Perseus Mining : December Quarter Report

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25 JANUARY 2022

NEWS RELEASE

DECEMBER 2021 QUARTER REPORT

Perseus achieves record production and operating cashflow

PERFORMANCE INDICATOR	UNIT		CALENDAR	JUNE 2021		SEPTEMBER		DECEMBER	DECEMBER 2021	CALENDAR
	2020 YEAR	HALF YEAR 1		2021 QUARTER		2021 QUARTER	HALF YEAR	2021 YEAR 1
Gold recovered	Ounces	260,045	191,246	112,786	128,378	241,164	432,410
Gold poured	Ounces	257,592	191,510	110,535	126,948	237,483	428,993
Production Cost	US$/ounce	871	894	857	823	839	863
All-In Site Cost (AISC)	US$/ounce	1,002	1,030	966	934	949	985
Gold sales	Ounces	265,127	194,114	107,650	130,486	238,136	432,250
Average sales price	US$/ounce	1,579	1,6421	1,655	1,669	1,663	1,653
Notional Cashflow	US$ million	150.0	103.31	77.8	94.0	171.8	275.11

Notes: 1. Includes Yaouré cost and sales data from 31 March 2021 following declaration of Commercial Production.

• Key Operating highlights include:
• • Gold production increased 14% quarter-on-quarter to 128,378 ounces or 66% year-on-year to 432,410 ounces.
  • Weighted average AISCs decreased by 3% or US$32 quarter-on-quarter to US$934 per ounce or 5% year-on- year to US$985 per ounce.
  • Gold production of 241,164 ounces and AISC of US$949 per ounce, comfortably achieved market guidance for the December Half Year of 225 - 255,000 ounces of gold at US$925 -1,025 per ounce.
  • Quarterly gold sales increased by 21%, giving a 63% increase in year-on-year gold sales to 432,250 ounces.
  • Average quarterly cash margin of US$735 per ounce of gold was US$46 more than prior quarter.
  • Notional cashflow from operations increased by 21% quarter-on-quarter to US$ 94.0 million, and 84% year- on-year to $275.1 million.
  • Operating performance consistently in line with ESG KPIs.
• Perseus's strong operating performance is forecast to continue with production of 230,000 to 265,000 ounces at an ASIC of US$915 to US$1,085 per ounce planned in the June 2022 Half Year, translating to 471,000 to 506,000 ounces at an ASIC of US$932 to US$1,020 per ounce for the full 2022 Financial Year.
• Business development activities continued to deliver encouraging results, demonstrating potential to materially increase Perseus's Ore Reserves inventory and extend the economic mine lives of its operations:
• • Exploration programmes on the Nkosuo prospect near Edikan and the CMA Underground prospect at Yaouré both returned excellent drill results, confirming the potential for strong organic growth of each mine.
  • Assessment of inorganic growth opportunities continue to generate encouraging results.
• Perseus's financial position continues to strengthen with available cash and bullion of US$212 million
  (A$292 million), debt of US$50 million (A$68 million), and net cash of US$162 million (A$269 million) at 31 December 2021, after returning US$13 million (A$18 million) of capital to shareholders, reducing debt by US$50 million (A$68 million) and investing US$11 million (A$15 million) in organic growth during the quarter.

PERSEUS MINING LIMITED

Level 2, 437 Roberts Road, Subiaco WA 6008

ABN: 27 106 808 986	1

NEWS RELEASE | DECEMBER 2021 QUARTER REPORT

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OPERATIONS

QUARTERLY PRODUCTION, COSTS AND NOTIONAL CASHFLOW

Perseus's three operating gold mines, Yaouré and Sissingué in Côte d'Ivoire, and Edikan in Ghana have combined to produce a total of 128,378 ounces of gold in the December 2021 quarter, 14% more than in the prior quarter. The weighted average production cost at the operations was US$823 per ounce, while the weighted average AISC incurred during the quarter was US$934 per ounce of gold. Production costs and AISC's were 4% and 3% respectively, lower than comparative costs in the previous quarter.

This performance contributed to Half Yearly gold production at our three mines of 241,164 ounces of gold, produced at an average AISC of US$949 per ounce. This strong performance compared favourably to market guidance for the Half Year of 225,000 to 255,000 ounces of gold produced at an AISC of US$925 to 1,025 per ounce and has positioned Perseus to achieve our corporate objective of producing more than 500,000 ounces of gold at a margin of greater than US$400 per ounce in FY2022.

Table 1: Cost and Production Summary by Mine

		TOTAL GOLD PRODUCED (OUNCES)	ALL-IN SITE COST (US$/OUNCE)
MINE		SEPTEMBER	DECEMBER 2021	DECEMBER 2021	SEPTEMBER	DECEMBER 2021	DECEMBER 2021
		2021 QUARTER	QUARTER	HALF YEAR	2021 QUARTER	QUARTER	HALF YEAR
Yaouré	64,558	75,189	139,747	671	700	687
Edikan	32,161	35,124	67,285	1,574	1,450	1,509
Sissingué	16,067	18,065	34,132	931	905	917
Perseus Group	112,786	128,378	241,164	966	934	949

Combined gold sales from all three operations totalled 130,486 ounces, 21% more than last quarter. The weighted average gold price realised was US$1,669 per ounce, slightly better than the price received in the September 2021 quarter. Perseus's average cash margin for the December 2021 quarter was US$735 per ounce, US$46 per ounce or 7% more than that achieved during the September 2021 quarter. Notional operating cashflow from operations was US$94.3 million, US$16.5 million or 21% more than that generated in the prior period, driven by quarter-on-quarter production growth of 14%, derived largely from improved production performance at all three mines, combined with improved AISCs at Sissingué and Edikan.

Table 2: Realised Gold Price and Notional Cash Flow by Mine

	REALISED GOLD PRICE	NOTIONAL CASH FLOW FROM OPERATIONS
MINE		(US$ PER OUNCE)			(US$ MILLION)
SEPTEMBER	DECEMBER 2021	DECEMBER 2021	SEPTEMBER	DECEMBER 2021	DECEMBER 2021
	2021 QUARTER	QUARTER	HALF YEAR	2021 QUARTER	QUARTER	HALF YEAR
Yaouré	1,690	1,699	1,695	65.8	75.1	140.9
Edikan	1,602	1,613	1,608	0.9	5.7	6.6
Sissingué	1,624	1,638	1,631	11.1	13.2	24.3
Perseus Group	1,655	1,669	1,663	77.8	94.0	171.8

YAOURÉ GOLD MINE, CÔTE D'IVOIRE

During the quarter, Perseus's newest mine, Yaouré, increased its gold production by a further 16% compared to the prior quarter to 75,189 ounces of gold at a production cost of US$589 per ounce and an AISC of US$700 per ounce. The weighted average sales price of the 79,669 ounces of gold sold during the quarter was US$1,699 per ounce, giving rise to a cash margin of US$999 per ounce. Notional operating cashflow generated by Yaouré was US$75.1 million during the quarter, US$9.3 million more than in the September 2021 quarter. Refer to Table 3 below for details of operating and financial parameters.

This performance contributed to half yearly gold production at Yaouré of 139,747 ounces of gold, produced at an average AISC of US$687 per ounce which compared favourably to market guidance for the half year of 130,000 to 140,000 ounces of gold produced at an AISC of US$675 to US$775 per ounce.

The improving operating performance at Yaouré was a result of strong operating fundamentals compared to the prior quarter, including mill throughput rates (487 tph compared to 449 tph), gold recovery rates (93.6% compared to 92.7%) and importantly, the head grade of processed ore (2.64 g/t to 2.37 g/t).

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Table 3: Yaouré Quarterly Performance

			CALENDAR		JUNE 2021	SEPTEMBER	DECEMBER	DECEMBER 2021		2021 CALENDAR
PARAMETER	UNIT		2020 YEAR		HALF YEAR 2	2021	2021	HALF YEAR		YEAR TO DATE 2
						QUARTER	QUARTER
Gold Production & Sales
Total material mined	Tonnes	6,449,440	16,979,488	6,340,478	9,870,283	16,210,761	33,190,249
Total ore mined	Tonnes	128,148	659,620	1,070,285	1,378,535	2,448,820	3,108,440
Average ore grade	g/t gold	0.78	1.23	2.07	1.98	2.02	1.85
Strip ratio	t:t	49.3	24.74	4.92	6.16	5.62	9.68
Ore milled	Tonnes	122,545	1,462,177	913,530	946,052	1,859,582	3,321,759
Milled head grade	g/t gold	1.01	1.40	2.37	2.64	2.51	2.02
Gold recovery	%	67.7	90.01	92.7	93.6	93.2	92.3
Gold produced	ounces	2,687	59,438	64,558	75,189	139,747	199,185
Gold sales1	ounces	-	54,182	60,055	79,669	139,724	193,906
Average sales price	US$/ounce	-	1,692	1,690	1,699	1,695	1,694
Unit Production Costs
Mining cost	US$/t mined	-	2.71	2.95	2.56	2.71	2.71
Processing cost	US$/t milled	-	9.90	13.74	13.52	13.63	11.99
G & A cost	US$M/month	-	1.70	1.89	2.08	1.99	1.89
All-In Site Cost
Production cost	US$/ounce	-	951	572	589	581	659
Royalties	US$/ounce	-	83	85	90	87	86
Sub-total	US$/ounce	-	1,033	657	679	669	745
Sustaining capital	US$/ounce	-	3	14	21	18	15
Total All-In Site Cost3	US$/ounce	-	1,036	671	700	687	760
Notional Cashflow from Operations2
Cash Margin	US$/ounce	-	648	1,019	999	1,008	934
Notional Cash Flow	US$M	-	24.2	65.8	75.1	140.9	165.1

Notes:

1. Gold sales are recognised in Perseus's accounts when gold is delivered to the customer from Perseus's metal account
2. Includes Yaouré data from declaration of Commercial Production on 31 March 2021.
3. Included in the AISC for the quarter is US$6.91 million of costs relating to excess waste stripping. When reporting cost of sales, in line with accepted practice under IFRS, this cost will be capitalised and the costs amortised over the remainder of the relevant pit life.

MINERAL RESOURCE TO MILL RECONCILIATION

The reconciliation of processed ore tonnes, grade and contained gold relative to the Yaouré Mineral Resource block model are shown in Table 4. During the last quarter, 17% more ore tonnes at 10% lower grade for 6% more ounces have been produced compared to the Mineral Resource model. Over the last six months and project to-date, Yaouré has produced more metal than predicted by the Mineral Resource model. The performance of the Yaouré Mineral Resource model to date is considered satisfactory, however work will continue to optimise the grade and reduce dilution.

Table 4: Yaouré Block Model to Mill Reconciliation

	BLOCK MODEL TO MILL CORRELATION FACTOR
PARAMETER			PROJECT
	3 MONTHS	6 MONTHS	TO DATE
Tonnes of Ore	117%	114%	109%
Head Grade	90%	97%	99%
Contained Gold	106%	110%	108%

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SISSINGUÉ GOLD MINE, CÔTE D'IVOIRE

During the quarter, 18,065 ounces of gold were produced at Sissingué at a production cost of US$817 per ounce and an AISC of US$905 per ounce. The weighted average sales price of the 16,621 ounces of gold sold during the quarter was US$1,638 per ounce, giving rise to a cash margin of US$732 per ounce. Notional cashflow generated from the Sissingué operation totalled US$13.2 million for the quarter, US$ 2.1 million more than in the prior quarter, due to a combination of improved production, costs and average gold sale prices. Refer to Table 5 below for details of operating and financial parameters.

This performance contributed to half yearly gold production at Sissingué of 34,132 ounces of gold, produced at an average AISC of US$917 per ounce. This outstanding performance materially exceeded market guidance for the half year of 25,000 to 30,000 ounces of gold produced at an AISC of US$950 to US$1,070 per ounce.

The overall result for the quarter at Sissingué, was also better than forecast by Perseus with each of the key operating parameters including runtime (95%), throughput rate (178 tph), and recovery (90%) improving relative to the prior quarter. Average head grade (1.67g/t) was down relative to the prior quarter in line with company expectations.

Table 5: Sissingué Quarterly Performance

PARAMETER	UNIT	CALENDAR		JUNE 2021		SEPTEMBER	DECEMBER	DECEMBER		CALENDAR
2020 YEAR		HALF YEAR		2021 QUARTER	2021 QUARTER	2021 HALF YEAR		2021 YEAR
Gold Production & Sales
Total material mined	Tonnes	5,144,335	1,738,136	395,727	706,459	1,102,186	2,840,322
Total ore mined	Tonnes	1,681,633	851,552	162,912	186,063	348,975	1,200,527
Average ore grade	g/t gold	2.20	2.13	1.52	0.87	1.17	1.85
Strip ratio	t:t	2.1	1.0	1.4	2.8	2.2	1.4
Ore milled	Tonnes	1,349,807	596,416	299,757	375,615	675,372	1,271,788
Milled head grade	g/t gold	2.41	2.70	1.91	1.67	1.78	2.23
Gold recovery	%	94.9	92.6	87.1	89.8	88.5	90.9
Gold produced	ounces	99,268	48,763	16,067	18,065	34,132	82,895
Gold sales1	ounces	95,765	55,519	18,250	16,621	34,870	90,389
Average sales price	US$/ounce	1,606	1,670	1,624	1,638	1,630	1,655
Unit Production Costs
Mining cost	US$/t mined	4.72	6.20	9.62	6.80	7.81	6.80
Processing cost	US$/t milled	15.98	18.8	19.4	16.90	18.01	18.40
G & A cost	US$M/month	1.05	1.05	1.24	1.20	1.22	1.14
All-In Site Cost1
Production cost	US$/ounce	589	580	830	817	823	680
Royalties	US$/ounce	79	107	94	85	89	100
Sub-total	US$/ounce	668	687	924	902	912	780
Sustaining capital	US$/ounce	24	28	7	3	5	18
Total All-In Site Cost	US$/ounce	692	715	931	905	917	798
Notional Cashflow from Operations1
Cash Margin	US$/ounce	927	956	693	732	713	856
Notional Cash Flow	US$M	92.0	46.6	11.1	13.2	24.3	71.0

Notes: 1. Gold sales are recognised in Perseus's accounts when gold is delivered to the customer from Perseus's metal account.

MINERAL RESOURCE TO MILL RECONCILIATION

The reconciliation of processed ore tonnes, grade and contained ounces relative to the Sissingué Mineral Resource block model is in Table 6 below. During the last three months, grade control has predicted similar tonnes (100%) grade (99%) and ounces (99%) when compared to the Mineral Resource Estimate (MRE). Over the last six- and 12-month periods of operation, Sissingué has produced more metal than predicted by the Mineral Resource model. Perseus regards the overall outperformance as being within normal industry standards.

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Table 6: Sissingué Block Model to Mill Reconciliation

PARAMETER		BLOCK MODEL TO MILL CORRELATION FACTOR
	3 MONTHS	6 MONTHS	1 YEAR
Tonnes of Ore	100%	116%	108%
Head Grade	99%	105%	103%
Contained Gold	99%	121%	107%

UPDATED LIFE OF MINE PLAN FOR THE SISSINGUÉ OPERATION

An updated Life of Mine Plan for the Sissingué operation that models the mining and processing of ore from each of the Sissingué, Fimbiasso and the yet to be granted, Bagoé exploitation permit areas, is being prepared and will be published in the June 2022 quarter when the results of a recent successful drilling campaign in and around the existing Sissingué pits are fully collated, understood and incorporated into the revised mine plan and processing schedule. Based on preliminary optimisations and scheduling, it indicates that the life of the Sissingué operation could be extended by several years. Current work is focusing on the sequencing of mining to optimise the return on the investment of capital required to access the new mining areas.

BAGOÉ MINING LEASE

Work by consultants (CECAF), on preparing an Environmental and Social Impact Assessment (ESIA) for the Bagoé exploration permit area was completed during the quarter. The ESIA has been lodged with the environmental regulator (ANDE) for approval. Once approval is granted, it will be lodged with the Department of Mines, Petroleum and Energy together with the recently completed Definitive Feasibility Study of an operation located on the Bagoé exploration permit. This is expected to occur during the June 2022 quarter and an Exploitation Permit should be granted once assessment of the submissions is complete.

EDIKAN GOLD MINE, GHANA

In the December 2021 quarter, Perseus produced 35,124 ounces of gold at Edikan (9% more than in the September quarter) at a production cost of US$1,327 per ounce and an AISC of US$1,450 per ounce. Gold sales of 34,196 ounces were 17% more than in the prior quarter, at a weighted average realised gold price of US$1,613 per ounce. This generated a cash margin of US$163 per ounce, a significant improvement on the prior quarter. Notional cashflow of US$5.7 million, was US$4.8 million better than in the prior period. Table 7 below summarises the key operating and financial parameters.

While the overall performance of Edikan was materially better than in the September quarter, there is still significant room for improvement. Signs of this improvement were evident in the month of December when the mill feed was made up predominantly of ore from the AG Pit which resulted in the head grade of ore treated increasing sharply to 0.86g/t on average and the gold recovery rate increasing to 86.2%.

This quarterly performance contributed to Half Yearly gold production at Edikan of 67,285 ounces of gold, produced at an average AISC of US$1,509 per ounce. This performance fell short of market guidance for the Half Year of 70,000 to 80,000 ounces of gold produced at an AISC of US$1,350 to 1,450 per ounce.

The shortfall in production relative to guidance was a function of several factors including poor reconciliation of tonnes and grade of ore mined from the AG pit in the September 2021 quarter and a conscious decision by Perseus to process ore from low grade ore stockpiles during the December quarter until a comprehensive grade control programme could be completed to provide a thorough understanding of the distribution of gold bearing material in the upper benches of the pit. As noted above, in December a marked improvement in head grade and recovery of ore had been achieved giving confidence in forecasts for future periods.

Table 7: Edikan Quarterly Performance

PARAMETER	UNIT		CALENDAR		JUNE 2021	SEPTEMBER	DECEMBER	DECEMBER	CALENDAR
	2020 YEAR		HALF YEAR	2021 QUARTER	2021 QUARTER	2021 HALF YEAR	2021 YEAR
Gold Production & Sales
Total material mined	Tonnes	27,056,108	14,829,935	7,823,678	7,589,717	15,413,395	30,243,330
Total ore mined	Tonnes	4,379,485	1,968,783	788,612	836,266	1,624,878	3,593,661
Average ore grade	g/t gold	1.24	1.08	0.92	0.90	0.91	1.01
Strip ratio	t:t	5.2	6.5	8.9	8.1	8.5	7.4
Ore milled	Tonnes	6,787,946	3,280,435	1,731,146	1,756,072	3,487,218	6,767,653

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