PERSEUS MINING LIMITED — Interim / Quarterly Report 2016

Oct 21, 2015

September Quarter Results

Jeff Quartermaine Managing Director & CEO October 2015

ASX/TSX: PRU www.perseusmining.com

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Cautionary Statements

Forward-Looking Statements

This presentation 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 Sissingué, the receipt of required governmental approvals, the accuracy of capital and operating cost estimates, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used by the Company. Although management believes that the assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual market price of gold, the actual results of current exploration, the actual results of future exploration, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents. The Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable. Assumptions have been made regarding, among other things, the Company’s ability to carry on its exploration and development activities, the timely receipt of required approvals, the price of gold, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers should not place undue reliance on forward-looking information. Perseus does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Competent Person’s Statement

All production targets for the EGM and SGP referred to in this presentation are underpinned by estimated Ore Reserves which have been prepared by competent persons in accordance with the requirements of the JORC Code.

The information in this presentation that relates to the Mineral Resource for the Fetish, Bokitsi, Esuajah North, Esuajah South, Chirawewa and Dadieso deposits at the EGM was first reported by the Company in compliance with the JORC Code 2012 in market announcements released on 27 August 2014 and 4 September 2014 and updated in its 2015 Financial Statements released on 31 August 2015. The information in this presenttation that relates to the Mineral Resource for the AFGap-Fobinso and Mampong deposits at the EGM and to the EGM Ore Reserves was first reported by the Company in compliance with the JORC Code 2012 in a market announcement released on 20 April 2015 and updated in its 2015 Financial Statements released on 31 August 2015. The information in this presentation that relates to Mineral Resources and Ore Reserves for Sissingué was first reported by the Company in compliance with the JORC Code 2012 in a market announcement released on 21 April 2015. The Company confirms that it is not aware of any new information or data that materially affects the information in those market announcements and that all material assumptions and technical parameters underpinning the estimates in those market announcements continue to apply and have not materially changed.

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Summary – Edikan Gold Mine Operations

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Gold production of 42,267oz in-line with Half Year guidance 90,000 to 105,000ozs

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Operating costs continued to decrease. Quarter-on-quarter reductions of 45% in unit mining costs and 15% of processing costs Total all-in site cash costs of US$1,060/oz[1] – 4% below bottom of cost guidance US$1,150-1,300/oz

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Waste stripping of new Fetish and Chirawewa open pits accelerated to mitigate impact of delayed access to Eastern Pits mining areas

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Infrastructure works for relocation housing on schedule and under budget . House construction scheduled to start early in the December 2015 quarter

1Includes production cost, royalty, development and sustaining capital but not exploration, taxes or corporate overheads

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Summary – Sissingué Gold Project, Cote D'Ivoire

• Mining Convention for Sissingué executed in late July 2015

• Engineers, Lycopodium, materially advanced Front End Engineering and Design

• Organisation structures developed for the construction and operating phases and recruitment of construction staff started

• Recruitment committee involving representatives of all villages located in the vicinity of Sissingué established and now operational

• Early works programme with a budget of US$7.5M started

• Engagement programme with all national, regional and local government and community security stakeholders initiated to ensure commitment to security around Sissingué

Load Shedding

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Summary – Exploration and Corporate

Exploration

• Reviewed and analysed data to identify near-mine targets for drill testing in December 2015 quarter

• In Cote d’Ivoire, the highly prospective 392 square km Kounahiri permit was granted to JV partner, Générale des Mines et Carrières Sarl (“GEMICA”)

• In Burkina Faso, assay results from a 5,005m drilling program received and several open-ended holes on strike warrant follow-up

Corporate

• At 30 September 2015, working capital of A$191M included:

• Available cash and bullion of A$132M ( excluding $14M in escrow)

• Gold hedging of 149,100oz at weighted avg price of US$1,240/oz valued at approximately A$27M

• No third party debt other than ordinary accounts payable

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The Edikan Gold Mine ("EGM")

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	Operations – Edikan Gold Mine	Operations – Edikan Gold Mine	Operations – Edikan Gold Mine	Operations – Edikan Gold Mine	Operations – Edikan Gold Mine	Operations – Edikan Gold Mine
	Parameter	Unit	June Half Year 2015	September 2015 Quarter	Financial Year 2016 To Date	Calendar Year 2016 To Date
	Total material mined	bcm	2,952,142	3,776,440	3,776,440	6,728,582
		tonnes	6,614,246	7,555,548	7,555,548	14,169,794
	Strip ratio	t:t	1.3	9.8	9.8	3.0
	Ore mined
	 Oxide	tonnes	-	272,989	272,989	272,989
	 Primary	tonnes	2,879,914	427,257	427,257	3,307,171
	Ore grade mined
	 Oxide	g/t Au	-	0.68	0.68	0.68
	 Primary	g/t Au	1.32	1.49	1.49	1.34
	Ore stockpiles
	 Quantity	tonnes	3,441,200	2,418,200	2,418,200	2,418,200
	 Grade	g/t Au	0.6	0.6	0.6	0.6
	Mill throughput	tonnes	3,045,595	1,723,294	1,723,294	4,768,889
	Milled headgrade	g/t Au	1.29	0.93	0.93	1.16

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Operations – Edikan Gold Mine

Parameter	Unit	June Half Year 2015	September 2015 Quarter	Financial Year 2016 To Date	Calendar Year 2016 To Date
Gold recovery	%	89	86	86	88
Gold produced	ounces (oz)	112,119	44,267	44,267	156,386
Gold sales	oz	112,243	45,344	45,344	157,587
Average sales price	US$/oz	1,336	1,291	1,291	1,323
Mining cost	US$/t mined	4.43	2.35	2.35	3.32
Processing cost	US$/t milled	10.75	9.10	9.10	10.15
G & A cost	US$M/month	1.42	1.42	1.42	1.42
Royalties	US$/oz	65	133	133	84

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Operations – Edikan Gold Mine

Parameter	Unit	June Half Year 2015	September 2015 Quarter	Financial Year 2016 To Date	Calendar Year 2016 To Date
PRODUCTION COST:
Cash Cost	US$/oz	706	948	948	775
Royalties	US$/oz	65	133	133	84
Sub-total	US$/oz	771	1,081	1,081	859
CAPITAL COSTS:
Inventory and Stripping	US$/oz	(77)	(97)	(97)	(83)
Other Capital	US$/oz	83	76	76	81
Sub-total	US$/oz	6	(21)	(21)	(12)
TOTAL ALL-IN SITE COST	US$/oz	777	1,060	1,060	857
SITE EXPLORATION COST	US$M	1.097	0.811	0.811	1.908

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Mining – Edikan Gold Mine

• 3,776,440bcm of ore and waste mined – 135% more than June Quarter as stripping of Fobinso Stage 3, Fetish and Chirawewa pits accelerated

• 272,989t oxide ore at 0.68g/t gold ; 427,257t transition and primary ore at 1.49g/t gold

• Shortfall of tonnes of ore mined relative to tonnes of ore milled made up by lower grade oxide and primary ore drawn from stockpiles that decreased by 1,023,000t to 2,418,200t grading 0.6g/t

• Mining contractors, Rocksure and AMS, performed well, mining ahead of budget to mitigate impact of delayed access to Eastern Pits

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Mining in the Eastern Pits – Fetish

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Mining in the Eastern Pits – Chirawewa

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Processing – Edikan Gold Mine

Description	Unit	June Half Year 2015	September 2015 Quarter	Financial Year 2016 To Date	Calendar Year 2016 To Date
Primary Crusher
Tonnes Crushed	dmt	2,603,001	1,441,917	1,441,917	4,044,918
Runtime	%	56	49	55	51
Throughput rate	dmtph	1,130	1,112	1,189	1,119
Oxide Circuit
Tonnes Milled	dmt	289,138	194,120	194,120	483,258
Run Time	%	66	53	51	57
Throughput rate	dmtph	142	118	138	154
SAG Mill
Tonnes Milled	dmt	3,045,595	1,723,294	1,723,294	4,768,889
Run Time	%	84	691	82	81
Throughput rate	dmtph	854	926	926	969
Recovery	%	87	88	89	86

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Site Operating Costs – Edikan Gold Mine

• Total all-in site cash costs US$1,060/oz – below cost guidance of US$1,150-1,300/oz.

• Strong improvement in unit costs as follows:

Department	Units	December 2014 Quarter	March 2015 Quarter	June 2015 Quarter	September 2015 Quarter
Mining	US$/t material mined	4.65	4.59	4.28	2.35
Processing	US$/t ore processed	11.89	10.77	10.73	9.10
G&A	US$M per month	2.04	1.49	1.36	1.42

• Royalties totalled US$133/oz. Higher than June quarter due to timing of royalty payments from prior quarter deferred pending umpire results

• Expenditure of sustaining and development capital relatively low at US$76/oz . Expected to increase in December quarter as work on relocation housing and waste stripping escalates

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Production and Cost Guidance

Production and cost guidance targets remain unchanged as follows:

Parameter Units	December 2015 Half Year	June 2016 Half Year 2016 Financial Year
Gold Production Ounces	90,000-100,000	100,000-110,000 190,000-210,000
All-In Site Costs US$/oz	1,150-1,300	1,050-1,150 1,100-1,200

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Edikan Gold Mine Phase 1 – Relocation Housing

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Edikan Gold Mine Phase 1 – Relocation Housing

• Phase I – Comprises Fetish and Esuajah North replacement housing

• Infrastructure Works by contractor PW Ghana involves clearing and earthworks, roads, drainage works, power distribution, water supply and distribution, refuse slabs

• Lot 1 – Fetish Housing/Buildings including 46 houses and 6 institutional buildings – awarded to Wilhelm Construction

• Esuajah North Housing/Buildings – maximum 153 houses and 2,476 m² institutional buildings – currently entitlement processing

• Lot 2 Tenders - including tenders for Esuajah North Housing/Buildings due to be received on 23/10/15

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Phase 1 Relocation Housing – Construction Schedule Resettlement Im lementation vs LOM Access Dates p

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Phase 1 Relocation Housing – Construction Budget

Description FY2012-2015 FY2016 FY2017 FY2018 TOTAL PHASE I RESETTLEMENT - (For Fetish & 11,105 16,715 5,397 33,217 Esuajah North Mine take areas)

All values in USDM

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Sissingue Gold Project – Cote d’Ivoire

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Overview of Sissingué Gold Project

• Measure and Indicated Mineral Resource of 16Mt grading 1.7g/t optimised to an Ore Reserve of 5.5Mt @ 2.4g/t containing 429,000 ozs gold

• Ore processed over 5.25years at processing rates of 1.2Mt/y (oxide ore) and 1.0Mt/y (primary ore)

• 385,200 ozs gold recovered at an average recovery rate of 90%

• $106M development capital including $7.5M of early works

• Weighted average AISC of $632/oz and $907/oz total project cost of production

• Internal Rate of Return (IRR) of 27% (real) at a gold price of US$1,200/oz and forecast NPV of:

NET PRESENT VALUE (US$M) OF SISSINGUÉ’S FORECAST CASHFLOWS	NET PRESENT VALUE (US$M) OF SISSINGUÉ’S FORECAST CASHFLOWS	NET PRESENT VALUE (US$M) OF SISSINGUÉ’S FORECAST CASHFLOWS	NET PRESENT VALUE (US$M) OF SISSINGUÉ’S FORECAST CASHFLOWS
Real Discount Rate (%)	Gold Price
	US$1,100/oz	US$1,200/oz	US$1,300/oz
6.50	40.7	70.0	97.2
8.25	33.2	60.8	86.5
10.00	26.8	52.5	76.8

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Snapshot of Status of Sissingué Early Works

Description	Comments	Comments
HSE	Starting from low basis with limited resourcing & time. Basics being focused on. Steady improvements being made
Government	Supportive and working with Project
Community	Good support with considerable consultation. Kebé days are very disruptive even in this limited program of work
HR	Small expat team hired & in-country, local recruitment well underway
Security	Security networks/conventions being established
Engineering	Progressing well, ahead of schedule and budget
Purchasing/ ITT/ Contracts	Purchasing within budget and to agreed early works purchasing list
Site works	Slow start due to delayed mobilisation of earthmoving gear but ramping up well now
Commercial	Proceeding per early-works budget

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Sissingué Gold Project – Early Works

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Tengrela guesthouse Tengrela guesthouse Fence line clearing
Campsite clearing Site main entrance Perimeter fencing
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Sissingué Gold Project – Early Works

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Temporary workshop & office site
Tengrela Tengrela Fence line Clearing
Guesthouse Guesthouse
Kanakono housing Sissingue water project Pit haul road
Campsite Site laydown & Perimeter
clearing Offices Fencing
Process plantsite
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Project Status

Significant progress has been made but full scale development decision due in December 2015 quarter, subject to:

• Strategic importance of financial and risk mitigation benefits of having a second income stream generated in a different geo-political setting to Ghana

• Relative attractiveness of the risk versus reward balance compared to other investment opportunities

• Status of the gold market and Perseus’s ability to fund the development without exerting undue balance sheet pressure in a volatile gold market

• Prospects for continued political stability, sound community relations and security in Cote d’Ivoire

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Exploration – Ghana

Exploration activities fall within 10km buffer from Plant site

Active in Nanankaw and Ayanfuri ML’s and Nkotomso and Nsuaem PL’s

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Exploration – Cote d’Ivoire

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Highly prospective 392 square km Kounahiri permit granted to JV partner, Générale des Mines et Carrières Sarl (“GEMICA”)

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Corporate – Financial Position

• Net working capital at 30 September 2015 of $191.2M , an increase of $13.5M during the Quarter

• Total cash and bullion of $131.8M[*] (30 June 2015: $127.3M)

• Available cash balance was $123.4M (30 June 2015: $103.7M)

• Bullion on hand included 5,267oz at EGM, at refinery or in metal account

• Further $13.6M of cash on deposit in escrowed accounts

• At 30 June 2015, the Company had a no debt other than normal creditors

• Reconsidered plan to raise US$80M of corporate debt. Revised plan places greater emphasis on internal cash resources to fund capital programme, reducing possible balance sheet pressure

*Based on gold price of US$1,114/oz and an A$:US$ exchange rate of 0.6978,

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Corporate – Gold Sales and Price Hedging

• Perseus manages gold price risk using simple forward sales contracts

• 45,344ozs gold sold during Quarter at weighted average price of US$1,291/oz (June quarter: US$1,307/oz)

• At 30 September 2015, 149,100 ozs gold hedged at an average price of US$1,240/oz

• Hedging position represents approximately one third of forecast gold production on a 24-month horizon

• Hedge book “in the money” to $26.5M

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Program for December 2015 Quarter – Edikan

• Produce gold at a total all-in site 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

• Continue to implement business improvement initiatives across all departments at Edikan

• Commence construction of houses to relocate former residents of the Eastern Pits mine take area

• Complete a feasibility study to mine Esuajah South deposit using a selective underground mining method

• Complete the current re-assessment of geological datasets to formulate near mine exploration programmes targeting high grade mineralisation mineable by either underground mining or open pit mining methods.

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Program for December 2015 Quarter – Sissingué

• Complete early works programme including but not limited to certain site works at Sissingué

• Continue to engage with all national, regional and local government and community security stakeholders to ensure security of Sissingué

• Consider a decision regarding the timing of the development of Sissingué

• Subject to an affirmative development decision:

• Appoint an EP or EPC contractor and commence early works on site at Sissingué

• Appoint key members of staff needed for the development and operation of Sissingué; and

• Continue exploration on the Mahalé exploration licence and at Sissingué.

September Quarter Results

Jeff Quartermaine Managing Director & CEO October 2015

ASX/TSX: PRU www.perseusmining.com