Perseus Mining Secures Critical Tanzania Agreements, Advancing $524M Nyanzaga Gold Project Development

• Perseus Mining has executed formal agreements with Tanzania's government for the development of its 80% owned Nyanzaga Gold Project, removing regulatory uncertainty and establishing the framework for a US$524 million development.
• The Nyanzaga project is projected to produce over 200,000 ounces of gold annually from FY28 to FY35 with peak production of approximately 250,000 ounces in FY28, making it Perseus's largest single operation.
• With life-of-mine average All-In Site Costs of US$1,211 per ounce, Nyanzaga is expected to be Perseus's lowest-cost operation, providing significant operational leverage and margin enhancement across various gold price environments.
• The negotiations were characterized as collaborative and mutually beneficial, with Perseus management highlighting the professional approach of Tanzanian officials and the positive investment climate for foreign mining companies.
• Perseus remains on track for first gold production at Nyanzaga in Q1 2027, with the executed agreements providing the regulatory certainty necessary to proceed with construction and maintain the established development timeline.

Perseus Mining Limited (ASX/TSX: PRU) is an established gold mining company operating a diversified portfolio of four mining operations across West and East Africa. The company has successfully executed formal agreements with the Government of the United Republic of Tanzania to advance development of its flagship Nyanzaga Gold Project (NGP), representing a significant milestone in Perseus's expansion strategy. These agreements formalize the regulatory framework necessary for the development of what is projected to become the company's lowest-cost operation, with an estimated capital investment of US$524 million and targeted first gold production in Q1 2027.

Project Fundamentals & Production Targets

The Nyanzaga Gold Project represents a cornerstone asset in Perseus's portfolio, with the company maintaining an 80% ownership stake in the operation. Following the Final Investment Decision announced in April 2025, the project is positioned to deliver robust production metrics that align with Perseus's growth strategy.

Production forecasts indicate the operation will generate an average of over 200,000 ounces of gold per annum from FY28 to FY35, with peak production reaching approximately 250,000 ounces in FY28. These production levels position Nyanzaga as a significant contributor to Perseus's overall output and demonstrate the project's scale and operational potential.

The project's economic fundamentals are particularly compelling from an investor perspective, with life-of-mine average All-In Site Costs (AISC) projected at US$1,211 per ounce. This cost structure is expected to make NGP the lowest-cost operation within Perseus's four-mine portfolio, providing substantial operational leverage in various gold price environments and enhancing the company's overall margin profile.

Agreement Structure & Regulatory Framework

The executed agreements consist of two critical documents that establish the operational and commercial framework for the Nyanzaga project. These include an Addendum to the Framework Agreement dated 13 December 2021 and an Addendum to the Shareholders' Agreement dated 13 December 2021.

These agreements represent modifications to existing arrangements originally established between the Tanzanian government and the project's previous owner. CEO Jeff Quartermaine explained the background:

"Prior to us recently announcing our Final Investment Decision to develop the US$524 million Nyanzaga Gold Project in Tanzania, our team engaged extensively with Tanzania's Government Negotiating Team and other key government officials and authorities to agree amendments to important agreements governing the development of Nyanzaga that had originally been struck between the government of Tanzania and the prior owner of the project."

The amendments were designed to address specific operational and commercial considerations relevant to Perseus's development approach while ensuring alignment with Tanzania's regulatory requirements and investment policies. Quartermaine noted that:

"Negotiations were aimed at removing ambiguities in the terms of existing agreements between the Government and Perseus and were conducted in a very cordial and positive atmosphere by both sides, reflecting well on the Tanzanian Government's ambition to open its doors to foreign investment and to encourage foreign participation in its highly valuable mining industry."

The formal execution of these agreements removes a significant development risk from the project timeline and provides Perseus with the regulatory certainty necessary to proceed with construction activities. This regulatory framework is essential for maintaining the project's targeted development schedule and ensuring compliance with local mining laws and regulations.

Management Commentary & Negotiation Process

Perseus's Managing Director and CEO, Jeff Quartermaine, provided detailed commentary on the negotiation process and its significance for the company's development strategy. His remarks offer insight into the collaborative approach taken by both parties and the broader implications for foreign investment in Tanzania's mining sector.

The CEO emphasized the constructive nature of the negotiations and specifically acknowledged the leadership provided by key Tanzanian officials, stating:

"In particular, the leadership shown by the Minister for Minerals, Honourable Anthony Mavunde and the Treasury Registrar Mr Nehemiah Mchechu was outstanding throughout the process."

This acknowledgment reflects the importance Perseus places on maintaining strong relationships with host government officials and demonstrates the collaborative approach that facilitated successful completion of the negotiations. The recognition of specific individuals also indicates the level of engagement and professionalism that characterized the negotiation process.

Project Team & Implementation Strategy

The negotiation process was led by Perseus's senior management team, demonstrating the company's commitment to ensuring appropriate executive oversight of this critical development milestone. Chief Financial Officer Lee-Anne de Bruin headed the Perseus negotiating team, supported by General Counsel Martijn Bosboom and Tanzanian CFO and Country Manager Isaac Lupokela.

CEO Quartermaine acknowledged the team's contribution, stating:

"Perseus's team was led by our Chief Financial Officer Lee-Anne de Bruin, who was ably assisted by our General Counsel, Martijn Bosboom and Tanzanian CFO and Country Manager, Isaac Lupokela. I would like to record my personal thanks and commendation on an outstanding achievement by all three people."

This team structure reflects Perseus's strategy of combining corporate expertise with local knowledge, ensuring that negotiations addressed both international investment considerations and local regulatory requirements. The involvement of the Tanzanian CFO and Country Manager demonstrates the company's commitment to maintaining strong local relationships and understanding of the operating environment.

Development Timeline & Implementation

With the formal agreements now executed, Perseus remains on track to achieve first gold production at Nyanzaga in Q1 2027. This timeline represents a critical milestone for the company's growth strategy and will mark the beginning of cash flow generation from what is expected to be Perseus's most cost-effective operation.

However, CEO Quartermaine noted that some implementation work remains:

"That said, there remains some work to be done to fully implement the agreed changes, and we are looking forward to the continued cooperation of the government in making this a reality."

The development schedule reflects Perseus's methodical approach to project execution, balancing the need for timely development with appropriate risk management. The company's experience operating multiple mines across Africa provides valuable context for managing the development process and ensuring successful project delivery.

The targeted production commencement date of Q1 2027 allows for comprehensive construction and commissioning activities while maintaining alignment with Perseus's broader operational strategy. This timeline also provides sufficient lead time for implementing the remaining aspects of the formal agreements and ensuring full regulatory compliance.

Investment Implications & Strategic Context

The execution of these agreements represents a significant de-risking event for Perseus shareholders, removing regulatory uncertainty that could have impacted the project's development timeline and commercial viability. The formal regulatory framework provides the foundation for proceeding with construction activities and positions the project for successful development within the established timeline.

CEO Quartermaine characterized the negotiation outcome as mutually beneficial, explaining:

"From Perseus's perspective, we were very pleased with the outcome of the negotiations that represented a classical 'win-win' situation. Both sides negotiated robustly on certain issues, but agreement was reached to achieve a common good and this display of wisdom and maturity speaks volumes about the way that business can and is being conducted in modern and progressive African countries such as Tanzania."

From a portfolio perspective, the Nyanzaga project enhances Perseus's operational diversification across multiple African jurisdictions while adding substantial production capacity. The project's projected position as the company's lowest-cost operation provides operational leverage and margin enhancement potential across various gold price scenarios.

The positive negotiation experience also demonstrates Perseus's capability to successfully navigate complex regulatory environments and maintain constructive relationships with host governments. This operational competency is particularly valuable for a company operating across multiple African jurisdictions and supports confidence in Perseus's ability to manage similar challenges in its existing operations.

For Investors

Perseus Mining's successful execution of critical agreements with the Tanzanian government represents a significant milestone in the development of the Nyanzaga Gold Project, removing regulatory uncertainty and establishing the framework for developing what is projected to be the company's most cost-effective operation. The project's robust production profile, with over 200,000 ounces annually and AISC of US$1,211 per ounce, positions it as a valuable addition to Perseus's portfolio while maintaining the company's track record of operational excellence across multiple African jurisdictions.

The constructive negotiation process and positive working relationship established with Tanzanian authorities demonstrates Perseus's ability to effectively manage complex regulatory environments and maintain productive partnerships with host governments. With first gold production targeted for Q1 2027 and formal agreements now in place, the Nyanzaga project represents a compelling growth opportunity that enhances Perseus's production profile while maintaining strong operational margins. Investors should view this development as validation of Perseus's strategic expansion approach and evidence of the company's continued ability to successfully develop large-scale mining projects in challenging international markets.