blade RAB drill bit.
Drill sample recovery	 Method of recording and assessing core and chip sample recoveries and results assessed.  Measures taken to maximise sample recovery and ensure representative nature of the samples.  Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	 A qualitative estimate of sample recovery was done for each sample metre collected from the drill rig.  Riffle split samples were weighed to ensure consistency of sample size and monitor sample recoveries.  Drill sample recovery and quality is considered to be adequate for the drilling technique employed.

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For the period ended 31 December 2013

QUARTERLY REPORT

Criteria	JORC Code Explanation	Commentary
Logging	 Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.  Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.  The total length and percentage of the relevant intersections logged.	 All drill samples were geologically logged by Company Geologists.  Geological logging recorded rock types, visual estimates of the abundance of quartz veining and sulphides plus the degree of weathering using a standardized logging system.  All (100%) of material drilled via RC, AC and RAB drilling methods was logged representing 12,871m of RC, 11,875m of AC and 3,872m of RAB drilling.  Small samples of drill material were retained in chip trays for future reference and validation of geological logging and small samples of coarse and sieved fine drill material were affixed to “chip boards” to aid geological logging and for future reference.
Sub-sampling techniques and sample preparation	 If core, whether cut or sawn and whether quarter, half or all core taken.  If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.  For all sample types, the nature, quality and appropriateness of the sample preparation technique.  Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.  Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.  Whether sample sizes are appropriate to the grain size of the material being sampled.	 All dry samples were riffle split at the drill rig. Wet samples were sampled at the drill rig by spear sampling.  The majority of samples (>90%) were obtained dry. If continuously wet drilling was encountered the hole would be stopped.  Routine field sample duplicates were taken to evaluate representivity of samples with the results stored in the master drill database for reference.  In the case of case of 4m composited samples from AC drilling, initial assay was by the BLEG method. If analytical results returned > 1.0g/t for a 4m composite, individual 1m subsample rejects were resampled and analyzed for Au by fire assay to confirm representivity.  At the Bureau Veritas laboratory, samples were weighed, dried and crushed to -2mm in a jaw crusher. A 1.5kg split of the crushed sample was subsequently pulverised in a ring mill to achieve a nominal particle size of 85% passing 75um.  Sample sizes and laboratory preparation techniques are considered to be appropriate for this stage of gold exploration.
Quality of assay data and laboratory tests	 The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.  For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.  Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	 For RC drill samples, analysis for gold was undertaken at Bureau Veritas Cote d’Ivoire lab by 30g Fire Assay with AAS finish to a lower detection limit of 0.01ppm. Fire assay is considered a total assay technique.  For AC drill samples, analysis for gold was undertaken at Bureau Veritas Cote d’Ivoire lab by “BLEG” 1 kg bottle roll analysis. The BLEG method is considered to be a partial leach procedure.  For Auger-style RAB drill samples, analysis for gold was undertaken at Bureau Veritas Cote d’Ivoire lab by “BLEG” 1 kg bottle roll analysis. The BLEG method is considered to be a partial leach procedure.  No geophysical tools or other non-assay instruments were used in the analyses reported.  Review of standard reference material, sample blanks and duplicates suggest there are no significant analytical bias or preparation errors in the reported analyses.  Internal laboratory QAQC checks are reported by the laboratory and routine review of the laboratory QAQC suggests the laboratory is performing within acceptable limits.

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QUARTERLY REPORT

For the period ended 31 December 2013

Criteria	JORC Code Explanation	Commentary
Verification of sampling and assaying	 The verification of significant intersections by either independent or alternative company personnel.  The use of twinned holes.  Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.  Discuss any adjustment to assay data.	 Drill hole data is captured by Company geologists at the drill rig and manually entered into a digital database.  The digital data is verified and validated by the Company’s database Manager before loading into a master drill hole database on a regularly backed-up server.  Reported drill hole intercepts are compiled by the Company’s Group Exploration Manager.  Twin holes were not drilled to verify results as it is considered unnecessary at this early stage of exploration. Should a resource be delineated on the project, future drilling programs would consider twinning some drill holes to check representivity and repeatability.  There were no adjustments to assay data.
Location of data points	 Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.  Specification of the grid system used.  Quality and adequacy of topographic control.	 Drill hole collars were set out in UTM grid WGS84_Zone29N.  Drill hole collars were positioned using hand held GPS, accurate to +/- 2-3m in the horizontal and 3-6m in the vertical direction.  Drill holes were not surveyed for down hole deviation in this program of scout exploration as the relatively short RC and AC drill holes were not expected to deviate significantly nor was there an expectation of resource delineation in this program where hole deviation would be of significance.  Locational accuracy at collar and down the drill hole is considered appropriate for this early stage of exploration.
Data spacing and distribution	 Data spacing for reporting of Exploration Results.  Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.  Whether sample compositing has been applied.	 RC holes were nominally drilled on 40m to 160m spaced east-west orientated drill sections with hole spacing on sections at 40m.  AC holes were drilled on wide spaced east-west sections spaced 120m to 240m apart with hole spacing on sections dependant on the refusal depth of holes and generally ranging from 10 to 20m.  Auger-style RAB holes were drilled on a 100m X 100m staggered grid pattern.  The reported drilling has not been used to estimate any mineral resources or reserves.  Sample compositing was performed with 2 X 1m samples composited for RC drill holes and 4 X 1m samples composited for AC holes.
Orientation of data in relation to geological structure	 Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.  If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	 Exploration is at an early stage and the true orientation of mineralisation has not yet been confirmed.
Sample security	 The measures taken to ensure sample security.	 Samples were stored in a fenced compound within the Company’s accommodation camp in Sissingué prior to sample collection and road transport by Bureau Veritas to the laboratory in Abidjan.
Audits or reviews	 The results of any audits or reviews of sampling techniques and data.	 The Company’s sampling techniques employed in Cote d’Ivoire were last reviewed in a site visit to the Sissingué Gold Project by consultants Runge Limited (now RungePincockMinarco Limited) in August of 2010 and deemed to be of industrystandard and satisfactory.

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QUARTERLY REPORT

For the period ended 31 December 2013

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code Explanation	Commentary
Mineral tenement and land tenure status	 Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.  The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	 The reported results are from the Bélé Prospect, an area within the Mahalé Exploration Permit (Permis de Recherche) (e which is held 100% by Occidental Gold s.a.r.l., a wholly owned subsidiary of Perseus Mining Limited.  The Mahalé Permit is in good standing, valid through to 19 December 2015.
Exploration done by other parties	 Acknowledgment and appraisal of exploration by other parties.	 Historical exploration work in the area presently covered by the Mahalé Permit de Researche is unknown.
Geology	 Deposit type, geological setting and style of mineralisation.	 The Mahalé permit covers greenstone (Birimian metavolcanics and metasediments) plus granitic intrusions in an area 15-40km west of the Syama greenstone belt, likely representing a separate greenstone belt.  Gold mineralisation observed in the RC holes is spatially related to a granitic intrusion, occurring along its contacts with mafic metavolcanics and within the intrusion.  Gold appears to be associated with pyrite concentrations in turn associated with brittle deformation along and within the granite contact.
Drill hole Information	 A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole colla_r o _elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length  If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	 Reported results are summarised in Table 1 within the attached announcement.  The drill holes reported in this announcement have the following parameters: o Only drill holes with combined grade X thicknesses of ≥ 10 gram X meters have been reported. o Grid co-ordinates are UTM WGS84_29N o Collar elevation is defined as height above sea level in metres (RL) and has been estimated by hand held GPS. o Dip is the inclination of the hole from the horizontal. Azimuth is reported in WGS 84_29N degrees as the direction toward which the hole is drilled. o Down hole length of the hole is the distance from the surface to the end of the hole, as measured along the drill trace o Intersection depth is the distance down the hole as measured along the drill trace. o Intersection width is the down hole distance of an intersection as measured along the drill trace o Hole length is the distance from the surface to the end of the hole, as measured along the drill trace.  Auger-style vertical RAB drill holes are considered as geochemical point samples, like soil samples, and not as drill holes per se and are therefore not listed in Table 1. All the Auger-style RAB holes drilled are reported in Figure 2 with those holes considered anomalous indicated.  Previously reported drilling results have not been repeated in this announcement.

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For the period ended 31 December 2013

QUARTERLY REPORT

Criteria	JORC Code Explanation	Commentary
Data aggregation methods	 In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.  Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.  The assumptions used for any reporting of metal equivalent values should be clearly stated.	 Drill hole intercepts are reported from 2m metre down hole samples for RC holes and 4m down hole samples for AC holes.  A minimum cut-off grade of 0.5 g/t Au is applied to the reported intervals.  Maximum internal dilution is 4m within a reported interval.  No grade top cut off has been applied.  No metal equivalent reporting is used or applied.
Relationship between mineralisation widths and intercept lengths	 These relationships are particularly important in the reporting of Exploration Results.  If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.  If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).	 The reported results are from early stage exploration drilling; accordingly the orientation of mineralised structures is currently unknown.  Results are reported as down hole length, true width is currently unknown.
Diagrams	 Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	 Drill hole plans with significant assay results are shown in Figures 1 and 2.
Balanced reporting	 Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	 All drill holes drilled during the Quarter and previously have been shown in Figures 1 and 2. Only those drill holes drilled during the Quarter which have returned combined assay intercepts exceeding 10 grams X meters, and are thus considered significant results in an early stage exploration program, have been reported in Table 1.
Other substantive exploration data	 Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	 There is no other exploration data which is considered material to the results reported in this announcement
Further work	 The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).  Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	 Ground geophysics (magnetics and Gradient IP) is proposed as the next phase of exploration, in order to better target follow up drilling.

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