ASX/TSX code: PRU

Capital structure as at 18 Jul 2017: Ordinary shares: 1,033,217,813 Outstanding warrants: 130,579,334 Unvested performance rights: 9,657,000

Directors:

Mr Sean Harvey Non-Executive Chairman Mr Jeff Quartermaine Managing Director Mr Mike Bohm Non-Executive Director Mr Colin Carson Executive Director Mr Alex Davidson Non-Executive Director Mr John McGloin Non-Executive Director

Registered Office:

Level 2 437 Roberts Road Subiaco WA 6008 Telephone: +61 8 6144 1700 Email: [email protected] Website: www.perseusmining.com

Contacts: For clarification of details, contact:

Jeff Quartermaine - CEO & Managing Director Email: [email protected]

Nathan Ryan - Media & Investor Relations Telephone: +61 4 20 582 887 Email: na [email protected]

OVERVIEW

Perseus Mining Limited ("Perseus" or the "Company") has delivered another strong operating performance during the June 2017 quarter (the "Quarter") providing further compelling evidence it is on track to deliver material production and earnings growth in the short to medium term.

Table 1: Key Performance Indicators

Parameter	Units	June 2017QuarterActual	June 2017Half YearActual	June 2017Half YearGuidance

Gold produced	Ounces	51,563	100,218	90,000 - 110,000
Gold Sales	Ounces	53,319	108,850	-
All in Site Cost	US$/ounce	1,112	1,112	1,000 - 1,220
Avg. Sale Price	US$/ounce	1,286	1,276	-
Cash Margin	US$/ounce	174	164	-

Quarterly gold production at the Edikan Gold Mine in Ghana ("Edikan") was 6% higher than the March 2017 quarter and 32% higher for the June 2017 Half Year, relative to the December 2016 Half Year.
Half year gold production and all-in site costs ("AISC") were in line with the mid-point of respective guidance ranges.
Development of the Sissingué Gold Mine in Côte d'Ivoire ("Sissingué") is on schedule and on budget with the first gold pour planned for March 2018 quarter.
Sissingué's development cost to complete of US$47.8 million is fully funded by US$40 million of project debt finance and US$7.8 million of existing cash.
The Definitive Feasibility Study ("DFS") for the Yaouré Gold Project in Côte d'Ivoire advanced on all fronts and is on schedule for completion in the December 2017 quarter.
Preliminary DFS results confirm key project parameters are either in line with or better than those forecast by Perseus's due diligence study of Yaouré completed prior to its acquisition in April 2016.
At 30 June 2017, the Company held cash and bullion on hand of A$43.0 million, an undrawn line of credit of US$40 million and an outstanding bank debt of US$15 million.

In summary, Perseus is producing gold to plan, is operationally cash positive, its current development activities are fully funded and on budget and schedule and it is making excellent progress towards delivering on its short to medium growth objectives.

OPERATIONS

Edikan Gold Mine, Ghana

Edikan's operating performance during the twelve months to 30 June 2017 is summarised in detail as follows:

Table 2: Quarterly Performance Statistics

Parameter		Unit	Dec2016	Mar 2017	Jun 2017	Jun2017	Full 2017
			Half	Quarter	Quarter	Half	Financial
			Year			Year	Year
Production & Sales:
	Total material mined:
	Volume	bcm1	9,060,604	4,126,768	4,083,444	8,210,212	17,270,816
	Weight	tonnes	18,565,071	8,942,287	9,225,105	18,167,392	36,732,463
Ore mined:
	Oxide	tonnes	444,555	188,790	104,745	293,535	738,090
	Fresh/Transitional	tonnes	2,550,509	2,202,133	2,141,120	4,343,253	6,893,762
	Total ore mined	tonnes	2,995,064	2,390,923	2,245,865	4,636,788	7,631,852
Ore grade mined:
	Oxide	g/t2gold	0.98	1.21	1.14	1.19	1.06
	Fresh/Transitional	g/t gold	1.03	1.08	1.00	1.04	1.04
	Average grade	g/t gold	1.03	1.09	1.00	1.05	1.04

Strip ratio		t:t	5.2	2.7	3.1	2.9	3.8
Ore stockpiles:
	Quantity	tonnes	1,854,470	2,428,892	2,861,934	2,861,934	2,861,934
	Grade	g/t gold	0.6	0.7	0.6	0.6	0.6
Ore crushed		tonnes	2,638,944	1,554,967	1,583,754	3,138,721	5,777,665
Ore milled		tonnes	3,199,137	1,816,501	1,812,822	3,629,323	6,828,460
Milled head grade		g/t gold	0.89	1.01	1.03	1.02	0.96
Gold recovery		%	82	83	86	84	84
Gold produced		ozs	75,999	48,655	51,563	100,218	176,218
Gold sales3		ozs	66,383	55,532	53,319	108,850	175,233
Average sales price		US$/oz	1,187	1,266	1,286	1,276	1,242
Unit Costs:
Mining cost		US$/t mined	3.07	2.95	2.91	2.93	3.00
Processing cost		US$/t milled	9.97	8.95	10.31	9.63	9.79
G & A cost		US$M/month	1.37	1.29	1.54	1.42	1.39
All-In Site Cost
Production cost		US$/oz	1,278	957	974	965	1,100
Royalties		US$/oz	81	93	86	90	86
Sub-total		US$/oz	1,358	1,050	1,060	1,055	1,186
Sustaining capital4		US$/oz	244	61	52	57	138
Total All-In Site Cost		US$/oz	1,603	1,112	1,112	1,112	1,324
	Site Exploration Cost	US$M	1.58	0.37	0.46	0.83	2.41

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.

4 Sustaining capital has been adjusted in prior periods to take into account costs that were originally misallocated in these periods.

Table 3: Plant Performance Statistics

	Sep 2016	Dec 2016	Mar 2017	Jun 2017
	Quarter	Quarter	Quarter	Quarter
Crusher
Run time (%)	48	43	58	54
Hourly throughput rate (t)	1,388	1,224	1,249	1,335
Oxide Circuit
Run time (%)	74	53	69	37
Hourly throughput rate (t)	138	127	129	123
SAG Mill
Run time (%)	89	70	90	89
Hourly throughput rate (t)	921	907	932	938
Gold recovery rate (%)	83	82	83	86

As shown in Table 2, gold production from Edikan during the Quarter of 51,563 ounces was approximately 6% higher than in the March 2017 quarter and at 100,218 ounces for the June 2017 Half Year production was 32% more than in the December 2016 Half Year and slightly above the midpoint of the Half Year production guidance range of 90,000 to 110,000 ounces.

The trend of improving gold production at Edikan is a function of three factors, namely:

1. Improved head grade of ore processed the head grade of ore milled during the Quarter was up 2% to 1.03 g/t gold relative to the prior quarter but in terms the June 2017 Half Year, the head grade has improved more than 15% compared to the prior six months. This improvement has occurred as planned and reflects the fact that higher grade zones of ore have been accessed and the quantity of fresh ore mined has increased, reducing the reliance on low grade stockpiled fresh ore to provide a suitable ore blend for processing purposes. The improvement in grade is expected to continue in coming quarters as even higher-grade ore zones are accessed, particularly in the Fobinso and Esuajah North pits.
1. Improved plant performance the improvements in processing plant run time, throughput rates and recoveries that are evident when comparing the June Half Year plant performance statistics with those of the December 2016 Half Year (refer to Table 3 above) can be attributed, in part, to the capital investment in upgrading key parts of the plant during the December 2016 quarter which eliminated several bottlenecks and installed items of plant that were designed for purpose. The improvements are also due to changes in the blend of ore that was processed (i.e. the percentage of fresh material in the total feed increased from 70% in the March 2017 quarter to 83% in the Quarter).
1. Improved performance of the operating team the effectiveness of Edikan's predominantly Ghanaian operating team in driving the improvements in mechanical efficiencies has made a significant contribution to the steady improvement in gold production being achieved at the mine during the June 2017 Half Year.

While gold production increased approximately 6% quarter on quarter, total cash production costs have also increased by a similar amount, resulting in little change to production costs per ounce for the Quarter. The major factor contributing to the increase in production costs this Quarter was the conclusion of wage negotiations with the Ghana Mineworkers Union for the 2016 and 2017 years, which meant that the payment of wage increases dating back to 1 January 2016 was included in the costs reported for this period.

Unit mining costs during the Quarter decreased marginally to US$2.91 per tonne mined as a result of slightly more tonnes of material being mined. Unit processing costs incurred during the Quarter increased 15% to US$10.31 per tonne milled from US$8.95 per tonne milled in the prior quarter, mainly as a result of the higher cost of maintenance consumables related solely to the timing of scheduled maintenance shutdowns as well as the higher labour costs referred to above.

Site G&A costs increased approximately 19% during the Quarter, averaging approximately US$1.54 million per month mainly as a result of the back pay of salaries as mentioned above.

Unit production costs for the Quarter (including all mining including waste stripping, processing and G&A costs but excluding royalty) amounted to US$974 per ounce compared to US$957 per ounce in the preceding quarter.

A slight decrease in royalty payments and a 15% decrease in sustaining capital resulting in the AISC for the Quarter of US$1,112 per ounce being identical to the AISC recorded in the March 2017 quarter.

As a result of the above, the AISC at Edikan for the June 2017 Half Year of US$1,112 per ounce was within 0.2% to the midpoint of the AISC guidance range for the June 2017 Half Year of US$1,000 to US$1,220 per ounce.

Outlook for Operations in financial year ending 30 June 2018 ("FY2018")

Looking forward to FY2018, Perseus will continue producing gold from Edikan and from the end of the March quarter 2018, gold is also forecast to be produced from Sissingué, the Company's second operation, once commissioning of the process plant is completed.

Total production and AISC guidance for the Perseus Group for FY2018 is as follows:

Parameter Units Production and Cost Guidance December 2017 Half Year June 2018 Half Year Full Fiscal Year 2018 Group Gold Production '000 ounces 110-125,000 140-160,000 250-285,000 Average All-In Site Costs $US per ounce 950-1,150 950-1,050 950-1,100

Table 4: FY2018 Group Production and Cost Guidance

DEVELOPMENT

Sissingué Gold Mine, Côte d'Ivoire

Development Works

During the Quarter, Perseus steadily advanced the development of its second gold mine Sissingué, and at Quarter-end, development works were tracking on schedule with approximately 61% of the works completed. The development is progressing in line with budget, with incurred expenditure to date (including US$10.4 million of early works and holding costs) totalling US$67.6 million, and the forecast expenditure to complete estimated at US$47.8 million. Refer to Appendix A for a photographic record of recent on-site development activities.

Off-site, detailed engineering is complete, as is the procurement of all significant long lead items of plant and equipment.

On site, the construction team continues to make sound progress, with the bulk concrete works associated with the plant and installation of underground services nearing completion. The majority of buildings including offices and the warehouse are either complete or close to completion, as is the erection of steelworks associated with the crusher and SAG mill. The CIL tanks are being erected and the contractor responsible for the installation of the SAG Mill has mobilised to site and will start work early in the September 2017 quarter. During the Quarter the airstrip, tailings dam, mine camp and work on the river intake structure were also completed. Work on the laying of piping to connect the intake facility to the water storage facility is nearing completion. Assembly of the generators and power station control panels is nearing completion and this equipment is on schedule to be delivered to site during the December 2017 quarter.

Given the progress made to date on all fronts, Sissingué remains on track to produce its first gold in the March 2018 quarter.

Project Funding to Completion of Development

As noted above, the cost of works to complete construction and commissioning of Sissingué is approximately US$47.8 million.

During the Quarter, Perseus's Board approved execution of loan documentation for a US$40 million project debt facility to be provided by Macquarie Bank Limited, which is to be used to fund the development of Sissingué. First funds are expected to be drawn in the September 2017 quarter after satisfaction of customary conditions precedent.

Operations Readiness

Perseus's Technical Services and Human Resources teams have prepared comprehensive Operations Readiness Plans for the Sissingué operation with the objective of ensuring that following commissioning of the mine and plant, the ramp up to full scale gold production occurs as efficiently as possible. Work started during the Quarter on the recruitment of key members of the site operations team, some of whom will be actively involved in the later stages of construction and commissioning of the plant.

A number of key contracts were awarded during the Quarter to suppliers of critical goods and services for the Sissingué operation, including the mining contract that was awarded to Société de Forage et de Travaux Public – Mining SA ("SFTP"). SFTP is an experienced Malian mining contractor that currently provides contract mining services to Newcrest's Bonikro Gold Mine and Randgold's Tongan Gold Mine, both located in Côte d'Ivoire. SFTP was also contracted by Perseus to carry out the bulk earthworks associated with the construction of Sissingué's tailings storage facility, completing this task on time and on budget.

Grade control drilling, to be performed by SFTP as part of the mining contract, is expected to start in the September 2017 quarter to ensure that approximately three months of grade control data is available for Perseus's mine planning purposes before SFTP commences full scale mining activities on site in the December 2017 quarter.

Perseus has also executed a Memorandum of Understanding with the National Gendarmerie of Côte d'Ivoire that provides for a number of gendarmes to be permanently stationed in facilities constructed by Perseus and located adjacent to the mine site for the purposes of maintaining peace and public order as well as ensuring the safety of both Ivorian citizens and foreigners resident in the area on a 24/7 basis.

Yaouré Gold Project, Côte d'Ivoire

The DFS for Perseus's prospective third gold mine, Yaouré, advanced positively on all fronts and is on schedule for completion in the December 2017 quarter.

Geological Overview

Previous mining at Yaouré exploited oxide gold mineralisation in two adjacent pits, namely, the Yaouré pit and, to the east, the CMA pit. The CMA pit has been backfilled with waste material from the Yaouré pit. The CMA deposit comprises gold mineralisation hosted by a north-striking shear zone up to 40 metres true thickness and dipping consistently at 25-30 degrees to the east. Gold is associated with pyrite in ankerite-quartz veins and adjacent altered basalt. Mineralisation in the Yaouré pit is more complex, with gold mineralisation hosted variously by east-dipping structures similar to the CMA lode ("Y-type" structures), steep east, north-east and south-east striking faults ("S-type" structures) and as sheeted vein arrays hosted by a granodiorite intrusive body. Similar to CMA, gold is associated with pyrite within, and adjacent to, quartz and quartz-carbonate veins. In the northern part of the proposed mine area the distance between the two mineralised systems diminishes and it is projected that future open pits may merge in a "Bridge" area.

Drill Testing

In late December 2016 as part of the Yaouré DFS, Perseus commenced a drilling programme aimed at resource confirmation as well as gathering additional information required for DFS purposes. By the end of the Quarter, a total of 63,263 metres of reverse circulation, diamond and air core drilling had been completed as follows:

Drilling Type	Metres
Resource Definition Drilling	33,777
Grade Control Drilling	12,709
Geotechnical Drilling	2,339
Hydrogeological Drilling	1,202
Sterilisation Drilling	10,847
Extensional Resource Drilling	2,389
Total	63,263

Table 5: Summary of Yaouré drill testing

A further 7,145 metres is scheduled to be drilled in the September 2017 quarter with all drilling due to be completed by the end of July 2017.

Drill Results

Assays have been received for 44,415 samples and results remain outstanding for 11,936 samples. The outstanding assays are largely from the sterilisation and extensional resource drilling programs. All assays required for completion of the final DFS resource model are expected to be available before the end of July 2017.

Results received to date for CMA drilling confirm the tenor of previous intercepts and the continuity of mineralisation. It is anticipated that the relatively straightforward structural architecture of the CMA mineralisation will result in a robust Mineral Resource estimate, which is important because CMA is expected to contribute the majority of the economic mineralisation underpinning Yaouré's DFS.

Geological logging and assays received to date from drilling in the Yaouré pit have provided a much clearer view of structural controls on mineralisation in that pit. Indications are that the 25 x 25 metre spaced drill coverage is likely to be sufficient to permit the application of tight controls on the mineralisation in the planned Mineral Resource estimate, particularly when combined with the knowledge gained from the closely spaced grade control drilling.

A potentially important outcome of the 2017 work programme is the recognition of possible extensions of both the Yaouré and CMA mineralised systems, particularly to the northwest of current drill coverage. Drill testing of those areas is beyond the scope of the DFS and they remain targets for future near-mine exploration.

Update on DFS

Completion of the DFS was scheduled to take 10 months from commencement of the drilling program, which began at the end of December 2016 following the extension of Yaouré's Exploration Licences 168 and 397 for two years on 1 December 2016.

A preliminary estimate of mineral resources has been prepared based on the drill data base as at the end of July 2017, which included approximately two thirds of the assay results from the current drilling programme. While it is not a definitive result, the preliminary mineral resource estimate confirms Perseus's assessment of the project potential formed as part of a due diligence study completed prior to acquisition of the project in April 2016.

Work on the DFS has progressed positively on all other fronts including mining, processing, and infrastructure assessments. To date preliminary results from these studies are confirming earlier assessments of the considerable potential of Yaouré.

Information associated with the DFS will be released progressively, with the next milestone being the publication of a new Mineral Resource estimate in the September 2017 Quarter. The full study, including a new Ore Reserve estimate, is expected to be completed in the December 2017 Quarter.

Land Access

Land and crop negotiations were largely completed during the Quarter, enabling access to the proposed Yaouré project site for future construction and operating activities. The area of land that has been the subject of these negotiations represents the entire footprint of the project as currently contemplated. Individual agreements are being progressively executed with each of the landowners and farmers and payments for land and crops will start as soon as practical.

EXPLORATION

Côte d'Ivoire

Sissingué Exploitation Permit

Papara Prospect

Diamond and reverse circulation ("RC") drilling was undertaken at the Papara prospect, an area of extensive artisanal mining located 20 kilometres north of the Sissingué mine site (Appendix B - Figure 1). Previous widespaced rotary air blast ("RAB") and RC drilling throughout this zone intersected scattered, locally high-grade gold mineralisation, associated with quartz veining within the contact zone of a dioritic intrusive with sediments.

In total, the Company drilled 40 RC holes and 26 diamond core holes (including diamond-cored tails to RC holes) for a total of 2,761 metres RC and 3,115 metres diamond core respectively. Significant results from the program included:

Table 6: Papara drill resultsHole	Location	Intercept
Number
PADD019	799,600E; 1,172,611N	34.18m at 2.14g/t Au1from 135.82m, including 1m at 24.7g/t Au.
PADD017	799,598; 1,172,495N	76m at 1.26g/t Au from 109m, including 14m at 2.37g/t Au from 141m(including 1m at 13.3g/t Au).
PRC171	799,540E; 1,172,500N	15m at 1.66g/t Au from 30m.
PRC181	799,793E; 1,1729,72N	10m at 1.07g/t Au from 30m.
PADD010	799,598E; 1,172,553N	20.1m at 1.02 g/t Au from 20.9m and 20m at 1.23 g/t Au from 66m.
PARD012	799,525E; 1,172,480N	3m at 3g/t Au from 45m; 12.7m at 1.84 g/t Au from 60.3m including 1mat 9.32 g/t Au; and 35m at 1 g/t Au from 76m.
PRC184	799,363E; 1,173,222N	2m at 4.5g/t Au from 10m
PADD015	799,627E; 1,172,522N	1m at 10.81 g/t Au from 62m
PARD026	799,540E; 1,172,500N	22.95m at 1.5g/t Au from 53m
PADD022	799,627E; 1,172,523N	15m at 5.1g/t Au from 17.5m including 3m at 22.38g/t Au

Note: 1. "Au" denotes gold

The latest drilling defines a new zone of mineralisation hosted by metasediments along the southern margin of a diorite intrusion (refer to Appendix B - Figures 2 to 5 & Table 1 and Appendix C). The mineralisation consists of quartz veins and sericite-carbonate altered metasediments with associated pyrite and sparse arsenopyrite.

The diorite underlies a zone of intensive artisanal workings extending over an area approximately 1.2 kilometres by 450 metres. The artisanal workings largely exploit mottled zone mineralisation at the base of the laterite duricrust, with some workings extending deeper into higher-grade primary quartz vein mineralisation.

Perseus is currently assessing the results of both the historical and recent drill programs as a prelude to further drilling. This drilling, along with pitting and sampling programs, will focus on investigating the contact of the diorite body to the east and north-west as well as investigating areas where intensive deep artisanal mining indicates potentially significant bedrock mineralisation.

More broadly within the Papara area, Perseus is conducting auger drilling over widespread gold-in-soil anomalism associated with extensive artisanal mining and diorite intrusives within an 8 kilometre by 6 kilometre area. As at Papara, many of the artisanal sites exploit concentrations of gold in the mottled-zone at the base of the duricrust, and therefore likely represent dispersion from primary bedrock sources. Historical RAB and shallow RC drilling of the highest tenor soil anomalies failed to provide categorical indications of significant underlying bedrock mineralisation. However, the soil anomalies in many cases do not coincide with known artisanal workings, and it is now suspected the anomalies may be offset from their bedrock sources. Auger drilling and pitting is required to more closely define the source of the surface anomalism, and particularly the extent and source of the mottled zone mineralisation being exploited by artisanal miners.

Katara Prospect

Diamond drilling was undertaken at the Katara prospect, located approximately 25 kilometres south of Sissingué (Refer to Appendix 2 - Figure 1), with 11 holes drilled for 1,098 metres (Refer to Appendix B - Figure 6 & Table 2 and Appendix C). Historical RAB and RC drilling following-up gold-in-soil anomalies intersected significant bedrock mineralisation at this site. Subsequent reviews of these results in light of structural information gained from post-drilling artisanal mining, indicates the original drilling was not optimally oriented to intersect the mineralised structures, and the current program was designed to rectify this deficiency. Complete assays for this program are still pending, but the better results received to date include:

Table 7: Katara drill results

Location	Intercept

806,171E; 1,131,037N	10m at 1.18g/t Au1from 78m, including 1m @ 3.18g/t
806,130E; 1,131,017N	1.5m at 3.12g/t Au from 23.2m
	1.5m at 5.47g/t Au from 30.7m
806,310E; 1,131,148N	3m at 1.57g/t Au from 57m
806,158E; 1,131,078N	2m at 2.7g/t Au from 98m

Note: 1. "Au" denotes gold

Mineralisation consists of fine-grained pyrite and arsenopyrite associated with strong quartz veining within highly carbonated and sericitised mafic volcanics. Further drilling may be conducted when all assay results have been received and assessed.

Mahalé Exploration Permit

RAB drilling was undertaken on the Mahalé property to follow up soil and auger gold anomalies around the western margins of the Bélé granite (Appendix B - Figure 1). In total, 70 holes for 2,056 metres were drilled in five traverses across two targets, with results currently being assessed for RC drill follow up. . Based on knowledge gained from the Bélé East and West gold deposits, there is a strong correlation recognised between gold mineralisation and magnetite alteration within the sheared contacts of the Bélé granite. To better define the contact zone and potential alteration, the Company completed a 7,316 line km airborne magnetics and radiometrics survey during the quarter, the results of which will be available shortly.

Ghana

Exploration activities in Ghana continued to focus on following up targets generated from the interpretation and targeting exercise conducted at Edikan by consulting group Corporate Geoscience Group ("CGSG") in late 2016 (Refer to Appendix B - Figure 7). Drilling has targeted resistivity anomalies defined by airborne electromagnetics ("VTEM") with potential to represent shallowly buried mineralised granite bodies analogous to those currently being exploited elsewhere within the Edikan mine take area. Results from Targets 3 and 6 confirm the presence of granitic rocks within the resistivity anomalies although gold values intersected to date have been low. Testing of Targets 1 and 26 is ongoing, with other anomalies to be tested over the coming months.

CORPORATE

Cash and Bullion

Based on the gold price of US$1,242.25/ounce and an A$:US$ exchange rate of 0.7687 as at 30 June 2017, the total value of available cash and bullion on hand at the end of the Quarter was $43.0 million. This sum that includes cash of A$24.0 million and 11,741 ounces of bullion on hand, valued at A$19.0 million, is $21.1 million less than the balance of cash and bullion as at 31 March 2017. The decrease in cash and bullion during the Quarter takes into account positive inflows from Edikan (A$12 million), capital investment at Sissingué (A$19 million), exploration and evaluation (A$7 million) and corporate costs including but not limited to the repayment of US$7 million of the Company's short term corporate debt facility.

Gold Price Hedging

At the end of the Quarter, gold forward sales contracts were in place for 153,022 ounces of gold at US$1,272/ounce. This hedging includes all mandatory hedging required under the terms of the Company's recently negotiated debt facilities.

Debt Financing

Loan documentation for the US$40 million Sissingué project debt facility to be provided by Macquarie Bank Limited was completed during the Quarter and Board approval was obtained to execute documentation. Execution of the loan agreement was completed subsequent to the end of the Quarter and work is progressing on satisfying standard conditions precent ahead of the drawing down of funds late in the September 2017 quarter.

A second US$20 million debt facility provided to Perseus's Ghanaian subsidiary by Macquarie Bank Limited that was established in the March 2017 quarter has been partially repaid from cash flow. The amount outstanding at the end of the Quarter was US$15 million. This will be progressively repaid from cash flow prior to the end of March 2018.

Perseus has no other debts other than creditors that are payable in the ordinary course of business.

PROGRAM FOR THE SEPTEMBER 2017 QUARTER

Edikan

Produce gold at a total all-in site cost that is in line with December 2017 Half Year guidance;
Continue to implement practices aimed at improving mine to mill reconciliation;
Continue training of operating and maintenance staff;
Continue to implement business improvement initiatives across all departments at Edikan; and
Assess exploration targets and prepare drill programmes for targets identified by the recent review of geological datasets relating to the Edikan mining leases.

Sissingué

Continue construction of Sissingué in line with schedule and budget;
Drawn down debt under the project debt facility; and
Continue drilling at the Papara prospect and the Katara prospect with the aim of determining the potential for additional Mineral Resources which could be processed at the Sissingué processing facility.

Yaouré

Advance work on preparing a bankable DFS for Yaouré, including:
- o Complete the drilling program required to generate information needed for DFS purposes;
- o Complete the metallurgical test work program to be used for optimisation of the process flow sheet and project scale; and
- o Prepare final Mineral Resource estimates that can then be used to determine the optimised mining schedule and Ore Reserve estimate.

Jeff Quartermaine Managing Director and Chief Executive Officer

19 July 2017

To discuss any aspect of this announcement, please contact:

Managing Director:	Jeff Quartermaine at telephone +61 8 6144 1700 or email
	[email protected];

Media Relations: Nathan Ryan at telephone +61 4 20 582 887 or email [email protected] (Melbourne)

Competent Person Statement:

All production targets for Edikan and Sissingué 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 in relation to Edikan Mineral Resource and Ore Reserve estimates was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on 21 February 2017. The Company confirms that it is not aware of any new information or data that materially affect the information in that market release and that all material assumptions underpinning those estimates and the production targets, or the forecast financial information derived therefrom, continue to apply and have not materially changed. The Company further confirms that material assumptions underpinning the estimates of Ore Reserves described in "Technical Report — Central Ashanti Gold Project, Ghana" dated 30 May 2011 continue to apply.

The information in this report that relates to Mineral Resources for Sissingué was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on 15 December 2016. The information in this report that relates to Mineral Resources for Bélé was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on 20 February 2017. The information in this report that relates to Ore Reserves for the Sissingué and Bélé was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on 31 March 2017. The Company confirms that it is not aware of any new information or data that materially affect the information in that market release and that all material assumptions underpinning those estimates and the production targets, or the forecast financial information derived therefrom, continue to apply and have not materially changed. The Company further confirms that material assumptions underpinning the estimates of Ore Reserves described in "Technical Report — Sissingué Gold Project, Côte d'Ivoire" dated 29 May 2011 continue to apply.

The information in this report and the attachments that relates to exploration drilling results at the Papara and Katara prospects is based on, and fairly represents, information and supporting documentation prepared by Dr Douglas Jones, a Competent Person who is a Chartered Professional Geologist. Dr Jones is the Group General Manager Exploration of the Company. Dr Jones 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"). Dr Jones consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

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 forwardlooking 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.

APPENDIX A – PHOTOS OF SISSINGUÉ SITE WORKS

Photo 1: Tailings Dam construction complete in time for the onset of the wet season

Photo 2: Concrete works for Crusher foundations and ROM stockpile base

Photo 3: River intake structure and pipeline route to water storage facility

Photo 4: Pre-stripping of open pit for materials used in construction of the TSF

Photo 5: Foundations and steelwork associated with SAG Mil and CIL tanks

Photo 6: Plant buildings including warehouse (foreground) and offices (background)

APPENDIX B – EXPLORATION PROJECTS

Figure 1: Sissingué Gold Project and Mahalé Permits and Prospects

Figure 2: Papara drill hole locations and interpreted geology.

Figure 3: Cross-section Line 3-40m PADD017 – PADD020

Figure 4: Cross-section line 3+40m showing PADD019 and PADD018 (looking NW)

Figure 5: Cross-section line 3 showing PARD026

Figure 6: Katara drill hole locations and interpreted geology.

Figure 7: Edikan Project – VTEM Channel 8 Resistivity showing granite targets CGSG 1, 3, 6 & 26

Table 1: Papara drillholes and significant intercepts

East	North	RL	Depth	RC PreCollar Drill Type Azimuth			Dip	# Samples	From	To	Width	Au g/t
[mE]	[mN]	[m]	[m]	[m]		[°]	[°]
	PADD010 799,593 1,172,549	361	102.6		DD	225	-60	5	11.75	19.4	7.65	0.53
								17	20.9	41	20.1	1.02
								18	66	86	20	1.23
								3	93	96	3	1.19
								1	98	99	1	0.32
								1	102	102.6	0.6	0.37

	PADD011 799,739 1,172,914	363	104.4		DD	225	-55	NSI
	PADD014 799,629 1,172,585	361	137.85		DD	225	-55	NSI
	PADD015 799,625 1,172,523	362	132.55		DD	225	-55	1	19.3	20.8	1.5	0.42
								5	25.4	33	7.6	0.81
								2	37.6	40	2.4	0.46
								1	42	43	1	0.40
								1	62	63	1	10.81
								1	77	78	1	0.44
								1	95	96	1	0.57
								1	105	106	1	0.30
								1	115	116	1	0.63
	PADD016 799,657 1,172,553	361	140.8		DD	225	-55	2	17.7	20.75	3.05	0.64
								5	28.4	34.5	6.1	0.30
								8	37.55	49.75	12.2	0.59
								8	54.3	63	8.7	0.37
								1	67	68	1	0.32
								1	76	77	1	0.39
								1	88	89	1	0.53
								1	108	109	1	0.59
								1	111	112	1	0.33
								3	114	117	3	1.31
								1	119	120	1	0.36
								1	124	125	1	0.33
								1	129	130	1	0.93
								1	132	133	1	0.51
								2	139	140.8*	1.8	0.65
	PADD017 799,599 1,172,497	362	158.8		DD	45	-55	1	7.1	8.6	1.5	0.96
								1	23.85	25.4	1.55	0.34
								5	29.95	37.6	7.65	0.58
								1	43.7	45.2	1.5	0.36
								1	52	53	1	0.30
								1	57	58	1	0.54
								1	65	66	1	0.35
								1	68	69	1	0.45
								4	71	75	4	0.44
								1	77	78	1	0.40
								1	81	82	1	0.47
								1	91	92	1	0.32
								1	95	96	1	0.42
								1	99	100	1	0.40
								1	106	107	1	0.36
								46	109	155	46	1.11
								6	156	158*	2	0.63
	PADD018 799,547 1,172,549	361	155.95		DD	225	-55	1	57.6	59.15	1.55	0.33
								7	71	79	8	0.58
								3	87.2	90	2.8	0.65
								1	94	95	1	0.58
								2	106	108	2	0.39
								2	114	115.77	1.77	0.48
								9	127	136	9	0.48
	PADD019 799,600 1,172,612	362	151.15		DD	225	-55	1	60	61	1	0.3
								1	68	68.65	0.65	0.62
								1	118	119	1	0.69
								11	135.82	147	11.18	4.37
								2	149	151.15*	2.15	0.52
	PADD020 799,681 1,172,592	361	66.9		DD	225	-55	1	33.9	35.4	1.5	0.33
								1	47.4	48.9	1.5	0.38
								2	51.9	54.15	2.25	0.38

								6	57.9	66.9*	9	0.8

	PADD021 799,657 1,172,553	361	134.7		DD	225	-55	1	1	2.5	1.5	0.32

								5	53	58	5	0.3
								1	85	86	1	0.3
								8	91	99	8	0.94
								1	101	102	1	0.98
								3	112	115	3	0.34
	PADD022 799,627 1,172,523	361	191.75		DD	45	-55	28	17.5	58	40.5	2.37
								incl	17.5	32.5	15	5.1
								incl	25	28	3	22.38
								42	62	106	44	0.9
								3	110	112.6	2.6	1.73

								3	117	119	2	0.67
								3	123	126	3	0.79
								4	137	141	4	1.88
								3	146	149.18	3.18	0.69
								3	157	160	3	0.41
								1	166	167	1	1.01
	PADD023 799,727 1,172,565	362	175.1		DD	360	-55	1	69	70	1	0.99
								1	81	82	1	0.34
								1	84	85	1	0.45
								6	87	92	5	1.68
								4	96	100	4	0.69
								10	108.4	117.8	9.4	0.65

								3	122	125	3	1.03
								4	130	134	4	1.26
								1	149	150	1	0.38
								2	156	158	2	0.74
	PADD024 799,755 1,172,591	361	147.45		DD	360	-55	1	58.1	58.95	0.85	0.41
								1	93	94	1	0.3
								1	103	104	1	0.43
								1	110	111	1	0.76
								2	118	120	2	2.06
	PADD025 799,685 1,172,523	361	182.65		DD	360	-55	1	30.9	32.4	1.5	0.39
								2	39.9	42.9	3	0.83
								1	48.9	50.4	1.5	0.55

								3	59.4	63.9	4.5	0.84
								1	110	111	1	0.89
								1	114	115	1	0.84
								1	117	118	1	0.56
								8	127	135	8	0.89
								8	141	149.2	8.2	0.6
	PARD001 799,189 1,172,822	363	210.5	50	RC_DD	45	-50	1	8	10	2	0.62
								4	158	162	4	0.67
								2	174	176	2	0.54
								1	185	186	1	0.58
	PARD002 799,319 1,172,726	362	200.7	40	RC_DD	45	-50	NSI
	PARD003 799,432 1,172,612	361	89.5	51	RC_DD	45	-50	NSI
	PARD004 799,764 1,172,938	363	104.6	32	RC_DD	225	-55	4	8	18	10	0.48

								1	30	32	2	0.66
	PARD005 799,319 1,172,951	364	82.7	36	RC_DD	45	-50	1	4	6	2	0.40
								1	16	18	2	0.40
	PARD006 799,452 1,173,313	367	128.85	51	RC_DD	225	-55	1	18	20	2	0.31
	PARD007 799,432 1,173,294	367	60.05	48	RC_DD	225	-55	NSI
	PARD008 799,471 1,173,333	367	143.1	46	RC_DD	225	-55	NSI
	PARD009 799,389 1,173,247	366	149.55	42	RC_DD	225	-55	NSI
	PARD012 799,526 1,172,477	362	129.05	42	RC_DD	45	-50	2	45.05	48.1	3.05	3.07
								1	55	56	1	1.67
								9	60.3	73	12.7	1.59
								31	76	111	35	1.00
	PARD013 799,836 1,173,016	363	141	46	RC_DD	225	-55	3	52.75	56	3.25	0.26

PARD013								3	62	65	3	1.07
PARD013								1	73.55	74.1	0.55	1.07
PARD013								1	77	78	1	1.02
PARD013								1	105	106	1	0.31
PARD013								1	116	117	1	2.31
PARD013								1	126	127	1	0.67
PARD013								3	135	138	3	0.39

	PARD026 799,539 1,172,498	362	86.7	RC_DD	45	-50	22	53	75.95	22.95	1.48
PRC153	799,216 1,172,847	363	50	RC	45	-50	3	38	44	6	1.24
PRC154PRC155	799,243 1,172,875799,270 1,172,904	364364	5638	RCRC	4545	-50-50	NSI1	20	22	2	0.88
PRC155							1	26	28	2	0.36
PRC156	799,298 1,172,932	364	50	RC	45	-50	NSI
PRC157	799,498 1,173,357	367	56	RC	225	-55	NSI
PRC158	799,297 1,172,705	362	45	RC	45	-50	NSI
PRC159	799,339 1,172,744	362	46	RC	45	-50	4	16	24	8	1.10
PRC160	799,356 1,172,767	363	42	RC	45	-50	NSI
PRC161	799,374 1,172,786	363	38	RC	45	-50	1	10	12	2	6.11
PRC162	799,391 1,172,800	363	39	RC	45	-50	1	14	16	2	0.36
PRC163	799,413 1,172,817	363	29	RC	45	-50	NSI
PRC164	799,423 1,172,834	403	28	RC	45	-50	NSI
PRC165PRC166	799,440 1,172,852799,457 1,172,865	364364	3339	RCRC	4545	-50-50	NSI
PRC167	799,475 1,172,882	364	36	RC	45	-50	NSINSI
PRC168	799,413 1,172,592	362	45	RC	45	-50	NSI
PRC169	799,525 1,172,480	360	42	RC	45	-50	2	18	22	4	0.62
							6	28	40	12	0.48
PRC170	799,539 1,172,498	362	53	RC	45	-50	1	22	24	2	1.44
							2	28	32	4	1.04
							1	40	42	2	0.50
							2	48	52	4	1.09
PRC171	799,567 1,172,520	362	45	RC	45	-50	1	14	16	2	1.05
							8	30	45*	15	1.66
PRC172	799,950 1,172,903	362	57	RC	225	-55	NSI
PRC173	799,323 1,173,181	366	52	RC	225	-55	3	20	26	6	0.29
PRC174	799,863 1,172,811	363	48	RC	225	-55	NSI
PRC175	799,928 1,172,880	363	45	RC	225	-55	NSI
PRC176	799,909 1,172,862	362	39	RC	225	-55	NSI
PRC177	799,895 1,172,847	363	42	RC	225	-55	NSI
PRC178PRC179	799,878 1,172,829799,836 1,173,017	363366	4146	RCRC	225225	-55-55	NSI1	18	20	2	0.74
							1	24	26	2	0.75
							3	38	44	6	0.34
PRC180	799,819 1,172,995	363	54	RC	225	-55	4	20	28	8	0.79
							2	34	38	4	0.58
							2	42	46	4	0.84
PRC181	799,792 1,172,973	363	45	RC	225	-55	3	22	28	6	0.75
							5	30	40	10	1.07
PRC182	799,415 1,173,275	366	48	RC	225	-55	NSI
PRC184	799,366 1,173,223	365	54	RC	225	-55	1	10	12	2	4.50
PRC185	799,341 1,173,201	365	50	RC	225	-55	23	4
PRC186	799,302 1,173,162	366	58	RC	225	-55	1	11	12	1	0.33
							1	42	44	2	0.30
PRC187	799,279 1,173,138	366	54	RC	225	-55	1	30	32	2	0.39
PRC188	799,260 1,173,118	366	54	RC	225	-55	NSI
PRC189	799,608 1,173,243	365	39	RC	225	-55	NSI
PRC190PRC191	799,597 1,173,229799,581 1,173,212	365365	4545	RCRC	225225	-55-55	NSI
PRC192	799,845 1,172,794	362	34	RC	225	-55	NSI1	26	28	2	0.32
PRC193	799,830 1,172,779	363	25	RC	225	-55	NSI
PRC194	799,820 1,172,769	362	22	RC	225	-55	NSI
PRC195	799,296 1,172,478	361	49	RC	45	-55	1	48	49*	1	0.32
PRC196	799,315 1,172,499	362	53	RC	45	-55	NSI
PRC197	799,342 1,172,523	362	59	RC	45	-55	1	36	38	2	2.45
PRC198	799,364 1,172,545	362	59	RC	45	-55	1	6	8	2	0.49
							1	12	14	2	0.38
PRC199	799,387 1,172,568	362	50	RC	45	-55	1	12	14	2	0.35
PRC200	799,160 1,172,340	362	44	RC	45	-55	NSI
PRC201	799,176 1,172,358	362	35	RC	45	-55	1	12	14	2	0.83
PRC201							1	20	22	2	0.33
	799,190 1,172,372	362	50	RC	45	-55	NSI
	799,210 1,172,391	362	45	RC	45	-55	NSI
						-55	NSI
PRC202PRC203PRC204	799,226 1,172,407	361	35	RC	45
PRC205PRC206	799,240 1,172,423799,260 1,172,443	361361	4750	RCRC	4545	-55-55	NSINSI

Table 2: Katara drillholes and significant intercepts

DHID	East	North	RL	Depth	Drill Type Azimuth		Dip	# Samples	From	To	Width	Au g/t
	[mE]	[mN]	[m]	[m]		[°]	[°]
KATDD001	806,193	1,130,952	357	125.2	DD	255	-55	1	0	0.7	0.7	0.46
								1	45	46	1	0.97
								4	65	69	4	0.33
								1	82	83	1	1.73
KATDD002	806,274	1,130,973	354	100	DD	255	-55	1	0	0.7	0.7	0.46
								1	26.2	27.7	1.5	0.39
								1	33.7	35.2	1.5	0.36
								1	39.7	41.2	1.5	0.90
KATDD003	806,171	1,131,038	358	110.2	DD	255	-55	1	0	0.7	0.7	0.35
								1	36.7	38.2	1.5	0.59
								1	74	75	1	0.36
								12	77	89	12	1.04
								3	101.4	104	2.6	0.68
KATDD004	806,129	1,131,017	358	65.7	DD	75	-50	7	38.2	48	9.8	0.53
								2	56	58	2	0.38
KATDD005	806,130	1,131,017	358	59.7	DD	255	-55	3	23.2	27.7	4.5	1.21
								1	30.7	32.2	1.5	5.47
								2	38.2	41.2	3	0.42
KATDD006	806,310	1,131,148	349	101.2	DD	255	-55	1	40	41	1	2.56
								1	43	44	1	0.59
								9	55	64	9	0.75
								incl	57	60	3	1.57
KATDD007	806,271	1,131,137	356	101.7	DD	255	-55	3	5.5	10	4.5	0.34
								1	34	35.6	1.6	0.34
KATDD008	806,158	1,131,078	358	110.2	DD	255	-55	3	54.65	58	3.35	0.62
								6	64.5	70.3	5.8	0.76
								2	90	92	2	1.42
								6	95	100	5	1.27
								1	102	103.4	1.4	0.42
KATDD009	806,253	1,131,050	362	100.2	DD	255	-55			assays pending
KATDD010	806,152	1,130,970	358	101.7	DD	255	-55			assays pending
KATDD011	806,151	1,131,112	352	100.2	DD	255	-55			assays pending

*		Hole ends in mineralisation
NSI		No significant intercept

APPENDIX C – JORC TABLE 1

JORC Code, 2012 Edition – Table 1 Section 1 Sampling Techniques and Data

Criteria	JORC Code Explanation	Commentary
Samplingtechniques	 Nature and quality of sampling (e.g. cut channels,random chips, or specific specialised industry standardmeasurement tools appropriate to the minerals underinvestigation, such as down hole gamma sondes, orhandheld XRF instruments, etc). These examples shouldnot be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure samplerepresentivity and the appropriate calibration of anymeasurement tools or systems used. Aspects of the determination of mineralisation that areMaterial to the Public Report. In cases where 'industry standard' work has been donethis would be relatively simple (e.g. 'reverse circulationdrilling was used to obtain 1 m samples from which 3 kgwas pulverised to produce a 30 g charge for fire assay').In other cases more explanation may be required, such aswhere there is coarse gold that has inherent samplingproblems. Unusual commodities or mineralisation types(e.g. submarine nodules) may warrant disclosure ofdetailed information.	Reverse Circulation (RC) drill holes were routinelysampled at 1m intervals down the hole. RC sampleswere collected at the drill rig by riffle splitting drillspoils to collect a nominal 1-2 kg sub sample andcomposited into 2m samples for assay.Half-core from Diamond core drilling (DD) weretaken systematically from the 'right' hand side; 1.5 min oxide and transition, 1 m in freshRoutine standard reference material, sample blanks,andsampleduplicateswereroutinelyinserted/collected in the sample sequence.RC and DD samples were submitted to BureauVeritas Cote d'Ivoire for preparation and analysis by50g Fire Assay.
Drillingtechniques	 Drill type (e.g.core, reverse circulation, open-holehammer, rotary air blast, auger, Bangka, sonic, etc) anddetails (e.g. core diameter, triple or standard tube, depthof 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 aface sampling down hole hammer. Diamond drilling used HQ diameter in weathered, and NQin fresh rock. All drill core was oriented using a Reflex EXTrac tool.
Drill samplerecovery	 Method of recording and assessing core and chip samplerecoveries and results assessed. Measures taken to maximise sample recovery and ensurerepresentative nature of the samples. Whether a relationship exists between sample recoveryand grade and whether sample bias may have occurreddue to preferential loss/gain of fine/coarse material.	 Riffle split samples were weighed to monitor samplerecovery Diamond core recovery was measured. Recoveries in freshrock average 98% No apparent relation has been observed between samplerecovery and grade
Logging	 Whether core and chip samples have been geologicallyand geotechnically logged to a level of detail to supportappropriate Mineral Resource estimation, mining studiesand metallurgical studies. Whether logging is qualitative or quantitative in nature.Core (or costean, channel, etc) photography. The total length and percentage of the relevantintersections logged.	 All drill samples were geologically logged by CompanyGeologists. Geological logging recorded rock types, the abundance ofquartz and sulphides and degree of weathering using astandardized logging system. Small samples of coarse and sieved RC drill material wereaffixed to "chip boards" to aid geological logging and forfuture reference.

Sub-samplingtechniques andsamplepreparation	 If core, whether cut or sawn and whether quarter, half orall core taken. If non-core, whether riffled, tube sampled, rotary split,etc and whether sampled wet or dry. Forallsampletypes,thenature,qualityandappropriateness of the sample preparation technique. Quality control procedures adopted for all sub-samplingstages to maximise representivity of samples. Measures taken to ensure that the sampling isrepresentative of the in situ material collected, includingfor instance results for field duplicate/second-halfsampling. Whether sample sizes are appropriate to the grain size ofthe material being sampled.	 All RC samples were riffle split at the drill rig. Samples were obtained dry. Routine field sample duplicates were taken to evaluaterepresentivity of samples with the results stored in themaster drill database for reference. At the Bureau Veritas laboratory, samples were weighed,dried and crushed to -2mm in a jaw crusher. A 1.5kg split ofthe crushed sample was subsequently pulverised in a ringmill to achieve a nominal particle size of 85% passing 75um. Sample sizes and laboratory preparation techniques areconsidered to be appropriate for this stage of goldexploration.
Criteria	JORC Code Explanation	Commentary
Quality of assaydata andlaboratory tests	 The nature, quality and appropriateness of the assayingand laboratory procedures used and whether thetechnique is considered partial or total. For geophysical tools, spectrometers, handheld XRFinstruments, etc, the parameters used in determiningthe analysis including instrument make and model,reading times, calibrations factors applied and theirderivation, etc Nature of quality control procedures adopted (e.g.standards, blanks, duplicates, external laboratory checks)and whether acceptable levels of accuracy (i.e. lack ofbias) and precision have been established.	 Analysis for gold was undertaken at Bureau Veritas Coted'Ivoire lab by 50g Fire Assay with AAS finish to a lowerdetection limit of 0.01ppm. Fire assay is considered a totalassay technique. No geophysical tools or other non-assay instruments wereused in the analyses reported. QAQC samples nominally:oBlanks at 1 in 50oCertified standards at 1 in 25oField duplicates of RC samples at 1 in 50 Review of standard reference material, sample blanks andduplicates suggest there are no significant analytical bias orpreparation errors in the reported analyses. Internal laboratory QAQC checks are reported by thelaboratory and routine review of the laboratory QAQCsuggests the laboratory is performing within acceptablelimits.
Verification of	 The verification of significant intersections by either	 Drill hole data is captured by Company geologists at the
sampling and	independent or alternative company personnel.	drill rig and manually entered into a digital database.
assaying	 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.	 The digital data is verified and validated by the Company'sdatabase Manager before loading into a master drill holedatabase on a regularly backed-up server. Reported drill hole intercepts are compiled by theCompany's Group Exploration Manager. Twin holes were not drilled to verify results. There were no adjustments to assay data.
Location of data	 Accuracy and quality of surveys used to locate drill holes	 DrillholecollarsweresetoutinUTMgrid
points	(collar and down-hole surveys), trenches, mine workingsand other locations used in Mineral Resource estimation. Specification of the grid system used.	WGS84_Zone29N.
		 Drill hole collars were positioned using hand held GPS,accurate to +/- 2-3m in the horizontal.
	 Quality and adequacy of topographic control.	 Drill holes were routinely surveyed for down hole deviationusing the Flexit tool. DD holes were surveyed at 12m andthen every 30m. RC holes were surveyed at 9m and at endof the hole Locational accuracy at collar and down the drill hole is
		considered appropriate for this early stage of exploration.

Data spacing anddistribution	 Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient toestablish the degree of geological and grade continuityappropriate for the Mineral Resource and Ore Reserveestimation procedure(s) and classifications applied. Whether sample compositing has been applied.	 All reported RC and DD holes were drilled on 40m to 80mspaced SW-NE orientated drill sections with hole spacingon sections at 40m. The reported drilling has not been used to estimate anymineral resources or reserves. Prior to assaying, 1m RC sub-samples have beencomposited by weight to form 2m composite samples.
Orientation ofdata in relationto geologicalstructure	 Whether the orientation of sampling achieves unbiasedsampling of possible structures and the extent to whichthis is known, considering the deposit type. If the relationship between the drilling orientation andtheorientationofkeymineralisedstructuresisconsidered to have introduced a sampling bias, thisshould be assessed and reported if material.	 Exploration is at an early stage and the true orientation ofmineralisation has not yet been confirmed. Oriented core data has been routinely collected and is thesubject of ongoing structural studies.
Sample security	 The measures taken to ensure sample security.	 Samples were stored in a fenced compound within theCompany's accommodation camp in Tengrela prior tosample collection and road transport to the laboratory ofBureau Veritas in Abidjan.
Audits or reviews	 The results of any audits or reviews of samplingtechniques and data.	 The Company's sampling techniques employed in IvoryCoast were last reviewed in a site visit to the SissinguéGold Project by Snowden mining consultants in December2016.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code Explanation	Commentary
Mineral tenementand land tenurestatus	 Type,referencename/number,locationandownership including agreements or material issueswith third parties such as joint ventures, partnerships,overriding royalties, native title interests, historicalsites, wilderness or national park and environmentalsettings. The security of the tenure held at the time ofreporting along with any known impediments toobtaining a licence to operate in the area.	 The reported results are from the Papara and KataraProspects, both within Sissingué Mining Permit (Permisd'Exploitation Sissingué), tenement number PE39, held bythe Company's 86% owned subsidiary Perseus MiningCôte d'Ivoire SA. The government of Côte d'Ivoire holds a10% free carried interest in the property and theremaining 4% interest is held by local joint venture partnerSociété Minière de Côte d'Ivoire (SOMICI). The mining permit is valid until August 2022 and isrenewable. The Government of Côte d'Ivoire is entitled to a royalty onproduction as follows:
		Spot price per ounce -RoyaltyLondon PM FixRate
		Less than or equal to US$10003%
		Higher than US$1000 and less3.5%than or equal to US$1300
		Higher than US$1300 and less4%than or equal to US$1600
		Higher than US$1600 and less5%than or equal to US$2000
		Higher than US$20006%
		 Franco Nevada are entitled to a 0.5% royalty onproduction.

		 The Papara area has no known environmental liabilities.
Exploration doneby other parties	Acknowledgment and appraisal of exploration byother parties.	 Historical exploration work over the Papara and Kataraprospects is limited to regional lag sampling by RandgoldResources during the 1990's
Geology	Deposit type, geological setting and style ofmineralisation.	 The Papara prospect is dominated by clastic basin (meta-)sediments plus mafic to ultramafic intrusions, west of theSyama greenstone belt. The Katara prospect is situated on the Syama greenstonebelt and is hosted by basalts and intercalated cherts Gold mineralisation at Papara occurs predominantly innarrow,stockworkquartzveinswithinalteredmetasediments (sericite-carbonate + pyrite), at and closeto the contact of a plug-like diorite intrusion. Several postdiorite lamprophyre dykes have been observed in the
		vicinity of the mineralisation, however, their relationshipto the mineralisation, if any, has not yet been established. Gold mineralisation at Katara occurs in quartz veined andstronglyaltered(sericite-carbonate-silicaalbite+pyrite+arsenopyrite) metabasalts.
Drill holeInformation	A summary of all information material to theunderstanding of the exploration results including atabulation of the following information for allMaterial drill holes:o easting and northing of the drill hole collaro elevation or RL (Reduced Level – elevation abovesea level in metres) of the drill hole collaro dip and azimuth of the holeo down hole length and interception deptho hole lengthIf the exclusion of this information is justified on thebasis that the information is not Material and thisexclusion does not detract from the understanding ofthe report, the Competent Person should clearlyexplain why this is the case.	 Reported results are summarised in Table 2 within theattached announcement. The drill holes reported in this announcement have thefollowing parameters: Grid co-ordinates are UTM WGS84_29N Collar elevation is defined as height above sea level inmetres (RL) Dip is the inclination of the hole from the horizontal.Azimuth is reported in WGS 84_29N degrees as thedirection toward which the hole is drilled. Down hole length of the hole is the distance from thesurface to the end of the hole, as measured along the drilltrace Intersection depth is the distance down the hole asmeasured along the drill trace. Intersection width is the down hole distance of anintersection as measured along the drill trace Hole length is the distance from the surface to the end ofthe hole, as measured along the drill trace. Previously reported drilling results (pre-2017) have notbeen repeated in this announcement.

Data aggregationmethods	InreportingExplorationResults,weightingaveraging techniques, maximum and/or minimumgrade truncations (e.g. cutting of high grades) andcut-off grades are usually Material and should bestated.Where aggregate intercepts incorporate shortlengths of high grade results and longer lengths oflow grade results, the procedure used for suchaggregation should be stated and some typicalexamples of such aggregations should be shown indetail.The assumptions used for any reporting of metalequivalent values should be clearly stated.	 A minimum cut-off grade of 0.3 g/t Au is applied to thereported intervals. Intervals of Internal dilution (<0.3 g/t Au) within a reportedinterval cannot exceed 2m. No grade top cut has been applied. Only 2 individualsamples exceed 10g/t Au (26.34 and 18.42g/t Au inPADD022) Samples have been weighted by length of sample interval No metal equivalent reporting is used or applied.
Relationshipbetweenmineralisationwidths andintercept lengths	These relationships are particularly important in thereporting of Exploration Results.If the geometry of the mineralisation with respect tothe drill hole angle is known, its nature should bereported.If it is not known and only the down hole lengths arereported, there should be a clear statement to thiseffect (e.g. 'down hole length, true width notknown').	 The reported results are from early stage explorationdrilling; the orientation of geological structure is currentlynot known with certainty. Results are reported as down hole length, true width isunknown.
Diagrams	Appropriate maps and sections (with scales) andtabulations of intercepts should be included for anysignificant discovery being reported These shouldinclude, but not be limited to a plan view of drill holecollar locations and appropriate sectional views.	 Drill hole plans are shown in Figure 2. Assay results aretabulated in body text of this announcement
Balanced reporting	Where comprehensive reporting of all ExplorationResults is not practicable, representative reporting ofboth low and high grades and/or widths should bepracticedtoavoidmisleadingreportingofExploration Results.	 Results have been comprehensively reported in thisannouncement. All drill holes completed, including holes with no significantgold intersections, are reported.
Other substantiveexploration 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 andmethod of treatment; metallurgical test results; bulkdensity,groundwater,geotechnicalandrockcharacteristics;potentialdeleteriousorcontaminating substances.	 Since 2013, the Papara area has been intensely mined bylocal artisanal workers. The upper 8-10 vertical metershould be considered depleted and/or severely disturbed. At Katara, artisanal mining, both hard rock and alluvial, hasbeen active ever since the Company entered the area. There is no other exploration data which is consideredmaterial to the results reported in this announcement
Further work	The nature and scale of planned further work (e.g.tests for lateral extensions or depth extensions orlarge-scale step-out drilling).Diagrams clearly highlighting the areas of possibleextensions,includingthemaingeologicalinterpretations and future drilling areas, providedthis information is not commercially sensitive.	 Further drilling is warranted at Papara to test the strikeextension of the identified zone of mineralisation,particularly in the oxide zone, as well as testing thecontacts of the diorite intrusion along its eastern andnorthernextents,foranalogousoccurrencesofmineralisation. Further work at Katara will depend on an assessment ofthe complete results when all assays have been received.