WEST AFRICA’S NEWEST LARGE GOLD PRODUCER For the year ended 30 June 2011 Notes to the Consolidated Financial Statements 11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD Manas Resources Limited (“Manas”) In December 2010 Manas announced a capital raising of A$11.5 million through the issue of 57.5 million shares at 20c.  The share placement was completed in two parts, with tranche 1 for 13.4 million shares (A$2.68 million) allotted on 24  December 2010 and tranche 2 for 44.1 million shares (A$8.82 million) allotted in early February 2011. Perseus subscribed  for 9 million shares for a consideration of A$1,800,000 under tranche 2 and as a result its interest in Manas reduced from  25.0% to 23.9%. The second tranche was allotted in early February 2011 following approval by Manas shareholders.  In addition, 12,500,000 Manas options held by Perseus expired unexercised on 31 December 2010, leaving Perseus with  16,666,667 options, exercisable at $0.20, expiring on 30 September 2011.  64 Ownership interest  Published fair value  Name of associated entity  Principal  Country of 2011  2010  2011  2010 activity incorporation %  %  $  $ Manas Resources Limited  Gold Exploration  Australia  23.9  27.9  7,870,000  2,950,000  Burey Gold Limited  Gold Exploration  Australia  25.6  19.9  5,086,900  1,774,800  CONSOLIDA TED 2011  2010 $  $ Investment in associated entity – Manas Resources Limited  5,957,660  2,950,000  $_{Reconciliation of movements in investments accounted for using the }$ equity method:  Balance at 1 July  2,950,000  2,500,000 Investment in associate at cost  867,160  833,333 Share of loss for the year  (611,128)  (326,647) Share of reserves of associate  (366,756)  (269,121) Impairment reversal / (impairment) of investment  3,118,384  212,435 Balance at 30 June  5,957,660  2,950,000 Summarised financial information of associate:  Financial Position  Total assets  23,032,555  14,591,399 Total liabilities  681,361  191,464 Net assets  22,351,196  14,399,935 Group’s share of associates’ net assets  5,341,936  4,020,462 Financial Performance  Total revenue  309,240  94,867 Total loss for the year  (2,557,021)  (1,169,939) Group’s share of associates’ loss  (611,128)  (326,647) Capital commitments and contingent liabilities of associate  -  - Share of capital commitments incurred jointly with other investors  -  - Share of contingent liabilities incurred jointly with other investors  -  -