PERSEUS MINING LIMITED — Interim / Quarterly Report 2018

Jul 12, 2018

JUNE 2018 QUARTER ACTIVITIES REPORT

OVERVIEW

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ASX/TSX code : PRU

Capital structure as at 12 July 2018:

Ordinary shares: 1,034,832,721 Outstanding warrants: 130,114,426 Unvested performance rights: 17,975,000

Directors:

Mr Sean Harvey Non-Executive Chairman Mr Jeff Quartermaine Managing Director & CEO Mr Colin Carson Executive Director Ms Sally-Anne Layman 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: IR@perseusmining.com Website: www.perseusmining.com

Contacts:

For clarification of details, contact:

Jeff Quartermaine - Managing Director & CEO by email at jeff.quartermaine@perseusmining.com

or

Nathan Ryan - Media Relations on +61 4 20 582 887 or by email at nathan.ryan@nwrcommunications.com.au

Perseus has produced a record quantity of gold from its two West African mines during the June 2018 quarter at a materially improved All-In Site Cost (“AISC”) and in the process has demonstrated the success of its plan to transform from a single mine gold producer into a successful multi-mine, West African focussed explorer, developer and gold producer. Highlights of the quarter included:

Key Performance Indicator	Units	June 2018 Quarter	June 2018 Half Year	2018 Financial Year
Group Gold Production Production guidance Group All-In Site Cost Cost Guidance	Ounces Ounces US$ per ounce US$ per ounce		147,908 140 to 160,000 989* 950-1,050	255,916 250 to 285,000 1,039* 950-1,100
		83,881*
		-
		913
		-

*Denotes new production record

• Ramp up of Sissingué successfully completed with quarterly gold production of 26,020 ounces at an AISC of US$520 per ounce.

• Group gold production and cost guidance for the December 2018 half year has been set at 130,000 to 150,000 ounces of gold at an AISC of US$950 to US$1,150 per ounce.

• The average gold price achieved during the quarter was US$1,312 per ounce, producing a cash margin of US$399 per ounce or US$33.4 million of notional free cash flow from operations.

• A net quarterly increase in cash and bullion of A$30.3 million or 51% was recorded, resulting in available cash and bullion at 30 June 2018 of A$89.8 million (US$66.5 million), A$4.8 million (US$3.5 million) more than group bank debt of A$85 million (US$63 million).

• The group’s hedge position at 30 June 2018 included 131,000 ounces of gold sold forward at a weighted average price of US$1,312 per ounce.

• Work commenced on front end engineering and design (“FEED”) and execution planning for the Yaouré development in conjunction with engineers Lycopodium.

• Implementation of a plan to fund the Yaouré development using debt and internally generated cash reserves also commenced.

• Encouraging drill results achieved from exploration drilling programmes at each of the Yaouré, Sissingué and Edikan sites warranting follow up drilling in the September 2018 quarter.

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FINANCIALS

Balance Sheet[1 ]

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Based on the gold price of US$1,250 per ounce and an A$:US$ exchange rate of 0.7411 as at 30 June 2018, the total value of available cash and bullion on hand at the end of the quarter was A$89.8 million, (US$ 66.5 million) including cash of A$31.2 million (US$23.1 million) and 34,763 ounces of bullion on hand, valued at A$58.6 million (US$43.4 million).

The increase in cash and bullion during the Quarter takes into account positive cash flows from Edikan (A$14 million), and Sissingué (A$36 million), capital investment at Sissingué (A$9 million), exploration and evaluation expenditure (A$4 million), debt service (A$4 million) and corporate costs.

Perseus’s cash and bullion balance has been steadily growing since the completion of capital expenditure on the development of Sissingué in the March 2018 quarter. The balance at the end of the June 2018 quarter was A$89.8 million (US$66.5 million) or 51% more than the balance of cash and bullion as at the end of the March 2018 quarter.

As scheduled, Perseus repaid US$2 million of its Sissingué project debt facility during the quarter, reducing the outstanding balance to US$38 million. The Company’s US$30 million revolving working capital debt facility was drawn to US$25 million at the end of the quarter, giving the Company total bank debt of US$63 million.

Given the cash and bullion balance of US$ 66.5 million and total debt of US$63 million at the end of the quarter, Perseus is now in a net cash position of US$3.5 million (Refer to Figure 2 below) and is expected to improve this position as cash balances progressively build and debt is repaid in coming periods.

Figure 1: Monthly balance of cash and bullion and interest bearing liabilities

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Gold Price Hedging

At the end of the Quarter, gold forward sales contracts were in place for 131,000 ounces of gold at a weighted average price of US$1,312 per ounce, representing less than 4% of Perseus’s Ore Reserves as at 30 June 2018. Based on the gold forward curve, Perseus’s hedge position was in the money by US$3.8 million at 30 June 2018.

Note 1: Unaudited

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OPERATIONS

The Perseus group’s operating performance during the June 2018 quarter, June 2018 Half Year and 2018 Financial Year was as follows:

Figure 2: Quarterly Group Gold Production and All-In Site Costs

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Note: AISC for March 2018 Quarter includes actual costs achieved at Sissingué in this period. For accounting purposes, costs and revenue earned in this period have been capitalised.

Table 1: Perseus Group Operating Performance Statistics

Parameter	Unit	June 2018Quarter	June 2018 Half Year	2018 Financial Year
Gold Production & Sales Gold produced Ounces Gold sales1 Ounces Average sales price US$/ounce All-In Site Cost2 Production cost US$/ounce Royalties US$/ounce Sub-total US$/ounce Sustaining capital US$/ounce Total All-In Site Cost US$/ounce		83,881 82,251 1,312 812 76 888 25 913	147,908 136,368 1,298 884 79 963 26 989	255,916 240,315 1,288 938 79 1,017 22 1,039

Notes:

1. Gold sales are recognised in Perseus’s accounts when the contracted gold refiner takes delivery of gold in the gold room.

2. AISC data excludes Sissingué costs incurred prior to declaration of commercial production on 31 March 2018 as these costs less gold sales revenue to that date have been capitalised for accounting purposes.

Perseus’s quarterly gold production of 83,881 ounces included 57,861 ounces from the Edikan gold mine in Ghana (the second best quarter since commercial production began at Edikan in January 2012) and 26,020 ounces of gold from the recently commissioned Sissingué gold mine in Côte d’Ivoire.

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The total of 83,881 ounces was 31% more than in the March 2018 quarter and 63% more than in the corresponding quarter in 2017. The group’s weighted average AISC for the quarter was US$913 per ounce based on Edikan’s AISC of US$1,090 per ounce and Sissingué’s AISC of US$520 per ounce, and was 17% less than the AISC incurred in the March 2018 quarter.

On a half year basis, Perseus produced 147,908 ounces of gold, comfortably within its previously announced production guidance range of 140,000 to 160,000 ounces. This total of 147,908 ounces, which includes 112,483 ounces from Edikan and 35,425 ounces from Sissingué, represents an increase of 37% relative to the December 2017 half year gold production of 108,008 ounces, and is 48% more than in the June half year in 2017. The group’s weighted average AISC for the June 2018 half year was US$989 per ounce based on Edikan’s AISC of US$1,097 per ounce and Sissingué’s AISC of US$520 per ounce for the half year. This cost was 10% lower than the AISC incurred in the December 2017 half year.

Combining the two half years of production, Perseus’s annual gold production for the financial year ended 30 June 2018 was 255,916 ounces, an improvement of 45% relative to the previous financial year and the best annual production in the Company’s history by a significant margin. Annual gold production was also within the previously announced production guidance range of 250,000 to 285,000 ounces. The group’s weighted average AISC for the full 2018 financial year was US$1,039 per ounce and is based on Edikan’s AISC of US$1,100 per ounce and Sissingué’s AISC of US$520 per ounce. This AISC of US$1,039 per ounce is 22% less than the AISC in the prior financial year.

Edikan Gold Mine, Ghana

Table 2: EdikanQuarterly Performance Statistics	Table 2: EdikanQuarterly Performance Statistics	Table 2: EdikanQuarterly Performance Statistics
Parameter	Unit	June 2018Quarter	June 2018 Half Year	2018 Financial Year
Gold Production & Sales Total material mined:			7,935,169 19,481,642 5,530,661 1.08 2.52 3,672,529 1.18 81.1 112,484 110,768 1,298 3.48 9.02 1.585 981 84 1,065 32 1,097 0.57	16,749,874 39,915,542 10,190,371 1.08 2.92 7,134,985 1.15 83.4 220,491 214,715 1,287 3.30 9.65 1.541 994 82 1,076 24 1,100 1.1
 Volume bcm1		3,828,411
 Weight tonnes		9,569,667
Total ore mined tonnes Average ore grade mined g/t gold Strip ratio t:t Ore milled tonnes Milled head grade g/t gold Gold recovery % Gold produced ounces Gold sales2 ounces Average sales price US$/ounce Unit Costs Mining cost US$/t mined Processing cost US$/t milled G & A cost US$M/month All-In Site Cost Production cost US$/ounce Royalties US$/ounce Sub-total US$/ounce Sustaining capital US$/ounce Total All-In Site Cost US$/ounce		2,720,364
		1.14
		2.52
		1,890,827
		1.21
		78.5
		57,861
		56,651
		1,317
		3.56
		8.94
		1.725
		970
		84
		1,054
		36
		1,090
Site Exploration Cost _US$M _		0.27

Notes:

1 . Denotes bank cubic metres

2. Gold sales are recognised in Perseus’s accounts when the contracted gold refiner takes delivery of gold in the gold room

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During the quarter mining volumes at Edikan decreased by approximately 7% from 4,106,756 bcm to 3,828,411 bcm in line with the mine plan.

A total of 57,861 ounces of gold were produced during the quarter, continuing the trend of steadily improving gold production established over the last 6 quarters. Run time of the plant at 94% for the quarter was 5% higher than the prior quarter and hourly throughput rates were similar to the prior period. The head grade of ore milled during the period increased from 1.14g/t to 1.21g/t. However, the need to manage variables including ore hardness, head grade and metallurgical recovery during the quarter resulted in some higher grade material remaining on the ROM stockpile at the end of the period.

Unit mining costs increased marginally from $3.40/tonne to US$3.56/tonne during the quarter largely as a result of a 4% decrease in tonnes of material mined. Unit processing costs decreased 2% from $9.11/tonne to US$8.94/tonne due in part to a small increase in tonnes of ore processed during the period. G&A costs increased slightly quarter-on-quarter from an average of US$1.48 million per month to US$1.73 million in the current quarter, reflecting the reallocation of legal fees from corporate to Edikan.

Unit production costs for the quarter (including mining of all ore and waste, processing and G&A costs but excluding royalties) decreased slightly to US$970 per ounce from US$993 per ounce in the prior period. After accounting for a US$9 per ounce increase in sustaining capital, the AISC for the quarter at Edikan was US$1,090 per ounce, about 1% lower than the March 2018 quarter AISC of US$1,104 per ounce.

Sissingué Gold Mine, Côte d’Ivoire

Table 3: Sissingué Quarterly Performance Statistics

Parameter	Unit	June 2018Quarter	June 2018 Half Year	2018 Financial Year
Gold Production & Sales Total material mined:			1,702,665 3,073,009 991,129 1.16 2.10 678,027 1.7 96.1 35,425 25,600 1,299 3.88 9.69 0.779 462 57 519 1 520 0.90	1,962,567 3,540,743 1,019,280 1.15 2.47 678,027 1.7 96.1 35,425 25,600 1,299 3.88 9.69 0.779 462 57 519 1 520 1.84
 Volume bcm		835,554
 Weight tonnes		1,500,253
Total ore mined tonnes Average ore grade mined g/t gold Strip ratio t:t Ore milled Tonnes Milled head grade g/t gold Gold recovery % Gold produced ounces Gold sales ounces Average sales price US$/ounce Unit Costs Mining cost US$/t mined Processing cost US$/t milled G & A cost US$M/month All-In Site Cost Production cost US$/ounce Royalties US$/ounce Sub-total US$/ounce Sustaining capital US$/ounce Total All-In Site Cost US$/ounce		514,016
		1.36
		1.92
		398,525
		2.1
		96.8
		26,020
		25,600
		1,299
		3.88
		9.69
		0.779
		462
		57
		519
		1
		520
Site Exploration Cost _US$M _		0.43

Notes:

1 . Production data includes production both pre and post declaration of commercial production on 31 March 2018

2. Financial data (i.e. sales and costs) includes only data relevant to the period post-declaration of commercial production

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Mining volumes at Sissingué during the quarter were down slightly from 867,111 bcm in the March quarter to 835,554 bcms in the June 2018 quarter. This decrease is mainly the result of interruptions to mining operations caused by the progressive onset of the wet season in June 2018. During the quarter, all ore mined was oxide ore which exacerbated the impact of increased rainfall. The wet season will continue during the September quarter so similar interruptions can be expected. Once transitional and fresh ore is reached late in the September quarter, pit floor conditions are expected to improve and higher mining rates will be resumed.

A total of 26,020 ounces of gold were produced at Sissingué during the quarter to add to the 9,405 ounces produced during commissioning of the plant in the prior quarter. Average reconciled gold head grade of ore processed during the quarter improved from an average of 1.11 g/t in the previous quarter, to 2.1 g/t. The gold recovery rate also slightly improved with an average recovery rate of 96.8% for the quarter (approximately 6% above forecast) compared to an average of 94% for the prior quarter. Plant run time during the quarter was 92% at an average throughput rate of 198dtph, reflecting the requirement to periodically suspend or slow down processing of oxide ore due to the onset of the wet season.

A study of the reconciliation of tonnes and grade between the Sissingué Reserve model and the mill for the period from the commencement of mining in November 2017 to the end of the quarter indicates 9% more tonnes of ore, 1% lower head grade and 8% more contained ounces of gold. While it is still relatively early in the life of the mine to be drawing definitive conclusions, the results of this reconciliation study are encouraging and suggest that the ore body is performing to expectations.

At US$520 per ounce, Sissingué’s AISCs were generally in line with expectations for the mining (US$3.88/tonne) and processing (US$9.69/tonne) of oxide ore. The consumption of consumables and power usage (and therefore diesel) were both slightly lower than forecast. Offsetting these positives, the price of diesel and labour are slightly higher than forecast. The decrease in the USD:FCFA exchange rate experienced earlier in the June half year reversed during the June 2018 quarter, eliminating a cost increase experienced in the March 2018 quarter. It should be noted that the mining costs incurred in the June quarter 2018 will increase in future quarters when drilling and blasting of transitional and fresh ore commences. On current projections, this is expected to commence in late September 2018. Site G&A costs were in line with expectations at US$0.78 million per month and include the 0.5% statutory contribution to a community trust fund to finance a range of community development projects.

Outlook for Operations in the Half Year ending 31 December 2018

Total production and cost guidance for the Perseus group for the Half Year ending 31 December 2018 is as follows:

Table 4: Group Production and Cost Guidance

Parameter	Units	December 2018 Half Year
Group gold production Group average AISC	ounces $US per ounce	130,000 – 150,000 950 to 1,150

Based on actual operating performance at both Edikan and Sissingué subsequent to the end of the quarter, the December 2018 half year production and cost guidance may prove to be slightly conservative, however the Company is yet to process the harder ore types at Sissingué and therefore recoveries and throughput rates for these ores are yet to be confirmed and certain assumptions regarding the potential impact of weather on operating performance also remain to be validated.

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DEVELOPMENT

Yaouré Gold Project, Côte d’Ivoire

During the quarter, Perseus appointed the highly regarded engineering group, Lycopodium, to perform a FEED study for Yaouré. Lycopodium is well known to Perseus having successfully engineered and built the Sissingué processing facility for Perseus ahead of schedule and on budget earlier in the year. The Yaouré FEED study, which is expected to improve the level of estimating accuracy of capital costs to a range of +/- 10%, is currently scheduled to be completed by early October 2018.

Perseus’s application for the granting of an Exploitation Permit (“EP”) covering the Yaouré project development area was lodged with the Ivorian Minerals Commission in January 2018. During the quarter, after review by the Mines Ministry and the Minerals Commission the application was forwarded to an Inter-Ministerial Committee for final sign off before forwarding to the President of Côte d’Ivoire, who will grant the exploitation permit. A reshuffle of the cabinet in July resulted in a delay to that process. It is expected that consideration of Perseus’s EP application will come back onto the agenda of the Inter-ministerial Committee early in the September 2018 quarter.

Negotiation of the terms of a Mining Convention incorporating a guarantee of fiscal stability to apply throughout the projected life of Yaouré will start immediately following the granting of the EP as will the payment of the final instalment of crop and land compensation to relevant stakeholders. Minor early site works will also start to secure the Yaouré mine site and facilitate a rapid ramp up to full scale construction activities once a development decision is taken.

Subsequent to the end of the quarter, Perseus completed a drilling programme at Yaouré aimed at confirming the existence or otherwise of Mineral Resources in areas where mineralisation was discovered during recent sterilisation drilling for the proposed plant site, adjacent to the planned waste dump, tailings storage facility and surface drainage infrastructure. The programme also included drilling aimed at upgrading Inferred Mineral Resources to the Indicated category in areas where pit optimisations completed during the definitive feasibility study showed the potential to increase Ore Reserves if Inferred Resources could be converted to Indicated Resources. At the end of the quarter, approximately 17,000 drill samples were at the assay laboratory in Abidjan awaiting analysis. These are expected to be received and released to the market in early August 2018 and subject to the receipt of assay results, it is intended that a revised Mineral Resource incorporating the drill results from the recently completed programme will be estimated for Yaouré in the September 2018 quarter.

With the assistance of its corporate advisor, Gresham Partners, Perseus evaluated a range of alternative funding mechanisms for the development of Yaouré with the aim of identifying the optimum funding package. It was determined that provided there were no material changes in market conditions and operating conditions at our two gold mines, the optimum result for shareholders will be achieved by Perseus using a combination of internally generated cash (possibly including proceeds from the exercise of warrants that mature in April 2019) and a quantity of debt funding to finance the development of Yaouré.

At quarter-end, preparation of an Information Memorandum needed to approach and seek funding proposals from a range of pre-qualified debt providers, was well in hand. Activity associated with the arrangement of the targeted debt funding will be significantly escalated in the September 2018 quarter with the aim of having committed offers of funding to hand in the December 2018 quarter, when the board of Perseus is aiming to review all aspects of the Yaouré development, and consider the full scale development decision.

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EXPLORATION

Côte d’Ivoire Exploration

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Sissingué Exploitation Permit

Exploration at Sissingué during the quarter included 1,370 metres of auger drilling, 4,775 metres of air core (“AC”) drilling and 410 metres of Reverse Circulation (“RC”) drilling. The auger and AC drilling focussed on two priority exploration target areas – Papara-Tiongoli and Zanikan-Gbeni ( Appendix A - Figure 1 ), with the RC infilling previous resource drilling at the Sissingué Central zone. The latter is located ~200 metres southwest of the Sissingué Main Zone and has potential to provide near-mine satellite mill feed. The Company also retained geophysical consultants Southern Geoscience Consultants (“SGC”) to undertake a comprehensive review and interpretation of various historical aeromagnetic, radiometric and electromagnetic data sets over the entire Sissingué project area (including the Mahalé permit).

At the Papara-Tiongoli prospect, 20 kilometres north of the Sissingué mine site, auger drilling was undertaken to further refine extensive gold-in-soils anomalism, targeting areas of artisanal workings and possible intrusive bodies identified from geophysical data ( Appendix A - Figure 2 ). This work confirmed several coherent >100ppb Au anomalies that were prioritised for AC drilling at Papara North and Tiongoli, with 2,792 metres drilled in 41 holes in these two target areas.

At Papara North, gold mineralisation was intersected in pyritic and quartz veined metasediments close to the contact with a diorite body, an identical setting to the mineralization drilled at the main Papara prospect in 2017. A maximum intersection of 4 metres @ 9.00 g/t was intersected in PAAC006 in metasediments on the northern edge of the diorite, which tends to confirm the interpretation from aero-magnetics and multi-element XRF soil geochemistry ( Appendix A - Figure 3 ).

At Tiongoli, AC drilling intersected oxidized sulphides in metasediments, with TGAC006 intersecting 4 metres @ 5.89 g/t; however, as yet no evidence of an interpreted intrusive body has been observed. A complete summary of the Papara – Tiongoli drilling is included in Appendix A - Table 1 .

Significant intersections from the AC drilling at these two prospects included:

Table 5: Selection of Papara-Tiongoli drill results

Hole_ID	Easting	Northing	From (m)	To (m)	Interval (m)	Gold Grade (g/t)
PAAC003	799550	1,175,170	72	75	3	2.34
PAAC006	799,550	1,175,138	16	20	4	9.00
TGAC006	795,250	1,171,550	20	24	4	5.89

In the Zanikan-Gbeni area, located 20 kilometres south of the Sissingué mine site, Perseus completed 811 metres of auger drilling to investigate widespread gold-in-soil anomalies and artisanal workings, which was followed up by an initial 1,983 metres of AC drilling. Assays from these programs are expected in the September 2018 Quarter.

Assays from the eight RC holes drilled at Sissingué Central also remain pending, although visible gold was noted in five of the eight holes.

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Mahalé Exploration Permit

AC drilling totalling 4,903 metres was drilled in 171 holes during the quarter. Drilling focussed on the southern and western margins of the Fimbiasso granite, particularly the southwestern sector where 2017 Rotary Air Blast (“RAB”) hole MHRB057 intersected 12m @ 1.67 g/t. Geological interpretation from the recent drilling suggests MHRB057 drilled through the prospective contact between the granitic intrusion and mafic volcanics. Two holes from the recent program, MHAC886 and 902, also intersected gold mineralisation in this area:

Table 6: Selection of Mahalé drill results

Hole_ID	Easting	Northing	From (m)	To (m)	Interval (m)	Gold Grade (g/t)
MHAC836	769045	1134201	12	16	4	1.44
MHAC886	769100	1134121	4	8	4	1.17
MHAC891	769101	1134183	8	12	4	1.64
MHAC902	768751	1134295	16	24	8	1.67

Additional AC drilling is underway to infill and to extend the coverage between and along strike from these holes. A complete summary of the recent Mahalé drilling is included in Appendix A - Table 2 .

Yaouré Exploration Permits

Perseus drilled 13,446 metres of AC over the CMA-NE zone and the volcaniclastic basin boundary northeast of the main Yaouré deposit during the quarter (Refer to Appendix A - Figure 4, and Table 3 and Appendix B ).

Previously reported AC drilling from the CMA-NE zone indicated a basalt-hosted quartz-tourmaline-pyrite vein system extending northeast beneath transported lateritic cover up to 10 metres thick. Results from drilling in the March 2018 quarter were received and generally confirm the continuity of this structure with further significant intersections including:

Table 7: Selection of Yaouré drill results

Hole_ID	Easting	Northing	From (m)	To (m)	Interval (m)	Gold Grade (g/t)
YAC0695	223223	778985	10	11	1	5.66
YAC0719	222956	778802	3	20	17	0.92
YAC0720	222945	778823	38	50	12	1.21
YAC0725	222883	778930	45	50	5	1.54
YAC0737	222839	778688	0	8	8	2.2
YRC1199	223265	778905	64	68	4	2.87

In addition, visible gold was observed over 1m (47-48) in hole YAC1098 drilled on Line 5 ( Figure 4 ). AC drilling also identified extensive quartz veining along the potentially prospective volcaniclastic basin boundary, with hole YAC1125 intersecting 20 metres (22-42 metres) of quartz-tourmaline veining on Line 3 (Figure 4). Results from this drilling and the drilling along the CMA-NE structure remain pending.

Elsewhere on the Yaouré permit the Company completed 1,556 metres of auger drilling over the Sayikro prospect, located approximately 800 metres SW of the Yaouré South zone. This area is currently the site of significant artisanal mining and has not previously been drilled. Assays from the augering remain pending.

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Ghana Exploration

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 Figure 5 ).

Four reverse circulation (“RC”) pre-collared diamond holes were drilled to test two conceptual granite targets generated by the CGSG study – the Esuajah Gap and Esuajah NE targets. In total, 590 metres of RC and 1,506 metres of diamond core were drilled.

Drilling at Esuajah Gap was successful in intersecting a previously unknown granite body situated at depth between the Esuajah South and Esuajah North deposits. Granite was intersected in drill hole EGRDD002 over 164 metres from 430 metres down hole depth to the end of the hole at 594 metres ( Figure 6 ). Mineralisation of typical Esuajah style was intersected over 96 metres from the up-hole contact. Overall grades within this interval were low (0.19 g/t gold) but the style of mineralisation and alteration, comprising quartz-carbonatesulphide veining with pervasive sericite-carbonate-pyrite±arsenopyrite alteration, is regarded as highly encouraging. The up-plunge extent of the body is open to surface as no drilling has previously been conducted through this area ( Figure 7 ). Planning for further drill holes, designed to minimise disturbance to the adjacent Ayanfuri township is underway.

Drilling at the Esuajah NE prospect was unsuccessful in identifying any major granite bodies or associated mineralisation.

Also during the quarter, deep augering totalling 983 metres was completed over shear-hosted mineralisation at the Dadieso NE prospect, and at Huntado on the southern end of the Abnabna-Fobinso trend of mineralised granites. Auger gold results from the Dadieso NE target, combined with the extensive artisanal mining activity along the Dadieso-Bokitsi Shear Zone in this area, indicate a drill target is present and planning for this is underway. Similarly, results from the Huntado site indicate a drill target is present to the northeast of current artisanal mining extending towards the previously drilled Mampong prospect. Preparations are underway for a 4,000 metre AC drilling program to investigate these anomalies.

. PROGRAM FOR THE SEPTEMBER 2018 QUARTER

Edikan

• Produce gold at a total all-in site cost is in line with December 2018 Half Year guidance;

• Continue to implement practices aimed at optimising and improving mine to mill performance;

• Continue training 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.

• Continue drilling of the Esuajah Gap granite, targeting the up-plunge, near surface extensions of the intrusive body. An initial three hole, 1000 metre RC pre-collared diamond drilling program is planned.

• Commence RC drilling at the Dadieso NE and Abreshia prospects, with an initial 1,600 metre program planned.

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Sissingué

• Produce gold at a total all-in site cost is in line with December 2018 Half Year guidance;

• Look for business improvement opportunities across all departments at Sissingué; and

• Continue auger and AC drilling at the Papara, Fimbiasso and other prospects within trucking distance of Sissingué, with the aim of identifying the potential for additional Mineral Resources that can be processed at the Sissingué processing facility. Drilling will continue until wet season conditions make drilling impracticable.

Yaouré

• Subject to the granting of an Exploitation Permit to operate the Yaouré mine, commence negotiation of the terms of a Mining Convention for the mine and implement a programme of early work to establish the project site in readiness for a decision to commence full scale construction;

• Subject to the receipt of assays, re-estimate the Mineral Resources at Yaouré and determine the impact on the Ore Reserve estimate;

• Continue Yaouré FEED study;

• Implement the financing plan devised to fund the Yaouré development; and

• Continue AC drilling at the CMA-NE trend with the aim of infilling and extending known mineralization and defining the contact between the volcaniclastic basin and basalt in the area. Three oriented diamond drill holes totalling 500 metres are planned to undercut the better AC and RC intersections on the CMA-NE trend, designed to investigate the geological character of the mineralisation and to gather structural information.

Jeff Quartermaine Managing Director and Chief Executive Officer 13 July 2018

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;

Media Relations: Nathan Ryan at telephone +61 4 20 582 887 or email nathan.ryan@nwrcommunications.com.au (Melbourne)

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Competent Person Statement:

All production targets for Edikan, Sissingué and Yaouré 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 and was updated for depletion in the Financial Statements released on 30 August 2017. The Company confirms that all material assumptions underpinning those estimates and the production targets, or the forecast financial information derived therefrom, in that market release 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 Fimbiasso was first reported by the Company in compliance with the JORC Code 2012 and NI43101 in a market announcement released on 20 February 2017. The information in this report that relates to Ore Reserves for Sissingué and Fimbiasso 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 all material assumptions underpinning those estimates and the production targets, or the forecast financial information derived therefrom, in those market releases 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 2015 continue to apply.

The information in this report in relation to Yaouré 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 on 3 November 2017. The Company confirms that all material assumptions underpinning those estimates and the production targets, or the forecast financial information derived therefrom, in that market release 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 — Yaouré Gold Project, Côte d’Ivoire” dated 18 December 2017 continue to apply.

The information in this report and the attachments that relates to exploration drilling results at the Sissingué, Fimbiasso and Yaouré Gold Projects 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 and the Sissingué Gold Mine without any major disruption, development of a mine at Yaouré, 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 forwardlooking 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.

13 July 2018

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APPENDIX A – EXPLORATION PROJECTS

Figure 1: Sissingué Gold Project and Mahalé Permits and Prospects

==> picture [500 x 579] intentionally omitted <==

13 July 2018

Page 13

==> picture [119 x 36] intentionally omitted <==

Figure 2: Papara-Tiongoli area showing soil gold geochemistry, auger drilling and aircore drilling during

the period; draped on analytical signal aeromagnetics.

==> picture [443 x 306] intentionally omitted <==

Figure 3: Detail of Papara North area showing soil gold geochemistry, auger drilling and aircore drilling during the period; draped on analytical signal aeromagnetics.

==> picture [447 x 307] intentionally omitted <==

13 July 2018

Page 14

==> picture [119 x 36] intentionally omitted <==

Figure 4: CMA NE - completed holes showing anomalous intercepts, mineralized trend and interpreted basalt/basin contact

==> picture [423 x 275] intentionally omitted <==

Figure 5: Edikan Project – VTEM Channel 8 Resistivity showing granite (CGSC-1, 9 & 18) and shearhosted targets (CGSC-2) targeted during the June Quarter.

==> picture [439 x 301] intentionally omitted <==

13 July 2018

Page 15

==> picture [119 x 36] intentionally omitted <==

Figure 6: Edikan Project – Leapfrog plan view showing granite intersected in EGRDD002 relative to Esuajah North and South granites.

==> picture [452 x 259] intentionally omitted <==

Figure 7: Edikan Project – Leapfrog section showing granite intersected in EGRDD002 relative to Esuajah North and South granites.

==> picture [451 x 282] intentionally omitted <==

13 July 2018

Page 16

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Table 1: Papara-Tiongoli drill holes and significant intercepts

Hole_ID	East	North	Drill **Type **	Azimuth	Dip	From	To	Width	Au g/t
	(mE)	(mN)		(°)	(°)	(m)	(m)	(m)
PAAC001	799400	1175100	AC	90	-55				NSI
PAAC002	799427	1175100	AC	90	-55				NSI
PAAC003	799550	1175170	AC	0	-55	72.00	75.00	3.00	2.34
PAAC004	799550	1175212	AC	0	-55				NSI
PAAC005	799550	1175170	AC	180	-55				NSI
PAAC006	799550	1175138	AC	180	-55	16.00	20.00	4.00	9.00
PAAC007	799370	1175100	AC	90	-55				NSI
PAAC008	799550	1175138	AC	270	-55				NSI
TGAC001	795779	1171176	AC	180	-55				NSI
TGAC002	795779	1171176	AC	0	-55				NSI
TGAC003	795775	1171221	AC	0	-55				NSI
TGAC004	795775	1171140	AC	180	-55				NSI
TGAC005	795775	1171091	AC	180	-55				NSI
TGAC006	795250	1171555	AC	180	-55	20.00	24.00	4.00	5.89
TGAC007	795250	1171511	AC	180	-55				NSI
TGAC008	795250	1171470	AC	180	-55				NSI
TGAC009	795250	1171435	AC	180	-55				NSI
TGAC010	795249	1171391	AC	180	-55				NSI
TGAC011	795250	1171350	AC	180	-55				NSI
TGAC012	795250	1171316	AC	180	-55				NSI
TGAC013	795500	1171500	AC	90	-55	16.00	20.00	4.00	0.54
TGAC014	795530	1171499	AC	90	-55	12.00	16.00	4.00	0.56
TGAC015	797900	1171375	AC	270	-55				NSI
TGAC016	797856	1171375	AC	270	-55				NSI
TGAC017	797809	1171375	AC	270	-55				NSI
TGAC018	797757	1171375	AC	270	-55				NSI
TGAC019	797710	1171375	AC	270	-55				NSI
TGAC020	797654	1171375	AC	270	-55				NSI
TGAC021	797612	1171375	AC	270	-55				NSI

Table 2: Mahalé drill holes and significant intercepts

Hole_ID	East	North	Drill **Type **	Azimuth	Dip	From	To	Width	Au g/t
	(mE)	(mN)		(°)	(°)	(m)	(m)	(m)
MHAC835	769030	1134201	AC	90	-55				NSI
MHAC836	769045	1134201	AC	90	-55	12	16	4	1.44
MHAC837	769067	1134201	AC	90	-55				NSI
MHAC838	769084	1134201	AC	90	-55				NSI
MHAC839	769096	1134200	AC	90	-55	20	24	4	0.88
MHAC840	769116	1134201	AC	90	-55				NSI
MHAC841	769135	1134198	AC	90	-55				NSI
MHAC842	769146	1134204	AC	90	-55				NSI

13 July 2018

Page 17

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Hole_ID	East	North	Drill **Type **	Azimuth	Dip	From	To	Width	Au g/t
	(mE)	(mN)		(°)	(°)	(m)	(m)	(m)
MHAC843	769164	1134204	AC	90	-55				NSI
MHAC844	769178	1134198	AC	90	-55				NSI
MHAC845	769189	1134198	AC	90	-55				NSI
MHAC846	769199	1134201	AC	90	-55				NSI
MHAC847	769218	1134200	AC	90	-55				NSI
MHAC848	769230	1134196	AC	90	-55				NSI
MHAC849	769399	1134199	AC	90	-55				NSI
MHAC850	769417	1134198	AC	90	-55				NSI
MHAC851	769436	1134201	AC	90	-55				NSI
MHAC852	769450	1134199	AC	90	-55				NSI
MHAC853	769464	1134198	AC	90	-55				NSI
MHAC854	769476	1134195	AC	90	-55				NSI
MHAC855	769486	1134198	AC	90	-55				NSI
MHAC856	769498	1134198	AC	90	-55				NSI
MHAC857	769507	1134198	AC	90	-55				NSI
MHAC858	769514	1134197	AC	90	-55				NSI
MHAC859	769521	1134198	AC	90	-55				NSI
MHAC860	769525	1134199	AC	90	-55				NSI
MHAC861	769530	1134200	AC	90	-55				NSI
MHAC862	769499	1133960	AC	0	-55				NSI
MHAC863	769500	1133976	AC	0	-55				NSI
MHAC864	769498	1133996	AC	0	-55	32	36	4	0.73
MHAC865	769500	1134016	AC	0	-55				NSI
MHAC866	769500	1134032	AC	0	-55				NSI
MHAC867	769497	1134048	AC	0	-55				NSI
MHAC868	769530	1134050	AC	0	-55				NSI
MHAC869	769530	1134065	AC	0	-55				NSI
MHAC870	769535	1134078	AC	0	-55				NSI
MHAC871	769533	1134088	AC	0	-55				NSI
MHAC872	769531	1134096	AC	0	-55				NSI
MHAC873	769531	1134102	AC	0	-55				NSI
MHAC874	769532	1134118	AC	0	-55				NSI
MHAC875	769532	1134129	AC	0	-55				NSI
MHAC876	769531	1134142	AC	0	-55				NSI
MHAC877	769529	1134155	AC	0	-55				NSI
MHAC878	769101	1134041	AC	0	-55				NSI
MHAC879	769101	1134061	AC	0	-55				NSI
MHAC880	769102	1134071	AC	0	-55				NSI
MHAC881	769103	1134080	AC	0	-55	12	16	4	0.57
MHAC882	769101	1134092	AC	0	-54				NSI
MHAC883	769101	1134099	AC	0	-53				NSI
MHAC884	769099	1134109	AC	0	-52				NSI
MHAC885	769101	1134118	AC	0	-51				NSI

13 July 2018

Page 18

==> picture [119 x 36] intentionally omitted <==

Hole_ID	East	North	Drill **Type **	Azimuth	Dip	From	To	Width	Au g/t
	(mE)	(mN)		(°)	(°)	(m)	(m)	(m)
MHAC886	769100	1134121	AC	0	-55	4	8	4	1.17
MHAC887	769101	1134127	AC	0	-55				NSI
MHAC888	769101	1134136	AC	0	-55				NSI
MHAC889	769101	1134153	AC	0	-55				NSI
MHAC890	769100	1134168	AC	0	-55				NSI
MHAC891	769101	1134183	AC	0	-55	8	12	4	1.64
MHAC892	769096	1134198	AC	0	-55				NSI
MHAC893	769099	1134209	AC	0	-55				NSI
MHAC894	769101	1134226	AC	0	-55				NSI
MHAC895	769101	1134244	AC	0	-55				NSI
MHAC896	769104	1134264	AC	0	-55				NSI
MHAC897	768753	1134179	AC	0	-55				NSI
MHAC898	768754	1134202	AC	0	-55				NSI
MHAC899	768748	1134247	AC	180	-55				NSI
MHAC900	768751	1134251	AC	0	-55				NSI
MHAC901	768752	1134270	AC	0	-55				NSI
MHAC902	768751	1134295	AC	0	-55	16	20	4	2.12
MHAC902					-55	20	24	4	1.17
MHAC903	768751	1134316	AC	0	-55				NSI
MHAC904	768752	1134332	AC	0	-55				NSI
MHAC905	768753	1134350	AC	0	-55				NSI
MHAC906	768750	1134369	AC	0	-55				NSI
MHAC907	769503	1134453	AC	0	-55				NSI
MHAC908	769500	1134469	AC	0	-55				NSI
MHAC909	769499	1134484	AC	0	-55				NSI
MHAC910	769499	1134501	AC	0	-55				NSI
MHAC911	769502	1134522	AC	0	-55				NSI
MHAC912	769501	1134538	AC	0	-55				NSI
MHAC913	769500	1134556	AC	0	-55				NSI
MHAC914	769502	1134578	AC	0	-55				NSI
MHAC915	769502	1134594	AC	0	-55				NSI
MHAC916	769504	1134614	AC	0	-55				NSI
MHAC917	769503	1134632	AC	0	-55				NSI
MHAC918	769503	1134646	AC	0	-55				NSI
MHAC919	769503	1134664	AC	0	-55				NSI
MHAC920	769920	1133887	AC	50	-55				NSI
MHAC921	769929	1133895	AC	50	-55				NSI
MHAC922	769938	1133903	AC	50	-55				NSI
MHAC923	769948	1133910	AC	50	-55				NSI
MHAC924	769956	1133919	AC	50	-55				NSI
MHAC925	769972	1133934	AC	50	-55				NSI
MHAC926	769977	1133938	AC	50	-55				NSI
MHAC927	769988	1133950	AC	50	-55				NSI

13 July 2018

Page 19

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Hole_ID	East	North	Drill **Type **	Azimuth	Dip	From	To	Width	Au g/t
	(mE)	(mN)		(°)	(°)	(m)	(m)	(m)
MHAC928	769998	1133958	AC	50	-55				NSI
MHAC929	770006	1133966	AC	50	-55				NSI
MHAC930	770013	1133977	AC	50	-55				NSI
MHAC931	770019	1133984	AC	50	-55				NSI
MHAC932	770030	1133996	AC	50	-55				NSI
MHAC933	769318	1134900	AC	90	-55				NSI
MHAC934	769331	1134900	AC	90	-55				NSI
MHAC935	769344	1134900	AC	90	-55				NSI
MHAC936	769355	1134900	AC	90	-55				NSI
MHAC937	769367	1134900	AC	90	-55				NSI
MHAC938	769378	1134900	AC	90	-55				NSI
MHAC939	769390	1134900	AC	90	-55				NSI
MHAC940	769402	1134900	AC	90	-55				NSI
MHAC941	769416	1134900	AC	90	-55				NSI
MHAC942	769428	1134900	AC	90	-55				NSI
MHAC943	769400	1135335	AC	90	-55				NSI
MHAC944	769415	1135335	AC	90	-55				NSI
MHAC945	769436	1135335	AC	90	-55				NSI
MHAC946	769450	1135335	AC	90	-55				NSI
MHAC947	769470	1135335	AC	90	-55				NSI
MHAC948	769489	1135335	AC	90	-55				NSI
MHAC949	769508	1135335	AC	90	-55				NSI
MHAC950	769600	1135700	AC	270	-55				NSI
MHAC951	769577	1135700	AC	270	-55				NSI
MHAC952	769556	1135700	AC	270	-55				NSI
MHAC953	769530	1135700	AC	270	-55				NSI
MHAC954	769517	1135700	AC	270	-55				NSI
MHAC955	769500	1135700	AC	270	-55				NSI
MHAC956	767560	1135200	AC	90	-55				NSI
MHAC957	767575	1135200	AC	90	-55				NSI
MHAC958	767587	1135200	AC	90	-55				NSI
MHAC959	767605	1135200	AC	90	-55				NSI
MHAC960	767617	1135200	AC	90	-55				NSI
MHAC961	767635	1135200	AC	90	-55				NSI
MHAC962	767653	1135200	AC	90	-55				NSI
MHAC963	767664	1135200	AC	90	-55				NSI
MHAC964	767682	1135200	AC	90	-55				NSI
MHAC965	767698	1135200	AC	90	-55				NSI
MHAC966	767713	1135200	AC	90	-55				NSI
MHAC967	767738	1135200	AC	90	-55				NSI
MHAC968	767753	1135200	AC	90	-55				NSI
MHAC969	767190	1134800	AC	90	-55				NSI
MHAC970	767207	1134800	AC	90	-55				NSI

13 July 2018

Page 20

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Hole_ID	East	North	Drill **Type **	Azimuth	Dip	From	To	Width	Au g/t
	(mE)	(mN)		(°)	(°)	(m)	(m)	(m)
MHAC971	767225	1134800	AC	90	-55				NSI
MHAC972	767243	1134800	AC	90	-55				NSI
MHAC973	767261	1134800	AC	90	-55				NSI
MHAC974	767284	1134785	AC	90	-55				NSI
MHAC975	767305	1134785	AC	90	-55				NSI
MHAC976	767322	1134785	AC	90	-55				NSI
MHAC977	767341	1134800	AC	90	-55				NSI
MHAC978	767356	1134800	AC	90	-55				NSI
MHAC979	770900	1136140	AC	270	-55				NSI
MHAC980	770879	1136140	AC	270	-55				NSI
MHAC981	770858	1136140	AC	270	-55				NSI
MHAC982	770839	1136140	AC	270	-55				NSI
MHAC983	770820	1136140	AC	270	-55				NSI
MHAC984	770802	1136140	AC	270	-55				NSI
MHAC985	770789	1136140	AC	270	-55				NSI
MHAC986	770778	1136140	AC	270	-55				NSI
MHAC987	770768	1136140	AC	270	-55				NSI
MHAC988	770753	1136140	AC	270	-55				NSI
MHAC989	770735	1136140	AC	270	-55				NSI
MHAC990	770715	1136140	AC	270	-55				NSI
MHAC991	770695	1136140	AC	270	-55				NSI
MHAC992	770120	1135400	AC	140	-55				NSI
MHAC993	770134	1135382	AC	140	-55				NSI
MHAC994	770144	1135376	AC	140	-55				NSI
MHAC995	770158	1135354	AC	140	-55	4	8	4	0.58
MHAC996	770169	1135341	AC	140	-55				NSI
MHAC997	770182	1135325	AC	140	-55				NSI
MHAC998	770195	1135310	AC	140	-55				NSI
MHAC999	770211	1135290	AC	140	-55				NSI
MHAC1000	770258	1135237	AC	140	-55				NSI
MHAC1001	770268	1135225	AC	140	-55	8	12	4	0.56
MHAC1002	770275	1135218	AC	140	-55				NSI
MHAC1003	770286	1135204	AC	140	-55				NSI
MHAC1004	770297	1135191	AC	140	-55				NSI
MHAC1005	770331	1135180	AC	140	-55				NSI

13 July 2018

Page 21

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Table 3: Yaouré drill holes and significant intercepts

Hole_ID	East	North	**Drill Type **	Azimuth	Dip	From	To	Width	**Aug/t **
	(mE)	(mN)		(°)	(°)	(m)	(m)	(m)
YAC0698	223186.62	779046.84	AC	330	-60				NSI
YAC0699	223174.94	779066.77	AC	330	-60				NSI
YAC0700	223163.49	779087.97	AC	330	-60				NSI
YAC0701	223151.39	779109.36	AC	330	-60	7	19	12	0.86
YAC0702	223138.54	779130.8	AC	330	-60				NSI
YAC0703	223126.47	779152.19	AC	330	-60	27	29	2	0.45
YAC0704	223113.55	779172.72	AC	330	-60	32	40	8	0.66
YAC0704	223113.55	779172.72	AC	330	-60	27	29	2	0.47
YAC0705	223100.61	779191.36	AC	330	-60				NSI
YAC0706	223081.95	779224.21	AC	330	-60				NSI
YAC0707	223099.46	778558.39	AC	330	-60				NSI
YAC0708	223084.76	778579.05	AC	330	-60	10	16	6	0.46
YAC0709	223076.25	778594.46	AC	330	-60				NSI
YAC0710	223065.63	778616.84	AC	330	-60				NSI
YAC0711	223053.11	778636.35	AC	330	-60				NSI
YAC0712	223037.61	778657.44	AC	330	-60				NSI
YAC0713	223027.95	778677.78	AC	330	-60				NSI
YAC0714	223018.05	778699.14	AC	330	-60				NSI
YAC0715	223007.44	778718.09	AC	330	-60				NSI
YAC0716	222994.61	778736.68	AC	330	-60				NSI
YAC0717	222983.74	778760.39	AC	330	-60	12	16	4	0.56
YAC0718	222967.07	778781.87	AC	330	-60				NSI
YAC0719	222956.42	778802.61	AC	330	-60	3	20	17	0.92
YAC0720	222945.26	778823.67	AC	330	-60	38	50	12	1.21
YAC0721	222932.5	778844.91	AC	330	-60				NSI
YAC0722	222919.82	778865.51	AC	330	-60	22	28	6	0.45
YAC0723	222907.75	778888	AC	330	-60	11	16	5	0.56
YAC0723	222907.75	778888	AC	330	-60	30	41	11	0.41
YAC0724	222895.22	778910.43	AC	330	-60	16	20	4	0.7
YAC0725	222883.2	778930.52	AC	330	-60	36	40	4	0.7
YAC0725	222883.2	778930.52	AC	330	-60	45	50	5	1.54
YAC0726	222871.51	778952.12	AC	330	-60				NSI
YAC0727	222962.03	778473.59	AC	330	-60				NSI
YAC0728	222951.08	778495.2	AC	330	-60				NSI
YAC0729	222936.38	778518.23	AC	330	-60				NSI
YAC0730	222923.73	778539.21	AC	330	-60				NSI
YAC0731	222911.81	778560.82	AC	330	-60				NSI
YAC0732	222899.5	778580.52	AC	330	-60				NSI

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Hole_ID	East	North	**Drill Type **	Azimuth	Dip	From	To	Width	**Aug/t **
	(mE)	(mN)		(°)	(°)	(m)	(m)	(m)
YAC0733	222888.66	778600.12	AC	330	-60				NSI
YAC0734	222876.78	778623.24	AC	330	-60				NSI
YAC0735	222865.51	778644.18	AC	330	-60				NSI
YAC0736	222852.56	778665.82	AC	330	-60				NSI
YAC0737	222839.35	778688.25	AC	330	-60	0	8	8	2.2
YAC0738	222830.23	778708.12	AC	330	-60				NSI
YAC0739	222814.81	778730	AC	330	-60				NSI
YAC0740	222803.93	778750	AC	330	-60				NSI
YAC0741	222790.59	778770.89	AC	330	-60				NSI
YAC0742	222831.13	779016.43	AC	330	-60				NSI
YAC0743	222821.96	779039	AC	330	-60				NSI
YAC0744	222812.49	779057.93	AC	330	-60				NSI
YRC1199	223265.43	778905.09	RC	330	-60	64	80	16	1
YRC1200	223553.68	779050.25	RC	330	-60				NSI
YRC1201	223692.96	779131.5	RC	330	-60				NSI
YRC1202	223399.09	778996.23	RC	330	-60				NSI
YRC1203	223105.71	778867.99	RC	330	-60	28	31	3	0.75
YRC1204	223169.66	778757.84	RC	330	-60				NSI
Note: Assays for Aircore holes 1098 to 1334 remain pending.

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APPENDIX B – JORC TABLE 1

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

Criteria	JORC Code Explanation	Commentary
Sampling techniques	 Nature and quality of sampling (e.g. 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 (e.g. ‘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 (e.g. submarine nodules) may warrant disclosure of detailed information.	 Reverse Circulation (RC) drill holes were routinely sampled at 1m intervals down the hole. RC samples were collected at the drill rig by riffle splitting drill spoils to collect a nominal 1-2 kg sub sample and composited into 2m samples for assay.  Air Core (AC) drill holes were routinely sampled at 1m intervals down the hole. AC samples were collected at the drill rig by riffle splitting drill spoils to collect a nominal 2-3 kg sub.  Half-core from Diamond core drilling (DD) were taken systematically from the ‘right’ hand side; 1.5 m in oxide and transition, 1 m in fresh  Routine standard reference material, sample blanks, and sample duplicates were routinely inserted/collected in the sample sequence.  RC, AC and DD samples were submitted to Bureau Veritas Cote d’Ivoire for preparation and analysis by 50g Fire Assay.
Drilling techniques	 Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. 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. Air Core drilling was completed with a 3.5 inch hammer.  Diamond drilling used HQ diameter in weathered, and NQ in fresh rock. All drill core was oriented using a Reflex EX Trac tool.
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.	 Riffle split samples were weighed to monitor sample recovery  Diamond core recovery was measured. Recoveries in fresh rock average 98%  No apparent relation has been observed between sample recovery and grade
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, the abundance of quartz and sulphides and degree of weathering using a standardized logging system.  Small samples of coarse and sieved RC drill material were affixed to “chip boards” to aid geological logging and for future reference. Sieved and washed AC materials were kept in chip boxes for future reference

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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 RC and AC samples were riffle split at the drill rig.  Samples were obtained dry.  Routine field sample duplicates were taken to evaluate representivity of samples with the results stored in the master 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 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 (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	 Analysis for gold was undertaken at Bureau Veritas Cote d’Ivoire lab by 50g Fire Assay with AAS finish to a lower detection limit of 0.01ppm. Fire assay is considered a total assay technique.  No geophysical tools or other non-assay instruments were used in the analyses reported.  QAQC samples nominally  Blanks at 1 in 50  Certified standards at 1 in25  Field duplicates of RC samples at 1 in 50  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.  There were no adjustments to assay data.
Location of data points	 Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.  Specification of the grid system used.  Quality and adequacy of topographic control.	 Drill hole collars were set out in UTM grid_Zone30N for Yaouré.  Drill hole collars were positioned using hand held GPS, accurate to +/- 2-3m in the horizontal.  Drill holes were routinely surveyed for down hole deviation using the Flexit tool. DD holes were surveyed at 12m and then every 30m. RC holes were surveyed at 9m and at end of the hole. AC holes were not surveyed downhole.  Locational accuracy at collar and down the drill hole is considered appropriate for this early stage of exploration.

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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.	 All reported RC and DD holes were drilled on 40m to 80m spaced SW-NE orientated drill sections with hole spacing on sections at 40m. Reported AC holes were drilled heel- to-toe on nominal 160m-spaced fences.  The reported drilling has not been used to estimate any mineral resources or reserves.  Prior to assaying, 1m RC sub-samples have been composited by weight to form 2m composites samples. AC samples were assayed for each meter.
Orientation of data in relation to geological structure	 Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.  If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	 Exploration is at an early stage and the true orientation of mineralisation has not yet been confirmed.
Sample security	 The measures taken to ensure sample security.	 Samples were stored in a fenced compound within the Company’s accommodation camp in Tengréla or at secured Yaouré site offices prior to sample collection and road transport to the laboratory of Bureau Veritas in Abidjan.
Audits or reviews	 The results of any audits or reviews of sampling techniques and data.	 The Company’s sampling techniques employed in Ivory Coast were last reviewed in a site visit to the Tengréla Gold Project by Snowden mining consultants in December 2016.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code Explanation	Commentary	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.	   	Reported AC results are from the CMA-NE Extension Prospect, within the Yaoure exploration permit (tenement PR397) The Yaouré permit is valid until 01 December 2018. The Government of Côte d’Ivoire is entitled to a royalty on production as follows: Spot price per ounce - London PM Fix Royalty Rate Less than or equal to US$1000 3% Higher than US$1000 and less than or equal to US$1300 3.5% Higher than US$1300 and less than or equal to US$1600 4% Higher than US$1600 and less than or equal to US$2000 5% Higher than US$2000 6% The CMA NE Extension areas have no known environmental liabilities.
Exploration done by other parties	 Acknowledgment and appraisal of exploration by other parties.	 Historical exploration at CMA NE Extension includes limited work by French Bureau des Recherches Géologiques et Minières (BRGM) and Amara Mining. Limited drilling by the latter returned scattered anomalous intersections in RC drilling.

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Criteria	JORC Code Explanation	Commentary
Geology	 Deposit type, geological setting and style of mineralisation.	 The CMA NE Extension is underlain by mafic volcanics with minor porphyries, which are unconformably overlain by volcaniclastics.  Gold mineralisation at CMA NE Extension is related to the contact between basalts and volcaniclastics, and also in altered and quartz veined basalts.
Drill hole Information	 A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole colla_r o _elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length  If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	 Reported results are summarised in Table 2 within the attached announcement.  The drill holes reported in this announcement have the following parameters:  Grid co-ordinates are UTM WGS84_30N.  Collar elevation is defined as height above sea level in metres (RL)  Dip is the inclination of the hole from the horizontal. Azimuth is reported in WGS 84_29N degrees as the direction toward which the hole is drilled.  Down hole length of the hole is the distance from the surface to the end of the hole, as measured along the drill trace  Intersection depth is the distance down the hole as measured along the drill trace.  Intersection width is the down hole distance of an intersection as measured along the drill trace  Hole length is the distance from the surface to the end of the hole, as measured along the drill trace.  Previously reported drilling results (pre-2017) have not been repeated in this announcement.
Data aggregation methods	 In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. 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.	 A minimum cut-off grade of 0.3 g/t Au is applied to the reported intervals.  Intervals of Internal dilution (<0.3 g/t Au) within a reported interval cannot exceed 2m.  No grade top cut has been applied. One sample at Yaouré has 86.68 g/t  Samples have been weighted by length of sample interval  No metal equivalent reporting is used or applied.
Relationship between mineralisation widths and intercept lengths	 These relationships are particularly important in the reporting of Exploration Results.  If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.  If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).	 The reported results are from early stage exploration drilling; the orientation of geological structure is currently not known with certainty.  Results are reported as down hole length, true width is unknown.
Diagrams	 Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	 Drill hole plans are shown in Figure 2. Assay results are tabulated in body text of this announcement

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Criteria	JORC Code Explanation	Commentary
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.	 Results have been comprehensively reported in this announcement.  All drill holes completed, including holes with no significant gold intersections, are reported.
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 (e.g. 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.	 Further drilling is warranted at CMA NE Extension to assess the gold at the contact between the mafic volcanics and the volcaniclastics, and to define the strike length of the intersected mineralisation

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