ANNUAL REPORT 2011 monitor blasts and to help  educate their communities on  the effects of blasting; that involves the weaving of  matting from local plants that is  now being sold to several mining operations in Ghana  for use in land rehabilitation  activities. •  Voluntary participation in  the 2010 AKOBEN Audit  to establish a baseline for  compliance with future  compulsory audits; and •  Communications and  consultation  – this involves  conducting regular meetings  with local chiefs as well  as public meetings and  the formation of additional  consultative committees such  as the Women’s Consultative  Committee and both  Employment and Compensation  Negotiation committees. •  A site rehabilitation program  has commenced with the  establishment of a tree species  nursery with a total capacity  of 75,000 seedlings. Re- vegetation of areas disturbed  during the construction phase  of the Edikan Gold Mine has  commenced with immediate  success.  •  Employment of local citizens – Preference is given to the  employment of local residents  over all other Ghanaian citizens  for unskilled positions and for  skilled roles. Where skill sets  are equal, preference is given to  local residents. As at June 30,  2011, 38% of employees were  drawn from local communities  and surrounds with a further  56% of employees from  elsewhere in Ghana. •  Community development  – A fund has been established  by Perseus into which  significant annual payments will  be deposited. The fund will be  administered by representatives  of the local community who will  be responsible for determining  priorities and for execution of  the selected local community  development projects. In  addition to the above, Perseus  has also been directly involved  in a number of community  development programs  including the construction of  six- classroom schools with  sanitation facilities, library and  stores in the nearby villages of  Abnabna and Fobinso. •  Compensation  – As required  by Ghanaian law, where the  Company’s activities have  disturbed the livelihood of local  residents, whether in terms  of loss of crops or structures,  compensation has been paid  or alternative accommodation  constructed. These programs  will be ongoing as the  Company’s mining activities  extend beyond the current pits. •  Encourage and foster the  development of sustainable  business activities  – As  opportunities arise, Perseus  has assisted local residents to  establish small businesses that  will be sustainable after mining  has ended and the site has  been rehabilitated. A notable  example is a small business  established by local women  Community Relations and  Development The ongoing success of Perseus as  an explorer, developer and operator  of mines in West Africa relies on  establishing and maintaining secure  access to land and infrastructure  in areas of our operations. It is  recognised that only through  establishing positive relationships  with local communities and host  governments will we be able  to establish the strong “social  licence” that is an essential  prerequisite for operating in our  host countries. In both Ghana and in Côte d’Ivoire  , we have set out to build enduring  relationships with our host  communities, characterised by  mutual respect, active partnership,  and long term commitment.  In Ghana, where our activities  are more advanced, our efforts  to build relationships with the  local community have been  characterised by: It is expected that as we move  towards development of the  Sissingue Gold Mine near Tengrela in  northern Côte d’Ivoire , our level of  engagement with the communities  located in the vicinity of our activities  will increase markedly and that a  range of community relations and  development initiatives will be  implemented. In Côte d’Ivoire where our activities  to date have been restricted to  exploration activities, we have  adopted a similar approach to that  applied in Ghana. Our exploration  crews have assisted local  communities with the construction  of water storage facilities,  employment of local citizens and  donating to local charitable causes. 13