Ann: Edikan Gold Mine Update , page-5

Operational Performance
In the week ending 22 June 2013 a series of relatively minor plant maintenance issues combined to cause instability in the processing circuit resulting in lower daily gold production than forecast. As a consequence, management estimates that in the absence of improved performance in the last week of the financial year, the Company’s production for the second half of FY2013 is likely to be marginally below the lower end of the guidance range of 105,000 to 125,000 ounces and mainly as a result of the reduced gold production the predicted all-in cash cost for the Half Year ending 30 June 2013 is likely to exceed the forecast of US$1,100 per ounce.
Notwithstanding the above, the Company is encouraged by the material operational improvements that have been achieved at the Edikan Gold Mine during the June Quarter to date. Recoveries are closer to target while processing ore with a head grade that is at or below the life of mine average of 1.16 g/t. Crushing and milling rates have stabilised towards the upper end of the range of 5.5 to 8.00MTPA with individual days (particularly with the renovated crusher) exceeding this level by a material margin.
Full production and cost results for the full Financial Year and Quarter ending 30 June 2013 will be published in the Company’s June Quarter Activities Report on or about 15 July 2013.
Mine Planning
The recent fall in the gold price combined with an in depth review of our cost structure has caused a reassessment of operating plans for the Edikan Gold Mine going forward. Guidance for the next 18 months (i.e. to the end of calendar year 2014) will be provided as part of the June Quarter Activities Report, along with an updated Mineral Resource estimate for the Edikan Gold Mine. The soon to be published guidance will reflect Perseus’s strategy of focussing on maximising the cash margin per ounce of gold produced ahead of maximising gold production.
Using the updated Mineral Resource as a basis, and combined with the results of other optimisation and feasibility assessments that have been conducted in recent months, a revised Life of Mine Plan will be prepared and published towards the end of the September Quarter 2013.
Operating Management Changes
As part of its strategy of focussing on maximising the cash margin generated from every ounce of gold produced, Perseus has made a number of changes to the structure and composition of its management team at the Edikan Gold Mine.