Company Information for PMI Gold Corp

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TSX.V; PMV View full financial data

Company Statement

PMI Gold Corporation is a junior gold pre-production/exploration company trading on the TSX Venture Exchange under the symbol PMV and on the Frankfurt Stock Exchange under the symbol AOJMW7.

Current Operations

PMI Gold controls a net 86% interest in 698-square kilometres of gold concessions and mining leases in Ghana in the middle of one of the World's most productive gold mining areas,  known as the "Golden Triangle". Over US$1.5 billion in new capital is currently being invested in Ghana by the world's largest gold mining companies, including Newmont, AngloGold Ashanti, Golden Star and Goldfields.  Management of PMI Gold has been active in Ghana since 1993 and is assisted by strong Ghanaian Directors, Advisors and consultants.

The Company has two major near term production properties – the Kubi Gold project located immediately south of AngloGold Ashanti’s 450,000 oz per year Obuasi mine complex on the Ashanti Gold Belt; and the Obotan Gold project covering the former mining operations of Resolute Mining, on the Asankrangwa Gold Belt.

Kubi was acquired in September 2007 from a subsidiary of Nevsun Resources Ltd. of Canada. Golder Associates Africa (Pty) Ltd. recently completed an updated NI43-101 resource estimate: 604,085 oz of gold @ 3.66 g/t Indicated; and a further 315,070 oz @ 1.88g/t Inferred. Exploration drilling suggests that there is a high grade core to the deposit – grading in the 10.0 to 12.0 g/t gold range.  Initial scoping and pre-feasibility studies are underway – based on building a 500 tpd underground mine at Kubi and trucking the ore to a processing mill to be built at the Obotan site – located 75 km to the north west. Total project capex is estimated to be less than US$35 million, with expected initial production of  35,000 to 50,000 oz per year. PMI Gold is currently in the market to raise the necessary project debt and equity financing.

In late 2006, PMI Gold acquired from the Government of Ghana the former Obotan gold mine, which had previously been operated by Resolute Mining of Perth. Up to its closing in 2003, Obotan produced 730,000 ounces of gold at a recovered grade of near 2.20 g/t gold. Production came from three pits - the Nkran, Adubiaso and Abore.  Golder Associates has been contracted to complete a resource estimate on the West Lode gold mineralization defined beneath the old Nkran pit. Extensive drilling to some 450 metres below the pit have outlined significant bulk mining type gold intersections – including 50 metres @ 6.4 g/t gold; 52 metres @ 3.07 g/t gold; 41 metres @ 3.27 g/t gold; and 44.5 metres @ 2.61 g/t gold (true width averages circa 35 metres).  Future plans include underground confirmation drilling and bulk sampling, with a circa one million ounce reserve target.  Based on positive results, the mill would then be expanded to circa 1,500 to 2,000 tpd and Nkran brought into production at +-50,000 oz per year.

In addition to the two near term development projects,  gold mineralization has also been defined at the African Star deposit located just northeast of Nkran – estimated by Resolute (Annual Report 2004) to contain 49,000 oz @ 1.9g/t; and at Edubia, located eight kilometres northeast of Nkran.  The Edubia lease was originally issued in 1931 and covers extensive local ‘galamsey’ workings. During the mid-1990's work programs consisting of sampling old adits, extensive trenching and soil sampling were conducted. Some 213 short drill holes were also completed. Gold mineralization was outlined in a zone from 20 to 60 metres wide and elongated northeasterly over 700 metres. Localized drilling results indicated 1 to 5 metre true with grades ranging from 3.0 to 12.0 g/t Au.

Significant drill intersections have also been returned throughout the 70 km length of the project  - within trucking distance of the proposed mill at Nkran – including at the Fromenda Main deposit where up to 23 metres @ 5.7 g/t gold and 43 metres @ 3.0 g/t gold were returned. Ground geophysical surveys and interpretation of a 327 line km VTEM survey conducted in late 2007 over Nkran are underway in order to outline further drill targets.  Based on available funding, deep drilling programs are also planned beneath the Abore, Adubiaso, African Star, Edubia and Fromenda Main surface mineralised zones. Current database contains over US$50 million in data - including a total of 5,456 drill holes for 402,000 metres.  PMI Gold has drilled 152 holes on its concessions since 2003.

Investment Highlights

• Gold Exploration in Ghana, Africa's number two gold producer
• Highly experienced Corporate Mining and Exploration management team
• Major In-Country Expertise
• Large land package on two major gold belts - 75% to 90% property interests
• Kubi Project – near term production on NI43-101 resource of 604,000 oz
• Obotan Mine - past production 730,000 oz of gold – 2 million ounce exploration target under Nkran pit
• Focused on long life, low environmental impact, underground development
• Well defined exploration model; multiple target areas US$50 million exploration data base
• Low market capitalization; institutional shareholders; good liquidity

Geographical Spread

Ghana

Board of Directors and Key Management

Major Shareholders

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