PERSEUS MINING LIMITED — Interim / Quarterly Report 2015

Jan 19, 2015

REPORT for the Quarter ended 31 December 2014

ACTIVITIES REPORT FOR DECEMBER 2014 QUARTER

Executive Summary

Overview

Perseus Mining Limited (ASX/TSX: PRU) (“Perseus” or the “Company”) reports on its activities for the three-month and six-month periods ended 31 December 2014 (the “Quarter” and the “Half Year” respectively).

Perseus’s Edikan Gold Mine in Ghana (“Edikan” or “EGM”) has delivered another quarter of solid operating performance resulting in continued strengthening of the Company’s financial position. Perseus’s strategy of pursuing sustainable efficiency improvements in its operations is taking effect. Key processing plant operating parameters now either exceed or are approaching targets and further material mining cost reductions will take effect in 2015.

Operations – Edikan, Ghana

• Gold production for the Quarter and Half Year of 48,487ozs, and 100,016ozs respectively is in line with the mid-point of the production guidance range of 95-105,000ozs for the Half Year;

• All-in site costs for the Quarter and Half Year of US$1,019/oz and US$988/oz respectively, approximately 15% below the bottom of the cost guidance range of US$1,160-1,280/oz;

• Mining contract awarded for Fobinso Stage 3 pit and evaluation of tenders for mining the Fetish, Bokitsi and Chirawewa Pits (the “Eastern Pits”) is advanced. The new mining contracts will materially reduce Edikan’s unit mining costs;

• Gold sales for the Quarter and Half Year totalled 46,666ozs and 96,369ozs respectively at average sales prices of US$1,283/oz and US$1,310/oz for the respective periods;

• Production and cost guidance for the six months to 30 June 2015 (“June 2015 Half Year”) and financial year ending 30 June 2015 (“FY2015”) are 115,000-125,000oz at all-in cash cost of $1,125-$1,225/ozand 215,000-225,000oz at all-in cash cost of $1,050-$1,150/oz respectively;

Exploration – Ghana and Côte d’Ivoire

• High grade drill intercepts from resource in-fill drilling programmes on the Mampong and Chirawewa deposits confirm potential for improving the grade of ore processed by the EGM;

Development - Sissingué Gold Project, Côte d’Ivoire

• Updated Sissingué Feasibility Study is nearing completion and results are scheduled to be published after Board consideration in the March 2015 Quarter;

Corporate

• Available cash and bullion of $57.8M as at 31 December 2014 (excluding $11.6M of funds in escrow), an increase of $4.6M during the Quarter;

• Gold forward sales including 71,000ozs of gold sold forward at an average price of US$1,595/oz, valued at $35.5M (US$29.0M) at 31 December 2014;

• No third party debt other than accounts payable in the ordinary course of business and net working capital totalling $121.1M as at 31 December 2014.

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REPORT for the Quarter ended 31 December 2014

Corporate

Working Capital

Perseus’s net working capital (i.e. current assets less current liabilities) at the 31 December 2014 totalled $121.1M an increase of $29.9M during the Quarter and an increase of $99.2M for the 12 months to 31 December 2014.

Cash, Bullion

Based on the gold price on 31 December 2014 of US$1,199.25/oz and an A$:US$ exchange rate of 0.8158, the total value of cash and bullion on hand at the end of the Quarter was $57.8M, approximately $4.6M more than at the end of the September 2014 quarter. In addition, the Perseus group had a further $11.6M 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 2014 was $43.1M. In addition, 9,977oz 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 $14.7M at 31 December 2014 giving the combined balance of cash and bullion on hand of $57.8M.

Gold Sales and Price Hedging

Of the 46,666ozs of gold sold during the Quarter at a weighted average delivered price of US$1,283/oz (September 2014 Quarter: US$1,330/oz), a total of 19,000ozs were delivered into forward sales contracts at an average price of US$1,296/oz with the remaining gold sales occurring at prevailing spot or spot deferred prices.

As at 31 December 2014, the Company’s gold price hedging position included 71,000ozs of gold deliverable up to and including 31 December 2015 at a weighted average price of US$1,595/oz.

The total hedge position was “in the money” to the extent of $35.5M (US$29.0M) as at 31 December 2014. In the March 2015 quarter, 18,500ozs of gold are scheduled to be delivered at an average price of US$1,600/oz under the Company’s hedge programme.

Third Party Debt

Perseus remained debt free during the Quarter.

Trade creditors and accruals that will be paid in the ordinary course of business totalled $35.0M at 31 December 2014, a reduction of $1.7M during the Quarter.

Human Resources

In December 2015, Mr Paul Thompson was appointed to the corporate office role of Group Technical Services Manager where he will manage a small but highly professional technical team that will provide geological, mine engineering and metallurgical services to site teams charged with the exploration, development and operation of the company’s assets.

Paul is a professional engineer holding a Bachelor of Science and a Master of Science, Engineering Geology degree and is a Fellow of the AusIMM. He has had extensive relevant experience having previously worked in similar roles with well-known international mining companies Newcrest Mining Limited, Alacer Gold Corporation, De Beers Consolidated Mines, and Anglo American Corporation as well as mining consulting companies AECOM Australia Pty Ltd and Coffey Mining Pty Ltd.

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REPORT for the Quarter ended 31 December 2014

Operations

Edikan Gold Mine - Ghana

Overview

Table 1: Quarterly Performance Statistics

Parameter	Unit	September 2014 Quarter	December 2014 Quarter 1,555,852 4,142,657 - 1,725,385 - 1.07 1.40 3,606,910 0.61 1,392,264 1,580,883 1.09 87 48,487 46,666 1,283 4.65 11.89 2.04 861 66 927 34 58 92 1,019 0.414	December 2014 Half Year 3,224,028 8,628,992 - 3,272,657 - 1.11 1.64 3,606,910 0.61 2,900,275 3,348,153 1.07 87 100,016 96,369 1,310 4.63 10.80 1.75 862 78 940 (5) 53 48 988 1.665
Production & Sales: Total material mined:
 Volume bcm1		1,668,176
 Weight tonnes		4,486,336
Ore mined:
 Oxide tonnes		-
 Primary tonnes		1,547,272
Ore grade mined:
 Oxide g/t2gold		-
 Primary g/t gold		1.15
Strip ratio t:t Ore stockpiles:		1.90
 Quantity tonnes		3,462,407
 Grade g/t gold		0.58
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 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$/oz		1,508,011
		1,767,270
		1.05
		87
		51,529
		49,703
		1,330
		4.61
		9.83
		1.46
		863
		88
		951
		(40)
		48
		8
		959
Site Exploration Cost US$M		1.257

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.

Based on the above, EGM’s gold production for the Half Year totalled 100,016ozs which is in line with the mid-point of guided production of 95-105,000ozs while all-in site costs for the Half Year averaged US$988/oz approximately 15% below the bottom end of the cost guidance range of US$1,160-1,280/oz.

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REPORT for the Quarter ended 31 December 2014

Mining

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

A total of 1,555,852bcm of ore and waste was mined during the Quarter, nearly 7% less than in the September 2014 quarter. The reduction in mining rates was consistent with the Company’s plan of reducing investment in waste stripping until a comprehensive review of the Company’s approach to mining is concluded and recommendations implemented.

Ore mined during the Quarter included 1,725,385 tonnes of primary ore grading 1.07g/t gold. Ore movements were 12% up on the previous quarter while the grade of ore mined was approximately 8% less than in the prior quarter, generally in accordance with revised short term mine plans.

Ore stockpiles that include both high and low grade ore (but not mineralised waste) plus crushed ore increased during the Quarter by 144,500 tonnes to 3,606,900 tonnes grading 0.61g/t gold, containing approximately 70,700ozs of gold. The increase in stockpiles reflected the surplus of ore mined relative to ore milled during the Quarter. At the end of the Quarter, the ore stockpiles were made up of approximately 22% oxide ore and 78% 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.

Mining Contract

Towards the end of the Quarter, mining contractors were invited to tender for the provision of mining services for Stage 3 of the Fobinso Pit and the Eastern Pits.

The tender for mining Stage 3 of the Fobinso Pit was awarded to Rocksure International Limited, an experienced, wholly Ghanaian-owned mining contractor that has provided mining and drilling services at several other African gold mines including Golden Star’s Wassa and Bogoso-Prestea mines in Ghana.

The contract involves grade control drilling, blast hole drilling, loading and firing, and loading, hauling and dumping of approximately 6.6Mbcm of ore and waste over a 27 month period commencing in January 2015. The tendered price for the provision of the mining services will result in a material decrease in Edikan’s unit mining costs in coming periods.

Eight contractors tendered for the provision of services for the mining of the Eastern Pits, including Edikan’s current mining contractor African Mining Services (“AMS”) and seven other companies/consortia ranging from wholly Ghanaian-owned mining contractors to an assortment of international mining contractors.

Discussions are progressing with a short list of Tenderers and a contract will be awarded shortly to enable the successful Tenderer to be in a position to start mining the Eastern Pits during the March 2015 Quarter. While the final contract price has not been settled, it is highly likely that there will be a material decrease in Edikan’s overall unit mining costs in coming periods relative to current mining costs.

Irrespective of the outcome of the Eastern Pits Tender, it is expected that AMS will continue to mine Stages 2 and 3 of the AG Pit under the terms of their existing contract.

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REPORT for the Quarter ended 31 December 2014

Processing

Key operating parameters associated with Edikan’s processing plant were relatively stable during the Quarter as indicated by the following:

Table 2: Plant Performance Statistics

	September 2014 Quarter	December 2014 Quarter	December 2014 Half Year 55 1,201 71 137 85 891 87
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

The slight decrease in the throughput rates in the SAG mill during the Quarter resulted from several factors including fluctuations in the availability of grid power during the Quarter.

Site management’s efforts to reduce grid power consumption by managing the composition of SAG mill feed and the use of stand-by generators to supplement grid power meant that the impact on gold production of the Ghanaian government directive that mining companies reduce their consumption of grid power by 25% in the month of December 2015, was materially less than might have been the case. The impact of the slight decrease in both run time and hourly throughput rates was partially offset by an increase in the head grade of ore processed, leaving total gold production approximately 6% lower on a quarter-on-quarter basis. Under the circumstances, this was considered a creditable result.

The trend of incrementally improving gold recoveries continued during the Quarter, helped in particular by improved recoveries in the gravity circuit, relative to prior periods.

Production Costs

The all-in site unit cash costs for the Quarter (including production, royalties, investment in pre-stripping and inventory, development and sustaining capital) totalled US$1,019/oz, approximately 6% more than in the prior quarter but approximately 17% less than in the December 2013 quarter. The 6% quarter-on-quarter increase in unit costs reflected the 6% decrease in quarterly gold production which occurred for the reasons cited above.

For the Half Year, all-in site unit cash costs averaged US$988/oz which was materially (15%) below the guided range for all-in site costs of US$1,160-1,280/oz and well below reported industry average costs.

Approximately 44% of the EGM’s total production costs during the Quarter were incurred by the mining department while a further 43% were incurred by processing and maintenance with the balance in general and administration. The relative proportion of mining costs as a percentage of total operating costs decreased this Quarter as a result of fewer tonnes of ore and waste being moved during the period.

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REPORT for the Quarter ended 31 December 2014

Unit costs in each of these areas were as follows:

Table 3: Unit Costs

Table 3: Unit Costs
Unit Cost	September 2014 Quarter December 2014 Quarter December 2014 Half Year 4.61 4.65 4.63 9.83 11.89 10.80 1.46 2.04 1.75
Mining1US$/t mined Processing & Maintenance US$/t milled G & A US$/month

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

During the period, the tonnes of ore and waste moved decreased 8%, however unit mining costs increased only 1% as a result of cost savings in other areas, including the cost of diesel fuel, shorter hauls to waste dumps and lower blasting costs.

Unit processing and maintenance costs increased quarter-on-quarter by $2.06/tonne or 21%. The major factor contributing to this increase in unit costs was the decrease in the quantity of ore processed. The fall in tonnes processed resulted in US$1.25/tonne (61%) of the increase while the remaining US$0.80/tonne (39%) of the increase was mainly the result of an increase in the consumption of maintenance spares and consumables during the Quarter. Two scheduled partial mill relines occurred during this period, the first at the beginning of the Quarter when a shutdown originally scheduled for the September quarter took place. The second scheduled maintenance shutdown occurred later in the Quarter. In addition unscheduled expenditure was incurred in maintaining the crusher and conveyors during the Quarter.

Positively, a number of cost savings were achieved by the processing department during the Quarter to partially offset the increased maintenance charges. These savings were achieved through more efficient use of contractors and consultants as well as renegotiating supply deals for a number of key consumable items. It should also be noted that the cost of increased diesel fuel consumption needed to power standby generators to comply with the government directive to reduce grid power consumption in the month of December, was offset by lower electricity costs arising from reduced consumption of grid power.

It is expected that in the March 2015 quarter, maintenance costs will be reduced significantly due to less scheduled maintenance activity and further cost savings will be achieved through tighter procurement practices.

Expenditure on sustaining capital remained relatively low during the Quarter (US$58/oz). This is expected to increase as work begins to accelerate on the relocation housing project, required to provide mining access to certain of the Eastern Pits.

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ended 31 December 2014

REPORT for the Quarter

Production and Cost Guidance

Production and cost guidance for the EGM for the forthcoming June 2015 Half Year and therefore FY2015 are as follows:

Table 5: FY 2015 Production and Cost Guidance

Parameter	Units	December 2014 Half Year1 June 2015 Half Year FY2015
Gold Production All-InSite Cash Costs	Ounces US$/oz	100,016 115,000-125,000 215,000-225,000 988 1,125-1,225 1,050-1,150

1Actual production and costs

The forecast improvement in gold production in the June 2015 Half Year relative to the December 2014 Half Year is expected to be driven largely by improved head grade of ore mined from higher grade zones within the Stage 2 and 3 AG pits. It has also been assumed that the mitigation measures employed by Edikan in the Quarter to offset the impact of government imposed power rationing will continue to be effective should the restrictions continue into the June 2015 Half Year.

Guided all-in site costs for the June 2015 Half Year have increased marginally relative to prior guidance due to the inclusion of additional capital for the pre-stripping of Stage 3 of the Fobinso Pit. This stripping was previously considered uneconomic and was therefore not included in prior plans, however, with revised mining costs tendered by Rocksure International this investment will now generate an acceptable rate of return and has therefore been included in the work schedule.

Life of Mine Planning

Work is progressing on revising the existing designs of each of the pits taking into account assumptions based on updated Mineral Resources as well as recent operating experience and recently tendered costs for mining the Fobinso and the Eastern Pits. Detailed consideration will also be given to rescheduling the order in which new pits are developed to optimise the overall value of the mine. This work will result in a revision to the current Edikan Life of Mine Plan (“LOMP”) which, based on the current schedule, is intended to be published later in the March 2015 Quarter. It is not expected that the updated LOMP will result in any change to the guidance for the six month period ending 30 June 2015.

Human Resources

During the Quarter Perseus significantly enhanced the quality and depth of its senior management team on the Edikan site by making the following key appointments:

Mr Brent Horochuk was appointed to the role of Executive General Manager in early December 2014, replacing Mr John Seaward who occupied the role on a short-term contract while the international search that identified Brent was completed. Brent is a Canadian citizen who will reside full time in Ghana for the duration of his role at Edikan. He is a highly experienced professional manager and mining engineer who has been responsible for managing both open pit and underground mining operations for a number of major corporations around the world and in particular, in Africa. Most relevant to Edikan is Brent’s 12 years of experience with Ashanti Goldfields Company and Anglogold Ashanti Limited, where he held senior and general management positions at the Obuasi, Iduapriem and Bibiani Mines in Ghana, Siguiri Mine in Guinea, Geita Mine in Tanzania and Freda Rebecca Mine in Zimbabwe.

Mr Mark Somlyay is an Australian citizen who was appointed to the role of Commercial Manager in November 2014. He is a professional accountant who holds a Bachelor of Commerce degree and is a Certified Practising Accountant (CPA). Mark has had a wealth of international financial management experience and has a highly developed strategic and commercially orientated approach to work. Prior to joining the team at Edikan, Mark gained highly relevant experience working for London Mining in Sierra Leone, Inmet in Panama, Newcrest in PNG, Barrick Gold in Tanzania, and Moto Gold Mines in the DRC.

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REPORT for the Quarter ended 31 December 2014

Edikan is also at a very advanced stage in the recruitment of a highly qualified and experienced Ghanaian Mine Operations Manager who will oversee all contract mining activities at the current Fobinso and AG Pits and the future Eastern Pits.

On 31 December 2014, the total number of direct employees at Edikan was reduced to 334 full time employees and fixed-term contractors, including 319 Ghanaian citizens, following a retrenchment programme involving 48 employees. Indirectly, approximately 1,000 additional people, the vast majority of whom are Ghanaian citizens, are employed by an assortment of contractors that provide a range of services to Edikan.

Project Development

Sissingué Gold Project (“SGP”) – Côte d’Ivoire

During the Quarter, Lycopodium Minerals Pty Ltd (“Lycopodium”), an internationally recognised engineering and project management consultancy, was appointed by Perseus to revise the project Feasibility Study for the SGP.

The revised study will reflect not only the processing flow sheet adopted following a preliminary economic assessment of a “scaled down” version of the SGP that was completed in the September 2014 quarter but also updated assumptions on mining, processing and various service functions associated with the project. This work has included a review of various energy sources for powering the project with consideration being given to a range of alternatives including electricity drawn from the national electricity grid as well as standalone power plants fuelled by diesel or gas products. As energy is a key consumable for the project, the outcome of this aspect of the study is expected to have a material impact on forecast project economics.

Lycopodium has made solid progress on preparing the revised study and it is estimated that revised operating and capital cost estimates will be completed by the end of January 2015 and that a formal Feasibility Study will be tabled for consideration by Perseus’s Board during the course of the March 2015 Quarter.

Apart from project economics, a key input into any positive project development decision to be taken by the Company will be the viability of the project financing plan which is currently being formulated by the Company’s corporate office. In formulating the plan, the full range of financing alternatives currently available to the Company is being assessed taking particular note of the incremental risk and the potential impact on existing shareholders of each of the financing alternatives. Formulation of this plan is also expected to be materially advanced during the March 2015 Quarter.

During the Quarter, the Company has continued to engage constructively with the Ivorian Government on the drafting of a Mining Convention for the project. This process has been greatly assisted by the introduction in 2014 of a new Mining Code in Côte d’Ivoire which clearly specifies many of the fiscal terms under which projects can be operated in country. The Company is very confident, that in the event of a positive development decision on the project, an appropriate Mining Convention could be promptly finalised.

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REPORT for the Quarter ended 31 December 2014

Exploration

Ghana

During the Quarter, US$0.415M was spent on exploration activities in Ghana at the EGM including completion of a resource in-fill drilling programme on the Mampong deposit involving 2,196m of reverse circulation (“RC”) drilling and 25m of diamond drilling (“DD”) as well as commencement of a resource infill drilling programme on the Chirawewa deposit involving 1,370m of RC drilling. (Refer to Figure 1 ). Results are as follows:

Mampong Deposit, EGM, Ghana

Highlights

MPRC171 - 7m at 2.9g/t Au from 69m including 1m at 10.5g/t Au from 69m MPRC173 - 15m at 3.6g/t Au from 69m including 3m at 13.5g/t Au from 69m MPRC178 - 11m at 2.0g/t Au from 66m MPRC180 - 12m at 3.2g/t Au from 60m including 1m at 10.7g/t Au from 60m MPRC184 - 13m at 2.5g/t Au from 66m including 1m at 15.0g/t from 77m

The Mampong deposit is located between 700m and 2,100m southwest of the operating Abnabna pit at the EGM. The deposit consists of two mineralised zones including a wider, lower grade zone to the north which represents the south-western strike extension of the Abnabna-Fobinso gold-bearing granite, and further south, a narrower, higher grade zone which is hosted in a separate 10m to 15m wide granitic dyke situated approximately 200m south-east of and parallel to the Abnabna-Fobinso granite. The two mineralised zones at Mampong presently contain an Inferred Mineral Resource of 8.6Mt at 0.9g/t for 257,000oz gold. Mineralisation at Mampong is essentially the same as that in the Abnabna-Fobinso deposits and consists of stock work quartz veining in altered granite with trace to several percent disseminated pyrite plus arsenopyrite.

The southern, higher grade portion of the Mampong deposit was the principal subject of the recent infill drilling program. The two Mampong zones were previously drilled in several campaigns during 2008 through 2010 to a nominal drill spacing of 40m by 40m, resulting in the present Inferred Mineral Resource. The current 5,500m program was planned to infill previous drilling to a drill spacing of approximately 20m by 20 to 40m on the southern higher grade portion of Mampong to better define that portion of the Mineral Resource and upgrade it to an Indicated Mineral Resource for inclusion into the EGM Ore Reserves and lifeof-mine plan.

The planned drilling at Mampong South is now complete and all assays have been received. The last phase of this activity involved 1,360m of drilling including 1,314m of RC drilling and 46m of DD. The infill drilling results were generally consistent with previous drilling, although the greater detail in drilling will permit much of the Mampong South Inferred Mineral Resource to be upgraded to the Indicated category.

A drill hole at the southern limit of the Mampong South drilling, MPRC184, returned a relatively significant intercept of 13m at 2.5g/t Au. With no drilling located further to the south of this drill hole, there is potential to add to the Mineral Resource with additional drilling to the south. Refer to Figure 2 and Table 1 in Attachment 1.

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REPORT for the Quarter ended 31 December 2014

In addition to completing the Mineral Resource infill drilling at Mampong South, 12 RC holes totalling 957m were drilled at Mampong North in an area where previous drilling generated slightly higher than average drill results for the generally lower grade Mampong North deposit. These holes returned anomalous weak intercepts typical of Mampong North. Refer to Figure 3 and Table 2 in Attachment 1.

Chirawewa Deposit, EGM, Ghana

Highlights

• CHRC324 - 38m at 1.5g/t Au from 12m and 2m at 28.4g/t Au from 64m CHRC327 - 28m at 2.3g/t Au from 8m including 1m at 21.2g/t Au from 26m CHRC329 - 16m at 1.8g/t Au from 4m and 8m at 2.6g/t Au from 64m CHRC330 - 2m at 23.0g/t Au from 8m and 18m at 3.6g/t Au from 32m including 2m at 12.6g/t Au from 33m

• CHRC331 - 16m at 2.1g/t Au from 26m including 1m at 16.2g/t from 41m plus 2m at 39.0g/t Au from 70m

The Chirawewa deposit, the eastern-most deposit at the EGM, (Refer to Figure 1 ) was partially mined by Ashanti Gold Corporation (“AGC”), the previous owners of the tenements on which the EGM is located. As a result of the flooding of the old oxide pit following cessation of AGC’s operations, limited drilling has been possible to test mineralisation directly below the old pit floor but to allow the drill rig to access this zone, the old pit was recently dewatered and a resource infill drilling program on the Chirawewa deposit was commenced from within the old pit during the Quarter,

The Chirawewa deposit is similar to the other granite hosted deposits at Edikan, although several subparallel mineralized granitic intrusives are present and ore grade mineralization also occurs within intervening meta-sediments. Additionally, narrow high grade mineralization is present within a carbonaceous sediment-hosted shear zone along the western flank of the granitic intrusives. This shear zone has been drilled only to shallow depths and there appears to be potential to lift the overall grade of the Chirawewa Mineral Resource if further drilling can extend the mineralization to depth. The Chirawewa deposit currently hosts an Indicated Mineral Resource of 195,000oz at 1.0g/t Au plus an Inferred Mineral Resource of 284,000oz at 0.9g/t Au. The current drilling program should upgrade a portion of the Inferred Mineral Resource to the Indicated category.

In December 2014, 17 RC holes totalling 1,370m were drilled from the floor of the old Chirawewa pit. While many of the intercepts (refer to Table 3 and Figure 4 ) were in line with past drilling, a number of drill holes returned significantly better than the deposit’s average deposit grade of 1.0g/t and suggest the potential for improving the overall grade of the Chirawewa deposit through infill drilling. Another 30 holes for 2,100m remain to be drilled in this program, which is expected to resume by mid to late January 2015. Depending on results, several deeper holes may be added to probe at depth the high grade shear flanking the main deposit. Upon completion of the drilling, the Chirawewa deposit will be remodelled with the resource updated for inclusion into the Edikan mining plan.

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Figure 1 - Location of the Mampong and Chirawewa Deposits, EGM, Ghana

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Figure 2. Vertical Longitudinal Section of the Mampong South Deposit

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Figure 3 – Plan Map Showing the Location of the Mampong North Drilling

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Figure 4 – Plan Map Showing the Recent Chirawewa In-Pit Resource Drilling

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REPORT for the Quarter ended 31 December 2014

Côte d’Ivoire

During the Quarter a total of US$0.812M was spent by Perseus on exploration activities in Côte d’Ivoire, including 12,503m of drilling comprised of 2,213m of RC drilling and 280m of DD at Mahalé plus 7,157m of auger drilling and 2,853 of rotary air blast (“RAB”) drilling on the Sissingué Exploitation Permit. Results are as follows:

Bélé Prospects, Mahalé Exploration Permit

Highlights

MHRD120 - 20m at 6.7g/t Au from 58m including 10m at 10.5g/t Au from 74m MHRC122 - 10m at 2.1g/t Au from 69m and 8m at 3.4g/t Au from 82m MHRD123 - 9.7m at 2.1g/t Au from 119.15m

An exploration drilling program was completed during the quarter at the Bélé Prospects on the Mahalé Permit in Côte d’Ivoire (Refer to Figure 5 ) to follow-up previous favourable drilling results, test the principal Bélé zones at greater depths and evaluate a number of previously untested geophysical plus geochemical targets. A total of 2,493m was drilled on Mahalé including 2,213m of RC and 280m of diamond core drilling. Most of the drill holes tested new targets and returned weak anomalous results at best. The final 6 holes of the program tested the Bélé East and West targets at depth with details as follows. All of the results from this program have been received with all results reported in Table 4 of Attachment 1.

Drilling at Bélé East was designed to test for the depth and strike continuity of higher grade mineralisation which sits at 40 to 80m vertical depth and appears to be nearly sub-horizontal with a shallow plunge to the north. Drill hole MHRD121 which undercut previous high grade intercepts, e.g. MHRC077 (28m at 12.4g/t Au reported in the September 2014 Quarterly Report) returned weak results cutting off the high grade mineralisation to depth on section 1,136,960N. Hole MHRD120 drilled 40m to the north returned a very strong intercept of 20m at 6.7g/t Au extending the high grade mineralisation encountered in MHRC077 40 meters to the north. The high grade mineralisation remains open below MHRD120 on section 1,137,000N. A third hole, MHRD119, was drilled 80 meters further to the north below previous drilling, and unfortunately returned weak results, effectively cutting off the continuation of the high grade mineralisation to the north. Based on the latest drilling, the Bélé East high grade mineralisation remains partially open to depth, however it appears to be of limited strike extent and is therefore likely relatively small in volume. Refer to Figure 6 .

At Bélé West, two holes were drilled to moderate depths below the previous shallow drilling. Past drilling was oriented west to east, at a low angle to the strike of the zone, while the recent drill holes were directed to the southwest, at right angles to the mineralised zone. Refer to Figure 7 . One of the holes, MHRC124 drilled near the centre of the strike of the zone returned a weak result, cutting off the mineralisation to depth in this area. A second hole, MHRD123 drilled under the stronger mineralisation towards the north-eastern end of Bélé West, returned 9.7m at 2.1g/t Au, in line with previous drilling. The third hole, MHRC122, drilled just beyond the known north-eastern limit of the Bélé West zone, returned broader mineralisation with multiple intercepts of 2m at 14.8g/t , 10m at 2.1g/t plus 8m at 3.4g/t Au. The recent drilling has demonstrated that the Bélé West mineralisation, although apparently weaker at depth in the central portion, persists to moderate depths at comparable grade to the northeast and may be improving further northeast and remains open on strike. However, the potential strike continuation is only open for 150 meters to the northeast where a fence of north to south drilled holes returned very weak results and cut off the north-eastern strike continuation of the zone, at least to shallow levels.

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REPORT for the Quarter ended 31 December 2014

As was the case at Bélé East, the Bélé West zone appears to be limited in extent and unlikely to produce a significant Mineral Resource at economic grades. The exploration potential of the Mahalé Permit will be revisited in the March 2015 Quarter, however further drilling is not planned in the near term.

Sissingué Exploitation Permit

A program of auger drilling with RAB drilling to follow up auger anomalies was conducted on the Sissingué Exploitation Permit to evaluate areas of potential geochemical masking by transported regolith along the PaparaSissingué-Kanakono mineralized corridor. During the Quarter, a total of 7,157m of auger and 2,853m of RAB drilling was completed. A number of modest auger anomalies were identified by the program, some of which were followed up with RAB drill testing with weak results. As yet untested auger anomalies will be considered for further RAB drill testing in the March 2015quarter.

Figure 5 - Location of the Bélé Prospect, Côte d’Ivoire

Burkina Faso

The Koutakou, Tangayé, Touya and Barga licences in north-western Burkina Faso are being explored under an earn-in agreement with unlisted Australian company West African Gold Limited. Results are awaited from a short soil sampling programme conducted on the Burkina Faso licenses during the Quarter. A small air-core drilling program is planned for the March 2015 quarter to evaluate the large Koutakou Au in soil anomaly plus several areas of active artisanal mining.

Page 16

REPORT for the Quarter ended 31 December 2014

Figure 6 – Plan Map of Bélé East Drilling

Figure 7 – Plan Map of Bélé West Drilling

==> picture [430 x 280] intentionally omitted <==

Page 17

REPORT for the Quarter ended 31 December 2014

Program for the March 2015 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;

• Award a contract for the mining of the Eastern Pits and oversee the commencement of this contract as well as the contract to mine Fobinso Stage 3.

• 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 of the EGM.

Sissingué Gold Mine Development Project

• Update Feasibility Study for the SGP based on preferred development configuration and flow sheet;

• Continue discussions with the Ivorian government about a Mining Convention covering the revised SGP;

• Continue exploration on the Mahalé exploration licence and the Sissingué exploitation permit.

Jeff Quartermaine

Managing Director and Chief Executive Officer

20 January 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).

Page 18

REPORT for the Quarter

ended 31 December 2014

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 EGM Mineral Resources 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 and the attachments 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 forward-looking information. Perseus does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Page 19

REPORT for the Quarter ended 31 December 2014

ATTACHMENT 1 – DRILLING RESULTS

Table 1: Mampong South Resource Drilling Results

Table 1: Mampong South Resource Drilling Results
Hole East North RL Depth Azm. Incl.	From	To Width Au
(m) (m) (mASL) (m) (°) (°)	(m)	(m) (m) g/t
MPRC169 24,220 13,164 157 130 180 -50		NSI
MPRC170 24,220 13,124 160 81 180 -50	69	76 7 0.6
MPRC171 24,180 13,123 158 80 180 -50	69	76 7 2.9
incl.	69	70 1 10.5
MPRC172 24,020 13,080 157 25 180 -50	9	14 5 3.3
MPRC173 24,040 13,121 162 85 180 -50	0	2 2 1.7
	69	84 15 3.6
incl.	69	72 3 13.5
MPRC174 23,980 13,130 155 90 180 -50	72	82 10 1.2
MPRC175 23,960 13,113 160 100 181 -50	51	54 3 1.8
	64	68 4 1.1
MPRC176 23,920 13,111 165 80 180 -50	66	68 2 6.7
incl.	66	67 1 11.9
MPRC177 23,880 13,110 162 83 180 -50	60	65 5 2.0
MPRC178 23,760 13,110 168 85 180 -50	66	77 11 2.0
MPRC179 23,720 13,110 166 85 180 -50	70	74 4 0.5
MPRC180 23,800 13,108 165 85 180 -50	60	72 12 3.2
incl.	60	61 1 10.7
MPRC181 23,640 13,105 157 85 180 -50	69	72 3 2.8
MPRC182 23,640 13,064 159 30 180 -50		NSI
MPRC183 23,560 13,059 155 30 180 -50	22	26 4 0.8
MPRC184 23,560 13,099 155 85 180 -50	66	79 13 2.5
incl.	77	78 1 15.0
MPRDD025 24,180 13,157 158 120.5 180 -50	106	108 2 2.6
	115.2	119.5 4.3 1.2

Notes: NSI = No significant intercept

Table 2: Mampong North Resource Drilling Results

Table 2: Mampong North Resource Drilling Results
Hole East North RL Depth Azm. Incl.	From	To Width Au
(m) (m) (mASL) (m) (°) (°)	(m)	(m) (m) g/t
MPRC185 24,460 13,420 151 72 180 -50	44	45 1 2.0
	48	49 1 2.1
	56	57 1 5.4
	63	66 3 0.8
MPRC186 24,460 13,441 153 85 180 -50	14	20 6 0.7
	39	42 3 0.7
	44	53 9 0.9
	60	67 7 0.6
	72	81 9 1.0
MPRC187 24,460 13,459 155 100 180 -50	30	37 7 0.7
	40	51 11 0.5
	62	68 6 0.5
MPRC188 24,500 13,420 153 60 180 -50	14	22 8 0.6
MPRC189 24,500 13,439 155 80 180 -50	8	10 2 8.3
	36	44 8 0.8
	72	74 2 2.3
MPRC190 24,500 13,460 157 100 180 -50	16	18 2 2.5
	38	54 16 1.0
MPRC191 24,540 13,419 155 55 180 -50	2	6 4 1.2
	26	30 4 0.8

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REPORT for the Quarter ended 31 December 2014

Hole East North RL Depth Azm. Incl.	From	To Width Au
(m) (m) (mASL) (m) (°) (°)	(m)	(m) (m) g/t
MPRC192 24,540 13,440 157 75 180 -50	2	4 2 2.1
	8	10 2 7.0
	56	66 10 0.8
MPRC193 24,540 13,460 159 95 180 -50	20	28 8 1.1
	52	80 28 1.0
	90	95 5 1.1
MPRC194 24,580 13,420 157 55 180 -50		NSI
MPRC195 24,580 13,440 158 80 180 -50		NSI
MPRC196 24,580 13,459 160 100 180 -50	10	14 4 2.0
	32	34 2 1.8
	96	98 2 1.3

Notes: NSI = No significant intercept

Table 3: Chirawewa Resource Drilling Results

Table 3: Chirawewa Resource Drilling Results
Hole East North RL Depth Azm. Incl.	From	To Width Au
(m) (m) (mASL) (m) (°) (°)	(m)	(m) (m) g/t
CHRC315 4,219 4,660 148 75 313 -50	40	44 4 1.4
CHRC316 4,209 4,660 148 90 313 -50	58	62 4 1.2
	40	52 12 1.7
	62	66 4 2.3
CHRC317 4,170 4,640 149 55 313 -50		NSI
CHRC318 4,170 4,660 151 55 313 -50	10	16 6 0.9
CHRC319 4,209 4,640 144 90 313 -50	8	10 2 15.9
	63	70 7 0.9
	74	84 10 1.5
CHRC320 4,210 4,620 143 100 313 -50	14	20 6 1.5
CHRC321 4,169 4,620 145 45 313 -50	4	10 6 0.9
	35	40 5 1.0
CHRC322 4,170 4,600 144 65 313 -50	24	29 5 1.7
	39	43 4 1.3
	56	63 7 1.4
CHRC323 4,209 4,600 142 100 313 -50	23	39 16 1.5
CHRC324 4,219 4,580 142 95 313 -50	12	50 38 1.5
incl.	26	34 8 3.7
	64	66 2 28.4
	76	82 6 2.6
CHRC325 4,179 4,580 142 55 313 -50	10	16 6 0.9
CHRC326 4,139 4,560 137 50 313 -50	2	32 30 0.8
CHRC327 4179.395 4559.97 140.241 80 313 -50	8	36 28 2.3
incl.	26	27 1 21.2
	62	76 14 0.7
CHRC328 4,220 4,560 142 110 313 -50	47	50 3 1.7
	75	78 3 2.2
CHRC329 4,220 4,540 140 110 313 -50	4	20 16 1.8
	46	48 2 2.3
	64	72 8 2.6
CHRC330 4,180 4,540 138 85 313 -50	0	4 4 1.2
	8	10 2 23.0
	32	50 18 3.6
incl.	33	35 2 12.6
and	42	43 1 16.2
	62	64 2 4.3
CHRC331 4,240 4,520 141 110 313 -50	26	42 16 2.1
incl.	41	42 1 16.2
	70	72 2 39.0

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REPORT for the Quarter ended 31 December 2014

Table 4: Mahalé (Bélé Prospects) Exploration Drilling Results

Hole Prospect East	Hole Prospect East	Hole Prospect East	North RL Depth Azm. Incl.	North RL Depth Azm. Incl.	North RL Depth Azm. Incl.	North RL Depth Azm. Incl.	North RL Depth Azm. Incl.	From	From	To Width Au	To Width Au	To Width Au
(m)			(m) (mASL) (m) (°) (°)					(m)		(m) (m) g/t
MHRC085	Bélé C.	769,360	1,136,720	365	75	270	-50					NSI
MHRC086	Bélé C.	769,400	1,136,720	365	80	270	-50					NSI
MHRC087	Bélé E.	770,575	1,135,860	381	80	270	-50					NSI
MHRC088	Bélé E.	770,615	1,135,860	381	72	270	-50					NSI
MHRC089	Bélé E.	770,655	1,135,860	381	78	270	-50					NSI
MHRC090	Bélé E.	770,695	1,135,860	381	72	270	-50					NSI
MHRC091	Bélé E.	770,735	1,135,860	381	92	270	-50					NSI
MHRC092	Bélé E.	770,143	1,137,500	377	100	225	-50					NSI
MHRC093	Bélé E.	770,173	1,137,529	380	84	225	-50					NSI
MHRC094	Bélé E.	770,202	1,137,559	380	100	225	-50					NSI
MHRC095	Bélé E.	770,231	1,137,589	380	84	225	-50					NSI
MHRC096	Bélé E.	770,735	1,136,080	387	100	270	-50					NSI
MHRC097	Bélé E.	770,300	1,137,160	370	90	270	-50					NSI
MHRC098	Bélé E.	770,350	1,137,160	370	84	270	-50	66		70	4	3.1
MHRC099	Bélé C.	769,670	1,137,080	370	90	90	-50				0	NSI
MHRC100	Bélé C.	769,690	1,136,920	370	86	90	-50				0	NSI
MHRC101	Bélé E.	770,250	1,136,960	371	102	270	-50	38		72	34	1.4
MHRC102	Bélé E.	770,220	1,137,160	368	100	270	-50	84		90	6	1.1
MHRC103	Bélé E.	770,215	1,137,120	368	90	270	-50				0	NSI
MHRC104	Bélé E.	770,175	1,137,120	369	78	270	-50	50		56	6	0.8
MHRC105	Bélé E.	770,290	1,136,880	369	112	270	-50	16		24	8	1.3
								32		38	6	1.7
								72		76	4	1.9
MHRC106	Bélé E.	770,250	1,136,880	369	84	270	-50	34		42	8	5.4
MHRC107	Bélé C.	769,265	1,137,400	394	84	270	-50				0	NSI
MHRC108	Bélé C.	769,305	1,137,400	392	84	270	-50				0	NSI
MHRC109	Bélé C.	769,225	1,137,420	384	90	270	-50				0	NSI
MHRC110	Bélé C.	768,710	1,137,520	380	94	180	-50				0	NSI
MHRC111	Bélé C.	768,720	1,137,560	377	100	180	-50				0	NSI
MHRC112	Bélé C.	768,700	1,137,440	373	81	180	-50				0	NSI
MHRC113	Bélé C.	768,700	1,137,480	375	80	180	-50				0	NSI
MHRC114	Bélé C.	768,740	1,137,590	378	100	180	-50				0	NSI
MHRC115	Bélé C.	768,860	1,137,480	373	86	180	-50	50		52	2	1.1
MHRC116	Bélé E.	769,700	1,137,500	379	84	225	-50	56		64	8	1.1
MHRC118	Bélé E.	769,753	1,137,579	385	80	225	-50				0	NSI
MHRD119	Bélé E.	770,250	1,137,080	372	149.7	270	-50	113.5		119.2	5.7	0.9
								134.3		137.44	3.14	1.0
MHRD120	Bélé E.	770,250	1,137,000	370	141.5	270	-65	58		66	8	1.7
								72		92	20	6.7
							incl.	74		84	10	10.5
MHRD121	Bélé E.	770,330	1,136,960	369	168.8	270	-50	58		62	4	1.6
								102		106	4	4.3
								113.2		119.53	6.33	1.7
MHRC122	Bélé W.	768,517	1,137,610	369	114	155	-65	14		16	2	14.8
								58		68	10	2.1
							incl.	60		62	2	7.0
								74		76	2	2.1
								82		90	8	3.4
MHRD123	Bélé W.	768,250	1,137,531	378	154.6	155	-65	119.15		128.85	9.7	2.1
MHRC124	Bélé W.	768,031	1,137,423	378	126	155	-65	112		116	4	2.6

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REPORT for the Quarter ended 31 December 2014

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 (MPRC, CHRC 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 of unmineralised hanging-wall material, and 1m samples were submitted for assay of the mineralised zones.  Diamond drill (DD) core in MPRDD and MHRD holes were sampled at 1m intervals by sawing in half the drill core and submitting half 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 samples from Mampong and Chirawewa were submitted to Intertek Minerals Ghana in Tarkwa for preparation and analysis for Gold by 50g Fire Assay with AAS finish. The samples from Mahalé were submitted to the Bureau Veritas laboratory in Abidjan for analysis for Gold by 50g Fire Assay with AAS finish.
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.  The DD core tails (MPRDD and MHRD holes) were drilled with an HQ diameter coring 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. Wet RC samples were not an issue as the RC drill rig had sufficient air pressure to ensure dry samples.
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 and DD drilling methods was logged in detail by Company geologists.  Small samples of RC drill material were retained in chip trays and DD core stored in core trays for future reference and validation of geological logging.

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REPORT for the Quarter ended 31 December 2014

Criteria	JORC Code Explanation	Commentary
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 RC samples were not encountered in these programs. When chips were showing signs of moisture or the drilling became slow, the drilling switched to diamond core to avoid wet chips in several holes.  Routine field sample duplicates of RC samples were taken to evaluate representivity of samples with the results stored in the master drill database for reference.  At both the Intertek Minerals Ghana and Bureau Veritas, Abidjan laboratories, 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 all Mampong and Chirawewa drill samples, analysis for Gold was undertaken at the Intertek Minerals Ghana laboratory by 50g Fire Assay with AAS finish to a lower detection limit of 0.01ppm. Drill samples from the Mahalé project in Côte d’Ivoire were analysed with the same parameters at the Bureau Veritas laboratory in Abidjan. Fire assay is considered a total assay technique.  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.
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 stage of drilling.  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 in Ghana were set out in a local grid datum using a Total Station, with a number of well-established survey bench marks for control. In Côte d’Ivoire, the drill hole collars were set in the field with a hand-held GPS.  Drill hole collars in Ghana were picked up after drilling with a Total Station and cross-checked with a DGPS in UTM WGS84 Zone 30N. The accuracy in lateral and vertical directions is considered to be within millimetres.  Drill holes for both Ghana and Côte d’Ivoire, were surveyed for down hole deviation using a Reflex EZ-Shot tool, at 12m and 30m depth, and every 30m depth thereafter, plus at the end-of-hole.  Locational accuracy at collar and down the drill hole is considered appropriate for this stage of drilling.

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REPORT for the Quarter ended 31 December 2014

Criteria	JORC Code Explanation	Commentary
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.	 The Mampong and Chirawewa drilling programs were resource infill drilling for eventual resource updates. Previous drilling was in-filled to a nominal spacing of 20 meters X 20 meters to 40 meters in these programs. The Mahalé drilling program was exploratory to test the known mineralised zones at 40 to 60 meters deeper than previously tested.  The reported drilling from Mampong is sufficient to establish geological and grade continuity and will be used for a future resource update of the deposit. The infill drilling at Chirawewa is only 30% complete and will be concluded in the next quarter, after which a resource update will be calculated for the deposit. The exploration drilling conducted to date at Mahalé is not expected to produce a reportable mineral resource.  Sample compositing was performed in the majority of the RC drilling with 2 X 1m sample composites. DD tails were sampled at 1m intervals.
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.	 In plan, the recent drilling has been performed approximately perpendicular to the strike of controlling structures and the mineralisation. In cross-section, drill holes were drilled at high angles to the dip of structures and mineralisation.  The drilling has largely been drilled at high angle to the mineralisation and a sampling bias is not expected to have been introduced.
Sample security	 The measures taken to ensure sample security.	 In Ghana, samples were stored in a fenced compound within the Company’s Edikan Mine Site until being collected at site by Intertek Minerals Ghana vehicles and transported to their laboratory in Tarkwa. For the Mahalé drilling in Côte d’Ivoire, samples were store in the Company’s fenced compound in Tengrela until being transported by Company vehicles to the Bureau Veritas 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 Ghana and Côte d’Ivoire were last reviewed in a site visit to the Edikan Gold Mine by consultants Runge Limited (now RungePincockMinarco Limited) in October of 2010 and are deemed to be of industry standard and satisfactory.

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REPORT for the Quarter ended 31 December 2014

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 from Mampong are from the Nanankaw Mining Lease and those from Chirawewa are from the Ayanfuri Mining Lease, both numbered permit ML1110/1994. The Nanankaw and Ayanfuri Mining Leases are located in the Central Region of Ghana and is owned by Perseus Mining (Ghana) Limited, a 90% owned subsidiary of Perseus Mining Limited, with the remaining 10% owned by the Government of Ghana. A production royalty of 5% is due to the government of Ghana and royalties totalling 1.75% are due to other parties.  The Mahalé Permis de Recherche, licence # PR259, is 90% owned by Occidental Gold s.a.r.l., a wholly owned subsidiary of Perseus Mining Limited, with 10% reserved for the Government of Côte d’Ivoire. The licence is located in northern Côte d’Ivoire, 15km southwest of the town of Tengrela.  The Nanankaw and Ayanfuri Mining Leases are in good standing, valid through to 30 December 2024. The Mahalé Licence in Côte d’Ivoire is valid through to 18 December, 2015, at which time a renewal may be applied for.
Exploration done by other parties	 Acknowledgment and appraisal of exploration by other parties.	 Historical exploration and mining was conducted on the Nanankaw and Ayanfuri (Edikan) Mining Leases from the early 1990s up to 2001 by Cluff Mining (Ghana) Ltd and Ashanti Goldfields Corp. Historic exploration work on the Mahalé licence in Côte d’Ivoire is unknown.  Past exploration at Edikan was successful and resulted in multiple discoveries leading to mining. Exploration is still in progress on the Mahalé Licence.
Geology	 Deposit type, geological setting and style of mineralisation.	 The Ghana Mining Leases are situated within the Paleo- Proterozoic Birimian of Southern Ghana, being located in the Kumasi Basin sedimentary group approximately 5 to 8 kilometres west of the Ashanti Greenstone Belt. The Mahalé licence is located over a small Paleo-Proterozoic Birimian greenstone belt located approximately 30m west of the Syama Belt.  The Mampong and Chirawewa deposits are granite hosted Orogenic gold deposits associated with stockwork quartz veining plus up to 3% disseminated pyrite and arsenopyrite. The Chirawewa deposit also contains similar mineralisation hosted in metasediments adjacent to the mineralised granite. The Bélé Prospects on the Mahalé licence in Côte d’Ivoire are situated within a complex contact zone between granite and volcanics +/- sediments, and are likely structurally controlled Orogenic style gold occurrences.

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REPORT for the Quarter

ended 31 December 2014

Criteria	JORC Code Explanation	Commentary
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 for Mampong and Chirawewa are summarised in Tables 1 through 3 in Attachment 1 to the attached announcement. Reported results for Mahalé are summarised in Table 4 in Attachment 1 to the attached announcement  The drill holes reported in this announcement have the following parameters: o All drill holes have been reported for which results have been received. o Grid co-ordinates are a local mine grid with the baseline oriented at 43 deg. east of true north for Mampong and Chirawewa and UTM WGS84 Zn29N for the Mahalé drilling results. o Collar elevation is defined as height above sea level in metres (RL) and has been determined with a DGPS. o Dip is the inclination of the hole from the horizontal. Azimuth is reported relative to the local grid 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.  The tables in Attachment 1 report all of the drilling results received from the current drilling programs.
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 1m metre down hole samples, composited to 2m samples for most of the RC drilling.  A minimum cut-off grade of 0.5 g/t Au is applied to the reported intervals.  Maximum internal dilution is 2m 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’).	 Previous drilling at Mampong and Chirawewa has well established the geometry and orientation of the mineralisation being drilled in this program, and drilling has been planned to be nearly perpendicular to the strike and dip of the mineralisation. The geology and structural controls are not yet fully understood at Mahalé, although the latest drilling has been designed to be at right angles, as much as possible, to the interpreted geometries of mineralisation.  The Mampong mineralisation dips 70 to 85 deg to the northwest, and drilling was inclined at -50 to the southeast. True thicknesses of drill intercepts range between approximately 70% and 85% of the down-hole length. The mineralisation at Chirawewa is predominantly near-vertical. Drilling was inclined at -50deg to the northwest and true thicknesses are estimated to be 65% of the down-hole length. The mineralisation at Mahalé is not well understood and true thicknesses are unknown.  Results are reported as down hole length.

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REPORT for the Quarter ended 31 December 2014

Criteria	JORC Code Explanation	Commentary
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.	 Figures 1 is a general location maps of the Mampong and Chirawewa deposits at the Edikan Gold Mine and Figure 5 illustrates the location of the Bélé Prospects on the Mahalé licence in Côte d’Ivoire.  Figure 2 is a vertical longitudinal section of the Mampong South deposit highlighting the latest infill drilling and significant results, while Figure 3 is a plan map showing the location of the latest drilling at Mampong South and Mampong North.  Figure 4 illustrates the location of the recent drilling from within the Chirawewa pit.  Figures 6 and 7 are plan maps illustrating the locations of the recent drilling at the Bélé East and Bélé West Prospects, respectively.
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 in these programs are shown in the attached drill plan figures.
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.	 The drilling reported represents the completion of the planned infill drilling program at Mampong. Further drilling to test for the continuation of the Mampong South zone further south will likely be proposed.  The drilling reported at Chirawewa represents the commencement of an in-pi resource infill drilling program, which is planned to be completed early in 2015.  The latest exploration drilling conducted on the Mahalé licence represents the final phase of drilling in the current program. All exploration data will be reviewed in early 2015 and further drill testing may be proposed if warranted.  An update to the Mampong and Chirawewa resources is expected to be reported in the March 2015 Quarter.

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