Mr. Jeff Quartermaine reports

ACTIVITY REPORT FOR JUNE 2018 QUARTER

Perseus Mining Ltd. has provided an update on its activities for the three-month period ended June 30, 2018. An executive summary is provided herein. However, full details of activities in the June quarter, including reconciled production and all-in site cash costs, are included in the company's June, 2018, quarterly activity report released to the market on July, 13, 2018. The full report is available for download from the Perseus Mining website, the Australian Securities Exchange website and SEDAR.

Perseus has produced a record quantity of gold from its two West African mines during the June, 2018, quarter at a materially improved all-in site cost (AISC) and, in the process, has demonstrated the success of its plan to transform from a single-mine gold producer into a successful multimine West African-focused explorer, developer and gold producer. Highlights of the quarter included:

• Ramp-up of Sissingue has been completed with quarterly gold production of 26,020 ounces at an AISC of $520 (U.S.) per ounce.
• Group gold production and cost guidance for the December, 2018, half-year has been set at 130,000 to 150,000 ounces of gold at an AISC of $950 (U.S.) to $1,150 (U.S.) per ounce.
• The average gold price achieved during the quarter was $1,312 (U.S.) per ounce, producing a cash margin of $399 (U.S.) per ounce or $33.4-million (U.S.) of notional free cash flow from operations.
• A net quarterly increase in cash and bullion of $30.3-million (Australian) or 51 per cent was recorded, resulting in available cash and bullion at June 30, 2018, of $89.8-million (Australian) ($66.5-million (U.S.)), $4.8-million (Australian) ($3.5-million (U.S.)) more than the group debt of $85-million (Australian) ($63-million (U.S.)).
• The group's hedge position at June 30, 2018, included 131,000 ounces of gold sold forward at a weighted-average price of $1,312 (U.S.) per ounce.
• Work commenced on front-end engineering and design (FEED) and execution planning for the Yaoure development in conjunction with the engineer Lycopodium.
• Implementation of a plan to finance the Yaoure development using debt and internally generated cash reserves also commenced.
• Encouraging drill results achieved from exploration drilling programs at each of the Yaoure, Sissingue and Edikan sites warrant follow-up drilling in the September, 2018, quarter.

Total production and cost guidance for the Perseus group for the half-year ending Dec. 31, 2018, is found in the attached table.

                    GROUP PRODUCTION AND COST GUIDANCE
 
                                       Units            December, 2018, half-year
                                                         
Group gold production                 Ounces                   130,000 to 150,000      
Group average AISC       In U.S. $ per ounce                         950 to 1,150           

Based on actual operating performance at both Edikan and Sissingue subsequent to the end of the quarter, the December, 2018, half-year production and cost guidance may be proved to be slightly conservative; however, the company is yet to process the harder ore types at Sissingue; therefore, recoveries and throughput rates for these ores are yet to be confirmed; and certain assumptions regarding the potential impact of weather on operating performance also remain to be validated.

Program for September, 2018, quarter

Edikan:

• Produce gold at a total all-in site cost in line with December, 2018, half-year guidance;
• Continue to implement practices aimed at optimizing and improving mine-to-mill performance;
• Continue training operating and maintenance staff;
• Continue to implement business improvement initiatives across all departments at Edikan;
• Assess exploration targets and prepare drill programs for targets identified by the recent review of geological data sets relating to the Edikan mining leases;
• Continue drilling of the Esuajah Gap granite, targeting the up-plunge, near-surface extensions of the intrusive body; an initial three-hole, 1,000-metre RC (reverse circulation) precollared diamond drilling program is planned;
• Commence RC drilling at the Dadieso Northeast and Abreshia prospects, with an initial 1,600-metre program planned.

Sissingue:

• Produce gold at a total all-in site cost in line with December, 2018, half-year guidance;
• Look for business improvement opportunities across all departments at Sissingue;
• Continue auger and aircore drilling at the Papara, Fimbiasso and other prospects within trucking distance of Sissingue, with the aim of identifying the potential for additional mineral resources that can be processed at the Sissingue processing facility; drilling will continue until wet season conditions make drilling impracticable.

Yaoure:

• Subject to the granting of an exploitation permit to operate the Yaoure mine, commence negotiation of the terms of a mining convention for the mine and implement a program of early work to establish the project site in readiness for a decision to commence full-scale construction;
• Subject to the receipt of assays, re-estimate the mineral resources at Yaoure and determine the impact on the ore reserve estimate;
• Continue Yaoure FEED study;
• Implement the financing plan devised to finance the Yaoure development;
• Continue aircore drilling at the CMA-NE trend with the aim of infilling and extending known mineralization and defining the contact between the volcaniclastic basin and basalt in the area. Three oriented diamond drill holes totalling 500 metres are planned to undercut the better AC and RC intersections on the CMA-NE trend, designed to investigate the geological character of the mineralization and to gather structural information.

Competent person statement

All production targets for Edikan and Sissingue 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 (Joint Ore Reserves Committee) code.

The information in this report in relation to Edikan mineral resource and ore reserve estimates was first reported by the company in compliance with the JORC code 2012 and National Instrument 43-101 in a market announcement released on Feb. 20, 2017, and was updated for depletion in the financial statements released on Aug. 29, 2017. 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. 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. 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 30, 2017. The company confirms 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.

The information in this report in relation to Yaoure mineral resource and ore reserve estimates was first reported by the company in compliance with the JORC code 2012 and NI 43-101 in a market announcement on Nov. 2, 2017. The company confirms that all material assumptions underpinning those estimates and the production targets, or the forecast financial information derived therefrom, in that market release 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 -- Yaoure Gold Project, Cote d'Ivoire," dated Dec. 18, 2017, continue to apply.

We seek Safe Harbor.