Mr. Jeff Quartermaine reports

PERSEUS MINING UPDATES RESOURCES, RESERVES AND LIFE OF MINE PLAN AT SISSINGUE

Perseus Mining Ltd. has updated estimates of the mineral resources, mineral reserves and life-of-mine plan for its Sissingue gold mine in Ivory Coast. An executive summary is provided below. Full details of the resource, reserve and LOMP (life-of-mine production) updates are included in the company's market release dated Oct. 29, 2018, which is available for download from SEDAR and the company's website.

Key points:

• Life-of-mine mineral reserves as at Aug. 31, 2018, total 380,000 ounces of gold, a 9-per-cent increase compared with reserves as at June 30, 2018.
• Life-of-mine production averages 78,000 ounces per annum for the remaining 4.6 years of mine life including 86,000 ounces per annum for the next three years.
• Life-of-mine after-tax cash flows from July 1, 2018, are expected to be $165-million (U.S.) ($234-million (Australian)) at gold price of $1,200 (U.S.) per ounce, approximately 23 Australian cents per share.
• Cash of $32.1-million (U.S.) ($46-million (Australian)), or 30 per cent of development costs, was generated in the first six months of commercial production.
• Forecast life-of-mine all-in sustaining costs (AISC) are $756 (U.S.) per ounce, reflecting actual operating costs and forecast sustaining capital requirements.
• Sissingue updated resource estimate reconciles to within 2 per cent of actual mine production to date.
• Exploration drilling results at Sissingue and nearby Fimbiasso have the potential to increase the remaining mine life beyond 4.6 years.

Managing director Jeff Quartermaine commented: "The upgraded mineral resources and mineral reserve statements that we have released today indicate that our recent exploration programs have not only replaced the ore that has been processed since the mine was commissioned earlier this year but has also modestly increased the inventory. Going forward we expect that this pattern will be repeated with incremental increases in mineral resources and mineral reserves being achieved through the drillout of satellite deposits resulting in an extension of Sissingue's mine life well beyond the originally envisaged five-year period."

Executive summary:

• Mineral resources for the Sissingue gold deposit have been independently estimated by MPR Geological Consultants Pty. Ltd. and reported outside the Aug. 31, 2018, mining surface. Resources and reserves for neighbouring deposits, Fimbiasso East and West, have not been updated.
• Measured and indicated mineral resources for the Sissingue gold deposit total 7.7 million tonnes, grading 1.7 grams per tonne gold and containing 423,000 ounces of gold at a cut-off grade of 0.6 g/t gold.
• Inferred resources total 100,000 tonnes, grading 0.9 g/t gold and containing 3,000 ounces of gold at a cut-off grade of 0.6 g/t gold.
• Mineral resources have been estimated using multiple indicator kriging (MIK) and are contained within optimal pit shells generated at a gold price of $1,800 (U.S.) per ounce.
• Including the Fimbiasso East and West deposits, estimated measured and indicated mineral resources total 9.6 million tonnes, grading 1.8 g/t gold and containing 538,000 ounces of gold and inferred mineral resources total 400,000 tonnes grading 1.7 g/t gold and containing 20,000 ounces of gold.
• The mineral resources include mineral reserves totalling 5.8 million tonnes of ore, grading 2.1 g/t gold and containing 380,000 ounces of gold.
• The LOMP for Sissingue has been updated using the re-estimated mineral resources and mineral reserves.
• Sissingue's estimated life-of-mine gold production from July 1, 2018, totals 357,000 ounces including approximately 86,000 ounces per annum for the first three years of production and approximately 78,000 ounces per annum over the current 4.6-year life of mine.
• Forecast average weighted AISC, including all direct production costs, royalties, waste stripping costs and sustaining capital expenditure, is estimated at approximately $739 (U.S.) per ounce in the first three years of production and approximately $756 (U.S.) per ounce over the current life of mine.
• The total sustaining capital cost estimate is $21-million (U.S.) as included in the estimated AISC.
• The LOMP forecasts strong positive after tax cash flow totalling approximately $165-million (U.S.) (or approximately 23 Australian cents per share at an Australian:U.S.-dollar exchange rate of 0.706), assuming a flat spot gold price of $1,200 (U.S.) per ounce for unhedged ounces over the life of the mine starting from July 1, 2018, and assuming existing designated hedges for 64,000 ounces at a weighted average price of $1,300 (U.S.) per ounce.
• Recent exploration drilling on both the Sissingue mining lease and the nearby Fimbiasso exploration licence, all within trucking distance of the Sissingue processing facility, has the potential to further increase the mine life.

Competent person statement

All production targets for 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.

Nicolas Johnson, MAIG, has updated estimates of mineral resources at Sissingue gold mine. Mr. Johnson is an employee of MPR Geological Consultants Pty. Ltd. Mr. Johnson has sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration and to the activity that he has undertaken to qualify as a competent person as defined in the JORC code 2012 and a qualified person as defined in NI 43-101. Mr. Johnson has no economic, financial or pecuniary interest in the company and consents to the inclusion in this report of the matters based on this information in the form and context in which it appears and has approved the inclusion of technical and scientific information in this report.

Gary Brabham, FAusIMM, MAIG, has provided the drill hole data and geological interpretations pursuant to estimation of mineral resources at Sissingue gold mine. Mr. Brabham has also compiled and reviewed the consolidated information in this report concerning the mineral resources of the Sissingue gold mine. Mr. Brabham is the group geologist for Perseus Mining and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity undertaken to qualify as a competent person as defined in the JORC code 2012 and a qualified person as defined in NI 43-101. Mr. Brabham consents to the inclusion in this report of the matters based on this information in the form and context in which it appears and has approved the inclusion of technical and scientific information in this report.

Paul Thompson, who is a fellow of the Australasian Institute of Mining and Metallurgy and is an employee of Perseus Mining, has compiled and reviewed the consolidated information on the ore reserves of the Sissingue gold mine in this report. Mr. Thompson has sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he has undertaken to qualify as a competent person as defined in the JORC code 2012 and a qualified person as defined in NI 43-101 and consents to the inclusion in this report of the matters based on this information in the form and context in which it appears and has approved the inclusion of technical and scientific information in this report.

We seek Safe Harbor.