PERSEUS MINING LIMITED — Interim / Quarterly Report 2015

Jul 19, 2015

REPORT for the Quarter ended 30 June 2015

NEWS RELEASE

20 July 2015

ACTIVITIES REPORT FOR JUNE 2015 QUARTER

Executive Summary

MARCH 2015 QUARTER

ACTIVITIES REPORT Perseus Mining Limited (ASX/TSX: PRU) (“Perseus” or the “Company”) reports on its activities for the three-months ended 30 June 2015 (the “Quarter”).

OPERATIONS – EDIKAN GOLD MINE, GHANA (“EDIKAN”)

Achieved record operating performance at Edikan during the Quarter with specific highlights including:

• Gold production of 64,669ozs , a 36% increase relative to the March 2015 quarter (47,450ozs) and 52% more than in the corresponding quarter in 2014. Half-year gold production of 112,119ozs , was 2% above the top end of the production guidance range for the period of 100-110,000ozs;

• All-in site costs of US$685/oz , approximately 24% lower than in the March 2015 quarter (US$903/oz). Half year all-in site costs of US$777/oz were 32% below the bottom end of the cost guidance range for the June 2015 Half Year;

• Gold sales of 63,308ozs at an average sales price of US$1,307/oz resulted in an average cash margin of US$622/oz;

• Successfully implemented initiatives to access sufficient power for continuous operations at Edikan by 19 April 2015;

• Received regulatory approval to mine the Eastern Pits mining area enabling clearing and waste stripping of the Fetish and Chirawewa pits to start;

• Awarded contract for the first stage of civil works on the Eastern Pits and Esuajah North Housing Relocation Project, with civil works starting in July 2015.

DEVELOPMENT - SISSINGUÉ GOLD MINE, CÔTE D’IVOIRE (“SISSINGUÉ”)

• Negotiated a Mining Convention with the Ivorian government. Document finalised subject to final Ministerial review;

• Advanced documentation of Project Execution Plan and on track to start early works in the September 2015 Quarter, with full-scale construction to start in December 2015 Quarter.

CORPORATE

At 30 June 2015, Perseus’s working capital of $177.7M included:

• Immediately available cash and bullion of $127.3M , an increase of $43.6M (52%) during the Quarter and $78.6M (161%) over the last twelve month period;

• Gold forward sales contracts for 63,000ozs of gold, sold forward at an average price of US$1,432/oz, and valued at $21.3M; and

• No third party debt (other than accounts payable in the ordinary course of business).

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REPORT for the Quarter ended 30 June 2015

Operations

Edikan Gold Mine - Ghana

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Overview

MARCH 2015 QUARTER

ACTIVITIES REPORT The June 2015 Quarter resulted in the best quarterly operating performance at Edikan since commercial production commenced on 1 January 2012 and has continued the strong trend of improvement in almost every aspect of Perseus’s flagship operation.

The following summarises this outstanding performance:

Table 1: Quarterly Performance Statistics

Parameter	Unit	March 2015 **Quarter **	June 2015 **Quarter **	June 2015 **Quarter **	June 2015 Half **Year **	Financial Year 2015
Production & Sales: Total material mined:					2,952,142 6,614,246 - 2,879,914 - 1.32 1.30 3,441,200 0.60 2,603,001 3,045,595 1.29 89 112,119 112,243 1,336 4.43 10.75 1.42 706 65 771 (77) 83 6 777 1.097	6,176,170 15,243,239 - 6,152,571 - 1.21 1.48 3,441,200 0.60 5,503,276 6,393,748 1.17 88 212,135 208,613 1,324 4.55 10.78 1.59 780 71 851 (43) 69 26 877 2.762
 Volume bcm1		1,346,539	1,605,603
 Weight tonnes		3,260,139	3,354,107
Ore mined:
 Oxide tonnes		-	-
 Primary tonnes		1,658,147	1,221,767
Ore grade mined:
 Oxide g/t2gold		-	-
 Primary g/t gold		1.26	1.40
Strip ratio t:t Ore stockpiles:		0.97	1.75
 Quantity tonnes		3,880,500	3,441,200
 Grade g/t gold		0.66	0.60
Ore crushed tonnes Ore milled tonnes Milled head grade g/t gold Gold recovery % Gold produced ozs Gold sales3 ozs 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 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$/oz		1,166,697	1,436,304
		1,384,574	1,661,021
		1.21	1.36
		88	89
		47,450	64,669
		48,936	63,308
		1,375	1,307
		4.59	4.28
		10.77	10.73
		1.49	1.36
		744	679
		100		39
		844	718
		(20)	(119)
		79		86
		59	(33)
		903	685
Site Exploration Cost US$M		0.842	0.255

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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REPORT for the Quarter ended 30 June 2015

Mining

During the Quarter, mining occurred in Stages 2 and 3 of the AG pit as well as in Stage 3 of the Fobinso pit, both of which are located on the western side of the Edikan mining leases, adjacent to the processing plant.

A total of 1,605,603bcm of ore and waste was mined during the Quarter, 19% more than in the March 2015 quarter. Waste stripping of the Stage 3 cutback of the Fobinso pit increased during the Quarter as mining MARCH 2015 QUARTER contractor Rocksure International Ltd (“Rocksure”) completed its mobilisation and waste stripping activities ACTIVITIES REPORT have accelerated. Ore made up the majority of material movements from both Stages 2 and 3 of the AG Pit. Relatively little waste remains to be removed as mining advances towards designed pit floors of the AG pit which has naturally become quite tight, restricting vehicular movement.

Ore mined during the Quarter included 1,221,767 tonnes of primary ore grading 1.40g/t gold. Ore movements were 26% down on the previous quarter while the grade of ore mined was approximately 11% higher than in the prior quarter as a higher grade ore zone was accessed towards the bottom of the AG pit.

During the Quarter, ore stockpiles that include both high and low grade ore (but not mineralised waste) plus crushed ore, decreased by 439,000 tonnes to 3,441,000 tonnes grading 0.60g/t gold. Contained in the stockpile is approximately 66,550ozs of gold, a decrease of 15,550ozs or 19%, quarter-on-quarter. The decrease in stockpiles reflects the deficit of ore mined relative to ore milled during the Quarter. At the end of the Quarter, the ore stockpiles were made up of approximately 8% oxide ore and 82% transitional/primary ore. Approximately 14% of the remaining stockpiled ore is classified as medium/high grade, containing greater than 0.6g/t gold, while 86% of the ore is classified as low grade containing 0.4 to 0.6g/t gold.

Processing

Processing operations were impacted in the early part of the Quarter by continuing grid power rationing in Ghana. This meant that Edikan could operate for only 66% of the time until alternative power supplies were arranged and operational. This outcome was achieved on 19 April 2015 and for the remainder of the Quarter, Edikan’s processing operations were largely unaffected by power shortages. As a consequence, improvements in key operating parameters were achieved as shown below:

Table 2: Plant Performance Statistics

	September 2014 Quarter	December 2014 Quarter	March 2015 Quarter	June 2015 Quarter	FY2015
Crusher Run time (%) Hourly throughput rate (t) Oxide Circuit Run time (%) Hourly throughput rate (t) SAG Mill Run time (%) Hourly throughput rate (t) Gold recoveryrate(%)	54 1,275 76 133 86 926 87	56 1,130 66 142 84 854 87	49 1,112 53 118 691 926 88	55 1,189 51 138 822 926 89	53 1,178 61 133 80 907 88

Notes:

1. Due to one third power restrictions, the SAG Mill could only be operated on 69 days out of a possible 90 days during the Quarter, giving an availability of 76.7%. During this available run time, the plant was operated for 90% (or 93% after taking into account a period of scheduled downtime for a planned mill reline) giving a total actual utilisation of 69%.

2. One third power restriction applied up to 19 April 2015, thereafter the plant was able to access full power requirements and 88% average run time achieved for balance of the Quarter.

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REPORT for the Quarter ended 30 June 2015

As indicated in Table 2, the trend of incrementally improving gold recoveries continued during the Quarter, with the gold recovery rate averaging 89.3% for the Quarter and exceeding 90% in June 2015. This steady improvement in the recovery rate has materially contributed to increased gold production.

During the Quarter, the weighted average head grade of ore processed also increased relative to the prior quarter by 12% from 1.21g/t gold to 1.36g/t gold. The average blend of processed ore was 91% fresh ore MARCH 2015 QUARTER grading 1.45g/t and 9% oxide ore at 0.43g/t gold. ACTIVITIES REPORT

The resulting gold production for the Quarter of 64,669ozs compares very favourably with the March 2015 Quarter, exceeding gold production in that quarter by 36% or 17,219ozs of gold. The result also serves to underline the material improvement at Edikan’s operation in the past 12 months, with the June 2015 Quarter’s production exceeding production in the corresponding period in 2014 by 52% or 22,126ozs and the full 2015 financial year production of 212,135ozs exceeding production in the 2014 financial year by 18% or 31,616ozs of gold.

Production Costs

The all-in site unit costs for the Quarter (including production, royalties, investment in pre-stripping and inventory, development and sustaining capital) were US$685/oz, approximately 24% less than the US$903/oz all-in site unit costs recorded in the prior quarter. With an average sales price for the Quarter of US$1,307/oz, this resulted in an average cash margin of US$622/oz.

For the June 2015 Half Year, all-in site unit costs have averaged US$777/oz which is 32% below the bottom end of the guided range for Half Year all-in site costs of $1,150-$1,250/oz and for the full year ended 30 June 2015, all-in site unit costs have averaged US$877/oz which is also materially (18%) below the bottom end of the guided range of $1,075-$1,125/oz for full year.

Several factors have contributed to the materially better than forecast unit all-in site costs, including a decrease in the operating cost base due to reduced mining and processing rates, more effective procurement practices, lower-than-forecast capital expenditure on relocation housing due to delayed access to the new mining areas, combined with strong gold production resulting from improved operating efficiency and an expected increase in head grade of processed ore.

During the Quarter approximately 39% of Edikan’s total production costs were incurred by the mining department (44% in the March 2015 quarter), while 49% was incurred by processing and maintenance (43% in the March 2015 quarter), with the balance by general and administration functions. Unit costs in each of these areas were as follows:

Table 3: Unit Costs

Unit Cost	December 2014 Quarter	March 2015 Quarter	June 2015 Quarter	FY 2015 To Date
Mining1US$/t mined Processing & Maintenance US$/t milled	4.65 11.89	4.59 10.77		4.55 10.78 1.59
			4.28
			10.73
G & A US$/month	2.04	1.49	1.36

Note 1: Unit mining cost includes the weighted average cost of mining as charged by the mining contractors plus overheads (including but not limited to staff costs) incurred by Perseus’s mining department.

The total tonnage of ore and waste moved in the Quarter increased by 3%, while unit mining costs decreased by 7% as a result of relatively low mining rates for the Fobinso pit combined with a higher proportion of

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REPORT for the Quarter ended 30 June 2015

material mined from Fobinso compared to the AG Pit, where the old AMS mining rates apply and will continue to apply until the current AG pit mining programme ends in August 2015.

Unit processing and maintenance costs decreased quarter-on-quarter by $0.04/t milled in the Quarter. In this period, the approximate 20% increase in the number of tonnes of ore processed was approximately matched by an offsetting 20% increase in total processing costs, hence the slight fall in unit processing costs. MARCH 2015 QUARTER

ACTIVITIES REPORT Expenditure on sustaining capital remained relatively low during the Quarter at US$86/oz. This is expected to increase in the September 2015 quarter when construction work begins to accelerate on the relocation housing project, required to provide mining access to some of the Eastern Pits.

Regulatory approval of mining in the Eastern and Esuajah North mining areas

In early June 2015, the Environmental Protection Agency (“EPA”) of Ghana verbally approved Perseus’s Supplementary Environmental Impact Statement (“SEIS”) which was a pre-requisite for mining of the Fetish, Chirawewa, Bokitsi (collectively referred to as the “Eastern Pits”) and Esuajah North gold deposits. The receipt of the EPA’s approval was the culmination of a very lengthy process during which the impact of mining activities on both the environment and community was exhaustively examined and documented. This opened the way for the mobilisation of mining contractor, African Mining Services (“AMS”), to start clearing vegetation, stripping and storing topsoil and constructing mining infrastructure in the Eastern Pits area under the terms of a new contract with Perseus that was executed in the March 2015 quarter.

Relocation Housing Project

Under Ghanaian Mining laws, it is required that “where the operations of a holder of a mining lease involves the displacement of inhabitants, the inhabitants shall be resettled by the holder on suitable alternative land and the resettlement shall have regard to the economic well-being and socio-cultural values of the persons to be resettled”.

Having received the necessary approval to commence mining operations in both the Eastern Pits and Esuajah North mining areas, work has now started on the development of replacement housing for residents that will be affected by mining operations. This involves the construction of 46 dwellings for residents of the Eastern Pits mining area and up to a further 153 dwellings for residents of the Esuajah North mining area. To facilitate early access to ore deposits in the Eastern mining area, residents have been temporarily relocated to houses rented by Perseus for this purpose, pending completion of their newly constructed houses.

In late June 2015, a contract was awarded to a civil construction contractor, PW Ghana, to develop infrastructure associated with the relocation housing. In addition, 27 tenders have been received for the construction of the relocation houses. These tenders are currently being evaluated and a number of contracts will be awarded to Ghanaian contractors in the September 2015 quarter to enable construction of dwellings to commence early in the December 2015 quarter.

Housing infrastructure works are expected to be completed by June 2016 and construction of the houses required for both the Eastern Pits residents and Esuajah North residents is scheduled for completion at the end of September 2017 and December 2017 respectively. The forecast cost to complete the Fetish and Esuajah North Relocation Housing Project is approximately US$23million.

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REPORT for the Quarter ended 30 June 2015

FY2016 Production and Cost Guidance

During the course of the 12-month period ending 30 June 2016 (“FY2016”), mining activities will be undertaken by Edikan’s two mining contractors, AMS and Rocksure, in four separate pits as follows:

• AG Pit – Stage2: Relatively high grade ore will be mined from the bottom of the AG pit in the months MARCH 2015 QUARTER of July and August 2015, after which time mining activities in this pit will temporarily cease. In July ACTIVITIES REPORT and August, the AG Pit will be the major source of fresh ore supply for the processing plant.

• Fobinso Pit – Stage 3: During the September 2015 quarter mining in the Fobinso Pit will mainly involve waste stripping, but by the December 2015 quarter, ore quantities will increase as the ore zones are progressively accessed. However, higher grade ore will not be accessed in the Fobinso pit until late in the December quarter.

• Fetish Pit – Stage 1: In the December 2015 Half Year, mining in the Fetish Pit will mainly involve waste stripping with relatively minor quantities of ore being mined. Late in the December quarter, both the quantity and grade of ore will materially increase and for the balance of FY2016, Fetish will be the principle source of fresh ore supply for the processing plant.

• Chirawewa – North and South Pits : In the September 2015 quarter, quantities of relatively high grade ore will be mined in the Chirawewa pit, immediately below the old pit floor. As the year progresses, waste stripping activities will exceed mining of ore as access to larger quantities of relatively high grade ore in the latter part of the financial year is pursued.

The mining schedule described above has been largely dictated by the later than anticipated receipt of the EPA’s approval of the company’s SEIS (referred to above). As a result of this schedule for a period of several months towards the end of 2015 fresh ore mined from the Fetish, Chirawewa and Fobinso pits will need to be supplemented by lower grade ore drawn from existing ore stockpiles to ensure that sufficient ore is available to feed the processing plant. Gold production will therefore temporarily reduce relative to current levels as the lower grade stockpile ore is processed, but once sufficient supplies of fresh ore are available towards the end of 2015, production will once again increase back to current levels.

Also as noted above, in the six month period to 31 December 2015 waste stripping activities as well as relocation housing construction activities will be in full swing, which means that capital expenditure during this period will be materially higher than in recent periods. Combined with the impact of lower gold production, this will result in a temporary increase in Edikan’s unit all-in site cash costs.

Given the above, Perseus’s production guidance for the period ending 30 June 2016 is shown below.

Table 4: FY 2016 Production and Cost Guidance

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

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REPORT for the Quarter ended 30 June 2015

Development

Sissingué Gold Mine – Côte d’Ivoire (“Sissingué”)

In early April 2015, Perseus’s Board of Directors conditionally approved the Company’s plans to advance the development of Sissingué. During the Quarter, material progress was made towards satisfying the Board’s development pre-requisites and the development project is currently on schedule for commencement of early works in the September 2015 quarter and commencement of full scale development in the December 2015 quarter. Specific progress made during the Quarter includes the following:

Project Implementation

During the Quarter and subsequent to its end, material progress was made on planning the implementation of the Sissingué development and documenting the Project Execution Plan that will be used to guide activities during the development phase of the project. Specific initiatives undertaken include:

• Negotiated the purchase of a new SAG mill that had become surplus to the needs of another corporate. The purchase of this immediately available equipment provides a net capital saving, reduces the length of the overall project development schedule, simplifies the project flow sheet and is expected to improve the operability of the Sissingué processing circuit.

• Engaged Lycopodium to conduct a Front End Engineering and Design (“FEED”). As well as finalising details of plant layout, flowsheets, equipment lists etc., this work will enable an accurate allocation of the scope of work to different contract packages and the preparation of comprehensive budgets for each package employing a Work Breakdown Structure suitable for a high level of cost control. Following the successful completion of FEED, and subject to agreeing satisfactory commercial terms, either an Engineering/Procurement (“EP”) or an Engineering/Procurement/ Construct (“EPC”) contract will then be awarded to a suitability qualified engineering firm.

• Formulated a package of early works that, subject to Board approval, is scheduled to be commenced from August 2015. This work will include, amongst other things, engineering associated with critical path items, construction of site access roads, initial earthworks, site clearing and fencing, design and procurement of elements of the mine camp and certain items of mobile equipment.

• Developed organisation structures for both the construction and operating phases of the project and the identified preferred candidates for key positions. Active recruitment will follow immediately Board approval of the early works programme. Operations staff will be recruited and integrated into the construction team during development to ensure that mine and plant operability remains a key focus at all times during construction.

• Establishing a Recruitment Committee involving representatives of all villages located in the vicinity of Sissingué to ensure fair allocation of employment opportunities to local residents during both the construction and operating phases of the project.

Mining Convention

Material changes were made to the Ivorian Mining Code in May 2014, including the right of companies to enter into a Mining Convention with the Republic of Côte d’Ivoire in which the conditions governing the development and operation of the mine are prescribed and guaranteed for the life of the mine.

During the Quarter, the terms of a Mining Convention covering Sissingué were negotiated with the Ivorian Government’s negotiating team and the Convention is now subject to final review and sign off by three responsible Ministers, including the Minister for Industry and Mines, and the Ministers attached to the Prime Minster with responsibility for the Economy and Finance and the Budget respectively. It is expected that the Mining Convention will be executed early in the September 2015 quarter.

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REPORT for the Quarter

ended 30 June 2015

Exploration

Ghana

During the Quarter, a total of US$0.255M was spent by Perseus on exploration activities on the Edikan mining leases in Ghana.

Exploration programs included field mapping, prospecting and a small trenching program to evaluate several near-mine geological targets. Several weakly anomalous assays were returned from exposures of granite 2.5 kilometres north-west of the Edikan plant. Additionally, a data review and analysis was conducted in order to prioritize near term exploration programs.

Côte d’Ivoire

During the Quarter, a total of US$0.336M was spent by Perseus on exploration activities on the Sissingué Exploitation and Mahalé Exploration Permits in Côte d’Ivoire with the following results.

Sissingué Exploitation Permit

Rotary air blast (“RAB”) drilling in follow-up to anomalous auger drilling results along the Papara-SissinguéKanakono mineralised corridor continued with 5,459 metres of RAB drilling completed during the quarter between the Sissingué deposit and the Kanakono prospect. Several weakly anomalous intercepts were returned from RAB holes drilled 1-2 kilometres south of Sissingué and assays are pending for 25 holes.

Mahalé Permit

A 2,000 metre program of reverse circulation (“RC”) drilling with diamond core tails commenced at the Bélé East Prospect on the Mahalé Permit 40 kilometres south-west of Sissingué. The drilling program is designed to test for depth and strike extensions to the mineralization at the Bélé East and West Prospects. A total of 610 metres of RC and diamond-core was drilled in June with assays pending.

An auger drilling program also commenced in late June to evaluate significant historic lag gold geochemistry anomalism along the margin of a magnetic low, presumably a granitic intrusive, situated 10 kilometres to the north-west of the Bélé prospect. Six auger holes totalling 32 meters were drilled with assays pending. Refer to Figure 1 below.

Burkina Faso

During the Quarter a total of US$0.057M was spent by Perseus on exploration activities on the Koutakou, Tangayé, Touya and Barga licences in north-western Burkina Faso that are being explored under an earn-in agreement with unlisted Australian company West African Gold Limited.

A 5,005 metre air-core (“AC”) drilling program was completed on the Koutakou permit during the month of June to test a large, low-tenor gold in soil anomaly. The assay results from the drilling program are pending. Refer to Figure 2 below.

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REPORT for the Quarter

ended 30 June 2015

Figure 1. Location of Anomalies on the Mahalé Permit, Côte d’Ivoire

Figure 2. Location of the Koutakou Soil Anomaly, Burkina Faso

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REPORT for the Quarter ended 30 June 2015

Corporate

Working Capital

Perseus’s net working capital (i.e. current assets less current liabilities) as at 30 June 2015 totalled $177.7M, an increase of $28.9M during the Quarter and an increase of $108.3M for the 12 months to 30 June 2015.

Cash, Bullion

Based on the gold price on 30 June 2015 of US$1,171/oz and an A$:US$ exchange rate of 0.7658, the total value of cash and bullion on hand at the end of the Quarter was $127.3M, approximately $43.6M more than at the balance of $83.7M at the end of the March 2015 quarter. In addition, the Perseus group had a further $12.3M of cash on deposit in escrow accounts providing security for various matters including future environmental commitments.

The group’s available cash balance as at 30 June 2015 was $103.7M, $25.9M more than at the end of the previous quarter. In addition, 15,412oz of gold were held either on site, in the process of being refined or in the Company’s metal account at Quarter end. Based on the parameters described above, this bullion was valued at $23.6M at 30 June 2015 giving the combined balance of cash and bullion on hand of $127.3M.

Gold Sales and Price Hedging

Of the 63,308 ozs of gold sold during the Quarter at a weighted average delivered price of US$1,307/oz (March 2015 Quarter: US$1,375/oz), a total of 18,500ozs were delivered into forward sales contracts at an average price of US$1,600/oz with the remaining gold sales occurring at prevailing spot or spot deferred prices.

As at 30 June 2015, the Company’s gold price hedging position included 63,000ozs of gold deliverable up to and including 31 December 2015 at a weighted average price of US$1,432/oz.

The total hedge position was “in the money” to the extent of $21.3M as at 30 June 2015.

Third Party Debt

Trade creditors and accruals that will be paid in the ordinary course of business totalled $36.3M at 30 June 2015, a decrease of $4.1M during the Quarter.

Perseus remained debt free during the Quarter, however, it is envisaged that a US$60 million secured corporate debt facility will be established in coming months to supplement existing cash balances and provide funding for the Company’s capital works programme that includes developing the Sissingué Gold Mine as well as constructing relocation housing and stripping waste from new mining areas at Edikan. In addition, Perseus is also negotiating a US$20M revolving line of credit for use in managing cash flow during the capital intense construction periods.

During the Quarter invitations to provide debt funding to the Perseus group were issued to a number of debt providers and subsequent to the end of the Quarter, a short list of three banks was formed and detailed negotiation of the terms of the facilities commenced with the target of reaching a financial commitment on or about 30 September 2015.

Corporate Overheads

Perseus’s corporate overheads totalled A$2.4M (US$1.9M) for the Quarter and for the 2015 Financial Year, A$8.6M (US$7.2M). These totals include (but are not limited to) all expenditure on salaries and fees, travel, rent, consultants and insurance incurred in the operation of Perseus’s corporate headquarters located in Perth, Australia.

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REPORT for the Quarter ended 30 June 2015

Program for the September 2015 Quarter

Edikan Gold Mine

• 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;

• Complete current drilling programmes to delineate potential higher grade mill feed; and

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

Sissingué Gold Mine Development Project

• Finalise negotiation of a Mining Convention for Sissingué;

• 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.

Corporate

• Advance the structuring of a financing facility to supplement existing cash resources to fund capital works programmes across the Perseus group.

Jeff Quartermaine

Managing Director and Chief Executive Officer

20 July 2015

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 4 20 582 887 or email nathan.ryan@nwrcommunications.com.au (Melbourne).

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REPORT for the Quarter ended 30 June 2015

Competent Person Statement :

All production targets for the Edikan Gold Mine (EGM) referred to in this report 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 report that relates to Mineral Resources for the Fetish, Bokitsi, Esuajah North, Esuajah South 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. The Company confirms that it is not aware of any new information or data that materially affects the information in those market announcements.

The information in this report that relates to Mineral Resources for the AFGap-Fobinso and Mampong deposits at the EGM and 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. The Company confirms that it is not aware of any new information or data that materially affects the information in that market announcement.

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 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.

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