Slide 1: Edikan Gold Mine Investor Site Visit Presentation
EDIKAN GOLD MINE INVESTOR SITE VISIT PRESENTATION JUNE 2019
Slide 2: Disclaimer
Disclaimer Disclaimer No representation or warranty, express or implied, is made by Perseus that the material contained in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of Perseus, its directors, officers, employees, advisers
Slide 3: Overview
MINING (GHANA) LIMITED Y OVERVIEW
Slide 4: Edikan - Overview
Edikan - Overview Location South West Ghana, 107 km south-west by road from Ghana’s second largest city, Kumasi Property Two Mining Licenses Ayanfuri and Nanankaw, covering 93 km2 Capital development US$175 m Mining commenced August 2011 History 1st gold produced August 2011 Commercial production de
Slide 5: Edikan Location Map
Edikan Location Map @OPesseu MINING (GHANA) LIMITED j 9 a ) T T ql 200,000me 400 000me H A BURKINA FASO 7 + N | - : _ PS / ) ie anton : ¢ uoanainn { : < {penn \ Sy ee cee < 5 4 ~~ } § {, 600,000mN — vu f $ pommes WESTERN ‘AYANFURI oy H ms ip MINING LEASE 2 as fenees, ( t renin NANANKAW. MINING LEASE
Slide 6: Infrastructure Layout
Infrastructure Layout ~ lt Esuajah North Pit Deis aN Fobinso Pit 4 i. i, , “ye A 2 a ac Pt a (ZI Esuajate NS : | Be Fetish Pit] y Chirawewa North Pit
Slide 7: Health, Safety and Environment
HEALTH, SAFETY and ENVIRONMENT HSE
Slide 8: Occupational Health and Safety
Occupational Health and Safety Improving Safety Culture on the mine site through the following initiatives: • Enforcement of the Take 5 Process. • More Emphasis on Planned Task Observation (PTO) • Leadership participation • Toolbox trainings site wide • First Aid Training for Managers and selected e
Slide 9: Environment
Environment • All Permits renewed for a compliant operations Fetish Main Waste Dump • Progressive rehabilitation of waste dumps • Environmental management plan in place and being implemented • Management of relationship with regulators to ensure our social license is intact • Monthly site monitoring
Slide 10: Human Resource Management
Human Resource Management • Total workforce of 2,771 people including contractors • 429 direct Perseus employees including 6 expatriates • 94% of the senior employees are Ghanaian • 41% from local communities • 5.7% female employment • Healthy Industrial atmosphere • Successfully implemented labour
Slide 11: Mining Operations
FAC EAl(TC ‘ yy a ak 7 wy a Ses MINING (GHANA) LIMITED ¥ MINING OPERATIONS
Slide 12: Mining Equipment / Contractors
Mining Equipment / Contractors One mining contractors on site - Rocksure International and responsible for D&B, L&H, GC drilling and dewatering. Production Fleet (Rocksure): • Komatsu HD 785 Trucks x 22 • Volvo Trucks x 10 • Komatsu PC 1250 Excavators x 3 • Komatsu PC 2000 Excavator x 1 • Hitachi EX
Slide 13: Mining Strategy going forward – Option C
Mining Strategy going forward – Option C • Previous LOM was optimised on ounce production • Current LOM optimised on Cash flow • Reduced mining volumes to reduce mining cost • Supplement mill feed with ore from stockpile • To mine and feed ore from hanging wall to footwall to reduce preferential tre
Slide 14: Processing
() / Merse(Tc N y) 2. oe JF te AY Sess MINING (GHANA) LIMITED ¥ PROCESSING
Slide 15: Edikan Process Flowsheet
Edikan Process Flowsheet • Simple and robust flow sheet • Single stage primary crushing to crushed ore stockpile • Dual drive 14MW SAG Mill with pebble crusher circuit • Gravity circuit – centrifugal concentrators and intensive leach of concentrate (up to ~25% of recovered gold) • Sulphide flotation
Slide 16: Edikan Process Flowsheet
Edikan Process Flowsheet Flotation Primary crusher Flotation tailings storage facility Concentrate Coarse ore thickener stockpile Pebble crusher Regrind Gravity concentrator CIL CIL tailings storage facility SAG mill Elution Electrowinning Leach Reactor Gold room 16
Slide 17: Process Equipment
PROCESS EQUIPMENT Crushing Leaching/Adsorption/Goldroom ▪ Primary crushing: FLS 1400mm x 2100 x 600kW ◼ CIL: 7 x CIL Tanks (Leaching and adsorption) Gyratory Crusher (single stage – open circuit) ◼ Equipment: 7 x 160m3 Tanks, Residence Time 34hrs ▪ Dead COS/Surge Bin ◼ 4t Elution Circuit (Hybrid of
Slide 18: Community and Government Relations
COMMUNITY and GOVERNMENT RELATIONS
Slide 19: Social Development
Social Development • Five main catchment communities surrounding Edikan – Ayanfuri, Gyaman, Fobinso, Abenabena and Nkonya • Regular communication with communities and other stakeholders, both formal and informal • Formal consultation groups including Crop Negotiation Committee (CNC) Resettlement Neg
Slide 20: Community and Government Relations
Community and Government Relations • Relationship between community and Company has improved. • Intrusion by illegal miners continues to be a concern • Engaged district authorities, chiefs and community leaders on illegal mining activities and intrusion of into our operations. • Edikan Trust Fund pr
Slide 21: Land Relocation Action Plan LARP
LAND RELOCATION ACTION PLAN LARP
Slide 22: Status Report – Resettlement Phase 2
Status Report – Resettlement Phase 2 Phase 1 Ayanfuri resettlement — 240 structure and new village built for the community displaced by the Esuajah North pit complete. Phase 2: • Construction of 49 structures in progress. This includes, houses, shops, church and chief’s palace. • Construction of the
Slide 23: March Quarter Production Update
MARCH QUARTER PRODUCTION UPDATE
Slide 24: FY 2019 Q3 Production Summary
FY 2019 Q3 PRODUCTION SUMMARY Key Points March Quarter: • AICS of US$900/oz was 22% lower than the previous quarter resulting from the implementation of the new LOMP • Mined volumes reduced 33% • Mining costs reduces 27% to US$3.06/t • Gold production was 11% lower • Throughput was 13% lower as the
Slide 25: Mining - Option C Update
Mining - Option C Update • Successfully implemented reduced mining rate plan using one mining contractor resulting in mining cost per tonne mined • Successfully opened up 2 new pits as per LOM/budget • The issue of Mine Call Factor (MCF) is under control after implementation of Option C. Now mining
Slide 26: Processing – Optimisation Review
Processing – Optimisation Review • Blending is critical to maintaining throughput with harder Esuajah North ore • Throughput optimisation studies underway • Hatch undertaking a full mine to mill review 26
Slide 27: Plant Availabilities Q3 2019
Plant Availabilities Q3 2019 100 90 100 92 91 95 93 90 84 84 86 SAG Mill 90 CRUSHER 80 80 70 70 60 60 50 50 8 40 40 86% 30 20 93% 30 20 Actual Actual 10 10 Budget Budget 0 0 July FYTD Sept Aug 100 94 93 93 93 95 94 95 95 100 OXIDE Feeder 90 REGRIND Mill 90 80 80 70 70 60 60 50 50 93% 40 30 20 Actual
Slide 28: Risks and Opportunities
Risks and Opportunities RISKS OPPORTUNITIES ❖ Throughput rates - May be lower than predicted. ✓ Rocksure performance - Steady state after their mobilization to site. An opportunity to deliver above the planned volumes. ❖ Process Plant Availability – Focus on regular maintenance inspections. ✓ The mi
Slide 29: Continuous Improvement Initiatives
CONTINUOUS IMPROVEMENT INITIATIVES
Slide 30: Three Pronged Strategy
Three Pronged Strategy Last Quarter This Quarter • LOM C adopted • Millstar control Technical • Mill Slicer Installed system • Adoption of LOM C Mine Plan Transformation • Application of New Technology • Mach Reactor • Carbon Column Projects Installed install • Genser power • Hatch engaged for • Hat
Slide 31: Objective – Sustainably Lowering AISC
Objective – Sustainably Lowering AISC Targeting a 3% reduction in cost base and maintaining it – Escalation containment and AISC Improvement. $30/oz • Single Mining Contractor – $30M improvement on LOM C - $30/oz • Blasting – Lower PF - $5/oz Cost Improvement • Mach Reactor – Reduced peroxide additi
Slide 32: Continuous Improvement - Results
Continuous Improvement - Results Implemented – Delivering Results Implemented – Tracking Results Awaiting Implementation US$73M worth of initiatives being implemented and tracked for value delivery 32
Slide 33: Edikan Gold Mine Life of Mine Plan Option - C
EDIKAN GOLD MINE LIFE OF MINE PLAN OPTION - C Source: “Perseus Mining Updates Edikan’s Life of Mine Plan” dated 29 August 2018
Slide 34: Overview
Overview Solid Edikan Life of Mine which is: ✓ Economically very attractive – US$950/oz all-in site cost and US$264M after tax cashflow ✓ Technically robust – Operating and processing experience in all pits (except Bokitsi), resource/mill reconciliation performance well understood ✓ Minimal incremen
Slide 35: Summary of Changes Since Previous LOM
Summary of Changes Since Previous LOM • Increase in mining contract cost – rise & fall • Additional ore mining costs – grade control & rehandle • Labour cost increase in all areas • Lower throughput rates – fixed costs higher per tonne • Mill run time increased – fixed costs lower per tonne • Diluti
Slide 36: Main LOM Assumptions
Main LOM Assumptions • Scheduled from 1 July 2018 • Gold price US$1,200/ounce • Diesel price US$1.01/L • Power 99% grid ($0.147/kWh), 1% self generated ($0.273/kWh) • AMS mining cost for Eastern and Northern Pits • Rocksure mining costs for Fobinso and AG Final pits • Mill Run Time 92.6%, Total Thro
Slide 37: Snapshot of Outcomes
Snapshot of Outcomes Parameter Units Value • 6 Year Mine Life Waste + Ore Mined Mt 116.2 • LOM Ounce Production 180 Ore processed Mt 39.2 Head Grade g/t 0.98 koz/yr with 200 koz/yr in first Weighted Average Recovery % 87.5% 3ars Sustaining Capital US$M 31.9 • All in site cost US$950/oz LOM US$/t Min
Slide 38: Edikan Resource Estimates
Edikan Resource Estimates • All Open Pit Resource Estimates Regularly Updated – Generally MIK Estimation Method • Heap Leach and ROM Stockpiles Included • Good reconciliation between reserve model and grade control over the last 2 years 38
Slide 39: Edikan Resource Estimate (Jun 2018)
Edikan Resource Estimate (Jun 2018) 7, 8, 9 Measured Resources Indicated Resources Measured + Indicated Deposit Deposit Quantity Grade Gold Quantity Grade Gold Quantity Grade Gold Type Mt g/t Au koz Mt g/t Au koz Mt g/t Au koz AF Gap1, 2, 3 Open Pit 7.8 1.00 253 11.1 0.95 338 19.0 0.97 591 Fobinso1,
Slide 40: Edikan Reserve Estimate (Jun 2018)
Edikan Reserve Estimate (Jun 2018) 3, 6, 7 Proved Probable Proved + Probable Deposit Deposit Quantity Grade Gold Quantity Grade Gold Quantity Grade Gold Type Mt g/t Au koz Mt g/t Au koz Mt g/t Au koz AF Gap¹,⁴ Open Pit 4.3 1.09 150 4.7 1.11 169 9.0 1.10 319 Fobinso¹ ⁴, Open Pit 0.2 1.22 7 0.5 0.98 1
Slide 41: Edikan LOM Ore Sources
Edikan LOM Ore Sources \ Ma Esuajah North Pit See sy
Slide 42: Total Material Movement by Ore Source
Total Material Movement by Ore Source 1,400 Thousands BCM 1,200 1,000 800 600 400 200 - 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 FY18-19 FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FOB_FINAL AFG_FINAL ESN_FINAL FET_STG2 FET_FINAL BKS_STG1 42
Slide 43: Tonnes and Grade Processed
Tonnes and Grade Processed 8,000 1.20 1.08 Thousands tonnes 1.06 1.00 1.00 7,000 0.92 1.00 6,000 0.79 0.80 5,000 0.60 4,000 6,974,166 6,857,530 6,950,230 6,657,704 6,302,455 5,490,606 0.40 3,000 2,000 0.20 1,000 - FY18-19 FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 Tonnes Grade 43
Slide 44: Ounce Production by Ore Source
Ounce Production by Ore Source 220 Thousands oz 200 180 160 140 120 100 80 60 40 20 - FY18-19 FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FOB_FINAL AFG_FINAL ESN_FINAL FET_STG2 FET_FINAL BKS_STG1 Existing Stockpile Heap Leach 44
Slide 45: Edikan Exploration Update
@) ( IVeAlCCce(Tc N in ~~ a a 4 — Sees MINING (GHANA) LIMITED ¥ EDIKAN EXPLORATION UPDATE
Slide 46: Perseus Property Locations – SW Ghana
Perseus Property Locations – SW Ghana • Geological setting - south eastern part of the West African Craton. • Total Gold Endowment: o Ashanti Belt (≥ 125Moz Au) o Sefwi – Bibiani Belt (≥ 30Moz Au) o Kumasi Basin – (13Moz Au) 46
Slide 47: District Geology & Gold Mineralisation
District Geology & Gold Mineralisation District Geology • Underlain principally by steeply dipping, Esuajah N & S NE-trending metasedimentary rocks and AB & Fobinso Fetish lesser metavolcanic rocks of the Chirawewa Paleoproterozoic Birimian Supergroup • D2 NE-SW thrust fault – Obuasi Akropong shear
Slide 48: Exploration Strategy
Exploration Strategy • Previous conventional use of soil geochemistry in defining drill targets has outlived its usefulness in this mature exploration environment, and is not effective in delineating blind deposits. • Recognition of need to use multi-geoscience data in an integrated approach to deli
Slide 49: 2018-20 Target Testing
2018-20 Target Testing Esuajah NE Target Esuajah Gap South Esuajah South Poku South Nkonya West Saa NE Target Huntado Target 49
Slide 50: Esuajah Gap – CGSG Target 1
Esuajah Gap – CGSG Target 1 • Conceptual buried en échelon granite plug(s) between Esuajah Nth and Sth granites – undrilled due to Ayanfuri town site. • Planned 12-hole RC program to test zone abandoned due to community objections. • Replaced by 3 x deep RCDD holes raking through target zone. • 2nd
Slide 51: Esuajah Gap Cross Section – Looking NE
Esuajah Gap Cross Section – Looking NE • Granite appears not to daylight – blind 26m @ deposit with mineralisation preserved in 1.11g/t granite apex and heavily altered and quartz 13.7m @ 2.32g/t veined ‘bleed out’ zone within sediments above. 13m @ 29m @ 1.21g/t 2.65g/t • Strongly altered – pervasi
Slide 52: Esuajah Gap Drilling
Esuajah Gap Drilling • Gold grades best in upper, near surface part of the system – largely oxidised. • Resource estimate and mining study currently underway. • Mining potential restricted due to the proximity of Ayanfuri village – free-dig oxide zone (no blasting). 52
Slide 53: Edikan Exploration – Summary
Edikan Exploration – Summary • Edikan is a mature exploration environment. • Until 2016 exploration largely driven by soil geochemistry with considerable success but diminishing returns over time. • Current program driven by CGSG targeting exercise, with focus on a new generation of targets, mostly
Slide 54: Esuajah South Update
@) ( IVeAlCCce(Tc N in ~~ a a 4 — Sees MINING (GHANA) LIMITED ¥ ESUAJAH SOUTH UPDATE
Slide 55: Esuajah South Small Pit Stand Alone Option
Esuajah South Small Pit Stand Alone Option • ESS re-visited after review of ES Gap drilling Key Issues to be addressed: ✓ Community engagement and acceptable project for community in return for blasting and mining within 200m radius. ✓ Noise and Vibration Impact. ✓ Environmental Impact Study to cove