Perseus Mining Limited Positions Itself for Growth Following Challenging Year

PERTH, WESTERN AUSTRALIA--(Marketwired - Aug. 28, 2016) -

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Perseus Mining Limited ("Perseus" or the "Company") (TSX:PRU)(ASX:PRU) has released its Annual Financial Report for the twelve months ending June 30, 2016 ("FY2016"), announcing a loss for the year attributable to the owners of the parent entity (i.e. excluding minority interests) of A$35.6 million, or (5.7) cents per share. This loss compares to a profit of A$87.8m earned in the corresponding period ending June 30, 2015 ("FY2015"). The key factors contributing to the reduction in earnings include a reduction of A$43.2 million in foreign exchange gain, a write-off of exploration expenditure of A$17.9M and reduced gold production at the Edikan Gold Mine in Ghana ("Edikan") due to issues arising from delays in obtaining access to mine the Fetish and Chirawewa pits. The Annual Financial Report is available for download from www.perseusmining.com, www.asx.com.au and www.sedar.com.

An intensive work programme was undertaken at Edikan during the second half of FY2016 which has resulted in materially improved operating performance as well as reduced unit costs compared to FY2015: mining cost per tonne of material mined reduced by 40%; processing cost per tonne of ore milled reduced by 11%; and G & A cost reduced by 19%. Coupled with a period of accelerated capital investment to achieve power self-sufficiency, processing plant improvements, waste stripping and infrastructure and relocation housing, all of which are scheduled to finish by December 2016, Edikan is expected to enter a period of sustained strong positive cash flows from early calendar year 2017.

Following execution of a Mining Convention for Perseus's second operating mine, the Sissingué Gold Mine in Côte d'Ivoire ("Sissingué") in July 2015, execution plans for the full scale development of the project have been activated and production of first gold from Sissingué is scheduled to occur in the December 2017 quarter.

On April 18, 2016, Perseus acquired Amara Mining plc giving Perseus ownership of one of West Africa's highest quality pre-development stage projects, the Yaouré Gold Project in Côte d'Ivoire ("Yaouré"). Contracts for all material work packages required to complete the Yaouré definitive feasibility study have been awarded and work on the study is well underway.