Perseus Mining Advances African Gold Portfolio with $523M Nyanzaga Project Investment

• Perseus Mining has made a Final Investment Decision to develop the Nyanzaga Gold Project in Tanzania, committing $523 million to build what will be Tanzania's first major gold mine development in 17 years.
• The project will have an 11-year mine life producing 2.01 million ounces of gold, with annual production averaging over 200,000 ounces from FY28 to FY35 and peak production of 246,000 ounces in FY28.
• Perseus has opted for a large-scale, wholly open-pit mining operation rather than the smaller combined open-pit and underground option previously considered by former owner OreCorp Limited.
• At a gold price of $2,100/oz, the project is expected to generate pre-tax free cash flow of $1.13 billion and post-tax of $706 million, with internal rates of return of 26% pre-tax and 19% post-tax.
• Construction has already begun with early works underway, and the company is targeting first gold production in Q1 2027, which would add Nyanzaga as Perseus's fourth operating gold mine in Africa.

Perseus announced its Final Investment Decision (FID) to develop the Nyanzaga Gold Project (NGP) in Tanzania following an update to the project's Feasibility Study. The company will invest approximately $523 million (including contingency) to develop the mine, which is expected to produce its first gold in the first quarter of 2027.

The updated Feasibility Study incorporates findings from comprehensive technical assessments made by Perseus's team. Notably, the company has chosen to pursue a large-scale, wholly open-pit mining operation for the first phase of development, differing from the smaller scale, combined open-pit and underground option that had been proposed by OreCorp in their 2022 Definitive Feasibility Study.

Jeff Quartermaine, Perseus's Managing Director and CEO, emphasized the significance of the project:

"Perseus is very excited by its decision to proceed with the development of the Nyanzaga Gold Project and is looking forward to working alongside the Government of Tanzania to deliver a world class mining operation. The Nyanzaga Gold Project will be the first major gold mine development in Tanzania in 17 years and represents a major step forward in terms of enhancing Tanzania's reputation as a favourable destination for foreign investment."

Production & Cost Metrics

The Nyanzaga Gold Project is expected to produce a total of 2.01 million ounces of gold over an 11-year mine life, based on a JORC 2012 Probable Ore Reserve of 52.0 million tonnes at 1.40 g/t gold for 2.3 million ounces. Gold production will average over 200,000 ounces per annum from FY28 to FY35, with peak production reaching 246,000 ounces in FY28.

Over the life of the mine, the estimated average All-In Site Cost (AISC) is $1,211 per ounce. The project's capital cost structure includes:

• Plant and site infrastructure: $472 million (including $49 million contingency)
• Pre-production capital: $51 million
• Total capital cost to first gold pour: $523 million

The development will be solely financed through interest-free intercompany loans provided by Perseus from its existing cash and bullion balance which stood at $801 million as of March 2025.

Mining & Processing Operations

The NGP site is accessible via the sealed Mwanza-Geita Highway and then traveling on unsealed regional roads. Power will be supplied from the national grid through a new 53 km long 220 kV transmission line from the Bulyanhulu substation. Water for operations will be primarily sourced from nearby Lake Victoria, supplemented by groundwater from dedicated boreholes.

Perseus has designed a tailings storage facility (TSF) that will comprise a cross-valley storage facility formed by three zoned earth-fill embankments, constructed in accordance with international standards including the Australian National Committee on Large Dams Guidelines and the Global Industry Standard on Tailings Management.

Perseus plans to mine the Nyanzaga (Tusker) and Kilimani deposits using a large open pit. The mining operation will utilize 180-350 tonne hydraulic excavators matched with 90-150 tonne off-highway dump trucks. Over the life of the project, 52.0 million tonnes of ore and 297.8 million tonnes of waste will be mined at an average strip ratio of 5.7.

The processing plant has been designed with a nameplate throughput of 5 million tonnes per annum. It will utilize a conventional gold processing flowsheet that includes single-stage gyratory crushing, SAG milling with pebble recycle and ball milling, gravity gold recovery, and cyanide-in-leach (CIL) processing. The selected flowsheet is supported by extensive metallurgical test work completed between 2016-2017 and 2022.

Metallurgical recovery of gold is expected to average 86.0% over the life of mine at a grind size of P80 75 μm. The process plant will handle ore with an average head grade of 1.40 g/t over the 11-year mine life.

Financial Evaluation & Investment Metrics

Perseus has completed a financial evaluation on a 100% project basis across a range of gold prices. At the company's assumed long-term gold price of $2,100 per ounce, the project's key financial metrics include:

• Undiscounted free cash flow: $1,133 million pre-tax and $706 million post-tax
• Net Present Value (NPV10%): $404 million pre-tax and $202 million post-tax
• Internal Rate of Return (IRR): 26% pre-tax and 19% post-tax

The financial sensitivity analysis shows that the project economics are most sensitive to variations in gold price, followed by operating costs and capital costs.

Timeline

Perseus has already commenced early works on the project, having spent approximately $27.5 million to date to build project team capacity and begin site establishment, installation of temporary construction accommodation, and bulk earthworks. The company has also started implementing a Relocation Action Plan to construct new dwellings for people impacted by future construction and operating activities.

The critical path for project implementation runs through the supply and installation of the mills, followed by installation and energization of the permanent power supply. Perseus awarded the contract for mill supply to Metso Australia in late 2024, and the Power Supply Agreement with Tanzania Electric Supply Company Limited (TANESCO) has been concluded and is ready for execution.

Perseus is targeting production of first gold in Q1 2027, with construction activities ramping up immediately following the FID announcement.

Government Agreements & ESG Considerations

Perseus has worked with the Tanzanian government to clarify terms of existing agreements that govern the joint venture ownership of the project. Under the ownership structure, Perseus owns an 80% contributing interest in the NGP, while the Government of Tanzania holds a 20% non-contributing interest.

The company has developed comprehensive environmental, social, and governance frameworks for the project, including an Environmental and Social Impact Assessment and Environmental Management Plan. Perseus is working with the Tanzanian National Environment Management Council to update these plans following recent changes to the site layout.

"Importantly, the addition of a high-quality, long-life gold mine such as the Nyanzaga Gold Mine to Perseus's existing asset portfolio, that currently includes the Yaouré, Sissingué and Edikan gold mines, as well as the undeveloped Meyas Sand Gold Project, represents a significant upgrade for Perseus and is consistent with the Company's strategy for building a sustainable, geopolitically diversified but African-focused gold business," said Quartermaine.

Investment Implications

The Final Investment Decision for the Nyanzaga Gold Project represents a significant milestone in Perseus Mining's growth strategy. By adding a fourth operating mine to its portfolio, Perseus is on track to meet its stated objective of building a sustainable, geopolitically diversified African-focused gold business producing between 500,000-600,000 ounces of gold per annum at a cash margin of not less than $500 per ounce.

For investors, the Nyanzaga project offers exposure to a substantial new gold mining operation with competitive production costs and significant leverage to gold price. The project's financing through Perseus's existing cash reserves demonstrates the company's strong financial position and avoids the need for additional debt or equity. With construction already underway and a clear path to production, Perseus continues to strengthen its position as one of the leading gold producers operating on the African continent.