Perseus Mining Executes Key Nyanzaga Agreements

Executive Summary

• Perseus Mining signed addenda to the Framework and Shareholders’ Agreements with the Government of Tanzania, finalising “key Nyanzaga agreements” that enable progression of the 80% owned Nyanzaga Gold Project (NGP).
• The NGP is projected to produce >200,000 oz Au per year from FY28‑FY35, with a peak of ~250,000 oz in FY28 and an average AISC of US$1,211/oz.
• Capital cost to first gold pour is estimated at US$523 million (US$472 m plant & infrastructure + US$51 m pre‑production), supporting an undiscounted pre‑tax free cash flow of US$1.13 bn (US$2.25 bn at a $2,700/oz gold price) and an IRR of 26% (pre‑tax).

Key Details

• Agreements Executed:
• Addendum to Framework Agreement (dated 13 Dec 2021).
• Addendum to Shareholders’ Agreement (dated 13 Dec 2021).
• Project Ownership: Perseus – 80% (contributing); Government of Tanzania – 20% (non‑contributing).
• Resource & Reserve Summary (Oct 2024/Apr 2025):
• Indicated Resources: 74.2 Mt @ 1.33 g/t Au → 3.16 Moz Au.
• Inferred Resources: 15.0 Mt @ 1.20 g/t Au → 0.58 Moz Au.
• Probable Reserves: 52.0 Mt @ 1.40 g/t Au → 2.34 Moz Au.
• Production Outlook:
• FY28‑FY35 average >200,000 oz/yr; peak ~246,000 oz in FY28.
• Total Phase 1 (11‑year) production ≈2.01 Moz Au.
• Cost Metrics:
• All‑In Site Cost (AISC): US$1,211/oz (life‑of‑mine average).
• Capital cost to first gold pour: US$523 million (incl. US$49 m contingency).
• Financial Projections (US$2,100/oz gold price):
• Undiscounted pre‑tax free cash flow: US$1,133 m; post‑tax: US$706 m.
• NPV10% pre‑tax: US$404 m; post‑tax: US$202 m.
• IRR pre‑tax: 26%; post‑tax: 19%.
• Exploration Update:
• Ongoing infill drilling (35,623 m RC & DD as of June 2025) to convert Inferred to Indicated resources and potentially expand reserves.
• Drill spacing improved from 40 × 40 m to nominal 20 × 40 m across Tusker and Kilimani deposits.
• Management Commentary: CEO Jeff Quartermaine highlighted the “win‑win” nature of the agreements, the supportive Tanzanian government stance, and the team’s execution capability.

Notable Quotes

“Both sides negotiated robustly on certain issues, but agreement was reached to achieve a common good… we are very pleased with the outcome of the negotiations that represented a classical ‘win‑win’ situation.” – Jeff Quartermaine, Managing Director & CEO, Perseus Mining Ltd.