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## Review of Operations 

The past year has been particularly productive for the Group. After starting site works for the development of Central Ashanti Gold Project (“CAGP”) in Ghana in late June 2010, construction was completed on schedule, with first gold produced on 21 August 2011. Active exploration in Ghana and Côte d’Ivoire facilitated Mineral Resource and Reserve upgrades in both countries and the completion of the Tengrela Gold Project feasibility study. 

The Group’s Proved and Probable Mineral Reserves increased by 84% to 3.93 million ounces of gold, Measured and Indicated Mineral Resources (inclusive of Mineral Reserves) increased by 165% to 5.72 million ounces of gold and Inferred Mineral Resources are now 2.19 million ounces of gold. 

To coincide with commencement of operations, the CAGP is to be renamed the Edikan Gold Mine (“CAGP”). Edikan means “first” in Twi, one of Ghana’s main languages. Perseus’s management and staff are committed to ensuring that the CAGP will be the first in a succession of operations for the Group. 

## Ariel view of the Central Ashanti Gold Project 

## Central Ashanti Gold Project, Ghana 

The CAGP mining operation is located on the Ayanfuri and Nanankaw mining leases in the Republic of Ghana, in West Africa. These mining leases together, with adjoining exploration license areas of Grumesa, Kwatechi, Dunkwa, Nsuaem and Nkotumso that are also held by the Group, cover a total area of about 650 square kilometres. 

## Project Development and Commissioning 

Development of the CAGP mine, processing facility and associated project infrastructure progressed on schedule during the period and up to the date of this Report with the following milestones being achieved: 

• Contract miner, African Mining Services (“AMS”) mobilised on site in February 2011 and commenced mining of waste in the Abnabna and Fobinso pits shortly thereafter. First ore was mined and stockpiled in March 2011; 

• Practical Completion of the construction of the processing facility (as defined by the SAG mill being ready to receive ore) was achieved on 20 July 2011; 

• In August 2011, the Ghanaian Environmental Protection Agency advised that it did not object to discharge of tailings into the Concentrate Tailings Storage Facility enabling continuous feed of ore into the SAG mill and full scale commissioning of the processing facility to commence; and 

• The first gold pour occurred on schedule during the third quarter of 2011 on 21 August 2011. 

At the date of this Report, commissioning of the processing facility is well advanced with full scale commercial production at the CAGP expected to commence in the fourth quarter of 2011. 

