PERSEUS MINING LIMITED — Management Reports 2016

Dec 14, 2016

15 December 2016

PERSEUS ACTIVITIES UPDATE

Perseus Mining Limited (ASX/TSX: PRU) ("Perseus") wishes to provide an update on recent events associated with its West African gold production and project development activities.

EXECUTIVE SUMMARY

• The capital investment programme that Perseus has undertaken at the Edikan Gold Mine in Ghana ("Edikan") during the last two years is now largely complete.
• Notwithstanding recent improvements in mill and crusher performance, the shortfall of gold production due to the extended plant shutdown in October 2016 and lower than expected head grades, has not been recovered and gold production from Edikan for the December 2016 Half Year is now expected to be between 70 -80,000 ounces and all in site cost ("AISC") for the period are now expected to be between US$1,550 to US$1,650 per ounce.
• Work on the Yaouré Gold Project ("Yaouré") definitive Feasibility Study ("DFS") currently remains on track for completion in mid-2017. Discussions with landowners have been constructive to date and a mutually satisfactory solution is expected to be reached in time for Mineral Resource confirmation drilling to start by the end of December 2016.
• Snowden Mining Industry Consultants Pty Ltd ("Snowden") has completed a re-estimate of the Sissingué Gold Project ("Sissingué") Mineral Resource and maiden Mineral Resource estimates for the Bélé mineral deposits that are located within trucking distance of Sissingué.
• The re-estimated Measured and Indicated Mineral Resource at Sissingué contains approximately 180,000 ounces or 20% less gold than previously estimated as a result of discounting a quantity of reverse circulation ("RC") drill results due to drill hole contamination.
• Depending on the conversion rate of Bélé's Inferred Mineral Resource into Measured and Indicated categories, the combined Measured and Indicated Mineral Resource for Sissingué and Bélé may be very similar to the original Sissingué estimate of 880,000 ounces of gold.
• Pending confirmation of the total Sissingué plus Bélé Measured and Indicated Mineral Resource, Perseus intends to reduce the level of project debt finance sought to finance the construction of Sissingué and increase the proportion of development funding from cash flow and cash reserves.
• Perseus has implemented a plan to align Sissingué project development expenditure more closely with available funding capacity and as a result, the projected date of production of first gold from Sissingué has been moved back approximately 4 months from October 2017 to the end of February 2018.

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EDIKAN GOLD MINE, GHANA

Completion of Capital Works

The capital investment programme that Perseus has undertaken at Edikan during the last two years, that has been a major factor in elevating the mine's AISC during this period, is now largely complete. Since 1 October 2016:

• Construction of housing and the relocation into the new dwellings of families displaced by the opening up of the Fetish, Chirawewa and Esuajah North open pits has been completed. In total, 186 new houses and 12 institutional structures has been constructed at a cost of approximately US$30 million. A ceremony to formally hand over the new housing estate will take place in January 2017.
• Development of the Esuajah North open pit has been advanced and fresh ore is now being mined from the pit. Blasting of fresh ore commenced on 26 November, and in coming months ore will be drawn from four pits on the Edikan licence area including Fobinso, Fetish, Chirawewa and Esuajah North. With the opening up of these work areas, the amount of investment required in waste stripping will materially reduce in coming months.
• A US$9.0 million programme of capital works aimed at upgrading Edikan's crushing and milling circuits to increase availability and reduce maintenance costs and time has been completed. As frequently occurs when remedial works are started, the scope of work required was expanded to address unforeseen issues that emerged while the remedial works were being undertaken. This increase in scope led to the mill being shut down for 6 days longer than the originally scheduled 9 day shut-down period. Following the completion of the works, the mill run time has significantly improved and for the month of December to date, run time in excess of 94% has been achieved which compares very favourably with run time recorded in prior periods and well in excess of run time assumptions built into the Edikan life of mine plan.

Production Guidance

Notwithstanding improvements in mill and crusher performance since the completion of the remedial works in October 2016, the shortfall of gold production due to the extended shutdown has not been recovered in December 2016 to date and as a result of this, combined with lower than forecast head grade of processed ore, gold production from Edikan in the December 2016 quarter will be lower than expected. As a consequence, production for the December 2016 Half Year will be below previous guidance of 80,000 to 100,000 ounces, and is now expected to be between 70,000 and 80,000 ounces. Production guidance for the June 2017 Half Year of 125-145,000 ounces of gold remains unchanged at this time. As a result of the expected reduction in gold production, it is anticipated that Edikan's AISC (which includes production costs plus royalties plus all sustaining and development capital costs) for the December Half Year will increase on a per ounce basis and may fall outside of the cost guidance range. The AISC for the December 2016 Half Year is now forecast to be between US$1,550 to US$1,650 per ounce.

YAOURÉ GOLD PROJECT

Definitive Feasibility Study

Work on the Yaouré DFS currently remains on track for completion in mid-2017, but achievement of this target is contingent on the timely completion of a 42,000 metre Mineral Resource definition drilling programme, the commencement of which has been delayed pending agreement of compensation arrangements for landowners who will be potentially impacted by the proposed development.

Discussions with landowners have been constructive to date with a specially constituted Landowner Compensation Committee, comprising representatives of landowners, the Company and the government in place. It is expected that a mutually satisfactory solution will be reached in time for drilling to commence prior to the end of December 2016.

Extension to Exploration Permits 168 and 397

The terms of Exploration Permits 168 and 397, the two tenements in which the Yaouré gold deposits are located, have been extended for a period of two years from 1 December 2016. It is expected that within this two year period, Perseus will complete a DFS for Yaouré, negotiate a Mining Convention and will have applied for and been granted an Exploitation Permit for the development of Yaouré.

SISSINGUÉ GOLD PROJECT

Sissingué Mineral Resource Estimate

The initial estimate of Mineral Resources for the Tengréla Gold Project (or Sissingué as it is now known) was prepared in July 2010 by mining consultants Runge Limited ("Runge") in accordance with the 2004 Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC Code).

As a part of Perseus's strategic review of Sissingué completed in early 2015, Snowden were tasked with revising a preliminary Mineral Resource estimate prepared by them in June 2013 in accordance with the 2012 Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC Code) and the CIM Definition Standards (CIM, 2005), taking into account newly acquired mining and metallurgical data. The results of this estimate, that was prepared as at October 2014, were as follows:

Mineral ResourceCategory	Quantity('000 tonnes)	Grade(grams per tonne)	Contained Gold(ounces)
Measured	4,800	2.4	370,000
Indicated	11,000	1.4	510,000
Measured + Indicated	16,000	1.7	880,000
Inferred	1,100	1.7	63,000

Table 1: Sissingué Mineral Resource Estimate – May 2015

This Mineral Resource estimate was used by Perseus as a basis for estimating an Ore Reserve and preparing a DFS for Sissingué in April 2015. Based on this DFS, Perseus decided, subject to financing, to proceed with the full scale development of Sissingué.

In anticipation of discussions with prospective debt financiers, Perseus undertook a review of the drill database that was used by both Runge and Snowden as a basis for the previous Mineral Resource estimates for Sissingué. This internal review identified a number of wet RC drill holes with possible downhole contamination that could potentially cause overstatement of the gold grade in specific holes or parts of holes. To determine the impact of the contaminated drill results on the Sissingué Mineral Resource estimate, Perseus undertook a drilling programme comprising 64 holes for 6,587 metres of diamond drilling programme. This programme and associated assaying was recently completed and Snowden has reviewed both the new and old drill data, and confirmed that contamination had occurred in some previous RC drill holes.

The contaminated data were withdrawn from the drill database and replaced with the new diamond drilling data. Snowden was then requested to re-estimate the Mineral Resource using the updated drill database.

The revised Mineral Resource estimate prepared by Snowden was reported in accordance with the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Refer to Appendix 1 for Snowden's assessment of the JORC Table 1 assessment criteria. The Mineral Resource estimate is summarised in the following table that reports the Mineral Resources by category and area, above a 0.6 g/t gold cut-off grade. The classification categories of Inferred, Indicated and Measured under the JORC Code (2012) are equivalent to the CIM categories of the same name (CIM, 2010).

In summary, the updated global Measured and Indicated Mineral Resource for Sissingué is now estimated as 13.0 Mt grading at 1.6 g/t gold, containing 700 kozs of gold. A further 0.9 Mt of material grading at 1.9 g/t gold and containing a further 58 kozs of gold are classified as Inferred Resources. Details of these estimates are shown below in Table 2.

Category	Area	Tonnage	Grade	Contained
		('000t)	(g/t Au)	Gold (koz)
	Oxide	780	1.9	48,000
Measured	Transitional	590	1.9	36,000
	Fresh	2,900	2.1	200,000
Total Measured		4,300	2.1	290,000
	Oxide	2,400	1.3	100,000
Indicated	Transitional	670	1.4	29,000
	Fresh	5,900	1.5	280,000
Total Indicated		8,900	1.4	410,000
	Oxide	3,200	1.5	150,000
Measured +	Transitional	1,300	1.6	66,000
Indicated	Fresh	8,800	1.7	480,000
Total Measured + Indicated Resource		13,000	1.6	700,000
	Oxide	230	1.2	8,500
Inferred	Transitional	57	1.0	1,800
	Fresh	660	2.3	48,000
Total Inferred Resource		940	1.9	58,000

Table 2: Sissingué Mineral Resource Estimate – December 2016

Notes: Mineral Resources are inclusive of Ore Reserves. Mineral Resources are reported to two significant figures. Rounding may cause minor discrepancies in the table. Oxide includes small portions of laterite (115 kt total).

Geology

The Sissingué deposit is defined by a 4 km long and up to 1.5 km wide gold-in-soil anomaly situated on the Syama-Boundiali Greenstone Belt. Rocks encountered in outcrops and drilling comprise predominantly north-northeast striking, steeply west dipping and isoclinally folded metasedimentary rocks (sandstones, mudstones and subordinate conglomerates) of the Birimian Supergroup. The metasedimentary rocks are cross cut by a swarm of narrow porphyritic dykes (sub-metre to several metres thick) that trend obliquely to the sedimentary package northwest with sub-vertical or steep to moderate dips towards the east. The area of the main Sissingué resource also features two irregularly shaped granitic bodies that appear to pre-date intrusion of the porphyritic dykes.

Gold mineralisation at Sissingué is hosted by the porphyritic dykes, by the granitoid rocks and by coarser grained beds (sandstones and conglomerates) in the metasedimentary rocks proximal to the intrusive bodies. Mineralisation occurs as disseminations of pyrite and lesser arsenopyrite in sericite-carbonate alteration zones. Highest gold grades are typically associated with spaced quartzcarbonate veins and increased concentrations of arsenopyrite.

Drilling Techniques

The input dataset used for the Sissingué Mineral Resource estimate contained 1,654 reverse circulation (RC) drill holes for 122,889 m, 379 diamond drill holes for 77,055 m and 18 diamond drill holes with RC pre-collars for 2,163 m.

RC drilling (5¼" diameter) was usually 80 m or less in depth. Generally RC holes have only the collar azimuth and inclination measured.

Diamond drilling was HQ diameter in weathered rock and NQ in fresh rock. All diamond holes are downhole surveyed at 30 m intervals. 43 holes were oriented by core spear and 217 holes were oriented by an "AceTool" device.

The steep nature of the mineralisation and sometimes limited drill access meant that holes were at a moderate to low angle to the mineralisation. True thickness of intersections is typically half the downhole thickness.

Sampling

All RC samples were collected at the drill site at 1 m intervals and split using a multi-stage riffle splitter. Each two consecutive samples were composited (where applicable) in one bag. Sample weights were nominally 2.5 kg and 5 kg for 1 m and 2 m samples respectively.

Diamond core was sawn in half using a motorised diamond blade saw, with the right half sent for assaying and the left half stored in core trays for reference. 1 m samples were taken in fresh material and 1.5 m in oxide and transition.

Both core and RC samples followed a sample preparation path involving drying, crushing and grinding. Samples were pulverised with a ring mill and thoroughly mixed on a rolling mat ("carpet roll"), and then 200 g of sub-sample was collected. Internal laboratory checks required at least 90% of the pulp passing -75 microns. A 40 g to 50 g charge was produced for subsequent analysis of gold by fire assay.

Perseus observed that core and RC samples showed very acceptable recoveries. Some RC samples at depth were identified as having downhole contamination and resultant smearing of grades as a result of wet drilling in 'sticky' material, with the samples being 'hung up' in the cyclone and subsequently contaminating later samples.

As a result of this, all RC holes in the pit area were reviewed and any suspected of containing smeared assays were removed from the dataset prior to estimation. Approximately 5% of RC samples were removed due to suspected downhole contamination. In addition, 2016 drilling focused on diamond drill holes to confirm areas with RC drilling in the core of the deposit.

With the exception of the issue noted above, Snowden and Perseus consider the sub-sampling is appropriate and representative.

Sample Analytical Methods

Three analytical laboratories have been used to assay samples from the Sissingué project: ALS Chemex Laboratories (Bamako, Mali), Intertek Minerals Ltd (Tarkwa, Ghana), and Bureau Veritas Minerals Laboratory (Bamako, Mali and Abidjan, Côte d'Ivoire).

Two types of analysis for gold were performed, a standard fire assay using a 40 g to 50 g sub-sample, and BLEG (bulk leach extractable gold) bottle roll using a 1 kg sub-sample. Both methods were read by AAS with a detection limit of 0.01 g/t Au.

The first 26 RC holes were analysed by bottle roll, however, analysis of the tails showed that, on average, 20% of the gold was not recovered with this method. Subsequently, almost all samples were analysed by fire assay. In total, 3,168 RC samples and 154 diamond core samples (from 2 drill holes) were analysed by bottle roll.

Certified reference material (blanks and standards) were submitted into the sample stream at a rate of 1 in 20 to 25 samples (1 in 50 prior to 2008). Duplicate samples of RC chips were taken at a rate of 1 in 25. QAQC shows no bias, but only moderate reproducibility, particularly at high grades. This is as expected given the nugget mineralisation.

Estimation Methodology

The Mineral Resource was estimated using ordinary kriging and multiple indicator kriging using CAE Studio (Datamine) software.

Estimation was constrained within mineralisation envelopes (wireframes) based on geological logging and grade thresholds. The three main host lithologies are granite, porphyritic dykes and sediments. Where geological contacts were not clearly controlling the distribution of mineralisation, a grade cut-off of 0.3 g/t Au was used to construct domain boundaries. Analysis of the global grade distribution shows that there is a natural change in grade population at around 0.3 g/t Au.

Due to the highly skewed nature and mixed populations evident in the granites and sediments, multiple indicator kriging (MIK) was used to estimate gold grades.

Ordinary kriging with top cuts was used to estimate the lower grade dyke domains. A dynamic anisotropy approach was used, whereby the true dip and azimuth of the mineralised lodes was estimated into each block in the model and the search and variogram orientations were locally adjusted to reflect the geological orientation. This method allows the estimate to better reflect the changing orientation and undulating nature of some of these dykes along strike.

Parent block dimensions of 10 mE by 10 mN by 5 mRL were used for estimation. All samples were composited to 2 m prior to estimation.

Criteria for Mineral Resource Classification

The Sissingué Mineral Resource has been classified in the Measured, Indicated and Inferred categories, in accordance with the 2012 JORC Code and the CIM Definition Standards (CIM, 2005). A range of criteria has been considered in determining this classification including geological and grade continuity, data quality and drill hole spacing.

The key classification criteria are described as follows:

• Geological continuity is understood with reasonable confidence. The classification reflects this level of confidence. Porphyry lithologies (dyke domains) were limited to Inferred and Indicated categories due to the mostly narrow nature of the mineralised bodies and consequently their sensitive geometry.
• Resource classification is based on information and data provided from the Perseus database. Descriptions of drilling techniques, survey, sampling, sample preparation, analytical techniques and database management/validation provided indicate to Snowden that data collection and management is well within industry standards. The database represents an accurate record of the drilling undertaken at the project.
• Drill hole location plots have been used to ensure that local drill spacing conforms to the minimum expected for the various resource classification categories.
  • o The Measured category requires a drill spacing of 20 m by 20 m or closer.
  • o The Indicated category is confined to areas where drill spacing is greater than 20 m by 20 m, but nominally up to 20 m (east-west) by 40 m (north-south) spacing. In the dyke domains, in addition to the drill spacing constraints, a minimum of two drill hole intercepts per drill section is required.
  • o The Inferred category is assigned to all other estimated blocks within the potentially economic areas of the deposit.
  • o Trial optimisation was run on the 2014 Mineral Resource at a USD2,400 gold price to define the base of potentially economic open-pittable material. All blocks outside this shell are unclassified. Snowden considers that this shell is also appropriate to constrain the 2016 Mineral Resource.
• Snowden considers the estimation technique and parameters appropriate for this style of mineralisation.

Cut-Off Grade

The reporting cut-off is based on optimisation studies carried out by Perseus as part of the 2010 Feasibility Study, which have suggested that the deposit can be economically extracted at a gold cutoff in the range 0.4 g/t to 0.6 g/t.

Mining and Metallurgical Methods and Parameters

Trial open pit optimisation was run on the 2014 Mineral Resource in Whittle at a USD2,400 gold price (approximately double the current spot price) to define the base of potentially economic openpittable material for the Mineral Resource.

The metallurgical work carried out to date indicates that gold can be satisfactorily recovered from Sissingué ore using conventional CIL extraction techniques. The work is considered sufficient to determine that the Sissingué resource represents a deposit capable of economic extraction.

Bélé Mineral Resource Estimate

In conjunction with the re-estimation of the Sissingué Mineral Resource, Snowden was also requested to estimate the Mineral Resources contained in the Bélé mineral deposit that was drilled with a series of RC and diamond drill programmes during the period from 2013 to 2016. Snowden's resource estimate was prepared in accordance with the 2012 JORC Code. (Refer to Appendix 2 for Snowden's assessment of the JORC Table 1 assessment criteria. The Mineral Resource estimate is summarised in the following table that reports the Mineral Resources by category and area, above a 0.8 g/t gold cut-off grade. The Inferred classification category under the JORC Code (2012) is equivalent to the CIM category of the same name (CIM, 2010).

The Bélé deposit comprises two main areas of mineralisation: Bélé East and Bélé West. In summary, the global Inferred Mineral Resource for Bélé East and West is estimated as 5.2 Mt grading 1.6 g/t gold, containing 260 Kozs of gold. Details of these estimates are shown below in Table 3.

Category	Area	Tonnage	Grade	Contained
		(kt)	(g/t Au)	Gold (koz)
	Laterite	2,800	1.5	140
	Completely oxidised	400	1.4	18
	Partially oxidised	160	1.3	7
Bélé West	Moderately
Inferred	weathered	130	1.5	6
	Transitional	35	1.6	2
	Fresh	11	1.6	1
Total Bélé West		3,500	1.5	170
	Laterite	1,300	1.6	68
	Completely oxidised	150	1.7	8
	Partially oxidised	57	1.7	3
Bélé EastInferred	Moderately	120		6
	weathered		1.6
	Transitional	33	1.5	2
	Fresh	13	1.5	1
Total Bélé East		1,700	1.6	88
	Laterite	4,100	1.6	210
	Completely oxidised	550	1.5	26
	Partially oxidised	220	1.4	10
Total Inferred	Moderately	240	1.6	12
	weathered
	Transitional	68	1.5	3
	Fresh	23	1.5	1
Total Inferred Resource		5,200	1.5	260

Table 3: Bélé Mineral Resource Estimate – December 2016

Notes: Mineral Resources are inclusive of any Ore Reserves. Mineral Resources are reported to two significant figures. Rounding may cause minor discrepancies in the table.

Geology

The Bélé gold deposits are located within a north-westerly striking splay off the Syama-Boundiali Greenstone Belt. At Bélé, Birimian aged rocks comprise a sequence of metasedimentary rocks and subordinate mafic volcanics that have been intruded by a nearly circular granitoid body approximately 4 km in diameter. The sequence has also been intruded by numerous felsic dykes of various compositions.

Gold mineralisation at both Bélé East and Bélé West is associated with deformation zones developed at and adjacent to the margins of the granitoid intrusion. Gold is associated with disseminated pyrite and lesser pyrrhotite hosted by both mafic and felsic lithologies where they feature chloritesericite-calcite alteration. Vein-hosted mineralisation is rare.

Bélé West mineralisation is interpreted to extend around 1 km in strike, 140 m across strike and to a depth of 150 m. Bélé East mineralisation extends around 500 m along strike, 150 m across strike and to a depth of 170 m. The currently defined mineralisation in both areas is open at depth but appears to be closed out along strike.

Drilling Techniques

The Bélé drill hole data includes RC, diamond and aircore drill holes. Aircore drill holes were used as a guide to interpretation but were not used for estimation due to the poor quality of aircore samples.

Drilling includes 834 aircore drill holes for 22,103 m, 257 RC drill holes for 21,763 m and 23 RC drill holes with diamond tail for 3,374.72 m.

RC drilling (5¼" diameter) was usually 80 m or less in depth. Generally RC holes only have the collar azimuth and inclination measured.

Diamond drilling was NQ diameter in fresh rock only. All diamond holes are downhole surveyed at 30 m intervals. Downhole surveys were conducted by the drill contractors using a FlexIT tool.

Orientation of drill holes is approximately perpendicular to the strike of the geology and mineralisation at Bélé West. At Bélé East, drill holes are angled to cross the steep dip of the geological domains. At Bélé East, 12 early RC holes have been drilled along exploration fences oriented towards the east and hence sub-parallel to the mineralisation. Three of these holes intercepted significant mineralisation. These intercepts have been verified by holes drilled in the opposite direction.

Sampling

All RC samples were collected at the drill site at 1 m intervals and split using a multi-stage riffle splitter. Each two consecutive samples were composited (where applicable) in one bag. Sample weights were nominally 2.5 kg and 5 kg for 1 m and 2 m samples respectively.

Diamond core was sawn in half using a motorised diamond blade saw, with the right half sent for assaying and the left half stored in core trays for reference. 1 m samples were taken in fresh material and 1.5 m in oxide and transition.

Both core and RC samples followed a sample preparation path involving drying, crushing and grinding. Samples were pulverised with a ring mill and thoroughly mixed on a rolling mat ("carpet roll"), and then 200 g of sub-sample was collected. Internal laboratory checks required at least 90%

of the pulp passing -75 microns. A 40 g to 50 g charge was produced for subsequent analysis of gold by fire assay.

Perseus observed that core and RC samples showed very good recoveries. Given the issues with downhole contamination in the RC drilling at the nearby Sissingué deposit, there is currently diamond drilling underway at Bélé to confirm the RC results. This drilling is expected to be completed at the end of 2016.

With the exception of the potential issue noted above, Snowden and Perseus consider the subsampling is appropriate and representative.

Sample Analytical Methods

All sample preparation and assaying was carried out by Bureau Veritas Minerals Laboratory (BVML), an independent commercial laboratory in Abidjan, Côte d'Ivoire with the head office in Paris, France.

Two types of analysis for gold were performed, a standard fire assay using a 40 g to 50 g sub-sample, and BLEG bottle roll using a 1 kg sub-sample. Both methods were read by AAS with a detection limit of 0.01 g/t Au. The first 13 RC holes were assayed by 1 kg 24-hour bottle roll, with all subsequent diamond core and RC samples assayed by 50 g fire assay.

Certified reference material (blanks and standards) were submitted into the sample stream at a rate of 1 in 20 to 25 samples. One to two duplicate samples of RC chips were taken from each drill hole. QAQC shows no bias and overall assaying quality is considered adequate by Perseus. Snowden has not independently reviewed the QAQC for Bélé.

Estimation Methodology

The Mineral Resource was estimated using CAE Studio (Datamine) software. Estimation was constrained within mineralisation envelopes (wireframes) defined based on a nominal 0.2 g/t Au to 0.5 g/t Au cut-off together with the geological logging and lithology interpretation. The cut-off used for the interpretation is observed as a population change in the global log-probability plot. The mineralisation domains were used as hard boundaries to control estimation.

Estimation of gold grades was carried out using ordinary kriging with top cuts applied to limit the influence of outliers. Parent blocks of 10 mE by 10 mN by 5 mRL in Bélé West and 10 mE by 10 mN by 10 mRL in Bélé East were derived from a kriging neighbourhood analysis together with the geometry of the orebody.

Dynamic anisotropy was used for estimation, whereby the local dip and azimuth of the mineralised lodes was estimated into each block in the model and the search and variogram orientations were locally adjusted to reflect the geological orientation. This method allows the estimate to better reflect the changing orientation and undulating nature of the lodes.

Criteria for Resource Classification

The Bélé Mineral Resource has been classified as an Inferred Mineral Resource, in accordance with the 2012 JORC Code and the CIM Definition Standards (CIM, 2005).

Cut-Off Grade

The Mineral Resource has been reported by resource classification and weathering above a 0.8 g/t Au cut-off. The reporting cut-off is based on preliminary engineering work which indicates a 0.75 g/t Au to 0.85 g/t Au cut-off will be applicable for mining, depending on the degree of weathering.

Mining and Metallurgical Methods and Parameters

The metallurgical work carried out to date indicates that gold can be satisfactorily recovered from Bélé ore using conventional CIL extraction techniques as per the nearby Sissingué deposit. The work is considered sufficient to determine that the Bélé resource represents a deposit capable of economic extraction.

As shown above, at this stage Snowden has classified all of the Bélé Mineral Resources as Inferred until a comprehensive assessment of the drill data is completed to confirm its veracity. Further core drilling is currently in progress at the Bélé East and Bélé West deposits to infill the Mineral Resource to allow Measured and Indicated Mineral resources to be defined, to validate the existing RC drill data and to complete some extensional drilling. It is expected that this drilling will be completed by the end of December 2016. The Mineral Resource estimate will then be updated and an initial Ore Reserve estimate for the Bélé deposits is expected to be produced in the first quarter of 2017. Metallurgical test work has been completed on the Bélé ore types, with recoveries and costs expected to be similar to those for the Sissingué ore types.

Implications of Sissingué and Bélé Mineral Resource Updates

Based on the above estimates, it is apparent that the gold content of the Measure and Indicated Mineral Resource at Sissingué has been reduced by approximately 180,000 ounces or 20% as a result of a decision to discount a quantity of drill results due to drill hole contamination. However, depending on the conversion rate of the Bélé Inferred Mineral Resource into Measured and Indicated categories, the combined Measured and Indicated Mineral Resource for Sissingué plus Bélé and may be very similar to the original Sissingué Measured and Indicated Mineral Resource estimate of 880,000 ounces.

Based on preliminary optimisation studies on the Sissingué Mineral Resource, it appears likely that the approximately 20% metal shortfall in the Mineral Resource will translate to a reduction in the Sissingué Ore Reserve of a similar order of magnitude, although until detailed mine planning based on recently tendered mining costs and other revised mining and processing parameters is completed, this assessment cannot be confirmed.

In addition to the drilling programmes that are currently in progress at Bélé East and Bélé West, drilling of two more exploration targets located on the Sissingué exploitation permit area, namely Papara and Katara, is also planned for the March 2017 quarter. These drilling programmes are aimed at delineating additional Mineral Resources and Reserves that can be economically processed through the Sissingué processing facility in due course.

Project Debt Financing

Perseus has previously announced that the Company intended to fund the development of Sissingué using a mix of US$60 million of project debt finance and US$40 million of internally generated cash and existing cash reserves.

Given the uncertainty associated with the Sissingué Ore Reserve created by the re-estimation of the Sissingué Mineral Resource as described above, Perseus has decided to reduce the level of project debt finance that is sought to finance the construction of Sissingué with the balance of development funding to come from internal sources including cash flow and cash reserves.

Modified construction schedule

To date, the development of Sissingué is currently running in accordance with the master schedule and in line with budget. To the end of November 2016, US$38.8 million had been spent, leaving approximately US$70.8 million of the total budget of US$109.6 million (inclusive of all early works and holding costs) to be spent.

Detailed engineering is largely complete as is the procurement of all long lead items of plant and equipment. The construction team has mobilised to site and works are underway on the pouring of concrete works associated with the plant as well as the installation of underground services. The proportion of development works being managed by Perseus's in-house construction team is also underway with works on the construction of the airstrip, tailings dam and mine camp well advanced.

To accommodate the planned change in funding mix, Perseus, in conjunction with its major contracting group, Lycopodium, and its in-house construction team has reassessed its engineering, procurement and construction schedule and has implemented a plan to manage project development expenditure to align more closely with the Company's available funding capacity. As a result of the above, the projected date of production of first gold from Sissingué has been moved back approximately 4 months from October 2017 to the end of February 2018.

CORPORATE

Cash and Bullion

Based on the gold price of US$1,178.10/ounce and an A$:US$ exchange rate of 0.7452 as at 30 November 2016, the total value of available cash and bullion on hand at 30 November 2016 was $84.3 million. This sum is A$52.6 million less than the balance of cash and bullion as at 30 September 2016 and largely reflects heavy capital investment at both Edikan and Sissingué as well as the production shortfall at Edikan during the period.

Debt

At the date of this Market Release, Perseus had no debts other than creditors that are payable in the ordinary course of business.

Gold Price Hedging

At 30 November 2016, gold forward sales contracts were in place for 176,880 ounces of gold at US$1,280 per ounce. This includes 100,000 ounces of hedging at an average price of US$1,307 per ounce that is specifically earmarked to support the proposed debt financing of the Sissingué development.

To discuss any aspect of this announcement, please contact:

Managing Director:	Jeff Quartermaine at telephone +61 8 6144 1700 or email
	jeff.quartermaine@perseusmining.com;
Investor Relations:	Cathy Moises at telephone + 61 412196350 or email
	cathy.moises@perseusmining.com (Perth/Melbourne);
Media Relations:	Nathan Ryan at telephone +61 4 20 582 887 or email
	nathan.ryan@nwrcommunications.com.au (Melbourne)

Competent Person Statement:

Production targets for the EGM referred to in this report are underpinned by estimated Ore Reserves which have been prepared by competent persons in accordance with the requirements of the JORC Code. The Company confirms that all material assumptions underpinning those production targets, or the forecast financial information derived from those production targets, in its market release dated 19 April 2016 and its 2016 Financial Statements released on 29 August 2016 continue to apply and have not materially changed. Refer "Technical Report — Central Ashanti Gold Project, Ghana" dated 30 May 2011. Steffen Brammer and Paul Thompson, each of whom is a Qualified Person as defined in NI 43-101 and an employee of the Company, have approved the inclusion of technical and scientific information in this report.

The information in this report and the attachments that relates to the 2016 SGM and Bélé Mineral Resource estimates is based on information compiled by Lynn Olssen a Competent Person who is a Chartered Professional (Geology) and a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM), and a full time employee of Snowden Mining Industry Consultants Pty Ltd. Ms Olssen has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she has undertaken to qualify as a Competent Person as defined in the JORC Code 2012 and a Qualified Person as defined in NI43-101.Ms Olssen has no economic, financial or pecuniary interest in the company. Ms Olssen consents to the inclusion in this report of the matters based on her information in the form and context in which it appears and has approved the inclusion of technical and scientific information in this report.

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 and/or 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. Forwardlooking 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.

JORC 2012 Table 1 – Section 1 sampling techniques and data

Criteria	JORC Code explanation	Commentary
Sampling techniques	Nature andquality of sampling (e.g. cut channels, randomchips, or specific specialised industry standard measurementtools appropriate to the minerals under investigation, such asdownhole gamma sondes, or handheld XRF instruments,etc.).These examples should not be taken as limiting thebroad 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 done thiswould be relatively simple (e.g. 'reverse circulation drilling wasused to obtain 1m samples from which 3kgwas pulverised toproduce a 30g charge for fire assay'). In other cases moreexplanation may be required, such as where there is coarsegold that has inherent sampling problems. Unusualcommodities or mineralisation types (e.g. submarine nodules)may warrant disclosure of detailed information.	Sissinguédata used for estimating the Mineral Resource includes:-1,654 RC drill holesfor 122,889m.-379 diamond drill holesfor 77,055 m.-18 diamond drill holeswith RC pre-collars for 2,163 m.RCdrilling (5¼" diameter) was used to collect 1m samples. Majoritycomposited to 2m samples (by weighing); close spaced infill submitted as1m samples. Sample weight nominally of 2.5kg and 5kg respectively.Half-core from diamond drillholes('right'side systematically taken; 1.5min oxide and transition, 1m in fresh).50g charge produced for 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 ifso, by what method, etc.).	RCdrilling (5¼" diameter), usually 80m or less in depth. Generally RCholes have collar azimuth and inclination only measured.Diamond drilling, HQ in weathered rock, NQ in fresh rock. All diamondholes downhole surveyed at 30m intervals.43 holes oriented by core spear; 217 holes oriented by "AceTool" device.
Drill sample recovery	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 recovery andgrade andwhether sample bias may have occurred due topreferential loss/gain of fine/coarse material.	1m RC samples weighed and composited to 2m.Length of recovered diamond core measuredand recovery calculatedbased on run length; close to 100% recovery for virtually all core in freshrock.There is no apparent relationshipbetween sample recovery and gradefordiamond drilling.

Criteria	JORC Code explanation	Commentary
Logging	Whether core and chip samples have been geologically andgeotechnicallylogged to a level of detail to supportappropriate Mineral Resource estimation, mining studies andmetallurgical studies.	RC drill chip boards were prepared and the chips logged geologically,including rock type, alteration type and intensity (where recognisable), veinquartz content in estimated percentage, sulphide mineralisation andestimated content and weathering domain.
	Whether logging is qualitative or quantitative in nature. Core(or costean, channel, etc.) photography.The total length and percentage of the relevant intersectionslogged.	Diamond drill core was geologically and structurally logged andphotographed, before being sawn in half, including fault, fold, cleavage andjoint orientation, lithological contacts, vein orientation and bedding. Loggeditems are lithology, weathering, colour, grain size, vein type and veinvolume percentage, sulphide mineralisation and their estimatedpercentage, alteration and alteration intensity.All sample intervals in both RC and diamondholes were sampled and
		assayed.Logging is considered appropriate and reliable.
Sub-samplingtechniques andsample preparation	If core, whether cut or sawn and whether quarter, half or allcore taken.If non-core, whether riffled, tube sampled, rotary split, etc.andwhether sampled wet or dry.For all sample types, the nature, quality and appropriatenessof the sample preparation technique.Quality control procedures adopted for all sub-samplingstages to maximise representivity of samples.Measures taken to ensure that the sampling is representativeof the in situ material collected, including for instance resultsfor field duplicate/second-half sampling.Whether sample sizes are appropriate to the grain size of thematerial being sampled.	RC samples were collected at the drill site at 1m interval and split using amulti-stage riffle splitter. Each two consecutive samples were composited(where applicable) in one bag.Wet samples were sub-sampled using aspear.Diamondcore sawn in half using a motorized diamondblade saw; right halfsent for assaying, left half stored in core trays for reference.Both core and RC samples followed a standard path of drying, crushingand grinding. Samples were pulverised with a ring mill and thoroughlymixed on a rolling mat ("carpet roll"), and then 200g of sub-sample wascollected. Internal laboratory checks required at least 90% of the pulppassing -75µm.Some RC samples at depth were identified as having downholecontamination and resultant smearing of grades as a result ofwet drilling in'sticky' material, with the samples being 'hung up' in the cyclone andsubsequently contaminating later samples. As a result of this, all RC holesin the pit area were reviewed and any suspected of containing smearedassays were removed from the dataset prior to estimation. Approximately5% of RC samples were removed due to suspected downholecontamination. In addition, 2016 drilling focused on diamond drill holestoconfirm areas with RC drilling in the core of the deposit.With the exception of the issue noted above, the sub-sampling isconsidered appropriate and representative.

Criteria	JORC Code explanation	Commentary
Quality of assay dataand laboratory tests	The nature, quality and appropriateness of the assaying andlaboratory procedures used and whether the technique isconsidered partial or total.For geophysical tools, spectrometers, handheld XRFinstruments, etc., the parameters used in determining theanalysis 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 whetheracceptable levels of accuracy (i.e. lack of bias) and precisionhave been established.	A small number of initial holes were assayed bybottle roll, which wasfound to be partial and inaccurate.All subsequent assaying by standard Fire Assay.Field duplicates (RC only) inserted at 1 in 25.No field duplicates for DD as ¼ core considered as inadequate sample,and submission remaining ½ core considered undesirable.Blanks inserted at 1 in 25.Certified standards at 1 in 50 up to 2008; thereafter at 1 in 20.Internal laboratory standards, duplicates and repeats and various othertests have been carried out throughout the drilling programs.QAQC shows no bias, but only moderate reproducibility, particularly at highgrades. This is as expected with the nugget mineralisation.Overall assaying quality is considered acceptablewith the exception of thepotential smearing in some RC samples whichwere subsequently removedfrom the dataset prior to estimation as previously discussed.

Criteria	JORC Code explanation	Commentary
Verification ofsampling andassaying	The verification of significant intersections by eitherindependent or alternative company personnel.The use of twinned holes.Documentation of primary data, data entry procedures, dataverification, data storage (physical and electronic) protocols.Discuss any adjustment to assay data.	During the 2016 drilling program, Perseus drilled a number ofdiamond drillholesto confirm the grade tenor and check RC drill holessuspected ofdownhole contamination and smearing. As a result of this program,approximately 5% ofRC samples were removed from the datasetwherethe RC grades were not supported by the diamond.Drillhole informationfor both RC and diamond core holes is captured atthe drill site on paper.All hard copies are handed over to the database administrator in Tengrélasite office and the information provided on paper is entered into thecomputer.All hard copies are kept in Tengrélasite office.Downhole survey data and collar survey data are provided by the drillingcontractors and surveyors respectively in digital format.Perseus maintains a centralised database for its various operations inGhana and Côte d'Ivoire. Database administration is based in Perseus'head office in Accra/Ghana and under the supervision of the company'sResource Geologist.No adjustments were made to the raw assay data with the exception of theremoval of any RC samples with suspected smearing ofgrades aspreviously discussed.Top cutting is only applied after databasecompositing and statistical analysis and prior to resource estimation.
Location of datapoints	Accuracy and quality of surveys used to locate drill holes(collar and downhole surveys), trenches, mine workings andother locations used in Mineral Resource estimation.Specification of the grid system used.Quality and adequacy of topographic control.	All RC and diamondholes were surveyed using differential GPS, untilSeptember 2009 by a certified contract surveyor (SEMS ExplorationServices Ltd, Ghana). Drillholes between September 2009 and October2010 were surveyed by CBM Surveys Ltd of Ghana. All subsequent drillholeswere surveyed by the company's surveyor.Grid system used is WGS84 UTM 29N.The topography covering the extent of the SissinguéMineral Resourcemodel was created as a digital terrain model (DTM) in Surpac using theaccurately-surveyed drill holecollar data and an additional 639surveypoints across the prospect.

Criteria	JORC Code explanation	Commentary
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.	Data spacing for resource estimation varies from10mx10mto20mx20mfor most areas of the deposit.Where data spacing is wider (to a maximum of 40mx40m), an Inferredclassification is used.Data spacing is sufficient to establish grade and geological continuityappropriate to the resource estimation procedures and classificationsapplied.Samples have been composited (by computer) to 2m, honouringgeological divisions.
Orientation of data inrelation to geologicalstructure	Whether the orientation of sampling achieves unbiasedsampling of possible structures and the extent to which this isknown, considering the deposit type.If the relationship between the drilling orientation and theorientation of key mineralised structures is considered to haveintroduced a sampling bias, this should be assessed andreported if material.	Orientation of drilled section lines is dominantly at right angles to thestrikeof the geology and mineralisation domains.Drillholes are angled to cross the sub-vertical dip of the geologicaldomains.Disseminated mineralised veins have developed within the overallgeological domains; the estimation method is considered to account forthis.
Sample security	The measures taken to ensure sample security.	Samples from RC drilling are collected and bagged at drill site during thedrilling operation. Core samples are cut in a central facility in Tengrélaandsamples placed into sample bags as they are cut.All samples are then catalogued and placed in large woven bags andsealed prior to dispatch to ALS, Intertek or BVML for preparation andanalysis.Dispatch from site to Korhogo (Intertek) is undertaken by Perseus staff andvehicles.Samples dispatched to ALS and BVML are collected from Tengrélaby staffand vehicles of the respective laboratories.All aspects of the process are supervised by Perseus personnel and limitedopportunity exists for tampering with samples.

Criteria	JORC Code explanation	Commentary
Audits or reviews	The results of any audits or reviews of sampling techniquesand data.	Steffen Brammer of Perseus hasreviewed sample techniques and dataduring regular site visits between 2008 and 2013, and considersthemadequate.
		Reviews were also carried out by personnel from consulting companyRunge Limited during 2009 and 2010, and Mr L Widenbar of Widenbar &Associates in October 2012 with acceptable conclusions.
		Snowden visited site during December 2016 and reviewed the drilling andsampling procedures being carried out at the nearby Bélédeposit. Theseprocedures are the same as those used for the latest Sissinguédrillingprogram and Snowden considers them adequate. For the 2016 drilling,where RC drilling is used, the RC drilling is conducted until wet samplesare returned, at which point the drilling is changed to diamond drilling toavoid the contamination of RC samples.

JORC 2012 Table 1 – section 2 reporting of exploration results

Criteria	JORC Code explanation	Commentary
Mineral tenement andland tenure status	Type, reference name/number, location and ownershipincluding agreements or material issues with third partiessuch as joint ventures, partnerships, overriding royalties,native title interests, historical sites, wilderness or nationalpark and environmental settings.The security of the tenure held at the time of reporting alongwith any known impediments to obtaining a licence to operatein the area.	The SissinguéMineral Resource lies within mining permit PE39 (Permitd'Exploitation Sissingué).Perseus holds an 86% interest in PE39 through the Company's whollyowned subsidiary Perseus Mining Côte d'Ivoire SA. The government ofCôte d'Ivoireholds a 10% free carried interest in the property and theremaining 4% interest is held by local joint venture partner Société Minièrede Côte d'Ivoire (SOMICI).The mining permit is valid for 6 years until August 2018 and is renewable.The Government of Côte d'Ivoireis entitled to a royalty on productionasfollows:
		Spot price per ounce -London PM FixRoyalty Rate
		Less than or equal to US$10003%
		Higher than US$1000 and less than or3.5%equal to US$1300
		Higher than US$1300 and less than or4%equal to US$1600
		Higher than US$1600 and less than or5%equal to US$2000
		Higher than US$20006%
		Franco Nevada are entitled to a 0.5% royalty on production.The SissinguéProject area has no known environmental liabilities.
Exploration done byother parties	Acknowledgment and appraisal of exploration by otherparties.	All exploration was by Perseus using soil geochemical sampling, withfollow-up drilling in areas with anomalous gold mineralisation, which led tothe discovery of the Sissinguédeposit.

Criteria	JORC Code explanation	Commentary
Geology	Deposit type, geological setting and style of mineralisation.	The SissinguéDeposit occurs in a strongly deformed Birimian greenstonebelt intruded by granitoid bodies.
		Gold mineralisation at Sissinguéis associated with the porphyritic dykes oftonalitic chemistry thatcross cut the flysch sediments (turbidites).
		Subsequent hydrothermal activities and metasomatism of the tonalite hasled to a sericite-carbonate alteration within the intrusives and the morepermeable horizons (sandstones and conglomerates) of the turbidites, anda low to moderate grade disseminated gold mineralisation.
		Late stage high grade Au-As-quartz-carbonate veins exploited the alteredand brittle portions of the intrusives and sediments with commonoccurrences of visible gold.
Drill hole Information	A summary of all information material to the understanding ofthe exploration results including a tabulation of the followinginformation for all Material drillholes:	Exploration results are not being reported for the Mineral Resource area.
	Eastingand northing of the drillholecollar.
	Elevation or RL (Reduced Level –elevation above sea level inmetres) of the drill hole collar.
	Dip and azimuth of the hole.
	Downholelength and interception depth.
	Hole length.
	If the exclusion of this information is justified on the basis thatthe information is not Material and this exclusion does notdetract from the understanding of the report, the CompetentPerson should clearly explain why this is the case.
Data aggregationmethods	In reporting Exploration Results, weighting averagingtechniques, maximum and/or minimum grade truncations (e.g.cutting of high grades) and cut-off grades are usually Materialand should be stated.	Exploration results are not being reported for the Mineral Resource area.
	Where aggregate intercepts incorporate short lengths of highgrade results and longer lengths of low grade results, theprocedure used for such aggregation should be stated andsome typical examples of such aggregations should be shownin detail.
	The assumptions used for any reporting of metal equivalentvalues should be clearly stated.

Criteria	JORC Code explanation	Commentary
Relationship betweenmineralisation widthsand intercept lengths	These relationships are particularly important in the reportingof Exploration Results.If the geometry of the mineralisation with respect to the drillholeangle is known, its nature should be reported.If it is not known and only the downhole lengths are reported,there should be a clear statement to this effect (e.g.'downhole length, true width not known').	Exploration results are not being reported for the Mineral Resource area.Orientation of drilled section lines is dominantly at right angles to the strikeof the geology and mineralisation domains.Drillholes are angled to cross the sub-vertical dip of the geologicaldomains.
Diagrams	Appropriate maps and sections (with scales) and tabulationsof intercepts should be included for any significant discoverybeing reported These should include, but not be limited to aplan view of drill hole collar locations andappropriatesectional views.	Location plans and example sections are included in the Mineral Resourcetechnical documentation.
Balanced reporting	Where comprehensive reporting of all Exploration Results isnot practicable, representative reporting of both low and highgrades and/or widths should be practiced to avoid misleadingreporting of Exploration Results.	Exploration results are not being reported for the Mineral Resource area.
Other substantiveexploration data	Other exploration data, if meaningful and material, should bereported including (but not limited to): geological observations;geophysical survey results; geochemical survey results; bulksamples –size and method of treatment; metallurgical testresults; bulk density, groundwater,geotechnical and rockcharacteristics; potential deleterious or contaminatingsubstances.	Exploration results are not being reported for the Mineral Resource area.
Further work	The nature and scale of planned further work (egtests forlateral extensions or depth extensions or large-scale step-outdrilling).Diagrams clearly highlighting the areas of possibleextensions, including the main geological interpretations andfuture drilling areas, provided this information is notcommercially sensitive.	Exploration results are not being reported for the Mineral Resource area.A Feasibility Study has been carried out at Sissingué. The Ore Reserveand pit designs will be updated with this latest Mineral Resource.Exploration over possible satellite deposits is currently on-going.

JORC 2012 Table 1 – Section 3 estimation and reporting of Mineral Resources

Criteria	JORC Code explanation	Commentary
Database integrity	Measures taken to ensure that data has not been corruptedby, forexample, transcription or keying errors, between itsinitial collection and its use for Mineral Resource estimationpurposes.	Perseus maintains a centralised database for its various operations inGhana and Côte d'Ivoire. Database administration is based in Perseus'head office in Accra/Ghana and under the supervision of the company'sResource Geologist.
	Data validation procedures used.	Perseus carried out detailed validation of the dataset and retain overallresponsibility for the database quality. All drill holedata was validatedduring data entry by Perseus including:
		-Checks for duplicate collars (LogChief, Datashed).
		-Checks for missing samples (Datashed).
		-Checks for down hole from-to interval consistency (LogChief,Datashed).
		-Checks for overlapping samples (LogChief, Datashed).
		-Checks for samples beyond hole depth (LogChief, Datashed).
		-Checks for inexistent or misspelt log items (LogChief).
		-Check for missing assays (Datashed).
		-Check for down-hole information beyond hole depth (Datashed).
		Snowden carried out a basic statistical and visual validation prior toestimation including:
		-Drillholes with overlapping sample intervals.
		-Sample intervals with no assay data.
		-Duplicate records.
		-Assay grade ranges.
		-Collar coordinate ranges.
		-Valid hole orientation data.
		No validation issues were found with the data and Snowden considers thedata to be appropriate for estimation.
		In addition, Snowden reviewed all RC samples within the pit area to assessthem for potential downhole contamination and resultant smearing. Anysamples suspected of containing smeared assays were removed from thedataset prior to estimation. This impacts approximately 5% of RC samples.

Criteria	JORC Code explanation	Commentary
Site visits	Comment on any site visits undertaken by the CompetentPerson and the outcome of those visits.If no site visits have been undertaken indicate why this is thecase.	Steffen Brammer of Perseus hasundertaken regular site visits between2008 and 2013. Steffen hasreviewed the geology and data collectionprocesses during this time,Lynn Olssen (Senior Principal Consultant) of Snowden Mining IndustryConsultants visited site during December 2016. Lynn reviewed the drillingand sampling procedures for diamond and RC drilling at the nearby Bélédeposits. Lynn also visited the Sissinguésite and core shed and reviewedthe diamond core sampling processes and diamond core, RC chip boards,logging procedures and general site layout.
Geologicalinterpretation	Confidence in (or conversely, the uncertainty of ) thegeological interpretation of the mineraldeposit.Nature of the data used and of any assumptions made.The effect, if any, of alternative interpretations on MineralResource estimation.The use of geology in guiding and controlling MineralResource estimation.The factors affecting continuity both of grade and geology.	Mineralisation was domained by its host lithology for modelling. The threemain host lithologies are granite, porphyritic dykes and sediments.Mineralised sediments in the alteration halo of the dykes were included inthe dyke domain to maintain a minimum width of the wireframes and tomaintain continuity along strike.Where geological contacts were not clearly controlling the distribution ofmineralisation, a grade cut-off of 0.3g/tAu was used to construct MineralResource boundaries and to provide overall geometry to mineralisedzones. A minimum of 4m width was used for the wireframes and samplesof grades below the nominal cut-off of 0.3g/tAu were included where thewireframe would otherwise be less than 4m wide. Analysis of the globalgrade distribution shows that there is a natural change in grade populationat around 0.3g/tAu.Geological continuity of the granite and sediment domains is understoodwith reasonable confidence. The classification reflects this level ofconfidence.Porphyry lithologies (dyke domains) were limited to Inferred and Indicatedcategories due to the mostly narrow nature of the mineralised bodies andconsequently the decreased confidence in their geometry.Continuity and variability is also influenced by weathering and these havebeen interpreted and incorporated into the oxide, transitional and freshdomains.
Dimensions	The extent and variability of the Mineral Resource expressedas length (along strike or otherwise), plan width, and depthbelow surface to the upper and lower limits of the MineralResource.	The Sissinguédeposit extends for 3.15km along strike and to a depth oftypically 140m to 160m below surface, with a maximum depth of 290m.Thickness across strike is typically 50m to 80m for the granite andsediment domains, but limited to 10m to 20m for the porphyry dykes.

Commentary
Boundary conditions:The granite, sediments and dykes were kept separate for statisticalanalysis, variography and estimation as they are different geological unitswith mostly hard boundaries between them. The southern and northerngranite and sediment domains were also kept separate for estimation asthere is a physical separation between the two areas. While there is agrade difference between the northern and southern areas, particularly forthe granite (higher in the southern area), the grade distributions are of asimilar shape and hence the two areas were combined for variography toprovide a larger dataset for analysis.
Based on statistical analysis and boundary conditions, the oxide andtransitional domains were combined for variography and estimation whilethe freshdomain was kept separate. Visual inspection of the drill holegrades between the laterite and the oxide does not show evidence of adepleted zonewithin the mineralised domains. As a result of the smalldataset, with only minor areas of mineralisation in the lower parts of thelaterite, the laterite was combined with the oxide for estimation. The lateritedata was not used for variography.Review of the individual dykes (and weathering domains) showed that theyare statistically similar and, given the relatively small amount of data in theindividual dykes, the dykes were combined for statistical analysis andvariography. The dykes were kept separate for estimation as there arehard boundaries between them.Estimation –granites and sediments:Due to thehighly skewed nature and presence of mixed populations in thegranites and sediments domains, multiple indicator kriging (MIK) was usedto estimate gold grades. CAE Studio (Datamine) software was used toestimate the probability of the grade being above or below a series ofthresholdsinto parent blocks of 10mEby10mNby5mRL. Thresholdswere defined for each estimation domain.Kriging neighbourhood analysis (KNA) was used to define an appropriateblock size for estimation and number of informing samples. Blocks wereestimated using a minimum and maximum number of samples of 8and 14respectively. A maximum of 6 composites was allowed per drill holeforestimation.The initial search pass used ranges equivalent to the ranges of continuityseen in the variograms at around 90% to 100% of the variance in the0.3g/Au to 0.5g/tAu threshold variograms, with the search ellipseorientated as per the higher grade thresholds (0.5g/tAu and above).Post processing of the MIK probability estimates was carried out in GSLIBsoftware. Post processing was used to carry out order relation correctionsusing an averaging approach, and to calculate the e-type grade for eachblock. The e-type grades were calculated using a linear model between

Estimation – dykes:

Criteria	JORC Code explanation	Commentary
Moisture	Whether the tonnages are estimated on a dry basis or withnatural moisture, and the method of determination of themoisture content.	Tonnages are reported on a dry basis.
Cut-off parameters	The basis of the adopted cut-off grade(s) or qualityparameters applied.	The reporting cut-off is based on optimisation studies carried out as part ofthe 2010 Feasibility Study, which have suggested that the deposit can beeconomically extracted at a gold cut-off in the range 0.4 to 0.6 g/t.

Criteria	JORC Code explanation	Commentary
Mining factors orassumptions	Assumptions made regarding possible mining methods,minimum mining dimensions and internal (or, if applicable,external) mining dilution. It is always necessary as part of theprocess of determining reasonable prospects for eventualeconomic extraction to consider potential mining methods, butthe assumptions made regarding mining methods andparameters when estimating Mineral Resources may notalways be rigorous. Where this is the case, this should bereported with an explanation of the basis of the miningassumptions made.27	Trial optimisation was run on the 2014 Mineral Resource in Whittle at aUSD2,400 gold price (approximately double the current spot price) todefine the base of potentially economic open-pittable material. The sameshell was used to constrainthe 2016 Mineral Resource.Assumptions for the optimisation were based on studies carried out byPerseus as follows.Cut-off grades:oOxide0.8 g/t AuoTransition1.0 g/t AuoGranite/Porphyry1.1 g/t AuoSediments1.3 g/t AuWhittle processing cost (treatment + general administration) were:oOxide($21.79/t+$7.19/t)$28.98/toTransition($25.04/t+$8.14/t) $33.18/toGranite/Porphyry($26.29/t+$8.32/t) $34.61/toSediments($30.29/t+$9.87/t) $40.13/tDilution:oMiningore recovery (before diluted)97%oMining ore dilution (at 0 g/t Au dilutant grade)3%Geotechnical parameters:oOxide(approximately from 390 mRL to 325 mRL)31degreesoTransition(approximately from 325 mRL to 300mRL)41degreesoFresh(approximately from 300 mRL and below)45degreesMining cost estimate:oContract miner$3.61/toFuel ($1.40/L)$0.59/t

o Day-works (3%)

Criteria	JORC Code explanation	Commentary
Metallurgical factorsor assumptions	The basis for assumptions or predictions regardingmetallurgical amenability. It is always necessary as part of theprocess of determining reasonable prospects for eventualeconomic extraction to consider potential metallurgicalmethods, but the assumptions regarding metallurgicaltreatment processes and parameters made when reportingMineral Resources may not always be rigorous. Where this isthe case, this should be reported with an explanation of thebasis of the metallurgical assumptions made.	There has been a considerable amount of metallurgical test work to date.All indications are that gold can be satisfactorily recovered from Sissinguéore using conventional extraction techniques.The metallurgical work is considered sufficient to determine that theSissinguéresource represents a deposit capable of economic extraction.Recoveries used for the trial optimisation to determine the base ofpotentially economic material were based on studies carried out byPerseus as follows:oOxide92%oTransition91%oGranite/Porphyry90%oSediments78%
Environmentalfactors orassumptions	Assumptions made regarding possible waste and processresidue disposal options. It is always necessary as part of theprocess of determining reasonable prospects for eventualeconomic extraction to consider the potential environmentalimpacts of the miningand processing operation. While at thisstage the determination of potential environmental impacts,particularly for a greenfields project, may not always be welladvanced, the status of early consideration of these potentialenvironmental impacts should be reported. Where theseaspects have not been considered this should be reportedwith an explanation of the environmental assumptions made.	There are other gold mines operating within Mali and Côte d'Ivoirein thegeneral region where Sissinguéis located.The SissinguéProject area has no known environmental liabilities.Perseus has been issued with an Environmental Permit to develop andoperate an open pit mine and ore processing facility at Sissingué.

Criteria	JORC Code explanation	Commentary
Bulk density	Whether assumed or determined. If assumed, the basis forthe assumptions. If determined, the method used, whetherwet or dry, the frequency of the measurements, the nature,size and representativeness of the samples.The bulk density for bulk material must have been measuredby methods that adequately account for void spaces (vugs,porosity, etc.), moisture and differences between rock andalteration zones within the deposit.Discuss assumptions for bulk density estimates used in theevaluation process of the different materials.	A total of770 bulk density measurements were taken from HQ and NQ drillcore.380resultsare from oxide material, 132 from transitional material and 258from fresh material.Calculated means for the transitional (2.30 g/cm3) and fresh (2.73 g/cm3)weathering domains as well as the lateritic horizon (1.90 g/cm3) within theoxide domain were assigned to the block model.The oxide domain, however, shows a gradient to higher densities withincreasing depth and it is considered that a single value for the oxidedomain would not be adequate. Instead, the bulk density for oxide blockshas been estimated using vertically orientated, inverse distance squaredinterpolation. The oxide bulk density ranges from 1.70 to 2.20 g/cm3
Classification	The basis for the classification of the Mineral Resources intovarying confidence categories.Whether appropriate account has been taken of all relevantfactors (ie relative confidence in tonnage/grade estimations,reliability of input data, confidence in continuity of geology andmetal values, quality, quantity and distribution of the data).Whether the result appropriately reflects the CompetentPerson's view of the deposit.	The SissinguéMineral Resource has been classified in the Measured,Indicated and Inferred categories, in accordance with the 2012Australasian Code for Reporting of Mineral Resources and Ore Reserves(JORC Code) and the CIM Definition Standards (CIM, 2005). A range ofcriteria has been considered in determining this classification including:-Geologicalcontinuity.-Data quality.-Drillhole spacing.-Estimation properties including kriging neighbourhood analysis todetermine appropriate block size and search strategy.-Potential for economic extractionThe above parameters were used in combination to guide the manualdigitising of strings on drill sections to control classification.Trial optimisation has been run at a USD2,400 gold price (on the 2014Mineral Resource) to define the base of potentially mineable materialbyopen pit mining.The Competent Person endorses the final results and classification.

Criteria	JORC Code explanation	Commentary
Audits or reviews	The results of any audits or reviews of Mineral Resourceestimates.	The Mineral Resource estimation procedure and results havebeeninternally peer reviewed by Snowden.
		During 2016 Jacqui Coombes of Coombes Capability carried out a reviewofthe Sissinguédiamond and RC drilling, and the potential impacts on theresource modelling processes.Jacqui made a series of recommendationswhich were considered inthe 2016 update.
Discussion ofrelative accuracy/confidence	Where appropriate a statement of the relative accuracy andconfidence level in the Mineral Resource estimate using anapproach or procedure deemed appropriate by the CompetentPerson. For example, the applicationof statistical orgeostatistical procedures to quantify the relative accuracy ofthe resource within stated confidence limits, or, if such anapproach is not deemed appropriate, a qualitative discussionof the factors that could affect the relative accuracy andconfidence of the estimate.The statement should specify whether it relates to global or	No studies of relative accuracy have been carried out. The classificationapplied reflects the confidence in the Mineral Resource.
	local estimates, and, if local, state the relevant tonnages,which should be relevant to technical and economicevaluation. Documentation should include assumptions madeand the procedures used.
	These statements of relative accuracy and confidence of theestimate should be compared with production data, whereavailable.

JORC Code 2012 Section 1 sampling techniques and data

Criteria	JORC Code explanation	Commentary
Samplingtechniques	Nature and quality of sampling (e.g. cut channels, randomchips, or specific specialised industry standard measurementtools appropriate to the minerals under investigation, such asdown hole gamma sondes, or handheld XRF instruments,etc.). These examples should not be taken as limiting thebroad meaning of sampling.Include reference to measures taken to ensure samplerepresentivity and the appropriate calibration of anymeasurement tools or systems usedAspects of the determination of mineralisation that areMaterial to the Public Report.In cases where 'industry standard' work has been done thiswould be relatively simple (e.g. 'reverse circulation drillingwas used to obtain 1m samples from which 3kg waspulverised to produce a 30g charge for fire assay'). In othercases, more explanation may be required, such as wherethere is coarse gold that has inherent sampling problems.Unusual commodities or mineralisation types (e.g.submarine nodules) may warrant disclosure of detailedinformation.	Samples at Béléwere collected using standard drilling techniques: reversecirculation (RC) and diamond drilling (DD). Diamond drilling was carried out only infresh ground as tails of RC collared drill holes. Holes were generally angledbetween 50° and 65° towards grid east, southeast and south at BéléWest andtowards grid west at BéléEast to optimally intersect the mineralised zones. Earlyexploration holes at Bélé East (some 15% of the drillholeswithin the resourcearea) were orientated grid east.RC samples were collected in 1m intervals at rig mounted cyclone. Samples fromthe first 13 RC holes were composited to 4m length (111 samples, <1% of all RCsamples). All other RC drilling was composited to 2m samples, by equal weight.Sample weight was nominally 3kg for composited samples.Diamond corewas generally sampled at 1m intervals.The first 13RC holes were assayed by 1kg 24-hour bottle roll, all subsequent DDand RC samples by 50g fire assay. All analytical work has been carried out byindependent, commercial laboratories (primarily BureauVeritas in Abidjan, Côted'Ivoire).
Drillingtechniques	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 diamondtails, face-sampling bit or other type, whether core isoriented and if so, by what method, etc.).	All RC drilling used a 5.25-inch diameter face sample bit.Diamond core was carried out using NQ2 equipment. Diamond core was generallyoriented using a spear.
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 recovery andgrade and whether sample bias may have occurred due topreferential loss/gain of fine/coarse material.	RC samples were weighed at 1m intervals and recoveries back-calculated usingnominal hole diameter and expected density values. Recoveries average between60% and 75% in strongly weathered material depending on rock type, around 75%in the transition zone; and >85% in fresh rock.Recovered length of diamondsamples were measured in the core trays. Theoverall recovery of 98.5% is considered good.No apparent relation exists between sample recovery and gradefor diamonddrilling.

Criteria	JORC Code explanation	Commentary
Logging	Whether core and chip samples have been geologically andgeotechnically logged to a level of detail to supportappropriate Mineral Resource estimation, mining studies and	RC drill chips were logged geologically, including rock type, weathering, alterationtype and intensity (where recognisable), vein quartz content in estimatedpercentage, sulphide minerals and estimated content.
	metallurgical studies.	Diamond drill core was geologically and structurally logged. Geological logging is
	Whether logging is qualitative or quantitative in nature. Core(or costean, channel, etc.) photography.	identical to RC logging. Structural logging includes joints, fractures, roughness andinfill type of structures and veins as well as recovery and RQD.
	The total length and percentage of the relevant intersections	Logging was qualitative (descriptive) and semi-quantitative (estimates) in nature.
	logged.	All diamond core was photographed in the core boxes.
		RC drill chips were glued on chip boards for visual reference for each hole.
		All drill holes(RC and DD) were logged in full.
Subsamplingtechniques	If core, whether cut or sawn and whether quarter, half or allcore taken.	Diamond core was cut in half using a diamond saw. The "right" side of the corewas submitted for analysis, the other half stored in core trays.
and samplepreparation	If non-core, whether riffled, tube sampled, rotary split, etc.and whether sampled wet or dry.	All RC samples were collected at the drill site at 1m interval and split using amulti-stage riffle splitter. Each two (resp. four) consecutive samples were
	For all sample types, the nature, quality and appropriateness	composited in one bag by equal weight.
	of the sample preparation technique.Quality control procedures adopted for all subsampling	621 or 5% of RC samples have been wet.Wet samples were sub-sampled using aspear.
	stages to maximise representivity of samples.	Sample preparation of diamond core and RC chips used industry standard
	Measures taken to ensure that the sampling isrepresentative of the in situ material collected, including forinstance results for field duplicate/second-half sampling.	techniques. After drying, the entire sample was subject to a primary crush, 200gof subsample was collected and pulverised. Internal laboratory checks required atleast 90% of the pulp passing -75 microns.
	Whether sample sizes are appropriate to the grain size ofthe material being sampled.	Laboratory QAQC includes the use of internal standards, certified referencematerials, and pulp replicates.
		Field sampling QAQC procedures included the use of certified reference materialsinserted at a rate of 1 in 20.
		Between one and two field duplicates were taken for each RC hole, preferablywithin mineralised intervals. The results of duplicate analysis show no bias, butonly moderate repeatability.
		Field duplicates of diamond core were not taken as ¼ core is consideredinappropriate for comparison.
		Samples sizes are considered appropriate and representative for the style ofmineralisation, the thickness and consistency of the mineralised intersections andthe grade ranges

Criteria	JORC Code explanation	Commentary
Quality ofassay dataand laboratorytests	The nature, quality and appropriateness of the assaying andlaboratory procedures used and whether the technique isconsidered partial or total.	A small number of samples from initial holes were assayed by bottle roll with AASfinish, all subsequent RC and DD samples were assayed by standard 50g fireassay with AAS finish for total gold content.
	For geophysical tools, spectrometers, handheld XRFinstruments, etc., the parameters used in determining theanalysis including instrument make and model, readingtimes,calibrations factors applied and their derivation, etc.Nature of quality control procedures adopted (e.g. standards,blanks, duplicates, external laboratory checks) and whetheracceptable levels of accuracy (i.e. lack of bias) and precisionhave been established.	No geophysical tools were used to determine any element concentrations.QAQC procedures includedOne to two field duplicates per RC holeCertified blanks inserted at onein 40Certified standards at onein 20Internal laboratory standards, duplicates and repeats.Umpire assaying has not been carried out.QAQC shows no bias. Overall assaying quality is considered adequate.
Verification ofsampling andassaying	The verification of significant intersections by eitherindependent or alternative company personnel.The use of twinned holes.Documentation of primary data, data entry procedures, dataverification, data storage (physical and electronic) protocols.Discuss any adjustment to assay data.	Significant intersections are not highlighted; all RC cuttings and diamondcore aresystematically sampled.No RC holes have been twinned as less than 50 RC samples with significantlyanomalous gold grades (>0.5g/t Au) have been drilled under wet conditions(<0.5% of all RC samples).Given the issues with downhole contamination in the RC drilling at the nearbySissinguédeposit, there is currently diamond drilling underway at Bélé to confirmthe RC results. This drilling is expected to be completed at the end of 2016.Drillhole information for both RC and diamond core holes is captured at the drillsite on paper.All hard copies are handed over to the database assistant at the site office and theinformation provided on paper is then entered into a database.All hard copies are kept at the Tengrélasite office.Downhole survey data and collar survey data are provided by the drillingcontractors and surveyors respectively in digital format.Perseus maintains a centralised database for its various operations in Ghana andCôte d'Ivoire. Database administration is based in Perseus' head office inAccra/Ghana and under the supervision of the company's Resource Geologist.Assay values below detection limit (0.01g/t Au) were set by Perseus to 0.

Criteria	JORC Code explanation	Commentary
Location ofdata points	Accuracy and quality of surveys used to locate drill holes(collar and downhole surveys), trenches, mine workings andother locations used in Mineral Resource estimation.Specification of the grid system used.Quality and adequacy of topographic control.	Most RC and diamonddrill holecollars were surveyed by the company's surveyorin2015 and 2016 using differential GPS equipment. 22 holes, including twoholeswith diamond tails, could not be found at the time and were not surveyed. In thesecases, the original coordinates taken by handheld GPS were used. On average,the difference between handheld and differential GPS is less than 2m in the X andY directions.
		Downhole surveys were conducted by the drill contractors using a FlexIT tool.
		The WGS84 UTM Zone 29 North grid system is used.
		The topography covering the extent of the Resource model was created as adigital terrain model (DTM) in Surpac using the surveyed drill hole collar data andan additional 77,767 points established at 3m intervals by differential GPS during100m spaced geophysical traverses.
Data spacinganddistribution	Data spacing for reporting of Exploration ResultsWhether the data spacing and distribution is sufficient to	Nominal drill holespacing over the resource area is predominantly 40m by 40m.Some areas at BéléEast have been drilled at 20m by 40m.
	establish the degree of geological and grade continuityappropriate for the Mineral Resource and Ore Reserve	Data spacing is sufficient to establish grade and geological continuity appropriateto the resource estimation procedures and classifications applied.
	estimation procedure(s) and classifications applied.Whether sample compositing has been applied.	Diamondand RC samples within the resource have been composited to 2m.
Orientation ofdata in relation	Whether the orientation of sampling achieves unbiasedsampling of possible structures and the extent to which this	Orientation of drill holesis approximately perpendicular to the strike of the geologyand mineralisation at BéléWest.
to geologicalstructure	is known, considering the deposit type.If the relationship between the drilling orientation and the	At BéléEast, drill holesare angled to cross the steep dip of the geologicaldomains.
	orientation of key mineralised structures is considered tohave introduced a sampling bias, this should be assessedand reported if material.	At BéléEast, 12 early RC holes have been drilled along exploration fencesoriented towards the east and hence sub-parallel to the mineralisation. Three ofthese holes intercepted significant mineralisation. These intercepts have beenverified by holes drilled in the opposite direction.
Samplesecurity	The measures taken to ensure sample security.	Chain of custody is managed by Perseus. Samples are stored on site untilconveyed to the Bureau Veritas laboratory in Abidjan. Once dispatched, Perseuspersonnel have no further involvement in the preparation or analysis of thesamples.
Audits orreviews	The results of any audits or reviews of sampling techniquesand data.	Several reviews of sampling techniques were carried out by the company's seniorpersonnel during site visits, with acceptable conclusions.
		Basic drill data validation has been carried out by Snowden during the preparationof the Mineral Resource estimate.

JORC Code 2012 Section 2 Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineraltenement andland tenurestatus	Type, reference name/number, location and ownershipincluding agreements or material issues with third parties suchas joint ventures, partnerships, overriding royalties, native titleinterests, historical sites, wilderness or national park andenvironmental settings.The security of the tenure held at the time of reporting alongwith any known impediments to obtaining a licence to operatein the area.	Perseus, through its 100% owned subsidiaryOccidental Gold sarlholds anExploration Licence Permit PR259, issued by the Ivorian government inDecember 2012, valid for mineral exploration (Decree "2012-1172").
		The tenement is fully owned by Perseus, through its subsidiary, with the Ivoriangovernment holding a statutory 10% free carried interest.
		The Exploration Licence expired on 19 December 2015 and is currently underapplication for renewal. The application has been approved by the GeneralDirector of Mines and Geology and is awaiting final signature of the Minister ofMines and Industry.
		The initial licence covered an area of 398km². The renewed licence has beenreduced to an area of 298,5km².
		There are no known impediments with respect to exploration or mining.
Explorationdone by otherparties	Acknowledgment and appraisal of exploration by other parties.	Perseus is not aware of any previous exploration activities.
Geology	Deposit type, geological setting and style of mineralisation.	The Bélé gold deposits are located within a north-westerly striking splay offtheSyama-Boundiali Greenstone Belt. At Bélé, Birimian aged rocks comprise asequence of metasedimentary rocks and subordinate mafic volcanics that havebeen intruded by a nearly circular granitoid body approximately 4 km indiameter. The sequence has also been intruded by numerous felsic dykes ofvarious compositions.
		Gold mineralisation at both BéléEast and Bélé West is associated withdeformation zones developed at and adjacent to the margins of the granitoidintrusion. Gold is associated with disseminated pyrite and lesser pyrrhotitehosted by both mafic and felsic lithologies where they feature chlorite-sericitecalcite alteration. Vein-hosted mineralisation is rare.
		Bélé West mineralisation is interpreted to extend around 1km in strike, 140macross strike and to a depth of 150m. Bélé East mineralisation extends around500m along strike, 150m across strike and to a depth of 170m. The currentlydefined mineralisation in both areas is open at depth but appears to be closedout along strike.

Criteria	JORC Code explanation	Commentary
DrillholeInformation	A summary of all information material to the understanding ofthe exploration results including a tabulation of the followinginformation for all Material drill holes:	The Bélédrill holedata includes RC, diamond and aircore drill holes. Aircoredrill holeswere used as a guide to interpretation but were not used forestimation due to the poor quality of aircore samples.
	easting and northing of the drill holecollar	Drilling includes:
	elevation or RL (Reduced Level –elevationabove sea level	834 aircore drill holesfor 22,103 m
	in metres) of the drill hole collar	257 RC drill holesfor 21,763 m
	dip and azimuth of the hole	23 RC drill holesfor 3,374.72 m with diamond tail.
	downhole length and interception depth	Drillholes were set up using a compass. Compass readings and all downhole
	hole length.	survey azimuth readings were adjusted according to the magnetic deviation.
	If the exclusion of this information is justified on the basis thatthe information is not Material and this exclusion doesnotdetract from the understanding of the report, the CompetentPerson should clearly explain why this is the case.	Exploration results have been reported previously. All drilling is included forMineral Resource estimation.
Dataaggregationmethods	In reportingExploration Results, weighting averagingtechniques, maximum and/or minimum grade truncations (e.g.cutting of high grades) and cut-off grades are usually Materialand should be stated.	NA;exploration results are not reported.
	Where aggregate intercepts incorporate short lengths of highgrade results and longer lengths of low grade results, theprocedure used for such aggregation should be stated andsome typical examples of such aggregations should be shownin detail.
	The assumptions used for any reporting of metal equivalentvalues should be clearly stated.
Relationshipbetween	These relationships are particularly important in the reportingof Exploration Results.	The majority of drilling is perpendicular to the mineralisation. Some scissorholes have also been drilled, particularly in BéléEast where the mineralisation
mineralisationwidths and	If the geometry of the mineralisation with respect to the drill	is sub-vertical.
intercept	holeangle is known, its nature should be reported.	Areas of the main northeast trending limb of BéléWest are not optimallyorientated as they are drilled east-west and the mineralisation is trending to thenortheast. The orientation is acceptable to define the limits of themineralisation however.
lengths	If it is not known and only the down hole lengths are reported,there should be a clear statement to this effect (e.g. 'downholelength, true width not known').
Diagrams	Appropriate maps and sections (with scales) and tabulations ofintercepts should be included for any significant discoverybeing reported These should include, but not be limited to aplan view of drill hole collar locations and appropriate sectionalviews.	Location plans and example sections are included in the Mineral Resourcetechnical documentation.

Criteria	JORC Code explanation	Commentary
Balancedreporting	Where comprehensive reporting of all Exploration Results isnot practicable, representative reporting of both low and highgrades and/or widths should be practiced to avoid misleadingreporting of Exploration Results.	NA;all drilling is included in the Mineral Resource.
Othersubstantiveexploration data	Other exploration data, if meaningful and material, should bereported including (but not limited to): geological observations;geophysical survey results; geochemical survey results; bulksamples –size and method of treatment; metallurgical testresults; bulk density, groundwater, geotechnical and rockcharacteristics; potential deleterious or contaminatingsubstances.	NA;all drilling is included in the MineralResource.
Further work	The nature and scale of planned further work (e.g.tests forlateral extensions or depth extensions or large-scale step-outdrilling).	Infill and confirmatory drilling is currently underwayto convert the MineralResource to Indicated and Measured.
	Diagrams clearly highlighting the areas of possible extensions,including the main geological interpretations and future drillingareas, provided this information is not commercially sensitive.

JORC Code 2012 Section 3 Estimation and Reporting of Mineral Resources

Criteria	JORC Code explanation	Commentary
DatabaseMeasures taken to ensure that data has not beenintegritycorrupted by, for example, transcription or keyingerrors, between its initial collection and its use forMineral Resource estimation purposes.Data validation procedures used.		Perseus validates its data routinely during data entry and data import into its databaseplatform, Maxwell's Datashed software, and during importation into Surpac. Thisincludes checks for
	Duplicate or erroneous collars information
	Missing samples
		Down-hole from-to interval inconsistencies
		Overlapping samples
		Records beyond hole depth
		Missing assays
		Invalid geological codes
		Import of digitally communicated assay results into Datashed is automated and does notnecessitate manual interference (such as copy-and-paste commands).
	Snowden carried out basic validation checks as part of preparing the data forestimation. The database checks undertaken by Snowden are listed below, nosignificant issues were identified:
		The downhole sampling intervals are consistent with no overlapping sampleintervals.
		Assay values are within realistic limits. Snowden notes that there are 3,709 zero (0)gold grades in the assay table, of which 1,974 are within RC or diamond drill holes.Snowden assumes that the zero values are below detection limit
		The sample tables were checked to ensure there are no duplicate sample records.Duplicate geology records were noted in holes MHRD077 and MHRD087. Thesewere removed prior to loading the data.
		There are no missing or incomplete collar survey coordinates.
Site visits	Comment on any site visits undertaken by theCompetent Person and the outcome of those visits.If no site visits have been undertaken indicate why this	Steffen Brammer (Perseus) has visited the site several times and on a regular basissince the commencement of Perseus' exploration activities and during various drillingcampaigns.
	is the case.	Lynn Olssen (Senior Principal Consultant) of Snowden Mining Industry Consultantsvisited site during December 2016. Lynn reviewed the drilling and sampling proceduresfor diamond and RC drilling at the Bélédeposit. Lynn also visited the core shed andreviewed the diamond core sampling processes and diamond core, RC chip boardsandlogging procedures.

Criteria	JORC Code explanation	Commentary
Geologicalinterpretation	Confidence in (or conversely, the uncertainty of) thegeological interpretation of the mineral deposit.	Mineralisation domains, weathering and lithology were originally interpreted by Perseus.Snowden reviewed and updated this interpretation for the March 2016 update.
	Nature of the data used and of any assumptions made.The effect, if any, of alternative interpretations onMineral Resource estimation.The use of geology in guiding and controlling MineralResource estimation.The factors affecting continuity both of grade andgeology.	Mineralisation at Béléoccurs as a series of lodes subparallel to the mafic lithologies.The lodes cross the mafics-granite boundary in places. In BéléEast there is a wider'blow out' of mineralisation in the central area which appears to be associated with akink in the lithology, and is likely structurally related.The mineralisation domains were defined based on a nominal 0.2g/t Au to 0.5g/t Aucut-off together with the geological logging and lithology interpretation. The cut-off usedis observed as a population change in the global log-probability plot.Note, the drill holedata includes RC, diamond and aircore drill holes. Aircore drill holeswere used as a guide to interpretation but were not used for estimation due to the poorquality of aircore samples.The mineralisation domains were used as hard boundaries to control estimation.Snowden considers that any alternative interpretation would not have a material effecton the Mineral Resource estimate.
Dimensions	The extent and variability of the Mineral Resourceexpressed as length (along strike or otherwise), planwidth, and depth below surface to the upper and lowerlimits of the Mineral Resource.	BéléWest mineralisation is interpreted to extend around 1km in strike, 140m acrossstrike and to a depth of 150m.BéléEast mineralisation extends around 500m along strike, 150m across strike and toa depth of 170m.The currently defined mineralisation in both areas is open at depth but appears to beclosed out along strike.

Criteria	JORC Code explanation	Commentary
Estimationand modellingtechniques	The nature and appropriateness of the estimationtechnique(s) applied and key assumptions, includingtreatment of extreme grade values, domaining,interpolation parameters and maximum distance ofextrapolation from data points. If a computer assistedestimation method was chosen include a description ofcomputer software and parameters used.The availability of check estimates, previous estimatesand/or mine production records and whether theMineral Resource estimate takes appropriate accountof such data.The assumptions made regarding recovery of byproducts.Estimation of deleterious elements or other non-gradevariables of economic significance (e.g.sulphur for acidmine drainage characterisation).In the case of block model interpolation, the block sizein relation to the average sample spacing and thesearch employed.Any assumptions behind modelling of selective miningunits.Any assumptions about correlation between variables.Description of how the geological interpretation wasused to control the resource estimates.Discussion of basis for using or not using grade cuttingor capping.The process of validation, the checking process used,the comparison of model data to drill hole data, and useof reconciliation data if available.	Snowden estimated gold grades using ordinary block kriging (parent cell estimates)using Datamine software. The grades were estimated using the mineralisation domainsfor each area as hard boundaries. Ordinary kriging was selected as appropriate forestimation on the basis that coefficients of variation are generally low to moderate withinthe deposit, with top cuts used where required to control the influence of extremegrades. Discretisation of 4 by 4 by 4 was applied during estimation.Parent block size was based on kriging neighbourhood analysis (KNA) results and thegeometry of the two areas; a 10mE by 10mN by 5mRL parent block size was selectedfor the flatter lying BéléWest area and a 10mE by 10mN by 10mRL for the subvertical BéléEast area. The average drill holespacing is 20m by 20m to 20m by 40m.Review of the histograms and log-probability plots shows that there is a high coefficientof variation (CV) and outliers evident within the BéléEast area. As a result,a top cut of20g/t Au was applied to the data in this area prior to estimation. The BéléWest areahas a maximum value of <20g/t Au and does not appear to require top cutting.Dynamic anisotropy was used for estimation, whereby the local dip and azimuth of themineralised lodes was estimated into each block in the model and the search andvariogram orientations were locally adjusted to reflect the geological orientation. Thismethod allows the estimate to better reflect the changing orientation and undulatingnature of the lodes.Search parameters were defined based on the ranges of continuity seen in thevariograms and KNA results. A three pass search was used to inform the blocks. Forthe first search pass, estimation was carried out using a minimum of 12 and a maximumof 24 informing composites. The second search pass used a minimum ofeightand amaximum of 24 informing composites, with the search ellipse doubled in size to informblocks not informed during the first search pass. A third search pass with the number ofsamples reduced to a minimum of fourand a maximum of eight, with four times thesearch ellipse size, was to used where an estimate could not be obtained using thesecond search pass.To ensure that data from multiple drill holeswere used during the block estimation, amaximum of fourcomposites were allowed from each drill hole.Final grade estimates were validated by: undertaking global grade comparisons with theinput drill holecomposites; visual validation of block model cross sections; and by gradetrend plots. In addition,a theoretical global change of support was carried out tovalidate the level of smoothing in theestimate.
Moisture	Whether the tonnages are estimated on a dry basis orwith natural moisture, and the method of determinationof the moisture content.	All tonnages are calculated and reported on a dry tonnes basis.

Criteria	JORC Code explanation	Commentary
Cut-offparameters	The basis of the adopted cut-off grade(s) or qualityparameters applied.	The Mineral Resource has been reported by resource classification and weatheringabove a 0.8g/t Au cut-off.
		The cut-off grade is based on preliminary engineering work which indicates a 0.75g/tAu to 0.85g/t Au cut-off will be applicable for mining, depending on the degree ofweathering.
Mining factorsorassumptions	Assumptions made regarding possible mining methods,minimum mining dimensions and internal (or, ifapplicable, external) mining dilution. It is alwaysnecessary as part of the process of determiningreasonable prospects for eventual economic extractionto consider potential mining methods, but theassumptions made regarding mining methods andparameters when estimating Mineral Resources maynot always be rigorous. Where this is the case, thisshould be reported with an explanation of the basis ofthe mining assumptions made.	Mining is assumed to be traditional drill and blast open cut mining.
Metallurgicalfactors orassumptions	The basis for assumptions or predictions regardingmetallurgical amenability. It is always necessary as partof the process of determining reasonable prospects foreventual economic extraction to consider potentialmetallurgical methods, but the assumptions regardingmetallurgical treatment processes and parametersmade when reporting Mineral Resources may notalways be rigorous. Where this is the case, this shouldbe reported with an explanation of the basis of themetallurgical assumptions made.	Metwork has been initiated and is currently ongoing. Preliminary results suggest that theore is amenable to the treatment processes considered for the company's nearbySissinguéproject.
Environmentalfactors orassumptions	Assumptions made regarding possible waste andprocess residue disposal options. It is alwaysnecessary as part of the process of determiningreasonable prospects for eventual economic extractionto consider the potential environmental impacts of themining and processing operation. While at this stagethe determination of potential environmental impacts,particularly for a greenfields project, may not always bewell advanced, the status of early consideration ofthese potential environmental impacts should bereported. Where these aspects have not beenconsidered this should be reported with an explanationof the environmental assumptions made.	There are no known environmental impediments to mining.

Criteria	JORC Code explanation	Commentary
Bulk density	Whether assumed or determined. If assumed, the basisfor the assumptions. If determined, the method used,whether wet or dry, the frequency of themeasurements, the nature, size and representativenessof the samples.The bulk density for bulk material must have beenmeasured by methods that adequately account for voidspaces (vugs, porosity, etc.), moisture and differencesbetween rock and alteration zones within the deposit.Discuss assumptions for bulk density estimates used inthe evaluation process of the different materials.	Bulk density values were determined by measurements on available core and RC chips.The values assigned to the models are based on the weathering and lithology domainst/m3t/m3and range from 1.3in the saprolite to 2.92in the fresh mafic volcanics.Bulk density of fresh material was determined by weighing full core trays, measuring thelength of the core within the tray and calculating the volume. This method is believed tobe robust due to the use of large sample sizes.Bulk density values for oxidised and transitional material has been established fromweight records of the RC drilling bags, in the absence of drill core in weatheredlithologies. The data set of the RC drill bags has been calibrated using fresh granitic RCchips against the values of the core trays in order to eliminate records from intervalswith recoveries below 100%.
Classification	The basis for the classification of the MineralResources into varying confidence categories.Whether appropriate account has been taken of allrelevant factors (i.e.relative confidence intonnage/grade estimations, reliability of input data,confidence in continuity of geology and metal values,quality, quantity and distribution of the data).Whether the result appropriately reflects the CompetentPerson's view of the deposit.	The resource estimate has been classified as an Inferred Resource in accordance withthe JORC Code (2012). Classification was applied based on geological confidence,data quality and grade variability.
Audits orreviews	The results of any audits or reviews of MineralResource estimates.	The Mineral Resource has been internally reviewed by Snowden.

Criteria	JORC Code explanation	Commentary
Discussion ofrelativeaccuracy/confidence	Where appropriate a statement of the relative accuracyand confidence level in the Mineral Resourceestimateusing an approach or procedure deemed appropriate bythe Competent Person. For example, the application ofstatistical or geostatistical procedures to quantify therelative accuracy of the resource within statedconfidence limits, or, if such an approach is not deemedappropriate, a qualitative discussion of the factors thatcould affect the relative accuracy and confidence of theestimate.The statement should specify whether it relates toglobal or local estimates, and, if local, state the relevanttonnages, which should be relevant to technical andeconomic evaluation. Documentation should includeassumptions made and the procedures used.These statements of relative accuracy and confidenceof the estimate should be compared with productiondata, where available.	No studies of relative accuracy have been carried out. The classification applied reflectsthe confidence in the Mineral Resource.No production data is available.