Perseus Mining issues September 2010 Quarterly Reports

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

PERTH, Western Australia, Oct. 29 /CNW/ - Perseus Mining Limited (ASX /TSX: PRU) ("Perseus" or the "Company") advises that its Activity and Cash Flow Reports for the quarter ended September 30, 2010 have been issued today. Highlights of the Activity Report are set out below, and the full text of the reports are available on the Company's website www.perseusmining.com and under the Company's profile at www.sedar.com

Highlights

Central Ashanti Gold Project (Ayanfuri) - Ghana

The Central Ashanti Gold Project ("CAGP") in Ghana is progressing in line with expectations:

• Site works are well advanced with a significant portion of the concrete works completed.
• Procurement is also well advanced with most of the process plant equipment now on site in Ghana or enroute to site.
• Power line easement clearing is 80% complete and the switch yard earthworks are complete. The transformer and transmission line pylons have been delivered to storage in Ghana and construction works have commenced.
• All major contracts have now been awarded, and pre-production mining is scheduled to commence March 2011.

Most of the 44,874m of drilling completed on the Company's Ghanaian projects during the September Quarter was focused on infill and step-out drilling of known deposits:

Tengrela Gold Project - Côte d'Ivoire

A total of 18,936m of RC and diamond drilling and 16,949m of RAB and air core drilling was completed during the September Quarter on a number of prospects.  Several potentially significant new discoveries were made.

Documentation for the Tengrela Gold Project ("TGP") feasibility study is nearing completion and the results are scheduled for release in early November 2010.  

Corporate

The final form documentation for the US$85 million bank debt facility for the CAGP has been submitted to the Ghanaian Government for approval prior to execution. Gold price hedging required by the lenders as a pre-requisite to gaining full access to the facility has been completed.

Program for the December 2010 Quarter

Plans and targets for the December 2010 quarter are:

At CAGP

• Continue construction of process plant and related infrastructure.
• Complete and publish a Mineral Reserve upgrade for Abnabna-Fobinso zone.
• Complete and publish a maiden Mineral Reserve estimate for Esuajah South.

At TGP

• Release definitive feasibility study results for the Tengrela Gold Project.
• Continue resource drilling at Sissingue.
• Undertake further drilling on regional targets, with the aim to continue the run of new discoveries.

Mark Calderwood
Managing Director

October 29, 2010

The information in this report that relates to exploration results, mineral resources or ore reserves is based on information compiled by Mr Mark Calderwood, who is a Member of The Australasian Institute of Mining and Metallurgy.  Mr Calderwood is a Director and full-time employee of the Company.  Mr Calderwood has sufficient experience, which is relevant to the style of mineralisation and type of deposit  under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2004 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").  Mr Calderwood consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. For a description of Perseus' data verification process, quality assurance and quality control measures, the effective date of the mineral resource and mineral reserve estimates contained herein, details of the key assumptions, parameters and methods used to estimate the mineral resources and reserves set out in this report and the extent to which the estimate of mineral resources or mineral reserves set out herein may be materially affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues, readers are directed to the technical report entitled "Technical Report - Central Ashanti Gold Project, Ghana" dated November 30, 2009 and the technical report entitled ''Technical Report - Tengrela Gold Project, Côte d'Ivoire'' dated September 02, 2010 in relation to the Central Ashanti Gold Project and the Tengrela Gold Project respectively.

Caution Regarding Forward Looking Information: This report contains forward-looking information which is based on assumptions and judgments of management regarding future events and results. Such forward-looking information, includes but is not limited to information with respect to future exploration and drilling,  procurement of financing, procurement of necessary regulatory approvals, the development of a mine at the Central Ashanti Gold Project, completion of a definitive feasibility study at Tengrela and development of a mine at Tengrela subject to the results of  that study . 

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.

For further information:

Perseus Mining Limited, ABN 27 106 808 986, 30 Ledgar Road, Balcatta, Western Australia, 6021, PO Box 717, Balcatta, WA, 6914, Telephone: [phone], Facsimile: (618) 9240 2406, Email address: [email protected], Website: www.perseusmining.com