WEST AFRICA’S NEWEST LARGE GOLD PRODUCER Review of Operations OCCUPATIONAL HEALTH &  SAFETY, THE ENVIRONMENT,  AND COMMUNITY RELATIONS •  Adoption of environmental  management standards and  procedures consistent with the  principles of ISO14001 were  established; •  Engagement of specialized  Consultants to assist  in the initial training of  managers and supervisors  in the implementation of the  Environmental Management  System; •  One (1) fatality involving an  employee of a contractor  occurred during the year; and •  One (1) Lost Time Injury  occurred along with nine (9)  other minor injuries requiring  first aid treatment. •  Drilling of monitoring boreholes  for monitoring of ground water  aquifers around the Flotation  Tailings Storage Facility (FTSF).  •   A program of sampling for  acid rock drainage (ARD) from  the open the pits, Run of Mine  (ROM) stockpile area and waste  dumps has been established; •  A baseline structural survey  was carried out at the villages  of Fobinso and Abnabna prior  to commencement of blasting  operations in February 2011.  short of expectations indicating that  more work is required to achieve  targeted standards. Incidents that  occurred during the year at Edikan  Gold Mine included: Perseus places a high level of  importance on maintaining a  safe working environment for its  employees, exploring, developing  and operating mines in line with  good environmental practices  and embracing a strong sense  of commitment to the local  communities around its operations  and exploration sites. A professionally staffed medical  clinic is operated on the site at the  Edikan Gold Mine where the health  of employees is assessed prior to  employment and on an ongoing  basis. The inherently risky nature of  the minerals industry means that  Perseus’s workforce may be  exposed to potential safety risks  when conducting exploration,  development and operating  activities. It is for this reason that  safe working practices are a priority  on all of the sites on which we  operate. With the start of operations  at the Edikan Gold Mine, the  Company has sought to introduce a  rigorous set of Occupational, Health  and Safety policies and procedures  at the Edikan Gold Mine site and  has engaged specialist trainers to  assist local staff to understand and  accept the standards of safety that  are required by the Company.  The safety performance for the  Company in the 2011year has fallen  As a mining business, Perseus is a  significant consumer of energy in  the form of electricity and diesel oil  fuel, water and other resources. It  is acknowledged that Perseus has  an important role in the efficient  management of resources and  responsible disposal of materials in  order to preserve not only  the immediate ecosystems  within which the Company  operates, but also to  mitigate impacts on the  broader environment. Specific initiatives  undertaken on the  Edikan Gold Mine site  aimed at managing our  environmental footprint  included the following: Since then, monitoring of blast  vibration and air blast levels  attained per blasts from the  pits has been implemented in  the catchment communities.  Residents from all the  catchment communities have  been selected and trained to  Observation boreholes were  also drilled in all the catchment  communities for the purpose of  conducting future monitoring of  groundwater. Aquatic biological  monitoring was also carried out  as was sediment sampling of  major streams in the concession  area during the construction  stage. Ongoing programs of  surface water, ground water,  noise and dust monitoring have  also been established; Training on prevention and control of  typhoid and cholera was conducted  for all employees, but particularly for  those who live in local communities,  in collaboration with personnel from  the district directorate of health  based at the Ayanfuri Clinic. Environment Occupational Health & Safety 12