Final Results Received from Kaniago (Adansi) Aircore Program Continue to Highlight Oxide Gold Potential for PMI Gold

PMI Gold Corporation (TSX-V: PMV) (ASX: PVM) is pleased to announce the final assay results from its first pass Aircore exploration drilling program at the Kaniago (Adansi) Prospect have confirmed and extended previously reported gold anomalies (see ASX/TSX announcement dated 18th April 2012).

The Kaniago (Adansi) Prospect, a recent discovery by PMI, is strategically located within a 15km area of influence immediately west of the Company's flagship Obotan Gold Project in south-west Ghana (NI43-101 and JORC Code compliant Mineral Resource estimate of Measured Resources of 15.57M tonnes at a grade of 2.47g/t for 1.23Moz, Indicated Resources of 29.21M tonnes at a grade of 2.00g/t for 1.88Moz and Inferred Resources of 21.91M tonnes at a grade of 1.99g/t for 1.40Moz; Figure 1) where a feasibility study is due to be completed mid-2012. Drilling was designed to test a series of exploration targets along the Abore Shear generated by a low level detailed airborne magnetic survey and geological mapping previously undertaken by PMI. The Prospect was tested by a program of broadly spaced reconnaissance Aircore traverses (133 holes on three roadside traverses at 400m intervals) which commenced in January 2012. A total of 7,349m has been drilled.

Drilling targeted a brittle greywacke unit at the intersection of the Abore Shear with interpreted cross-cutting east-northeast striking structures. These cross-cutting structures are considered favourable hosts of gold mineralization in Ghana.

Results have been received for the final 70 holes from MinAnalytical Laboratory in Perth, Australia. Table 1 lists all anomalous intersections >0.1g/t. Encouraging intersections include:

• KAAC12-035 6m @ 1.22g/t Au from 52m
• KAAC12-088 10m @ 0.79g/t Au from 34m
• KAAC12-089 6m @ 0.79g/t Au from 36m
• KAAC12-119 1m @ 26.71g/t Au from 4m

These results confirm and extend the previously reported series of narrow sub-parallel northeast trending anomalies of greater than 0.1g/t Au. The strike lengths of these anomalies now range from 400m to 1,200m and all are open to the north and south (Figure 2). Initial Aircore drilling has focused on the supergene potential of the Prospect, however preliminary interpretations indicate mineralization is also open at depth (Figure 3) increasing the exploration potential of the area.

The gold prospectivity of the Abore Shear, within the Asankrangwa Gold Belt has been reinforced by the delineation of Keegan Resources' Esaase Gold Deposit, located 12.5km north of Obotan along the Abore Shear.

PMI holds the largest strategic ground package by a single company in the Asankrangwa Gold Belt, extending over an area of 511km2 and covering 65km of the 150km length of the belt. The PMI tenements encompass three known major structural trends (Abore, Nkran, and Fromenda Shears) enhancing the prospectivity of the tenements threefold.

This initial work at Kaniago (Adansi), with plans for follow up drilling later in the year, are integral in PMI's commitment to a major phase of regional gold exploration in the Asankrangwa Belt. The early exploration results clearly confirm the broader potential of the Abore, Nkran and Fromenda Shears within the Belt to host significant gold mineralization.

PMI Gold's Managing Director and CEO, Mr Collin Ellison, said the results enhanced the exploration potential for oxide gold at Kaniago (Adansi), identifying priority targets for further follow-up drilling due to be completed later this year.

“We are very pleased that the Company's vigorous and sustained exploration approach this year has intersected additional mineralised zones from first pass reconnaissance drilling at the new Kaniago discovery,” Mr Ellison said. “We will continue to focus further drilling on high priority targets with the intention of generating additional sources of oxide mineralisation to feed the centrally located processing facility at Obotan.

Four drill rigs continue to operate elsewhere within Asanko, Obotan and Kubi Projects as part of our continued exploration push into the second half of 2012. We are currently working to clear a backlog of 11,180 drill samples which remain to be processed and assayed. To the end of May 73,408 m of drilling has been completed out of +100,000m planned regional exploration program.”