Mr. Jeff Quartermaine reports

PERSEUS REPORTS ON FINANCIAL YEAR ENDING JUNE 30, 2018

Perseus Mining Ltd. has released its financial report for the financial year ending June 30, 2018 (fiscal year (FY) 2018). The full report is available on the company's website, on the Australian Securities Exchange website and on SEDAR.

The Perseus group produced a total of 255,916 ounces of gold in the 12 months to June, 2018, 45 per cent more than in the preceding 12 months. The weighted average all-in site costs, including the costs of production, royalties and sustaining capital, averaged $1,039 (U.S.) per ounce of gold produced, 22 per cent less than in the preceding 12 months.

In FY 2018, Perseus recorded a net loss after tax of $24.9-million or 2.5 cents per share, compared with a net loss after tax of $83.1-million or 7.7 cents per share in the previous financial year. This improved performance is predominantly due to the following:

• A 36.5-per-cent increase in revenue to $378.1-million, resulting from an average gold sales price that was 3.9 per cent higher and gold sales that were 31.4 per cent higher following the start of commercial production at Sissingue and higher gold production at Edikan;
• A 5-per-cent decrease in the cost of sales due to a revaluation of stockpiles at Edikan and the start of commercial production at the low-cost Sissingue gold mine;
• A depreciation and amortization expense of $119.6-million, representing a 213-per-cent increase during the period, due to higher rates of mining and processing, and higher deferred waste amortization at Edikan, and the inclusion of the investment in Sissingue within the capital base;
• Asset impairment charges and write-offs totalling $24.3-million, including impairment of the carrying value of the Sissingue cash generating unit, mainly due to lower future expected gold prices, the write-off of some capitalized exploration expenditure and impairment of the group's equity investment in Amani Gold Ltd.;
• A foreign exchange gain of $5.7-million, compared with a loss of $11.7-million in the prior year, mainly due to devaluation of the Australian dollar against the U.S. dollar and revaluation of an intercompany loan;
• An income tax expense of $5.8-million.

At June 30, 2018, the total value of cash and bullion on hand was $89.8-million, or $46.8-million more than at June 30, 2017. Operating cash flows increased by $67.4-million in FY 2018 to $68.3-million, or 6.6 cents per share, as revenue increased and unit costs reduced materially. A total of $119.7-million of cash was invested during the period, including $77.8-million on the development of Sissingue and $16.4-million on exploration.

The company's net assets as at June 30, 2018, were $714.3-million or 69 cents per share after accounting for cash and bullion on hand, as well as interest-bearing liabilities of $85.0-million.

Looking to the future, the financial performance of Perseus is expected to continue to improve on the back of continuing solid gold production and an improving cost structure, due in part to the contribution of the low-cost Sissingue gold mine to supplement the improving Edikan gold mining operation. Production and cost guidance for the 2019 financial year is shown in the attached table.

                                    PRODUCTION AND COST GUIDANCE

                            December, 2018, half year    June, 2019, half year     Full fiscal year 2019
Group gold production
(ounces)                           130,000 to 150,000       130,000 to 150,000        260,000 to 300,000
Average all-in site 
costs (U.S. $ per ounce)               $950 to $1,150           $925 to $1,025            $925 to $1,050

Managing director Jeff Quartermaine comments:

"A look behind the headline numbers reported by Perseus today reveals a company that is continuing to improve in all aspects of the business.

"At $137.8-million, our gross profit from operations before depreciation and amortization is materially better than in the past. This year has seen an increase in non-cash items that have negatively impacted our reported our net after-tax earnings. The non-cash depreciation and amortization charge has increased as we mine and process more ore, and the results have also been impacted by our decision to carefully examine the carrying value of our assets and, in some instances, write down the value of any assets to reflect forecast underlying values.

"Our net cash flow from operations has increased by $67.4-million during the year, and, with cash and bullion on hand valued of $89.8-million at the end of the year, we are now in a net cash positive position after the money that we borrowed to build Sissingue has been brought to account. This positive trend of net cash growth is now well established, which is important in the context of where we are positioned on our corporate growth trajectory.

"We are confident that Perseus is well on track to deliver value to its shareholders. The Sissingue mine, which came on stream earlier this year, will make a significant contribution to the bottom line when it operates for a full 12 months, rather than three months, as was the case this year. Not to be outdone, the Edikan mine is also performing materially better than it has done in the past and is making a solid contribution to free cash flow.

"In the coming financial year, we expect to commence development of our third operating mine, Yaoure, and, when this mine comes on line in early 2021, Perseus's production levels should be in the order of 500,000 ounces of gold per year. Subject to the gold price at that time, this should mean that Perseus will be in a position to generate material amounts of free cash flow and record significant profits."

Competent person statement

All production targets for the Edikan and Sissingue gold mines 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 the mineral resource and ore reserve estimates for the Edikan deposits was first reported by the company in compliance with the JORC Code 2012 and National Instrument 43-101 in a market announcement released on Aug. 29, 2018. The company confirms that it is not aware of any new information or data that materially affect the information in that market release and that all material assumptions underpinning those estimates and the production targets, or the forecast financial information derived therefrom, continue to apply and have not materially changed. The company further confirms that material assumptions underpinning the estimates of ore reserves described in "Technical Report -- Central Ashanti Gold Project, Ghana," dated May 30, 2011, continue to apply. The information in this report that relates to mineral resources for Sissingue was first reported by the company in compliance with the JORC Code 2012 and NI 43-101 in a market announcement released on Dec. 15, 2016, and includes an update for depletion as at June 30, 2018, as well as an adjustment of the model constrained to a $1,800-(U.S.)-per-ounce pit shell, which were reported in a market announcement on Aug. 29, 2018. The information in this report that relates to mineral resources for Fimbiasso was first reported by the company in compliance with the JORC Code 2012 and NI 43-101 in a market announcement released on Feb. 20, 2017, and includes an adjustment of the model constrained to a $1,800-(U.S.)-per-ounce pit shell, which was reported in a market announcement on Aug. 29, 2018. The information in this report that relates to ore reserves for Sissingue and Fimbiasso was first reported by the company in compliance with the JORC Code 2012 and NI 43-101 in a market announcement released on March 31, 2017, and includes an update for depletion as at June 30, 2018, which was reported in a market announcement on Aug. 29, 2018. The company confirms that it is not aware of any new information or data that materially affect the information in these market releases and that all material assumptions underpinning those estimates and the production targets, or the forecast financial information derived therefrom, continue to apply and have not materially changed. The company further confirms that material assumptions underpinning the estimates of ore reserves described in "Technical Report -- Sissingue Gold Project, Cote d'Ivoire," dated May 29, 2015, continue to apply.

We seek Safe Harbor.