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Press release from CNW Group

Financing Update - Completion of US$85M drawdown under Project Finance Facility

Wednesday, June 22, 2011

Financing Update - Completion of US$85M drawdown under Project Finance Facility23:01 EDT Wednesday, June 22, 2011/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/PERTH, Western Australia, June 23, 2011 /CNW/ -HighlightsPerseus Mining Limited has drawn down US$85M under a Project Finance Facility for the Company's Central Ashanti Gold Project ("CAGP") in Ghana.Perseus cash on hand is the equivalent of approximately AU$104M and total debt is US$85M.Perseus Mining Limited (ASX/TSX: PRU) is pleased to announce that the US$85 million Project Finance Facility provided to Perseus's 90%-owned subsidiary, Central Ashanti Gold Limited ("CAGL"), by Macquarie Bank Limited and Credit Suisse AG has been drawn down.To date, approximately US$152 million of the estimated US$174 million capital cost of Perseus's Central Ashanti Gold Project in Ghana has been funded by equity capital raised by Perseus.  The balance of construction costs will be financed using funds drawn under the debt facility.As at 22 June 2011, Perseus had cash on hand of approximately AU$104 million and total debt of US$85 million.Perseus Managing Director, Mark Calderwood's Comments"The drawdown of the project debt facility by CAGL will be used to complete CAGP construction, provide working capital, and repay inter-company loans to Perseus.""The additional funds will enable us to continue financing our highly successful exploration programmes in West Africa as well as fund project establishment costs and acquire long lead items  for our second gold project at Tengrela in Côte d'Ivoire.""The Company has 230,000 ounces of gold sold forward that is deliverable over a 36-month period starting in March 2012 at an average price of US$1,250 per ounce.  The hedging was undertaken in 2010 as a prerequisite to arranging the finance facility and no additional hedging is required as a result of the US$85 million drawdown.  The hedging represents about 25% of expected production from CAGP to the end of 2014."Mark CalderwoodManaging DirectorAbout Perseus Mining LimitedPerseus Mining Limited (ASX/TSX: PRU) has forged a reputation as one of West Africa's most successful gold explorers. Focused on under-explored gold belts in West Africa, Perseus is on track to become a producer by the third quarter of 2011 at its Central Ashanti Gold Project (CAGP) in Ghana.  The Company plans to produce at the initial rate of about 220,000 ounces of gold in year 1 and to increase this to about 280,000 ounces per annum in year 2.Perseus is now also planning the development of its Tengrela Gold Project in Côte d'Ivoire, with production targeted for 2013. Tengrela has the potential to become a significant contributor to the Company's goal to develop into a 400,000 ounce per year gold producer by 2013.Perseus will continue its strategy of rapidly increasing its resource and reserve base during the development of the CAGP and Tengrela.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, and development of a mine at Tengrela .  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: To discuss any aspect of this announcement, please contact: Mark Calderwood at telephone +61 8 9240 6344 or email calderwoodm@perseusmining.com Nathan Ryan at telephone +61 3 9622 2159 or email nathan.ryan@nwrcommunications.com.au (media) Rebecca Greco at telephone +1 416 822 6483 or email fighouse@yahoo.com (Toronto)