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## Chairman’s Address 

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Dear Shareholder 

It is my pleasure to introduce Perseus Mining’s Annual Report for the year ended the 30th of June 2011. 

During the past year an enormous amount of work has been completed at our Edikan Gold Mine (formerly Central Ashanti Gold Project) in Ghana, resulting in practical completion being achieved just after the end of the financial year. In the past few weeks the company has achieved its first gold pours during the commissioning process and has shipped its first gold to our refiners. This is an outstanding achievement by your company’s management which has brought the project to completion on time and on budget. 

The benefits to the Edikan Gold Mine’s local community are very significant. Between the mining contractor, plant employees and the exploration team some 700 to 800 people from the local communities have direct employment. In addition Perseus is building two schools and is establishing a fund to finance infrastructure projects to be managed by and for the benefit of local communities. 

Prior to the end of the financial year your company drew down a US$85 million project finance facility. These funds have been used in part to complete the plant construction, provide working capital facilities, repay intercompany loans and will assist in maintaining our highly successful exploration program. 

The future is extremely exciting. We expect to achieve steady state production at Edikan in the final quarter of this calendar year and at the same time we are fast tracking the Tengrela gold project approvals, plant design and acquisition of long lead items. Our aggressive exploration policy will continue unabated and we are constantly evaluating other opportunities in West Africa. All this adds up to another very busy year with the promise of constant news flows to our shareholders. 

I cannot overstate the outstanding performance of your company’s management and staff. Ably led by your Managing Director, Mark Calderwood, the team has achieved everything it set out to accomplish. On behalf of the board and shareholders I highly commend their efforts. 

Yours sincerely 

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