Perseus Mining Limited: Activity Report for September 2020 Quarter

PERTH, Oct. 19, 2020 - Perseus Mining Ltd. (“Perseus” or the “Company”) (TSX & ASX: PRU) reports on its activities for the three month period ended September 30, 2020 (the “Quarter”). An executive summary is provided below. However, full details of activities in the September Quarter, including reconciled production and all-in site cash costs, are included in the Company’s September 2020 Quarterly Activity Report released to the market on October 20, 2020. The full report is available for download from www.perseusmining.com, www.asx.com.au and www.sedar.com.

EXECUTIVE SUMMARY

Perseus’s Edikan and Sissingu? operations perform strongly

• Both operations continued to perform strongly in the September 2020 quarter as indicated by the following:

• Relative to the prior quarter, gold production was up 6% to 68,772 ounces, production costs up 2% to US$823 per ounce and AISCs up 3% to US$964 per ounce.
• Gold sales decreased 23% to 60,441 ounces, weighted average gold sales price increased 3% to US$1,595 per ounce and notional cashflow increased 8% to US$43.1 million.
• Edikan and Sissingu? are forecast to continue to produce strongly in the December 2020 quarter, and Yaour? is now expected to contribute to the Perseus group’s production performance in this period for the first time.
• Gold production and AISC guidance for the December 2020 Half Year remains unchanged at 125,500 to 139,000 ounces at an AISC of US$940 to US$1,025 per ounce.

Yaour? development project on schedule and budget

• Development of Yaour? remains on schedule to achieve the stretch target of pouring first gold in late December 2020.
• Project development was 85% complete, with US$222.7 million (84%) of the US$265.0 million budgeted project cost committed and US$191.4 million (72%) paid to suppliers of goods and services, by 30 September 2020.

Balance Sheet strength maintained by strong cash flows

• Available cash and bullion on hand at September 30, 2020 totalled US$147.4 million, a decrease of US$16.2 million relative to June 30, 2020. Corporate debt remains fully drawn to the facility limit of US$150 million giving a net debt position of US$2.6 million.

PROGRAM FOR THE DECEMBER 2020 QUARTER

OPERATIONS
Edikan

• Produce gold at an all-in site cost in line with the recently published LOMP.
• Continue planning and implementing Continuous Improvement initiatives aimed at increasing gold production and reducing AISC.

Sissingu?

• Produce gold at a total all-in site cost in line with LOMP.
• Continue planning and implementing Continuous Improvement initiatives aimed at increasing gold production and reducing AISC.
• Continue work on licencing development of the Fimbiasso deposit.

Yaour?

• Complete construction and commissioning of Yaour? in line with approved schedule and budget.
• Complete land, and crop compensation payments to affected land holders and farmers.
• Complete operations-readiness initiatives and move into full scale mining and processing of ore.

BUSINESS GROWTH
Edikan

• Continue preparations for commencing underground operations at Esuajah South in the December 2020 quarter.
• Commence drilling at the Breman prospect on the Agyakusu permit and continue follow up drilling at Mampong South.
• Commence soil sampling and mapping on the recently optioned Dompoase permit.

Sissingu?

• Continue drilling at prospects located within trucking distance of the Sissingu? mill including Tiana and Kanakono to identify potential for additional mill feed for the Sissingu? mill.
• Commence Resource definition drilling at the Bago? Project and commence preparation of an ESIA and feasibility study of the project.

Yaour?

• Complete diamond and RC drilling over the Sayikro, Akakro and Angovia 2 prospects on the Yaour? permit.
• Commence AC drilling over the Allekran and Degbezere prospects (Yaour? West).
• Process, analyse and interpret data from the 3D and 2D seismic surveys on the Yaour? concessions.

Other

• Continue to review both potential “bolt on” acquisition and merger opportunities to assess potential for continued corporate growth and value creation.

To discuss any aspect of this announcement, please contact:

Competent Person Statement:
All production targets for Edikan, Sissingu? and Yaour? 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 Esuajah North Mineral Resources estimate was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement entitled “Perseus Mining Updates Mineral Resources & Ore Reserves” released on 29 August 2018. The information in this report that relates to the Mineral Resource and Ore Reserve estimates for the Bokitsi South and AFG Gap deposits at the EGM was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on 26 August 2020. The information in this report that relates to the Mineral Resource and Ore Reserve estimates for the other EGM deposits (Fetish and Esuajah South Underground) was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on 20 February 2020 and was updated for depletion until 30 June 2020 in a market announcement released on 26 August 2020. The Company confirms that it is not aware of any new information or data that materially affect the information in those 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 — Central Ashanti Gold Project, Ghana” dated 30 May 2011 continue to apply.

The information in this report that relates to Mineral Resources and Ore Reserves for Sissingu? was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on 29 October 2018 and includes an update for depletion as at 30 June 2020. The information in this report that relates to Mineral Resources and Ore Reserves for the Fimbiasso East and West deposits, previously B?l? East and West respectively, was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on 26 August 2020. The Company confirms that material assumptions underpinning the estimates of Mineral Resources and Ore Reserves described in those market announcements. 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 — Sissingu? Gold Project, C?te d’Ivoire” dated 29 May 2015 continue to apply.

The information in this report in relation to Yaour? Mineral Resource and Ore Reserve estimates was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement on 28 August 2019. 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 — Yaour? Gold Project, C?te d’Ivoire” dated 18 December 2017 continue to apply. The information in this report and the attachments that relates to exploration drilling results is based on, and fairly represents, information and supporting documentation prepared by Dr Douglas Jones, a Competent Person who is a Chartered Professional Geologist. Dr Jones is the Group General Manager Exploration of the Company. Dr Jones has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’”) and to qualify as a “Qualified Person” under National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Dr Jones consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Caution Regarding Forward Looking Information:
This report contains forward-looking information which is based on the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management of the Company believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Assumptions have been made by the Company regarding, among other things: the price of gold, continuing commercial production at the Edikan Gold Mine and the Sissingu? Gold Mine without any major disruption due to the COVID-19 pandemic or otherwise, development of a mine at Yaour?, the receipt of required governmental approvals, the accuracy of capital and operating cost estimates, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used by the Company. Although management believes that the assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual market price of gold, the actual results of current exploration, the actual results of future exploration, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents. The Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable. Assumptions have been made regarding, among other things, the Company’s ability to carry on its exploration and development activities, the timely receipt of required approvals, the price of gold, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers should not place undue reliance on forward-looking information. Perseus does not undertake to update any forward-looking information, except in accordance with applicable securities laws.