Perseus Mining Limited

Activity Report for 2019 Quarter - Seite 2

• By December 31, 2019, US$165.5 million or 62% of the budgeted project cost of US$265 million had been committed, and US$99.3 million or 37% of the budgeted capital cost paid in cash to suppliers of goods and services;
   
• Offsite procurement and development works remain largely on schedule to achieve the stretch target of first gold pour in December 2020;
   
• A Mining Convention guaranteeing fiscal stability for the life of the Yaouré mine was signed by the Ivorian government in the December 2019 quarter;

Balance Sheet strength maintained by strong cash flows

• US$31.3 million of notional cashflow generated by operations during the quarter bringing the total for the 2019 calendar year to US$109.4 million;
   
• Cash and bullion of US$80.6 million after Yaouré capital expenditure during the quarter of US$72.4 million. Outstanding corporate debt of US$50 million with US$10 million drawn during the quarter.

PROGRAM FOR THE MATCH 2020 QUARTER

Edikan

• Produce gold at a total all-in site cost in line with June 2020 Half Year guidance;
• Continue planning and implementing Continuous Improvement initiatives aimed at increasing gold production and reducing AISC;
• Complete an Optimisation Study for the Edikan pits using a range of gold prices and incorporating the improved operating parameters;
• Complete an assessment of the feasibility of developing the Esuajah South orebody, either as an open pit operation, an underground operation or a combination of open pit and underground;
• Complete update of Mineral Resources, Ore Reserves and Life of Mine Plan;
• Subject to Board approval of a development plan for Esuajah South, prepare and file submissions required for permitting of the development of the orebody;
• Continue assessing stranded near mine resources for acquisition to provide additional mill feed;
• Continue assessment of the results of the CGSG exploration targeting review and plan follow-up programs; and
• Commence exploration on the recently optioned Agyakusu permit.

Sissingué

• Produce gold at a total all-in site cost in line within June 2020 Half Year guidance;
• Continue planning and implementing Continuous Improvement initiatives aimed at increasing gold production and reducing AISC;
• Complete an initial Mineral Resource and Ore Reserve estimate for Zanikan and apply for permits required to mine the deposit;
• Complete an update of Mineral Resources, Ore Reserves and Life of Mine Plan for Sissingué;
• Continue drilling at the various prospects in the Zanikan area and other prospects within trucking distance of Sissingué, with the aim of identifying the potential for additional Mineral Resources that can be processed at the Sissingué processing facility; and
• Complete infill drilling over the Fimbiasso West prospect at Mahalé.

Yaouré