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## Review of Operations 

## OCCUPATIONAL HEALTH & SAFETY, THE ENVIRONMENT, AND COMMUNITY RELATIONS 

Perseus places a high level of importance on maintaining a safe working environment for its employees, exploring, developing and operating mines in line with good environmental practices and embracing a strong sense of commitment to the local communities around its operations and exploration sites. 

## Occupational Health & Safety 

The inherently risky nature of the minerals industry means that Perseus’s workforce may be exposed to potential safety risks when conducting exploration, development and operating activities. It is for this reason that safe working practices are a priority on all of the sites on which we operate. With the start of operations at the Edikan Gold Mine, the Company has sought to introduce a rigorous set of Occupational, Health and Safety policies and procedures at the Edikan Gold Mine site and has engaged specialist trainers to assist local staff to understand and accept the standards of safety that are required by the Company. 

The safety performance for the Company in the 2011year has fallen 

short of expectations indicating that more work is required to achieve targeted standards. Incidents that occurred during the year at Edikan Gold Mine included: 

• One (1) fatality involving an employee of a contractor occurred during the year; and 

• One (1) Lost Time Injury occurred along with nine (9) other minor injuries requiring first aid treatment. 

A professionally staffed medical clinic is operated on the site at the Edikan Gold Mine where the health of employees is assessed prior to employment and on an ongoing basis. 

Training on prevention and control of typhoid and cholera was conducted for all employees, but particularly for those who live in local communities, in collaboration with personnel from the district directorate of health based at the Ayanfuri Clinic. 

## Environment 

As a mining business, Perseus is a significant consumer of energy in the form of electricity and diesel oil fuel, water and other resources. It is acknowledged that Perseus has an important role in the efficient management of resources and responsible disposal of materials in 

order to preserve not only the immediate ecosystems within which the Company operates, but also to mitigate impacts on the broader environment. 

Specific initiatives undertaken on the Edikan Gold Mine site aimed at managing our environmental footprint included the following: 

• Adoption of environmental management standards and procedures consistent with the principles of ISO14001 were established; 

• Engagement of specialized Consultants to assist in the initial training of managers and supervisors in the implementation of the Environmental Management System; 

• Drilling of monitoring boreholes for monitoring of ground water aquifers around the Flotation Tailings Storage Facility (FTSF). 

Observation boreholes were also drilled in all the catchment communities for the purpose of conducting future monitoring of groundwater. Aquatic biological monitoring was also carried out as was sediment sampling of major streams in the concession area during the construction stage. Ongoing programs of surface water, ground water, noise and dust monitoring have also been established; 

•  A program of sampling for acid rock drainage (ARD) from the open the pits, Run of Mine (ROM) stockpile area and waste dumps has been established; 

• A baseline structural survey was carried out at the villages of Fobinso and Abnabna prior to commencement of blasting operations in February 2011. 

Since then, monitoring of blast vibration and air blast levels attained per blasts from the pits has been implemented in the catchment communities. 

Residents from all the catchment communities have been selected and trained to 

