Perseus Mining Limited

Revised Sissingue Gold Mine Feasibility Study - Seite 3

The project itself has been the subject of two feasibility studies, involving a comprehensive metallurgical test work programme that has delivered a strong understanding of the metallurgical properties of the ore body and a cost efficient method of processing it. A very credible engineering firm, Lycopodium, has been used to perform engineering and cost estimation for feasibility study purposes and they are well placed to assist us through the construction phase, given that they have an enviable record of successful developments in West Africa.

Financing risk associated with the development is considered to be relatively modest given the current strength of Perseus's balance sheet. At 31 March 2015, Perseus had A$149M of net working capital and no third party debt. While some of our existing cash is required for other projects, a portion of the cash will be allocated to fund Sissingué while the balance of development funding will be borrowed from debt financiers.

It is not certain what will happen to the gold price going forward, but working on the premise that given the state of global economics, a rise in gold price in the next five years is more likely than not, it is timely that development of our next gold mine should start at this point in the cycle as it will place us in a position to produce gold in the event of a future uplift in gold price, rather than wait until gold prices have recovered and a trend of cost inflation has been re-established. Should the gold price fall, with an average all-in sustaining cost of US$632/oz over the life of the mine, Sissingué should be positioned better than most mines to generate positive cash flow.

In summary, the development of Sissingué represents a relatively low cost, low-risk entry to doing business in French West Africa and in Côte d'Ivoire in particular. From experience gained from the development and operation of both Edikan and Sissingué, we will be well positioned to take advantage of other opportunities that become available in French West Africa in coming years.

Competent Person Statement: All production targets for the Sissingué Gold Mine (SGM) referred to in this report are underpinned by estimated Ore Reserves which have been prepared by competent persons in accordance with the requirements of the JORC Code.

The information in this report that relates to SGM Mineral Resources and Ore Reserves was first reported by the Company in compliance with the JORC Code 2012 in a market announcement released on 21 April 2015. The Company confirms that it is not aware of any new information or data that materially affects the information in that market announcement.