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

PMI Gold Corporation (TSX VENTURE:PMV)(FRANKFURT:PN3N)(ASX:PVM) - 

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS
AGENCIES 


Key Points:



--  All assay results received from first pass Aircore exploration drilling
    undertaken by PMI at the Kaniago (Adansi) Prospect, located within a
    15km area of influence of the Obotan Gold Project. 
--  Mineralization associated with the Abore Shear which hosts Keegan
    Resources' Esaase Deposit. 
--  Final assay results received confirm and extend previously reported gold
    anomalies. Encouraging results received include: 
    --  1m @ 26.71g/t Au from 4m 
    --  6m @ 1.22g/t Au from 52m 
    --  10m @ 0.79g/t Au from 34m
--  Previously defined anomalies extended to strike lengths of up to 1,200m.
    These anomalies remain open to both the north and south, confirming the
    potential of the Abore Shear to host further significant mineralization.
--  A follow up RC drilling program is planned as part of PMI's major
    regional exploration push during 2012.



PMI Gold Corporation 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 greater than
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."


On behalf of the Board,

Collin Ellison, Managing Director & CEO

Competent Person Statement

Exploration Results:

The information in this announcement that relates to Exploration Results is
based on information compiled by Thomas Amoah, who is employed by Adansi Gold
Company (Gh) Ltd, a wholly owned subsidiary of PMI Gold Corporation. Mr Amoah,
who is a Member of the Australian Institute of Geoscientists (MAIG), has
sufficient experience which is relevant to the style of mineralization and type
of deposit under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2004 Edition of the
'Australasian Code for Reporting Exploration Results, Mineral Resources and Ore
Reserves'. Mr Amoah consents to the inclusion in this report of the matters
based on his information in the form and context in which it appears. 


Scientific and technical information contained in this news release has been
reviewed and approved by Thomas Amoah-n, MAIG, MSEG. a "qualified person" as
defined under National Instrument 43-101. Field work was supervised by Mr Amoah
(VP-Exploration). Drill cuttings were logged and sampled on site, with 3kg
samples sent to the MinAnalytical prep laboratory on site, and analyzed for gold
by fire assay-AA on a 50 gram sample charge or by screened metallics AA finish
in MinAnalytical laboratory in Perth. Internal QC consisted of inserting both
blanks and standards into the sample stream and multiple re-assays of selected
anomalous samples. Where multiple assays were received for an interval, the
final value reported was the screened metallic assay if available, or in lieu of
that the average of the other results for the interval. Results from the QC
program suggest that the reported results are accurate. Intercepts were
calculated with a minimum 0.1 g/t Au cut off at the beginning and the end of the
intercept and allowing for no more than three consecutive metres of less than
0.1 g/t Au internal dilution. True widths are estimated at from 60% to 70% of
the stated core length.


Obotan Resource Estimate 2012:

Information that relates to Mineral Resources at the Obotan Gold Project is
based on a resource estimate that has been completed by Mr Peter Gleeson, who is
a full time employee of SRK Consulting, Australia. Mr Gleeson is a Member of the
Australian Institute of Geoscientists (MAIG) and has sufficient experience which
is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2004 Edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves' and as a
Qualified Person (by ROPO) as defined in terms of NI43-101 standards for
resource estimation of gold. Mr Gleeson has more than 5 years' experience in the
field of Exploration Results and of resource estimation in general. Mr Gleeson
consents to the inclusion of matters based on information in the form and
context in which it appears. 


Cautionary Note Regarding Forward-looking Statements 

This news release includes certain forward-looking statements or information.
All statements other than statements of historical fact included in this
release, including, without limitation, statements relating to the potential
mineralization and geological merits of the Obotan, Kubi and Asanko Projects and
the plans, objectives or expectations of the Company with respect to the
advancement of these projects and completion of scoping and pre-feasibility
studies, are forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ materially from those
anticipated in such statements. Important factors that could cause actual
results to differ materially from the Company's plans or expectations include
risks relating to the actual results of current exploration activities;
fluctuating gold prices; possibility of equipment breakdowns, delays and
availability; exploration cost overruns; availability of capital and financing;
general economic, market or business conditions; regulatory changes; timeliness
of government or regulatory approvals; and other risks detailed herein and from
time to time in the filings made by the Company with securities regulators,
including in the section entitled "Risk Factors" in the Company's Annual
Information Form dated September 20, 2011. In particular, statements relating to
the Company's plans to complete a feasibility study on the Obotan Gold Project
by the end of June 2012 are subject to various factors, including positive
results from ongoing exploration; expansion and upgrading of existing mineral
resources; and completion of favourable geotechnical drilling programs,
metallurgical test work, mine plan engineering, environmental and community
relations assessments, and preliminary economic assessments. Due to the
uncertainty which may attach to inferred mineral resources, it cannot be assumed
that all or any part of the inferred mineral resources will be upgraded to
indicated or measured mineral resources as a result of continued exploration.
The Company expressly disclaims any intention or obligation to update or revise
any forward-looking statements whether as a result of new information, future
events or otherwise except as otherwise required by applicable securities
legislation.




Table 1: Significant Gold Intercepts (greater than 0.1g/t Au)               
                                                                            
Note : True widths are approximately 60% to 70% of the lengthof the stated  
 intersection lengths.                                                      
----------------------------------------------------------------------------
Hole ID     Easting Northing    RL Dip Azimuth Depth Depth Interval Weighted
              (UTM)    (UTM) (UTM)              From    To      (m)     Avg.
                                                 (m)   (m)             Grade
                                                                       (g/t)
----------------------------------------------------------------------------
KAAC12-006 605446.6 702593.0 181.9 -50     135    48    51        3     0.13
----------------------------------------------------------------------------
KAAC12-026 605331.5 702135.6 201.5 -50     135     8    11        3     0.24
----------------------------------------------------------------------------
KAAC12-030 605162.6 702284.4 173.3 -50     135    44    48        4     0.13
----------------------------------------------------------------------------
KAAC12-035 605355.0 701667.6 185.8 -50     135     0     3        3     0.21
                                              ------------------------------
                                                   6    13        7     0.37
                                              ------------------------------
                                                  36    38        2     0.56
                                              ------------------------------
                                                  52    58        6     1.22
----------------------------------------------------------------------------
KAAC12-036 605375.3 701608.0 183.8 -50     135     0     5        5     0.22
----------------------------------------------------------------------------
KAAC12-040 605812.0 702801.8 153.0 -50     135    19    24        5      0.1
----------------------------------------------------------------------------
KAAC12-069 605568.6 702400.1 183.1 -50     135    39    41        2     0.18
----------------------------------------------------------------------------
KAAC12-071 605531.0 702260.4 176.7 -50     135    36    38        2     0.34
----------------------------------------------------------------------------
KAAC12-075 606310.6 701854.8 162.7 -50     135    21    23        2     0.15
----------------------------------------------------------------------------
KAAC12-080 606145.6 702030.1 165.7 -50     135    11    15        4     0.82
----------------------------------------------------------------------------
KAAC12-088 605846.6 702282.2 173.0 -50     135    28    31        3      0.3
                                              ------------------------------
                                                  34    44       10     0.79
                                              ------------------------------
                                                  47    49        2     0.36
----------------------------------------------------------------------------
KAAC12-089 605810.4 702319.0 175.0 -50     135     0     5        5     0.16
                                              ------------------------------
                                                  36    42        6     0.79
----------------------------------------------------------------------------
KAAC12-108 606864.5 701360.9 162.7 -50     135    12    14        2     0.13
----------------------------------------------------------------------------
KAAC12-114 607073.0 701144.2 147.3 -50     135    56    58        2      0.2
----------------------------------------------------------------------------
KAAC12-119 607251.3 700975.0 151.6 -50     135     4     5        1    26.71
----------------------------------------------------------------------------
KAAC12-126 607516.9 700750.4 172.1 -50     135    61    62        1     0.79
                                              ------------------------------
                                                  73    74        1     1.35
----------------------------------------------------------------------------



To view accompanying Figures 1 to 3, visit the following link:
http://media3.marketwire.com/docs/PMI_Figure1to3.pdf