PERSEUS MINING LIMITED — Management Reports 2018

Oct 28, 2018

29 October 2018

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NEWS RELEASE

Perseus Mining Updates Resources, Reserves and Life of Mine Plan at Sissingué

KEY POINTS

• Life of mine Ore Reserves as at 31 August 2018 total 380,000 ounces of gold, a 9% increase compared to Reserves as at 30 June 2018

• Life of mine production averaging 78,000 ounces per annum for remaining 4.6 years of mine life including 86,000 ounces per annum for the next three years

• Life of mine after tax cash flows from 1 July 2018 of US$165 million (A$234 million) at gold price of US$1,200 per ounce, approximately A$0.23 per share

• US$32.1 million (A$46 million) cash or 30% of development costs, generated in first six months of commercial production

• Forecast life of mine All in Sustaining Costs (“AISC”) of US$756 per ounce, reflecting actual operating costs and forecast sustaining capital requirements

• Sissingué updated Resource estimate reconciles to within 2% of actual mine production to date

• Exploration drilling results at Sissingué and nearby Fimbiasso have the potential to increase the remaining mine life beyond 4.6 years

Managing Director Jeff Quartermaine Comments:

“The upgraded Mineral Resources and Ore Reserve statements that we have released today indicate that our recent exploration programs have not only replaced the ore that has been processed since the mine was commissioned earlier this year but has also modestly increased the inventory. Going forward we expect that this pattern will be repeated with incremental increases in Mineral Resources and Ore Reserves being achieved through the drill out of satellite deposits resulting in an extension of Sissingué’s mine life well beyond the originally envisaged 5 year period.”

Perseus Mining Limited ABN 27 106 808 986 Level 2, 437 Roberts Road Subiaco WA 6008 PO Box 1578 Subiaco WA 6008 Telephone: +61 8 6144 1700 Facsimile: +61 8 6144 1799 Email: info@perseusmining.com Website: www.perseusmining.com

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EXECUTIVE SUMMARY

Perseus Mining Limited (ASX/TSX: PRU) is pleased to announce details of its updated Mineral Resources, Ore Reserves and Life of Mine Plan (“LOMP”) for the Sissingué Gold Mine in Côte d’Ivoire, West Africa.

• Mineral Resources for the Sissingué Gold Deposit have been independently estimated by MPR Geological Consultants Pty Ltd and reported outside the 31 August 2018 mining surface. Resources and Reserves for neighbouring deposits, Fimbiasso East and West, have not been updated;

• Measured and Indicated Mineral Resources for the Sissingué Gold Deposit total 7.7 million tonnes, grading 1.7 g/t gold and containing 423,000 ounces of gold at a cut-off grade of 0.6 g/t gold;

• Inferred Resources total 0.1 million tonnes, grading 0.9 g/t gold and containing 3,000 ounces of gold at a cut-off grade of 0.6 g/t gold;

• Mineral Resources have been estimated using Multiple Indicator Kriging (“MIK”) and are contained within optimal pit shells generated at a gold price of US$1,800 per ounce;

• Including the Fimbiasso East and West deposits, estimated Measured and Indicated Mineral Resources total 9.6 million tonnes, grading 1.8 g/t gold and containing 538,000 ounces of gold and Inferred Mineral Resources total 0.4 million tonnes grading 1.7 g/t gold and containing 20,000 ounces of gold;

• The Mineral Resources include Ore Reserves totalling 5.8 million tonnes of ore, grading 2.1 g/t gold and containing 380,000 ounces of gold;

• The LOMP for Sissingué has been updated using the re-estimated Mineral Resources and Ore Reserves;

• Sissingué’s estimated life of mine gold production from 1 July 2018 totals 357,000 ounces including approximately 86,000 ounces per annum for the first three years of production and approximately 78,000 ounces per annum over the current 4.6 year life of mine;

• Forecast average weighted AISC, including all direct production costs, royalties, waste stripping costs and sustaining capital expenditure, are estimated at approximately US$739 per ounce in the first three years of production and approximately US$756 per ounce over the current life of mine;

• The total sustaining capital cost estimate is US$21 million is included in the estimated AISC;

• The LOMP forecasts strong positive after tax cash flow totalling approximately US$165 million (or approximately A$0.23 per share at an A$:US$ exchange rate of 0.706), assuming a flat spot gold price of US$1,200 per ounce for unhedged ounces over the life of the mine starting from 1 July 2018 and assuming existing designated hedges for 64,000 ounces at a weighted average price of US$1,300 per ounce; and

• Recent exploration drilling on both the Sissingué Mining Lease and the nearby Fimbiasso Exploration Licence, all within trucking distance of the Sissingué processing facility, have the potential to further increases the mine life.

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1. Overview

The updated LOMP for Sissingué involves mining and processing of ore from three open pit mining areas based on the Sissingué, Fimbiasso East (previously Bélé East) and Fimbiasso West (previously Bélé West) mineral deposits as shown below in Figure 1.

Since publishing the previous LOMP for Sissingué in March 2017, mining and processing of ore at Sissingué has commenced. Perseus has recently completed a thorough review of all physical and cost parameters for the Sissingué operations and completed a review of the Resource Model to mill reconciliation.

Based on the review both the Mineral Resource and Ore Reserve have been updated and a new Life of Mine Plan produced as at the end of August 2018.

Figure 1: SGM layout

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Pit optimisation, design and scheduling used a gold price of US$1,200 per ounce and input parameters based on Sissingué’s operating experience and existing contracts. Based on the LOMP, the key forecast operating statistics for the SGM are summarised below in Table 1 .

2. Comparison of current updated LOMP relative to the previous LOMP

The current updated LOMP for Sissingué differs from the previous version of the LOMP that was published in March 2017, as shown below in Table 2 .

The main changes from the previous life of mine are the addition of three small satellite pits to the main Sissingué pit, an increase in mining and processing costs and an increase in recovery for specific ore types.

The changes are described in more detail in subsequent sections of the release.

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Table 1: Overview Key Parameters of the updated LOMP

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Parameter Units Average per year Total
Ex-Pit Mining FY19-21 [1,2] Life of Mine
Total ore + waste mined Mt 6.2 22.7
Waste mined Mt 4.6 17.0
Ore mined Mt 1.7 5.5
Head grade g/t gold 2.1 2.1
Strip ratio t:t 2.8 3.1
Processing
Quantity ore processed Mt 1.5 6.0
Head grade processed g/t gold 2.0 2.0
Contained gold ‘000 ounces 94 394
Gold recovery rate % 91.7 90.6
Gold production ‘000 ounces 86 357
Average mining costs US$/tonne mined 4.25 4.48
Average processing costs US$/tonne processed 13.32 14.94
Average general & administration (“G&A) costs US$/tonne processed 6.36 7.09
Production costs US$/ounce 636 650
Royalty US$/ounce 50 49
Sustaining capital US$/ounce 53 57
All-in site costs US$/ounce 739 756
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Notes:

1. Perseus has a financial year that ends on 30 June.

2. FY19 includes July and August 2018 actual results combined with LOMP data from 1 September 2018 onwards.

Table 2: Overview Key Parameters

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Current Previous % Change
Parameter Units
LOMP LOMP
Mining
Total ore + waste mined Mt 22.7 21.2 7
Waste mined Mt 17.0 15.9 7
Ore mined Mt 5.5 5.3 3
Head grade g/t gold 2.1 2.2 (5)
Strip ratio t:t 3.1 3.0 3
Processing
Quantity ore processed Mt 6.0 5.3 13
Head grade processed g/t gold 2.0 2.2 (7)
Contained gold ‘000 ounces 394 376 5
Gold recovery rate % 90.6 89.6 1
Gold production ‘000 ounces 357 337 6
Average gold production ‘000 ounces/ year 78 71 10
Operating and Capital Costs
Average mining costs US$/tonne mined 4.48 3.45 30
Average processing costs US$/tonne processed 14.94 13.61 10
Average Site G&A costs US$/tonne processed 7.09 6.88 3
Production costs US$/ounce 650 538 21
Royalty US$/ounce 49 49 (2)
Sustaining capital US$/ounce 57 38 53
All-in site costs US$/ounce 756 625 21
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3. Mineral Resources

The updated global Measured and Indicated Mineral Resource for Sissingué that combines the Sissingué and Fimbiasso East and West deposits is now estimated as 9.6 million tonnes grading at 1.8 g/t gold, containing 538,000 ounces of gold . A further 0.4 million tonnes of material grading at 1.7 g/t gold, containing 20,000 ounces of gold is classified as Inferred Resources. Details of these estimates are shown below in Table 3 and 4 .

Table 3: Measured and Indicated Mineral Resources – August 2018³[,] ⁴

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Measured + Indicated
Measured Resources Indicated Resources
Resources
Deposit
Deposit
Type Quantity Grade Gold Quantity Grade Gold Quantity Grade Gold
Mt g/t gold koz Mt g/t gold koz Mt g/t gold koz
Sissingué [1, 2, 3] Open Pit 7.2 1.7 402 0.5 1.4 22 7.7 1.7 423
Fimbiasso East [4, 5] Open Pit - - - 0.6 2.3 47 0.6 2.3 47
Fimbiasso West [4, 5] Open Pit - - - 0.9 2.0 61 0.9 2.0 61
Stockpiles 0.3 0.7 7 - - - 0.3 0.7 7
Total 7.5 1.7 408 2.0 2.0 130 9.6 1.8 538
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Table 4: Inferred Mineral Resources – August 2018³[,] ⁴

Deposit			Deposit Type Inferred Resources Quantity Grade Gold Mt g/t gold koz	Deposit Type Inferred Resources Quantity Grade Gold Mt g/t gold koz
Sissingué1, 2, 3 Fimbiasso East4, 5 Fimbiasso West4, 5			Open Pit 0.1 0.9 Open Pit 0.2 1.9 Open Pit 0.1 2.2	3 10 6
Total			0.4 1.7	20
Notes to Tables 3 and 4:
1. Based on September 2018 Mineral Resource model constrained to US$1,800/oz pit shell.
2. Depleted to	31		August 2018 mining surface.

3. 0.6g/t gold cut-off applied to in situ material.

4. Based on February 2017 Mineral Resource model constrained to US$1,800 pit shell, not updated. 5. 0.8g/t gold cut-off applied.

6. Mineral Resources current at 31 August 2018. 7. Mineral Resources are inclusive of Ore Reserves.

8. Rounding of numbers to appropriate precisions may have resulted in apparent inconsistencies.

9. Fimbiasso East and West were previously called Bélé East and West respectively.

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 quartz-feldspar 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

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alteration zones. Highest gold grades are typically associated with spaced quartz-carbonate veins and increased concentrations of arsenopyrite.

Drilling Techniques

The input dataset used for the Sissingué resource estimate contains 1,662 reverse circulation (RC) drill holes for 123,299 m, 379 diamond drill holes for 77,055 m and 18 diamond drill holes with RC pre-collars for 2,163 m. Assays from RAB, air core and grade control RC drill holes were not used to inform the resource estimate.

The better drilled gold mineralised zones are delineated by 20 metre north spaced east-west traverses of both westerly and easterly inclined holes. Hole spacings along drill traverses vary between 10 and 20 metres apart and extend vertically to a maximum of 300 metres below surface. Drill spacing at 40 metres by 40 metres, or broader, exists throughout the remainder of the study area.

RC drilling (5¼” diameter) was usually 80 m or less in depth. RC holes generally 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. Forty three holes were oriented by core spear and 217 holes were oriented by an “AceTool” device.

The steep dip 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

RC samples were collected at the drill site at 1 m intervals and sub-sampled using a multi-stage riffle splitter. Normally, each two consecutive sub-samples were combined into a single sample for analysis. 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. One metre samples were taken in fresh material and 1.5 metre in oxide and transition.

Both core and RC samples followed a sample preparation path comprising 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 selected for subsequent analysis of gold by fire assay.

Perseus observed that core and RC samples showed 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 clayey material. All RC holes in the area of the main deposit 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. Additional diamond core drilling was undertaken in 2016 to confirm mineralisation volumes and grades in the core of the deposit.

With the exception of the issue noted above, Perseus considers the sub-sampling is appropriate and drill hole data are representative.

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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, Ivory Coast).

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

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, as expected given the style of mineralisation.

Estimation Methodology

MPR Geological Consultants Pty Ltd were retained to update the estimates of Mineral Resources at Sissingué.

The mineralised domains used in the MIK model were interpreted on the basis of two metre down-hole composited gold grades, along with geological interpretations and weathering surfaces provided by Perseus. They capture the main zones of continuous gold mineralisation, predominantly associated with dykes or granites intruding sedimentary rocks. The domains trend grid north, extend over 2,100 metres and dip steeply to the west and east with horizontal widths varying between 5 to 30 metres for the dyke associated domains and up to 180 metres in width for the granite domains. Domains are interpreted to a maximum vertical depth of 280 metres. Grade control sampling and exposures of mineralisation rocks within the open pit currently being mined confirm the geometry of the mineralisation at the main Sissingué deposit.

MIK with block support adjustment was used to estimate gold resources into blocks with dimensions of 10 metres (east) by 20 metres (north) by 5 metres (elevation), considered appropriate given the spacing of data available to inform the estimates and the mining bench height presently used at Sissingué. MIK of gold grades used indicator variography based on the 2 metre resource composite sample grades. Gold grade continuity was characterised by indicator variograms at 14 indicator thresholds spanning the global range of grades in each of the mineralised domains.

The effect of extreme gold grades on the conditional statistics of data informing each of the estimation domains was considered. The effect of extreme grades on estimates was modified by selection of the median instead of the mean for the highest indicator class in selected domains.

The resource estimates include variance adjustments to give estimates of recoverable resources at gold cut offs assuming a mining selectivity of 3 by 8 by 2.5 metres (across strike, strike, vertical) and grade control using high quality sampling on a 6 by 8 by 1.5 metre pattern. The recoverable resource estimates can be reasonably expected to provide appropriately reliable estimates of potential mining outcomes at the assumed selectivity without application of additional mining dilution, or mining recovery factors.

Densities were assigned to the resource model based on data from drill core measurements and interpretations of five weathering horizons.

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The Mineral Resource estimates can be reasonably expected to provide appropriately reliable estimates of potential mining outcomes at the assumed selectivity without application of additional mining dilution or mining recovery factors.

Compositing and wire-framing were performed using Micromine software. Exploratory data analysis, variogram calculation and modelling, and resource estimation were performed using FSSI Consultants (Australia) Pty Ltd (FSSI) GS3M software.

The updated Mineral Resource estimates were compared to recent mine grade control and ore processing outcomes. The grade control modelling undertaken for validation was performed using MP3 grade control software. For material mined and processed in the period January to end of August 2018 the resource model predicts 2% lower grade and 2% less contained metal than was reported by reconciled processing records. It is not certain that such reliability will continue to apply.

Criteria for Mineral Resource Classification

The Sissingué Mineral Resource has been classified as Measured, Indicated and Inferred categories, in accordance with the 2012 JORC Code and the CIM Definition Standards (CIM, 2014). Criteria considered in determining this classification include geological and grade continuity, data quality and, primarily, drill hole spacing. Estimates for mineralisation tested by approximately 20 metres (north) by 20 metre (east) spaced drilling, or less, have been classified as Measured; areas of 40 metres (north) by 40 metres (east) drilling as Indicated. Estimates for broader and irregularly sampled mineralisation at depth and at the peripheries are assigned to the Inferred category and extrapolated to a maximum of around 40 metres from drilling.

Cut-Off Grade

The reporting cut-off is based on optimisation studies carried out by Perseus to update the Sissingué life-ofmine plan.

Potential for Eventual Economic Extraction

Open pit optimisations were run using current and forecast cost and processing parameters and a gold price of US$1,800 per ounce to define the base of potentially economic open-pittable material for the Mineral Resource.

Metallurgical test work undertaken as part of the Sissingué feasibility study and ore processing during the mine life to date indicate that gold can be satisfactorily recovered from Sissingué ore using conventional CIL extraction techniques. The work is considered sufficient to indicate that the Sissingué resource represents gold mineralisation potentially capable of economic extraction.

Comparison to Previous Estimates

The most recent previous estimate of Mineral Resources for Sissingué was that issued on 29 August 2018 in a market announcement titled “Perseus Mining Updates Mineral Resources & Ore Reserves”. In that release, in situ Measured and Indicated open pit resources at Sissingué remaining below the 30 June 2018 mining surface were estimated to total 10.8 million tonnes grading 1.7 g/t gold for 586,000 ounces of contained gold. The comparable estimate of Measured and Indicated resources remaining below the 31 August 2018 mining surface is 7.7 million tonnes grading 1.7 g/t gold and containing 424,000 ounces of gold.

Of the reduction in resources, material processed between 30 June and 31 August 2018 totalled 240,002 tonnes, grading 1.9 g/t gold and containing 14,516 ounces of gold. The majority of the reduction is primarily due to the reduced size of the US$1,800 per ounce pit shell used to constrain the Mineral Resource. The constraining pit shell has reduced in size largely due to a US$131 per ounce increase in operating costs compared to the previous optimisation; cost movements are covered in more detail below.

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It should be noted that criteria applied to the definition of Measured Resources have been changed from the previous Mineral Resource Estimate which has resulted in an increased proportion of the resource being classified as Measured Resources with a reduction in the proportion of Indicated Resources. However, the underlying data used for the current and previous resource estimates is largely unchanged.

The estimates of Mineral Resources at Fimbiasso East and West deposits remain unchanged from those listed in the 29 August 2018 market announcement.

4. Ore Reserves

Sissingué’s updated Ore Reserve which is summarised below in Table 5 is estimated at 5.8 million tonnes of ore, grading 2.1 g/t gold and containing 380,000 ounces of gold and is based on the re-estimated Sissingué Mineral Resource completed in August 2018 and updated pit optimisation, design and scheduling of the open pit resources. The Fimbiasso East and West Ore Reserves remain unchanged. Table 5 reports the Ore Reserves by category, deposit and type, above variable cut-off grades. The classification categories of Proved and Probable under the JORC Code are equivalent to the CIM categories of the same name (CIM, 2014).

Sissingué Reserves as at 30 June 2018 totalled 5.2 million tonnes of ore, grading 2.2 g/t gold and containing 632,000 ounces of gold. Adding back July and August 2018 production of 14,516 ounces the updated Reserves increased 9%. Reserves at the Sissingué Gold Deposit increased 11% from 3.9 million tonnes of ore, grading 2.2 g/t gold and containing 282,000 ounces of gold.

Table 5: Proved and Probable Ore Reserves - 31 August 2018¹ ² ⁶

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Deposit Deposit Type Proved Probable Proved + Probable
Quantity Grade Gold Quantity Grade Gold Quantity Grade Gold
Mt g/t gold koz Mt g/t gold koz Mt g/t gold koz
Sissingué [3,5 ] Open pit 4.3 2.1 289 0.1 2.1 10 4.4 2.1 299
Fimbiasso East [4,5,7 ] Open pit - - - 0.5 2.5 39 0.5 2.5 39
Fimbiasso West [3,4,8 ] Open pit - - - 0.5 2.1 35 0.5 2.1 35
Stockpiles Stockpile 0.3 0.7 7 - - - 0.3 0.7 7
Total 4.6 2.0 296 1.2 2.2 84 5.8 2.1 380
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Notes:

1. Numbers are rounded and may not add up correctly in the table

2. All the estimates are on a dry tonne basis

3. Based on August 2018 Mineral Resource estimate

4. Based on February 2017 Mineral Resource estimate

5. Variable gold cut-off grade based on material type and mining method

6. Inferred Mineral Resource is treated as waste

7. Fimbiasso East was previously called Bélé East

8. Fimbiasso West was previously called Bélé West

Proven and Probable Ore Reserves lie within the economic limits of three discrete open pit mining areas that have been designed based on Measured and Indicated Mineral Resources, a gold price of US$1,200 per ounce and mining, processing and general and administration costs derived from Sissingué operating experience.

Economic assumptions used for Ore Reserve Estimation

• a. Gold metal price US$1,200 per ounce.

• b. A discount rate of 10% (real) has been assumed to calculate net present values of forecast cash flows unless specified otherwise.

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• c. Un-escalated average costs used in optimising pit designs included:

Table 6: Operating costs (US$)

Deposit Mining Processing1,5 G&A Selling cost2 Royalty	Deposit Mining Processing1,5 G&A Selling cost2 Royalty	Deposit Mining Processing1,5 G&A Selling cost2 Royalty	Deposit Mining Processing1,5 G&A Selling cost2 Royalty	Deposit Mining Processing1,5 G&A Selling cost2 Royalty	Deposit Mining Processing1,5 G&A Selling cost2 Royalty
Sissingué3,4 4.28/t mined 14.56/t processed 6.37/t processed 2.24 per ounce sold 4.5% Fimbiasso East3,4 5.01/t mined 16.96/t processed 8.51/t processed 2.24 per ounce sold 4%
Fimbiasso West3,4	5.01/t mined	16.96/tprocessed	8.51/tprocessed	2.24per ounce sold	4%

Notes:

1. Processing cost per tonne includes selling costs.

2. Selling costs include bullion transportation and refining.

3. Royalty includes amounts paid to the State (3.5%) and community development fund (0.5%) for all deposits, and Franco Nevada (0.5%) and Ivorian parties (US$0.80 per ounce) on the Sissingué pit only.

4. Government royalty operates on a sliding scale as follows:

• a. 3.0%, where the spot sale price per ounce of gold is less than or equal to US$1,000;

• b. 3.5%, where the spot sale price per ounce of gold is more than US$1,000 and less than or equal to US$1,300; c. 4.0%, where the spot sale price per ounce of gold is more than US$1,300 and less than or equal to US$1,600; d. 5.0%, where the spot sale price per ounce of gold is more than US$1,600 and less than or equal to US$2,000; e. 6.0%, where the spot sale price of an ounce of gold is more than US$2,000.

5. The assumed processing cost per tonne is lower than the processing cost per tonne in Table 2 due to recent tendering processes for key commodities subsequent to completion of the Ore Reserve estimates.

Mining costs have increased from the previous LOM due to a significant increase in fuel cost ($0.60/L to $0.91/L), grade control cost (due to closer spacing of holes and an increase in the area drilled around ore blocks), labour costs (now based on actual salaries) and rehandle costs (now based on the operating experience).

Processing costs have increased largely due to the increase in fuel price (all power on site is diesel generated) and labour.

Sustaining capital has increased to US$21 million due to a number of factors including; additional capital to construct the road from Fimbiasso to Sissingué (the road now goes to the south via Kanakono and passes prospective exploration areas that may provide future ore and the new route will also greatly reduced heavy vehicle traffic on the public roads, rather than the north via Tengrela – as in Figure 1 ), allowance for Fimbiasso rehabilitation increased, cost of tailings lifts and mining contractor demobilisation reflect actual contract rates and the allowance for operational departments, particular plant maintenance has been increased.

Mining Parameters

• a. At Sissingué and Fimbiasso, the chosen method of mining is conventional open pit mining utilising hydraulic excavators and trucks, mining bench heights of 5 m in ore and 10 m in waste with 2.5 m flitches to minimise ore loss and waste rock dilution.

• b. The Sissingué and Fimbiasso optimisation cut-off grade calculations and pit designs were based on a gold price of US$1,200 per ounce. All financial evaluations were completed at US$1,200 per ounce.

• c. The economic pit shells were defined using Whittle 4X pit optimisation software (“Whittle 4X”) with inputs such as geotechnical parameters, ore loss and dilution, metallurgical recovery and mining costs.

• d. The pit optimisations were run with revenue generated only by Measured and Indicated Mineral Resources. No value was allocated to Inferred Mineral Resources.

• e. Whittle 4X input parameters were largely based on operating experience at Sissingué combined

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with supporting technical studies for those pits and ore types where mining or processing has not yet commenced.

• f. Geotechnical parameters for Sissingué vary depending on the material type and Pit Sector. The inter-ramp slope angles are between 38 to 53 degrees. Similarly slope angles at Fimbiasso vary between 38 and 56 degrees. The design slope angles have been modified slightly in oxide material to reflect operating experience to date.

• g. Appropriate mining modifying factors such as ore loss, dilution and design parameters were used to convert the Mineral Resource to an Ore Reserve.

• h. At Sissingué, the MIK resource model panel size is 10 m east x 20 m north x 5 m high. Dilution has been built into the model by applying a variance correction to estimated recoverable resources assuming an SMU size of 3 m east x 8 m north x 2.5 m high. Therefore, no additional dilution is factored into the conversion from the Sissingué Resource model to Ore Reserve. This approach is supported by reconciliation between the resource model and mill performance, with ounce production reconciling within 2%. At Fimbiasso East the SMU of 2.5 m east x 5 m north x 5 m high was selected resulting in approximately 3 % ore loss and 5 % mining dilution. For Fimbiasso West the SMU is 5 m east x 2.5 m north x 5 m high was selected, resulting in 6 % ore loss and 10 % mining dilution.

• i. Minimum mining width of 40 m was generally applied to the pit designs.

• j. The mine has been operating since November 2017 and processing began in January 2018 and all surface infrastructure required to enable the afore mentioned mining method is in place.

• k. There are no physical constraints to mining within the lease areas. No property, infrastructure or environmental issues are known to exist that may limit the extent of mining within the mining lease.

• l. Ore cut-off grades are based on the economic and mining parameters described above and are shown in Table 7 . The cut-offs are similar to the previous LOM, except for the Sissingué transition ore, where improved metallurgical recovery has reduced the cut-off grade.

Table 7: Cut-off Grades

Deposit	Cut-Off Grade by Ore Type (g/t gold)	Cut-Off Grade by Ore Type (g/t gold)	Cut-Off Grade by Ore Type (g/t gold)
	Oxide/Laterite	Transition	Granite/ Porphyry	Sediment	Mafic
Sissingué Fimbiasso East	0.45 0.65	0.70 1.00	0.85 1.05	1.05 NA	NA 1.20
Fimbiasso West	0.65	1.00	1.05	NA	1.20

Processing Parameters

• a. The Sissingué processing plant uses crushing, grinding, gravity recovery and cyanide leaching to extract gold. The plant has a nameplate throughput capacity of 1.8 million tonnes per annum on Sissingué oxide ore and 1.7 million tonnes per annum on Fimbiasso oxide ore and 1.0 million tonnes per annum on fresh ore. Sissingué ore will be processed before Fimbiasso ore. Sissingué ore will have a grind size of 106μm and Fimbiasso has a grind size of 75μm.

• b. The technology being used in the processing plant is well proven in many other operations globally.

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• c. Operating experience has been used to determine the processing parameters for the ore types treated to date. Where no experience exists, processing test work representative of the different material types throughout the mining areas has been used to determine the processing parameters.

• d. No deleterious material has been identified.

• e. The process metallurgical recovery for gold is fixed by material type. Recoveries from oxide and transition Sissingué ores have been increased based on operating experience and are shown in Table 8 .

Table 8: Recoveries

Deposit	Cut-Off Grade by Ore Type (g/t gold)	Cut-Off Grade by Ore Type (g/t gold)	Cut-Off Grade by Ore Type (g/t gold)
	Oxide/Laterite	Transition	Granite/ Porphyry	Sediment	Mafic
Sissingué Fimbiasso East	95 94	92 93	90 91	85¹ NA	NA 91
Fimbiasso West	94	93	91	NA	91

Notes:

1. Average recovery based on the formula of log (Au x 7.63) + 78.5.

Pit Design

• a. Pit designs at Sissingué have been updated based on the latest optimisation results, incorporating the parameters described above.

• b. The main Sissingué Pit design has been modified to incorporate a ramp in both the east and west walls of the final (Stage 3) cut-back, based on geotechnical performance of the pit to date.

• c. Three small satellite pits close to the main Sissingué Pit have been added, based on the new resource model and updated parameters.

Classification

• a. Ore Reserves have been classified based on the underlying Mineral Resource classifications and the level of detail in the mine planning. The Mineral Resources were classified as Measured, Indicated and Inferred. The Ore Reserves, based only on the Measured and Indicated Resources, have been classified as Proved and Probable Ore Reserves, respectively.

• b. The Ore Reserve is classified as Proved and Probable in accordance with the JORC Code, corresponding to the Mineral Resource classifications of Measured and Indicated and taking into account other factors where relevant. Each deposit’s geological model is well constrained. The Ore Reserve classification is considered appropriate given the nature of the deposits, the moderate grade variability, drilling density, structural complexity and mining history. Therefore, it was deemed appropriate to use Measured Mineral Resources as a basis for Proved Reserves and Indicated Mineral Resources as a basis for Probable Reserves.

• c. No Inferred Mineral Resources were included in the Ore Reserve estimate.

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5. Gold production profile

With the aim of maximising the return on funds employed at the SGM, the mining sequence of the pits along with mill feed profile has been optimised and scheduled. The result of this scheduling is that the gold production profile and resulting cash flows from the SGM remain strong for the remainder of the mine life. (Refer to Figures 2, 3 and 4 below.)

The schedule involves mining the 3 satellite pits in consecutive dry seasons and completing mining the main Sissingué Pit before mining of the Fimbiasso Pits takes place.

Ore is stockpiled where the mining rate exceeds the processing rate, with the highest ore grade material fed to the processing plant preferentially.

Figure 2: Sissingué Gold Mine - scheduled monthly material movement ex-pit (tonnes)

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800
700
600
500
400
300
200
100
0
SIS_STG1 SIS_STG2 SIS_FINAL SIS_SS1 SIS_SS2 SIS_SS3 FBE_FINAL FBW_FINAL
Figure 3: Sissingué Gold Mine – Monthly tonnes and grade to Mill
180 3.5
160
3.0
140
2.5
120
100 2.0
80 1.5
60
1.0
40
0.5
20
- 0.0
FEED Grade
Figure 4: Sissingué Gold Mine – Gold Production by Pit
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
SIS oz Bel oz
Thousands tonnes
09/18 11/18 01/19 03/19 05/19 07/19 09/19 11/19 01/20 03/20 05/20 07/20 09/20 11/20 01/21 03/21 05/21 07/21 09/21 11/21 01/22 03/22 05/22 07/22 09/22 11/22 01/23
Thousands tonnes
09/18 11/18 01/19 03/19 05/19 07/19 09/19 11/19 01/20 03/20 05/20 07/20 09/20 11/20 01/21 03/21 05/21 07/21 09/21 11/21 01/22 03/22 05/22 07/22 09/22 11/22 01/23
oz
09/18 11/18 01/19 03/19 05/19 07/19 09/19 11/19 01/20 03/20 05/20 07/20 09/20 11/20 01/21 03/21 05/21 07/21 09/21 11/21 01/22 03/22 05/22 07/22 09/22 11/22 01/23
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6. Future Cash Flows and Sensitivity Analysis

Based on the LOM gold production and cost parameters, the net after tax cash flows forecast to be generated by Sissingué from 1 July 2018 (includes actuals for July and August and LOM plan forecasts from 1 September 2018), at US$1,200 per ounce gold price, are estimated to total US$165 million (A$234 million) or approximately A$0.23 per share (assuming an A$:US$ exchange rate of 0.706).

Forecast LOM net after tax cash flows from 1 October 2018, at US$1,200 per ounce gold price, are estimated to total US$152 million having generated US$32.1 million in cash or 30% of the development cost in the first six months since commercial production commenced.

The sensitivity analysis shown below in Table 9 summarises the sensitivity of the Sissingué’s net after tax cash flows to movements in the gold price. Within an expected short-term trading range of US$1,100 per ounce to US$1,300 per ounce, the projected cash flows of the mine remain robust and together with strong cash flows from Perseus’s producing Edikan Gold Mine in Ghana, is capable of materially contributing to the development funding of Perseus’s third project, namely the Yaouré Gold Mine, also located in Côte d’Ivoire.

Table 9: Sensitivity of SGM’s After Tax Cash flow and NPV to gold price movements

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Gold Price
US$1,100/ounce US$1,200/ounce US$1,300/ounce
After Tax Cash Flow [1] USD million 137 165 191
Net Present Value [2] USD million 125 150 173
Net Present Value [3] USD million 115 138 159
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Notes:

1. Cash Flows include actuals for July and August 2018 and forecast LOM cash flows from 1 September 2018

2. Using a discount rate of 5%.

3. Using a discount rate of 10%.

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

General Manager BD & IR:

Andrew Grove at telephone +61 8 6144 1700 or email andrew.grove@perseusmining.com

Media Relations:

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

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Caution Regarding Forward Looking Information :

This report contains forward-looking information which is based on the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management of the Company believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Assumptions have been made by the Company regarding, among other things: the price of gold, continuing commercial production at the Edikan Gold Mine and the Sissingué Gold Mine without any major disruption, development of a mine at Yaouré, the receipt of required governmental approvals, the accuracy of capital and operating cost estimates, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used by the Company. Although management believes that the assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such 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.

Competent Person Statement

All production targets for Sissingué referred to in this report are underpinned by estimated Ore Reserves which have been prepared by competent persons in accordance with the requirements of the JORC Code.

Mr Nicolas Johnson, MAIG, has updated estimates of Mineral Resources at Sissingué Gold Mine. Mr Johnson is an employee of MPR Geological Consultants Pty Ltd. Mr Johnson has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he has undertaken to qualify as a Competent Person as defined in the JORC Code2012 and a Qualified Person as defined in NI43-101. Mr Johnson has no economic, financial or pecuniary interest in the company and consents to the inclusion in this report of the matters based on this information in the form and context in which it appears and has approved the inclusion of technical and scientific information in this report.

Mr Gary Brabham , FAusIMM, MAIG, has provided the drill hole data and geological interpretations pursuant to estimation of Mineral Resources at Sissingué Gold Mine. Mr Brabham has also compiled and reviewed the consolidated information in this report concerning the Mineral Resources of the Sissingué Gold Mine. Mr Brabham is the Group Geologist for Perseus Mining Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken to qualify as a Competent Person as defined in the JORC Code 2012 and a Qualified Person as defined in NI43-101. Mr Brabham consents to the inclusion in this report of the matters based on this information in the form and context in which it appears and has approved the inclusion of technical and scientific information in this report.

Mr Paul Thompson , who is a Fellow of the Australasian Institute of Mining and Metallurgy and is an employee of Perseus Mining Limited has compiled and reviewed the consolidated information on the Ore Reserves of the Sissingué Gold Mine in this report. Mr Thompson has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the JORC Code 2012 and a Qualified Person as defined in NI43-101 and consents to the inclusion in this report of the matters based on this information in the form and context in which it appears and has approved the inclusion of technical and scientific information in this report.

The JORC Table 1 contained in Appendix 1 refers to the Sissingué Mineral Resource and Ore Reserves only. In respect of the Fimbiasso East and West deposits, previously Bélé East and West respectively, the Company confirms that material assumptions underpinning the estimates of Mineral Resources and Ore Reserves described in market announcements dated 20 February 2017 and 31 March 2017 respectively continue to apply with the exception that the reported resources are now constrained to a US$1,800/oz pit shell as advised in a market announcement dated 29 August 2018 .

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1. Appendix 1: JORC Table 1 For Sissingué

1.1 Sissingué JORC Code 2012 Section 1 Sampling Techniques and Data

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Criteria JORC Code explanation Commentary
Sampling  Nature and quality of sampling (e.g.  Data used for estimating Mineral Resources at
techniques cut channels, random chips, or Sissingué include:
specific specialised industry standard o 123,299 metres of RC drilling in 1,662 RC
measurement tools appropriate to the holes.
minerals under investigation, such as
o 77,055 metres of diamond core drilling in
downhole gamma sondes, or
379 holes.
handheld XRF instruments, etc.).
These examples should not be taken o 2,163 metres of drilling in 18 diamond core
as limiting the broad meaning of holes with RC pre-collars.
sampling.  RC drill holes were sampled in 1 m Intervals with the
 Include reference to measures taken majority composited to 2 m samples (by weighing)
to ensure sample representivity and prior to submission for assay. Selected infill drill
the appropriate calibration of any holes were submitted as 1 m samples. One and 2 m
measurement tools or systems used. sub-sample weights nominally of 2.5 kg and 5 kg
 Aspects of the determination of respectively.
mineralisation that are Material to the  Half-core from diamond drill holes was submitted for
Public Report. assay (‘right’ side systematically taken; 1.5 m in
 In cases where ‘industry standard’ oxide and transition, 1 m in fresh).
work has been done this would be  40 or 50 g charge produced for fire assay.
relatively simple (e.g. ‘reverse
circulation drilling was used to obtain
1 m samples from which 3 kg was
pulverised to produce a 30 g charge for
fire assay’). In other cases more
explanation may be required, such as
where there is coarse gold that has
inherent sampling problems. Unusual
commodities or mineralisation types
(e.g. submarine nodules) may warrant
disclosure of detailed information.
Drilling  Drill type (e.g. core, reverse circulation,  RC drilling (5¼” diameter), usually 80 m or less in
techniques open-hole hammer, rotary air blast, depth. Generally RC holes have collar azimuth and
auger, Bangka, sonic, etc.) and details inclination only measured.
(e.g. core diameter, triple or standard
 Diamond drilling, HQ in weathered rock, NQ in fresh
tube, depth of diamond tails, face-
rock. All diamond holes downhole surveyed at 30 m
sampling bit or other type, whether
intervals.
core is oriented and if so, by what
method, etc.).  oriented by 43 core holes oriented by core spear; 217 holes “AceTool” device.
Drill sample  Method of recording and assessing  1 m RC samples weighed and composited to 2 m.
recovery core and chip sample recoveries and  Length of recovered diamond core measured and
results assessed.
recovery calculated based on run length; close to
 Measures taken to maximise sample 100% recovery for virtually all core in fresh rock.
recovery and ensure representative  There is no evident relationship between sample
nature of the samples. recovery and grade for diamond drilling.
 Whether a relationship exists between
sample recovery and grade and
whether sample bias may have
occurred due to preferential loss/gain
of fine/coarse material.
Logging  Whether core and chip samples have  RC drill chip boards were prepared and the chips
been geologically and geotechnically logged geologically, including rock type, alteration
logged to a level of detail to support type and intensity (where recognisable), vein quartz
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Criteria	JORC Code explanation	Commentary
	appropriate Mineral Resource estimation, mining studies and metallurgical studies.  Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.  The total length and percentage of the relevant intersections logged.	content in estimated percentage, sulphide mineralisation and estimated content, and weathering domain.  Diamond drill core was geologically and structurally logged and photographed, before being sawn in half, including fault, fold, cleavage and joint orientation, lithological contacts, vein orientation and bedding. Logged items are lithology, weathering, colour, grain size, vein type and vein volume percentage, sulphide mineralisation and their estimated percentage, alteration and alteration intensity.  All sample intervals in both RC and diamond holes were sampled and assayed.  Logging is considered appropriate and reliable.
Sub-sampling techniques and sample preparation	 If core, whether cut or sawn and whether quarter, half or all core taken.  If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.  For all sample types, the nature, quality and appropriateness of the sample preparation technique.  Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.  Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.  Whether sample sizes are appropriate to the grain size of the material being sampled.	 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. Wet samples were sub-sampled using a spear.  Diamond core sawn in half using a motorized diamond blade saw; right half sent for assaying, left half stored in core trays for reference.  Both core and RC samples followed a standard path of 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 µm.  Some RC samples at depth were identified as having downhole contamination and resultant smearing of grades as a result of wet drilling in clayey material. As a result of this, all RC holes in the main Sissingué deposit 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. Additional diamond core drilling was undertaken in 2016 to confirm mineralisation volumes and grades in the core of the deposit.  With the exception of the issue noted above, the sub-sampling is considered appropriate and representative.
Quality of assay data and laboratory tests	 The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.  For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.  Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lackofbias) and	 A small number of initial holes were assayed by bottle roll cyanide extraction which was found 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 other tests have been carried out throughout the drilling programs.  QAQC shows no bias, but only moderate

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Criteria JORC Code explanation Commentary
precision have been established. reproducibility, particularly at high grades. This is as
expected with the nugget mineralisation.
 Overall assaying quality is considered acceptable
with the exception of the potential smearing in some
RC samples that were subsequently removed from
the dataset prior to estimation as described above.
Verification of  The verification of significant  During the 2016 drilling program, Perseus drilled a
sampling and intersections by either independent or number of diamond drill holes to confirm the grade
assaying alternative company personnel. tenor and check RC drill holes suspected of
 The use of twinned holes. downhole contamination and smearing. As a result of
this program, approximately 5% of RC samples were
 Documentation of primary data, data removed from the dataset where the RC grades were
entry procedures, data verification,
not supported by the diamond core drilling.
data storage (physical and electronic)
 Drill hole information for both RC and diamond core
protocols.
holes is captured at the drill site on paper.
 Discuss any adjustment to assay data.
 All hard copies are handed over to the database
administrator in Tengréla site office and the
information provided on paper is entered into a digital
relational database.
 All hard copies are kept in Tengréla site office.
 Downhole survey data and collar survey data are
provided by the drilling contractors and surveyors
respectively in digital format.
 Perseus maintains a centralised database for its
various operations in Ghana and Côte d’Ivoire.
Database administration is based in Perseus’ head
office in Accra/Ghana and under the supervision of
the company’s Resource Geologist.
 No adjustments were made to the raw assay data
with the exception of the removal of any RC
samples with suspected smearing of grades as
previously discussed. Top cutting is only applied
after database compositing and statistical analysis
and prior to resource estimation.
Location of  Accuracy and quality of surveys used  All RC and diamond holes were surveyed using
data points to locate drill holes (collar and differential GPS, until September 2009 by a certified
downhole surveys), trenches, mine contract surveyor (SEMS Exploration Services Ltd,
workings and other locations used in Ghana). Drill holes between September 2009 and
Mineral Resource estimation. October 2010 were surveyed by CBM Surveys Ltd of
 Specification of the grid system used. Ghana. All subsequent drill holes were surveyed by
the company’s surveyor.
 Quality and adequacy of topographic
control.  Grid system used is WGS84 UTM 29N with an
arbitrary local elevation datum.
 The topography covering the extent of the Sissingué
Mineral Resource model was created as a digital
terrain model (DTM) using the drill hole collar data,
an additional 639 survey points across the prospect
and, elsewhere, SRTM 90m spaced spot heights
adjusted to local height datum.
Data spacing  Data spacing for reporting of  Data spacing for resource estimation varies from
and Exploration Results. 10 m x 10 m to 20 m x 20 m for most areas of the
distribution  Whether the data spacing and deposit.
distribution is sufficient to establish  Where data spacing is wider (to a maximum of
the degree of geological and grade 40 m x 40 m), an Inferred classification is used.
continuity appropriate for the Mineral  Data spacing is sufficient to establish grade and
Resource and Ore Reserve
geological continuity appropriate to the resource
estimation procedure(s) and
estimation procedures and classifications applied.
classifications applied.
 Samples have been composited (by computer) to
 Whether sample compositing has been
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Criteria	JORC Code explanation	Commentary
	applied.	2 m, honouring geological/mineralisation domains.
Orientation of data in relation to geological structure	 Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.  If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	 Orientation of drilled section lines is dominantly at right angles to the strike of the geology and mineralisation domains.  Drillholes are angled to cross the sub-vertical dip of the geological domains.  Mineralised veins and their alteration selvages occur at various orientations within the overall mineralised zones; the estimation method is considered to account for this.
Sample security	 The measures taken to ensure sample security.	 Samples from RC drilling were collected and bagged at drill site during the drilling operation. Core samples were cut in a central facility in Tengréla and samples placed into sample bags as they were cut.  All samples catalogued and placed in large woven bags and sealed prior to dispatch to ALS, Intertek or BVML for preparation and analysis.  Dispatch from site to Korhogo (Intertek) was undertaken by Perseus staff and vehicles.  Samples dispatched to ALS and BVML were collected from Tengréla by staff and vehicles of the respective laboratories.  All aspects of the process were supervised by Perseus personnel and limited opportunity exists for tampering with samples.
Audits or reviews	 The results of any audits or reviews of sampling techniques and data.	 Steffen Brammer of Perseus reviewed sampling techniques and quality control data during regular site visits between 2008 and 2013, and considered them adequate.  Reviews were also carried out by Runge Limited during 2009 and 2010 and by Widenbar & Associates in October 2012 with acceptable conclusions.  Gary Brabham of Perseus has reviewed sampling techniques and quality control data between 2016 and 2018 with acceptable conclusions.

1.2 Sissingué JORC Code 2012 Section 2 Reporting of Exploration Results

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Criteria JORC Code explanation Commentary
Mineral  Type, reference name/number, location and  The Sissingué Mineral Resource lies
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Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary
Mineral	 Type, reference name/number, location and	 The Sissingué Mineral Resource lies
tenement and land tenure status	ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	within mining permit PE39 (Permit d’Exploitation Sissingué).  Perseus holds an 86% interest in PE39 through the Company’s wholly owned subsidiary Perseus Mining Côte d’Ivoire SA. The government of Côte d’Ivoire holds a 10% free carried interest in the property and the remaining 4% interest is held by local joint venture partner Société Minière de Côte d’Ivoire (SOMICI).  The mining permit is valid until 8 August 2022 and is renewable.

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Criteria JORC Code explanation Commentary
 The Government of Côte d’Ivoire is
entitled to a royalty on production as
follows:
.
Spot price per ounce - Royalty
London PM Fix Rate
Less than or equal to
3%
US$1000
Higher than US$1000
and less than or equal 3.5%
to US$1300
Higher than US$1300
and less than or equal 4%
to US$1600
Higher than US$1600
and less than or equal 5%
to US$2000
Higher than US$2000 6%
 Franco Nevada are entitled to a
0.5% royalty on production.
 The Sissingué Project area has no
known environmental liabilities.
Exploration  Acknowledgment and appraisal of exploration by  Historical exploration over the
done by other other parties. Sissingué permit is limited to regional
lag sampling by Randgold Resources
parties
during the 1990’s.
 That work identified a number of
target areas for gold but did not locate
the main Sissingué gold deposit.
Geology  Deposit type, geological setting and style of  The Sissingué Deposit occurs in a
mineralisation. strongly deformed Birimian greenstone
belt intruded by quartz-feldspar
porphyry dykes and granitoid bodies.
 Gold mineralisation at Sissingué is
associated with the porphyritic dykes
and small granitoid (tonalite) bodies
that cross cut sedimentary rocks.
 Subsequent hydrothermal activities
and metasomatism of the tonalites has
led to a sericite-carbonate alteration
within the intrusives and the more
permeable horizons (sandstones and
conglomerates) of the sedimentary
rocks, and a low to moderate grade
disseminated gold mineralisation.
 Late stage high grade Au-As-quartz-
carbonate veins exploited the altered
and brittle portions of the intrusives
and sediments with common
occurrences of visible gold.
Drill hole  A summary of all information material to the  Exploration results are not being
Information understanding of the exploration results including a reported for the Mineral Resource
tabulation of the following information for all area.
Material drill holes:
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Criteria JORC Code explanation Commentary
 Easting and northing of the drill hole collar.
 Elevation or RL (Reduced Level – elevation above
sea level in metres) of the drill hole collar.
 Dip and azimuth of the hole.
 Downhole length and interception depth.
 Hole length.
 If the exclusion of this information is justified on the
basis that the information is not Material and this
exclusion does not detract from the understanding of
the report, the Competent Person should clearly
explain why this is the case.
Data  In reporting Exploration Results, weighting  Exploration results are not being
aggregation averaging techniques, maximum and/or minimum reported for the Mineral Resource
methods grade truncations (e.g. cutting of high grades) and area.
cut-off grades are usually Material and should be
stated.
 Where aggregate intercepts incorporate short
lengths of high grade results and longer lengths of
low grade results, the procedure used for such
aggregation should be stated and some typical
examples of such aggregations should be shown in
detail.
 The assumptions used for any reporting of metal
equivalent values should be clearly stated.
Relationship  These relationships are particularly important in the  Exploration results are not being
between reporting of Exploration Results. reported for the Mineral Resource
mineralisation  If the geometry of the mineralisation with respect to area.
widths and the drill hole angle is known, its nature should be  Orientation of drilled section lines is
intercept reported. dominantly at right angles to the strike
lengths  If it is not known and only the downhole lengths are of the geology and mineralisation
domains.
reported, there should be a clear statement to this
effect (e.g. ‘downhole length, true width not known’).  Drillholes are angled to cross the sub-
vertical dip of the geological domains.
Diagrams  Appropriate maps and sections (with scales) and  Location plans and example sections
tabulations of intercepts should be included for any are included in the Mineral Resource
significant discovery being reported These should technical documentation.
include, but not be limited to a plan view of drill hole
collar locations and appropriate sectional views.
Balanced  Where comprehensive reporting of all Exploration  Exploration results are not being
reporting Results is not practicable, representative reporting of reported for the Mineral Resource
both low and high grades and/or widths should be area.
practiced to avoid misleading reporting of
Exploration Results.
Other  Other exploration data, if meaningful and material,  Exploration results are not being
substantive should be reported including (but not limited to): reported for the Mineral Resource
exploration geological observations; geophysical survey results; area.
data geochemical survey results; bulk samples – size and
method of treatment; metallurgical test results; bulk
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
Further work  The nature and scale of planned further work (eg  Exploration results are not being
tests for lateral extensions or depth extensions or reported for the Mineral Resource
large-scale step-out drilling). area.
 Diagrams clearly highlighting the areas of possible  Sissingué mine has been operating
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Criteria JORC Code explanation Commentary
extensions, including the main geological since early 2018. Estimates of
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	extensions, including the main geological	since early 2018. Estimates of
	interpretations and future drilling areas, provided	Mineral Resources and Mineral
	this information is not commercially sensitive.	Reserves are progressively updated
		as new information comes to hand.
		Exploration over possible satellite
		deposits is on-going.

1.3 Sissingué JORC Code 2012 Section 3 Estimation and Reporting of Mineral Resources

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Criteria JORC Code explanation Commentary
Database  Measures taken to ensure that data has  Perseus maintains a centralised database for its
integrity not been corrupted by, for example, various operations in Ghana and Côte d’Ivoire.
transcription or keying errors, between Database administration is based in Perseus’ office
its initial collection and its use for in Accra, Ghana under the supervision of the
Mineral Resource estimation purposes. company’s Resource Geologist.
 Data validation procedures used.  Perseus carried out detailed validation of the
dataset and retains overall responsibility for the
reliability of data that inform the resource estimate.
All drill hole data were validated during 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).
 Additionally, Perseus carried out statistical and
visual validation prior to estimation 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 irreconcilable issues were found and the data
are considered appropriate for resource estimation.
Site visits  Comment on any site visits undertaken  Gary Brabham of Perseus has visited Sissingué on
by the Competent Person and the six occasions between June 2016 and May 2018.
outcome of those visits.
 If no site visits have been undertaken
indicate why this is the case.
Geological  Confidence in (or conversely, the  The controls on gold mineralisaiton at the main
uncertainty of) the geological Sissingué deposit and nearby smaller deposits are
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Criteria	JORC Code explanation	Commentary
interpretation	interpretation of the mineral deposit.  Nature of the data used and of any assumptions made.  The effect, if any, of alternative interpretations on Mineral Resource estimation.  The use of geology in guiding and controlling Mineral Resource estimation.  The factors affecting continuity both of grade and geology.	understood with reasonable confidence.  Drill hole logs were used to guide 3D interpretation of quartz-feldspar porphyry dykes and granite intrusions that are key controls on mineralisation.  Drill hole logs were also used to guide interpretations of surfaces delineating of laterite, completely weathered, upper transition, lower transition and fresh rock weathering horizons.
Dimensions	 The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.	 The mineralised domains used in the MIK model were interpreted on the basis of two metre down- hole composited gold grades to capture the main zones of continuous gold mineralisation predominantly associated with dykes or granites intruding sedimentary rocks. The domains trend grid north, extend over 2,100 metres strike and dip steeply to the west and east with horizontal widths varying between 5 to 30 metres for the dyke associated domains and up to 180 metres in width for the granite domains. Domains are interpreted to a maximum vertical depth of 280 metres.
Estimation and modelling techniques	 The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used.  The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.  The assumptions made regarding recovery of by-products.  Estimation of deleterious elements or other non-grade variables of economic significance (e.g. sulphur for acid mine drainage characterisation).  In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.  Any assumptions behind modelling of selective mining units.  Any assumptions about correlation between variables.  Description of how the geological interpretation was used to control the resource estimates.  Discussion of basis for using or not using grade cutting or capping.	Estimation:  Multiple Indicator Kriging with block support adjustment was used to estimate gold resources into blocks with dimensions of 10 metres (east) by 20 metres (north) by 5 metres (elevation), considered appropriate given the spacing of data available to inform the estimates and the mining bench height presently used at Sissingué. MIK of gold grades used indicator variography based on 2 metre resource composite sample grades. Gold grade continuity was characterised by indicator variograms at 14 indicator thresholds spanning the global range of grades in each of the mineralised domains.  The effect of extreme gold grades on the conditional statistics of data informing each of the estimation domains was considered. The effect of extreme grades on estimates was modified by selection of the median instead of the mean for the highest indicator class in selected domains.  The resource estimates include variance adjustments, including for Information Effect, to give estimates of recoverable resources at gold cut offs assuming a mining selectivity of 3 by 8 by 2.5 metres (across strike, strike, vertical) and grade control using high quality sampling on an 6 by 8 by 1.5 metre pattern. The recoverable resource estimates can be reasonably expected to provide appropriately reliable estimates of potential mining outcomes at the assumed selectivity without application of additional mining dilution, or mining recovery factors.  Densities were assigned to the resource model based on data from drill core measurements and interpretations of five weathering horizons.  Data viewing, compositing and wire-framing were

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Criteria JORC Code explanation Commentary
 The process of validation, the checking undertaken using Micromine software. Exploratory
process used, the comparison of model data analysis, variogram calculation and modelling,
data to drill hole data, and use of and resource estimation were performed using
reconciliation data if available. FSSI Consultants (Australia) Pty Ltd (FSSI) GS3M
software.
Validation:
The Sissingué resource model was validated by:
 Visual inspection of the model against the informing
sample data.
 Comparison of resource estimates against grade
control models over the volume mined to end of
August 2018.
 Comparison of both resource and grade control
estimates to tonnes processed and gold produced
during the life of mine to end of August 2018.
 The estimates of recoverable resources reconcile
well with mining outcomes to date.
Moisture  Whether the tonnages are estimated on  Tonnages are reported on a dry basis.
a dry basis or with natural moisture, and
the method of determination of the
moisture content.
Cut-off  The basis of the adopted cut-off  The cut-off grade for reporting of resources is
parameters grade(s) or quality parameters applied. based on inputs to optimisation studies carried out
as part of the 2018 update of the Sissingué life-of-
mine plan. Study, which have suggested that the
deposit can be economically extracted at a gold cut-
off in the range 0.4 to 0.6 g/t.
Mining factors  Assumptions made regarding possible  Open pit optimisations were run using current and
or assumptions mining methods, minimum mining forecast cost and processing parameters and a gold
dimensions and internal (or, if price of USD1,800 to define the base of potentially
applicable, external) mining dilution. It is economic open-pittable material for the Mineral
always necessary as part of the process Resource.
of determining reasonable prospects for
eventual economic extraction to
consider potential mining methods, but
the assumptions made regarding mining
methods and parameters when
estimating Mineral Resources may not
always be rigorous. Where this is the
case, this should be reported with an
explanation of the basis of the mining
assumptions made.
Metallurgical  The basis for assumptions or predictions  Metallurgical test work conducted as part of the
factors or regarding metallurgical amenability. It is Sissingué feasibility study and ore processing
assumptions always necessary as part of the process during the mine life to date indicate that gold can be
of determining reasonable prospects for satisfactorily recovered from Sissingué ore using
eventual economic extraction to conventional CIL extraction techniques. The work
consider potential metallurgical is considered sufficient to determine that the
methods, but the assumptions regarding Sissingué resource represents a deposit capable of
metallurgical treatment processes and economic extraction.
parameters made when reporting
Mineral Resources may not always be
rigorous. Where this is the case, this
should be reported with an explanation
of the basis of the metallurgical
assumptions made.
Environmental  Assumptions made regarding possible  Perseus has been issued with an Environmental
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Criteria JORC Code explanation Commentary
factors or waste and process residue disposal Permit and all other permits required to develop
assumptions options. It is always necessary as part of and operate an open pit mine and ore processing
the process of determining reasonable facility at Sissingué.
prospects for eventual economic
extraction to consider the potential
environmental impacts of the mining and
processing operation. While at this stage
the determination of potential
environmental impacts, particularly for a
greenfields project, may not always be
well advanced, the status of early
consideration of these potential
environmental impacts should be
reported. Where these aspects have not
been considered this should be reported
with an explanation of the environmental
assumptions made.
Bulk density  Whether assumed or determined. If  A total of 770 bulk density measurements are
assumed, the basis for the available from HQ and NQ drill core using the water
assumptions. If determined, the method displacement method.
used, whether wet or dry, the frequency  380 results are from oxide material, 132 from
of the measurements, the nature, size transitional material and 258 from fresh material.
and representativeness of the samples.
 After discarding possibly erroneous high and low
 The bulk density for bulk material must
values, mean densities were calculated and applied
have been measured by methods that
to each of the weathering horizons:
adequately account for void spaces
(vugs, porosity, etc.), moisture and o Laterite 1.85 t/ cu m
differences between rock and alteration o Completely weathered (oxide) 1.77 t/cu m
zones within the deposit. o Upper transition 2.05 t/cu m
 Discuss assumptions for bulk density o Lower transition 2.40 t/cu m
estimates used in the evaluation
process of the different materials. o Fresh rock 2.73 t/cu m
 The densities are supported by 294 bulk density
measurements undertaken using the water
displacement method of material exposed during
mining at Sissingué to 18 August 2018.
Classification  The basis for the classification of the  The Sissingué Mineral Resource has been
Mineral Resources into varying classified as Measured, Indicated and Inferred
confidence categories. categories, in accordance with the 2012 JORC
 Whether appropriate account has been Code and the CIM Definition Standards (CIM,
2005). Criteria considered in determining the
taken of all relevant factors (ie relative
classifications include geological and grade
confidence in tonnage/grade
continuity, data quality and, primarily, drill hole
estimations, reliability of input data,
spacing. Estimates for mineralisation tested by
confidence in continuity of geology and
approximately 20 metres (north) by 20 metre (east)
metal values, quality, quantity and
spaced drilling, or less, have been classified as
distribution of the data).
Measured; areas of 40 metres (north) by 40 metres
 Whether the result appropriately reflects (east) drilling as Indicated. Estimates for broader
the Competent Person’s view of the and irregularly sampled mineralisation at depth and
deposit. at the peripheries are assigned to the Inferred
category and extrapolated to a maximum of around
40 metres from drilling.
 Trial optimisations have been run at a USD1,800
gold price to define the base of material potentially
mineable by open pit mining.
 The Competent Person endorses the final results
and classification.
Audits or  The results of any audits or reviews of  The Mineral Resource estimation procedure and
reviews Mineral Resource estimates. results have been internally peer reviewed by MPR
Geological Consultants Pty Ltd.
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Criteria JORC Code explanation Commentary
Discussion of  Where appropriate a statement of the  For material mined and processed in the period
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Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary
Discussion of	 Where appropriate a statement of the	 For material mined and processed in the period
relative accuracy/ confidence	relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.  The statement should specify whether it relates to global or local estimates, and, if local, state the tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.  These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.	January to end of August 2018 the resource model predicts 2% lower grade and 2% less contained metal than was reported by reconciled processing records.  It is not certain that such reliability will continue to apply.

1.4 Sissingué JORC Code 2012 Section 4 Estimation and Reporting of Ore Reserves

This section has been prepared by Perseus Mining Limited to support the Statement of Ore Reserves for Sissingué as of 31st August 2018.

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Criteria JORC Code explanation Commentary
Mineral  Description of the Mineral Resource  The Competent Person in relation to Mineral
Resource estimate used as a basis for the Resources at Sissingué is Mr Nicolas Johnson, an
estimate for conversion to an Ore Reserve. employee of MPR Geological Consultants Pty Ltd.
conversion to  Clear statement as to whether the  Mineral Resources quoted in this report are
Mineral Resources are reported inclusive of Ore Reserves
Ore Reserves
additional to, or inclusive of, the Ore
Reserves.
Site visits  Comment on any site visits undertaken  Since the mining operation started, Paul Thompson
by the Competent Person and the as the Competent Person for the purpose of a
outcome of those visits. JORC Ore Reserves has visited the mine regularly.
 If no site visits have been undertaken
indicate why this is the case.
Study status  The type and level of study undertaken  The Mineral Resources have been converted to Ore
to enable Mineral Resources to be Reserves by means of a Life of Mine plan including
converted to Ore Reserves. economic assessment.
 The Code requires that a study to at  Key aspects of the study were technically
least Pre-Feasibility Study level has achievable pit designs based on Pit Limit
been undertaken to convert Mineral Optimisation. These designs were also assessed to
Resources to Ore Reserves. Such ensure economic viability.
studies will have been carried out and
will have determined a mine plan that is
technically achievable and
economically viable, and that material
Modifying Factors have been
considered.
Cut-off  The basis of the cut-off grade(s) or  The cut-off grade is based on the economic
-
quality parameters applied. parameters developed for the Operation. The cut
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Criteria JORC Code explanation Commentary
parameters off grade varies due to different material types as
follows
Oxide/Laterite 0.45g/t
Transitional 0.70g/t
Granite/porphyry 0.85 g/t
Sediment 1.05g/t
Mining factors  The method and assumptions used as  The chosen mining method is drill and blasting 5 m
or assumptions reported in the Pre-Feasibility or benches in ore and 10m benches in waste.
Feasibility Study to convert the Mineral  The chosen method of mining is conventional open
Resource to an Ore Reserve (i.e. either pit mining utilising hydraulic excavators, mining in
by application of appropriate factors by 2.5 m flitches and loading standard off-highway rear
optimisation or by preliminary or dump trucks hauling to the ROM pad, surface ore
detailed design). stockpiles and waste disposal dumps. These would
 The choice, nature and appropriateness be supported by front-end loaders for stockpile
of the selected mining method(s) and rehandle.
other mining parameters including  The economic pit shell was defined using Whittle
associated design issues such as pre- 4X pit optimisation software (“Whittle 4X”) with
strip, access, etc. inputs such as geotechnical parameters, ore loss
 The assumptions made regarding and dilution, metallurgical recovery and mining
geotechnical parameters (eg pit slopes, costs.
stope sizes, etc), grade control and pre-  The pit optimisation was run with revenue
production drilling. generated only by Measured and Indicated Mineral
 The major assumptions made and Resources. No value was allocated to Inferred
Mineral Resource model used for pit Mineral Resources.
and stope optimisation (if appropriate).  Whittle 4X input parameters were generally based
 The mining dilution factors used. on Perseus’s operating experience at Sissingué,
 The mining recovery factors used. supporting technical studies, and the existing
 Any minimum mining widths used. contracts, including for mining.
 The manner in which Inferred Mineral  Geotechnical parameters for Sissingué vary
Resources are utilised in mining studies depending on the material type and Pit Sector The
and the sensitivity of the outcome to inter-ramp slope angles are between 38 to 53
their inclusion. degrees.
 The infrastructure requirements of the  Appropriate mining modifying factors such as ore
selected mining methods. loss, dilution and design parameters were used to
convert the Mineral Resource to an Ore Reserve
 The dilution is built into the Mineral Resource
Estimate by applying a variance correction to
estimate recoverable resources assuming an SMU
size of 3m east x 8m north x 2.5m high.
 Minimum mining width of 40 m was generally
applied to the pit designs.
 The mine has been operating since November 2017
and all surface infrastructure required to enable the
aforementioned mining is already in place.
 There are no physical constraints to mining within
the lease area. No property, infrastructure or
environmental issues are known to exist which may
limit the extent of mining within the mining lease.
Metallurgical  The metallurgical process proposed  The Sissingué processing plant uses crushing,
factors or and the appropriateness of that process grinding, gravity recovery and cyanide leaching to
assumptions to the style of mineralisation. extract gold. The plant has a forecast throughput
 Whether the metallurgical process is capacity of 1.8 Mtpa on oxide ore and 1.0 Mtpa on
well-tested technology or novel in fresh ore.
nature.  The technology used in the processing plant is well
 The nature, amount and proven in many other operations globally.
representativeness of metallurgical test  The processing testwork is representative of the
work undertaken, the nature of the different material types throughout the Mining area.
metallurgical domaining applied and the  No deleterious material has been identified
corresponding metallurgical recovery  The process metallurgical recovery for gold varies
factors applied. by material type:
 Any assumptions or allowances made Oxide/Laterite 95%
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Criteria JORC Code explanation Commentary
for deleterious elements. Transitional 92%
 The existence of any bulk sample or Granite/porphyry 90%
pilot scale test work and the degree to Sediment 85% (average recovery as
which such samples are considered
variable based on feed head grade)
representative of the orebody as a
whole.
 For minerals that are defined by a
specification, has the ore reserve
estimation been based on the
appropriate mineralogy to meet the
specifications?
Environment  The status of studies of potential  No environmental issues are known to exist which
environmental impacts of the mining will prevent open pit mining to commence. Perseus
and processing operation. Details of has sufficient space available for waste dumps to
waste rock characterisation and the store the expected quantities of mine waste rock
consideration of potential sites, status associated with the Sissingué open pit Ore
of design options considered and, Reserve. Based on testing to date no potentially
where applicable, the status of acid forming material has been identified.
approvals for process residue storage  Sissingué has sufficient capacity in its purpose
and waste dumps should be reported. designed and approved tailings storage facility to
meet the requirements generated from mining and
processing quantities listed in for the Sissingué Ore
Reserve.
Infrastructure  The existence of appropriate  Power supply is via dedicated diesel generators.
infrastructure: availability of land for  Water supply is largely from groundwater extracted
plant development, power, water, from dedicated boreholes and supplemented with
transportation (particularly for bulk permitted extraction from the nearby Bagoe River.
commodities), labour, accommodation;  Access to site is via an upgrade of the road from
or the ease with which the infrastructure Tengrela.
can be provided, or accessed.  A camp for 150 people is established to
accommodate non-local employees.
 An airstrip is established.
 Workshops, offices, storage of reagents and
laboratory are established at the processing plant.
Costs  The derivation of, or assumptions  The mining cost is based on a schedule of rates
made, regarding projected capital costs contract signed between the contractor and
in the study. Perseus. All other operating costs have been
 The methodology used to estimate provided by Perseus and its Consultants.
operating costs.  Non-deleterious materials have been identified and
 Allowances made for the content of costed
deleterious elements.  Gold is the only metal considered in the Ore
 The derivation of assumptions made of Reserves
metal or commodity price(s), for the  All costs are in US$
principal minerals and co- products.  A Bullion and Refining cost of US$2.24/oz was
 The source of exchange rates used in applied.
the study.  A royalty of 4.5% of the metal price was applied
 Derivation of transportation charges. plus an additional royalty of US$0.80/oz.
 The basis for forecasting or source of
treatment and refining charges,
penalties for failure to meet
specification, etc.
 The allowances made for royalties
payable, both Government and private.
Revenue factors  The derivation of, or assumptions made  A gold price of US$1,200/oz is used in optimisation
regarding revenue factors including and design.
head grade, metal or commodity  Economic modelling uses a gold price of
price(s) exchange rates, transportation US$1,200/oz.
and treatment charges, penalties, net
smelter returns, etc.
 The derivation of assumptions made of
metal or commodity price(s), for the
principal metals, minerals and co-
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Criteria JORC Code explanation Commentary
products.
Market  The demand, supply and stock situation  The demand for gold is considered in the gold price
assessment for the particular commodity, used.
consumption trends and factors likely to  It was considered that gold will be in demand and
affect supply and demand into the marketable far beyond the project life.
future.  The processing forecast and mine life are based on
 A customer and competitor analysis life of mine plans.
along with the identification of likely
market windows for the product.
 Price and volume forecasts and the
basis for these forecasts.
 For industrial minerals the customer
specification, testing and acceptance
requirements prior to a supply contract.
Economic  The inputs to the economic analysis to  A schedule and economic model has been
produce the net present value (NPV) in completed by Perseus on a pre-tax basis using the
the study, the source and confidence of inputs outlined in this Statement. The assessment
these economic inputs including used a discount rate of 10% which is considered
estimated inflation, discount rate, etc. appropriate.
 NPV ranges and sensitivity to variations  The NPV and sensitivity analysis outcomes
in the significant assumptions and indicated that the Project is economically viable.
inputs.  The inputs used are as per those stated in the
relevant sections of this Statement.
Social  The status of agreements with key  Perseus has established relevant agreements with
stakeholders and matters leading to local stakeholders.
social licence to operate.  The mine plan for the operation of the Sissingué
and Sissingué open pits includes the use of skilled
expatriate workers and locally sourced skilled
workers.
Other  To the extent relevant, the impact of the  The estimate of Ore Reserves for the Sissingué
following on the project and/or on the Open Pits are not materially affected by any known
estimation and classification of the Ore environmental, permitting, legal, title, taxation,
Reserves: socio-economic, marketing, political or other
 Any identified material naturally relevant factors that would prevent the classification
occurring risks. of Ore Reserves
 The status of material legal agreements
and marketing arrangements.
 The status of governmental agreements
and approvals critical to the viability of
the project, such as mineral tenement
status, and government and statutory
approvals. There must be reasonable
grounds to expect that all necessary
Government approvals will be received
within the timeframes anticipated in the
Pre-Feasibility or Feasibility study.
Highlight and discuss the materiality of
any unresolved matter that is
dependent on a third party on which
extraction of the reserve is contingent.
Classification  The basis for the classification of the  Ore Reserves have been classified based on the
Ore Reserves into varying confidence underlying Mineral Resource classifications and the
categories. level of detail in the mine planning. The Mineral
Resources were classified as Measured, Indicated
 Whether the result appropriately and Inferred. The Ore Reserves, based only on the
reflects the Competent Person’s view of Measured and Indicated Resources, have been
the deposit. classified as Proven and Probable Ore Reserves,
respectively
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Criteria JORC Code explanation	Criteria JORC Code explanation	Commentary
 The proportion of Probable Ore Reserves that have been derived from Measured Mineral Resources (if any).		 The Ore Reserve is classified as Proved and Probable in accordance with the JORC Code, corresponding to the Mineral Resource classifications of Measured and Indicated and taking into account other factors where relevant. The deposit’s geological model is well constrained. The Ore Reserve classification is considered appropriate given the nature of the deposit, the moderate grade variability, drilling density, structural complexity and mining history. Therefore, it was deemed appropriate to use Measured Mineral Resources as a basis for Proven Reserves and Indicated Mineral Resources as a basis for Probable Reserves  No Inferred Mineral Resources were included in the Ore Reserve estimate
Audits or reviews  The results of any audits or reviews of Ore Reserve estimates.		 Perseus has completed an internal review of the Ore Reserve estimate.  The JORC Code provides guidelines which set out minimum standards, recommendations and guidelines for the Public Reporting of exploration results, Mineral Resources and Ore Reserves. Within the JORC Code is a “Checklist of Assessment and Reporting Criteria” (Table 1 – JORC Code). This checklist has been used as a systematic method to undertake a review of the underlying Study used to report in accordance with the JORC Code  A LOM Plan was prepared based on the ROM mineable quantity contained within the pit designs. Perseus believes it is reasonable and practical and confirmed that it was suitable for estimation of Ore Reserves. An economic model was prepared by Perseus that confirmed the operation to be economically viable
Discussion of relative accuracy/ confidence	 Where appropriate a statement of the relative accuracy and confidence level in the Ore Reserve estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the reserve within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors which could affect the relative accuracy and confidence of the estimate.  The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.  Accuracy and confidence discussions should extend to specific discussions of any applied Modifying Factors that may have a material impact on Ore Reserve viability, or for which there are	 The accuracy and confidence of the inputs are, as a minimum, of a pre-feasibility level (for the global open pit Ore Reserves).  The key factors that are likely to affect the accuracy and confidence in the Ore Reserves are: o Accuracy of the underlying Resource Block Models; o Changes in gold prices and sales agreements; o Changes in metallurgical recovery; and o Mining loss and dilution.  The Ore Reserve has utilised parameters from actual mining and processing operations at Sissingué where they are available.  The accuracy of the underlying Mineral Resources is defined by the Resource Category that the Mineral Resources are assigned to. Only the highest categories of Resource classification, Measured and Indicated, have been used as a basis for estimating Ore Reserves.

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Criteria JORC Code explanation Commentary
remaining areas of uncertainty at the
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	remaining areas of uncertainty at the
	current study stage.  It is recognised that this may not be possible or appropriate in all circumstances. These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.

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