PMI Gold Corporation: Quarter Activity Update for the Period Ended 30 June 2012

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 


Highlights:

Obotan Gold Project



--  Obotan Feasibility Study on target for completion in September 2012
    Quarter. 
--  Updated resource estimate confirms the size and integrity of the gold
    deposits, particularly the large Nkran Deposit, underpinning the Obotan
    Gold Project. 
    --  Measured Resources: 15.57Mt at 2.47g/t for 1.23 million ounces 
    --  Indicated Resources: 29.21Mt at 2.00g/t for 1.88 million ounces 
    --  Inferred Resources: 21.91Mt at 1.99g/t for 1.40 million ounces



Regional Exploration



--  First regional exploration drilling campaigns commence at Obotan Project
    - Area of Influence with drilling at Kaniago (Adansi) Prospect and
    Fromenda Prospect within the Asankrangwa Gold Belt. 
--  Diamond drilling commences at Kubi Project at the 513 Prospect within
    the Ashanti Gold Belt with results confirming previously reported
    diamond drilling results.



Acquisitions



--  Agreement reached with Ghanaian Company, Midras Mining Co, to acquire
    100% of its strategically located Mining Lease, contiguous with the
    southern boundary of the Obotan Gold Project, for US$6 million.



Recruitment



--  For the planned progression of the Company from explorer to developer of
    the large Obotan Gold Project, the Company expanded the project and
    executive management team with the recruitment of Mr. Michael Gloyne as
    Chief Operating Officer (COO) and Mr. Charles Amoah as General Manager-
    Obotan Operations. 
--  PMI strengthened the Board with the appointment of experienced mining
    finance executive Dr. Michael Price as a new London-based Non-Executive
    Director.



Corporate and Finance



--  Completion of a fully underwritten bought-deal capital raising of C$35
    million (gross) to further fund development of the Obotan Gold Project. 
--  The Company's cash position at the end of the June Quarter was
    C$40,733,727.



Summary

Since completion of the Pre-feasibility Study at the beginning of 2012, PMI Gold
Corporation (TSX VENTURE:PMV)(ASX:PVM) implemented a growth strategy on three
fronts of activities in Ghana, West Africa:




1.  Progression to a Feasibility Study to enable a development decision of
    the Obotan Gold Project in the September 2012 Quarter. 
2.  Regional exploration, of a series of targets on its extensive tenement
    holdings, for new resources; and 
3.  Identify and implement strategic acquisitions, to strengthen the
    regional position of the Company in the Asankrangwa Gold Belt.



Project Development

Obotan Gold Project, Ghana

The Obotan Gold Project is an advanced gold development project with resources
located within the Company's Abore-Abirem and Adubea concessions, within the
northern 15km of the 70km strike length of contiguous concessions which the
Company holds in the Asankrangwa Gold Belt (Figure 2). The project, comprising
four known deposits (see resource estimates below) - the larger Nkran Deposit
and the smaller satellite deposits at Abore, Adubiaso and Asuadai, was
previously operated by Resolute Mining Ltd closing in 2002 after producing a
total of 730,000oz at an average grade of 2.2g/t, when the gold priced averaged
about US$350/oz. Unlike the other Obotan deposits, Asuadai has not previously
been mined. 


During the June 2012 Quarter, PMI progressed a feasibility study on its flagship
Obotan Gold Project, for planned completion in the September Quarter. 


Feasibility Study Update:

The Feasibility Study (FS) commenced in the first Quarter 2012 and GR
Engineering Services were engaged to complete the work as a continuation of
their work on the Pre-Feasibility Study (PFS) for the Obotan Gold Project which
was released on 12 January 2012. 


Based on the PFS findings, the FS scope of work was to deliver a report
detailing a 3 million tonne per annum process operation at the Obotan Project
with a mine life of +10 years. Capital and operating costs were to be refined to
an accuracy level +/- 15%. 


Generally, the study activities included:



--  Overall study delivery and management of sub-consultants. The major sub-
    consultants engaged for various aspects of the study were: 
    --  SRK, Resource Estimation and Mine Geotechnical Study 
    --  Orelogy, Mine Optimisation Studies, Ore Reserve Estimation, Mine
        Design, Scheduling and Mine Cost Estimation 
    --  Knight Piesold, Tailings Dam Design, Borefield Design and
        Construction Supervision, Plant Site Geotechnical Study 
    --  BEC, HV Electrical Supply recommendations and negotiations 
    --  African Environmental, Research and Consulting company Ltd (AERC),
        Environmental and Sociological Study
    --  Coordination of metallurgical test work
    --  Plant design criteria and general arrangements
    --  Site layout and key infrastructure
    --  Capital cost estimates +/- 15%
    --  Operating cost estimates +/- 15%
    --  Schedule and Project Execution Plan
    --  Refurbishment of existing camp
    --  Other site infrastructure requirements



The work has progressed well and the study is on target for completion early 3rd
Quarter 2012, upon which the PMI Board of Directors will make a decision whether
to advance the Obotan Project to production. Project Finance arrangements will
follow after which the PMI Board of Directors will make a subsequent Financial
Investment Decision (FID).


Project Approvals:

African Environmental Research and Consulting Limited (AERC) have continued work
throughout the Quarter on the preparation of the Environmental Impact Study
(EIS) for the Project. Baseline studies have been ongoing during the last 12
months covering areas such as:




--  Flora and Fauna 
--  Noise and Pollution 
--  Community Impact Assessment 
--  Pit Water Profiling 
--  Water and Sediment Studies 
--  Rivers and Fisheries 
--  Soil Assessment 
--  Traffic and Safety 
--  Archaeology 
--  Socio Economic Studies 
--  Blast Impact Studies



All of the baseline work is now complete and final preparation of the EIS is
underway. The study will be presented to the Environment Protection Authority
with approval expected in 4th Quarter 2012.


Preparations of the Mining Lease applications are also underway and are
scheduled for submission in 3rd Quarter 2012. 


Community Consultation:

Company management commenced discussions with the local communities about the
move from exploration activities to project development. A number of Community
Consultative Committees (CCC) were established (Figure 3a-b) to liaise on
matters such as crop compensation, land acquisition, business and employment
opportunities and community assistance projects. PMI has commenced work on a
number of preliminary projects such as local road improvements (Figure 3c-d),
medical facility upgrades, new water supplies, school funding for educational
materials and teaching support. 


Resource Estimation: 

During the June 2012 Quarter, an updated resource estimate (completed by SRK
Consulting of Perth) was reported on the four gold deposits (Nkran, Adubiaso,
Abore and Asuadai) (Figure 2 & Table 1). Refer to PMI announcement dated 11
April 2012 for full details of the Resource. The revised estimate incorporated a
further 110 holes for 28,835m of predominantly infill and some extensional
diamond drilling, resulting in improved geological understanding of the deposits
and further confirmation of internal grade continuity within the deposits,
particularly at the Nkran Deposit which forms the larger part of the total
resource base, and is the backbone of the Project (Figure 4). Nkran resources
are 2.35 million ounces being 75% of the combined measured and indicated ounces
and 32.16 million tonnes for 72% of the ore tonnes, with a high average resource
grade of 2.28g/t.


Table 1: Obotan Gold Resources - Revised during June 2012 Quarter



----------------------------------------------------------------------------
 SRK March 2012 Resource Estimate (based on a 0.5g/t Au lower cut-off grade)
----------------------------------------------------------------------------
DEPOSIT              MEASURED                          INDICATED            
        --------------------------------------------------------------------
              Tonnes     Grade      Ounces      Tonnes     Grade      Ounces
          (millions)  (g/t Au)  (millions)  (millions)  (g/t Au)  (millions)
----------------------------------------------------------------------------
Nkran          11.74      2.55        0.96       20.41      2.12        1.39
----------------------------------------------------------------------------
Adubiaso        1.50      2.98        0.14        2.67      2.41        0.21
----------------------------------------------------------------------------
Abore           2.33      1.78        0.13        3.70      1.53        0.18
----------------------------------------------------------------------------
Asuadai          N/A       N/A         N/A        2.44      1.28        0.10
----------------------------------------------------------------------------
TOTAL          15.57      2.47        1.23       29.21      2.00        1.88
----------------------------------------------------------------------------

   
------------------------------------------
DEPOSIT              INFERRED             
        ----------------------------------
              Tonnes     Grade      Ounces
          (millions)  (g/t Au)  (millions)
------------------------------------------
Nkran          14.74      2.21        1.05
------------------------------------------
Adubiaso        1.25      1.91        0.08
------------------------------------------
Abore           3.92      1.50        0.19
------------------------------------------
Asuadai         2.00      1.33        0.08
------------------------------------------
TOTAL          21.91      1.99        1.40
------------------------------------------



(All resource numbers are rounded to 2 decimal places, 10,000 tonnes)

SRK's resources estimate will form part of a NI 43-101 and JORC code compliant
Feasibility Study Report for the Obotan Gold Project.


Regional Exploration

During the June 2012 Quarter, the Company announced an extensive regional
exploration push aimed at completing +100,000m of Aircore, RC and diamond
drilling within the first half of 2012 over its highly prospective ground
holdings at Obotan (15km area of influence to the Nkran Deposit), Asanko
(southern half of the Asankrangwa Gold Belt containing strike extensions to
Obotan) in the Asankrangwa Gold Belt and Kubi in the Ashanti Gold Belt. 


The multipronged exploration program has the objective to: (1) identify
additional oxide resources within trucking distance of Obotan; (2) discover new
standalone gold deposits within the adjoining Asanko concessions within the
Asankgranwa Gold Belt; and (3) drill test multiple gold targets delineated by
airborne magnetics and near-surface geochemical sampling undertaken in 2011 at
Kubi. Approximately 80% of the 2011/2012 exploration program has been completed
to date, with the remainder to be drilled during the September 2012 Quarter. 


Combined, the contiguous Obotan and Asanko Projects represent the largest
strategic ground package to have been successfully consolidated by a single
company within the Asankrangwa Gold Belt, to enable a systematic evaluation of
the region. Previously, this area was owned by a series of exploration
companies, including Resolute at Obotan, during a period of low gold prices. 


Prior to the Company's recent Midras acquisition (see Acquisitions within this
report) the total strike length of PMI's holdings in the Asankrangwa Gold Belt
totalled some 70km, covering an area of 480km2, representing almost 50% of the
belt. Since the late 1990s and early 2000s, this belt has undergone only
superficial exploration with drilling undertaken in more confined areas and has
not yet benefited from sustained, systematic exploration, justified by the
current more favourable gold prices and with the benefit of new developments in
gold exploration knowledge. Previous exploration has identified numerous gold
geochemical and structural/geophysical targets, a number of which have undergone
limited drilling and found to relate to gold mineralisation, along the three
regional shear zones that host the Obotan deposits. The occurrence of known gold
mineralisation along these three regional structures enhances the potential for
new discoveries.


To accelerate the regional exploration push, several exploration efficiency
strategies were implemented during the June 2012 quarter. These included:




--  Contracting additional drill rigs to address the shortage of drill rigs
    in Ghana (Figure 5a). 
--  Installing a portable, containerized sample preparation facility,
    constructed by Ausdrill (AMS)/MinAnalytical Laboratory Services
    Australia Limited, to address the slow laboratory turnaround of
    analytical results (Figure 5b). 
--  Boosting the Company's in-country geological capacity through the
    recruitment of dedicated regional exploration teams (Figure 5c).



Obotan Gold Project - Exploration Area of Influence

Target areas within 15km of the Nkran Deposit, termed the Obotan Area of
Influence, was the main focus of regional exploration drilling during the June
2012 Quarter. First drilling campaigns by PMI were commenced on the Kaniago
(Adansi) Prospect (7km west) and the Fromenda Prospect (15km south-west), both
of which are located within an economic haulage distance of a proposed
processing facility at Nkran (Figure 6) which is the subject of the current
feasibility study. 


Kaniago (Adansi) Prospect:

The Kaniago (Adansi) Prospect represents one of a series of exploration targets
along the Abore Shear generated by geological mapping and a low-level detailed
airborne magnetic survey previously undertaken by PMI. A total of 133 Aircore
holes were drilled for 7,349 metres. Drilling commenced in January 2012, with
the assay results being received during the reporting Quarter. Significant
intercepts greater than 0.1 g/t Au are listed in Table 2.


Drilling targeted a brittle greywacke unit where the north-east trending Abore
Shear zone intersects with cross-cutting east-northeast striking structures,
which are interpreted to be the main structural control for gold mineralisation
at Obotan (PMI) and Esaase (Keegan Resources Inc.).


A series of eight narrow, sub-parallel, north-east trending gold anomalies of
greater than 0.1 g/t Au have been delineated from the drilling (Figure 7). 


The strike lengths of individual anomalies range from 400m to 1,200m and all are
open along strike and down dip (Section 207,730N; Figure 8), increasing the
ongoing exploration potential of the area. The results clearly confirm the
broader gold potential of the Abore, Nkran and Fromenda Shears to host
significant gold mineralization and provide a focal point for planned target
drilling due to commence in the latter half of 2012.


Table 2: Kaniago (Adansi) Prospect - Significant June Quarter 2012 Gold
Intercepts (greater than 0.1g/t Au)


Note: True widths are approximately 60 to 70% of the length of the stated
intersection length.




----------------------------------------------------------------------------
                                                                      Weigh-
                                                                         ted
                                                 Depth  Depth  Inter-   Avg.
            Easting  Northing     RL       Azi-   From     To     val  Grade
Hole ID       (UTM)     (UTM)  (UTM)  Dip  muth    (m)    (m)     (m)  (g/t)
----------------------------------------------------------------------------
KAAC12-001 605632.7  702396.9  181.9  -50   135     22     26       4   1.25
----------------------------------------------------------------------------
KAAC12-003 605557.5  702463.9  190.3  -50   135      8     15       7   0.73
----------------------------------------------------------------------------
KAAC12-004 605523.1  702513.9  193.2  -50   135     23     26       3   0.26
----------------------------------------------------------------------------
KAAC12-005 605498.3  702554.4  186.1  -50   135      3      8       5   0.27
                                                   -------------------------
                                                    37     39       2   0.28
----------------------------------------------------------------------------
KAAC12-006 605446.6  702593.0  181.9  -50   135     48     51       3   0.13
----------------------------------------------------------------------------
KAAC12-007 605410.9  702620.4  181.6  -50   135      5     19      14   0.61
----------------------------------------------------------------------------
KAAC12-008 605565.8  702301.5  176.4  -50   135     30     44      14   0.32
----------------------------------------------------------------------------
KAAC12-009 605519.1  702210.3  175.8  -50   135     21     30       9   1.24
----------------------------------------------------------------------------
KAAC12-012 605573.6  701916.1  178.0  -50   135      1     28      27   0.95
                                                   -------------------------
                                                    37     43       6   0.85
----------------------------------------------------------------------------
KAAC12-015 605534.4  701831.5  187.3  -50   135      0      9       9   0.39
                                                   -------------------------
                                                    30     32       2   0.53
----------------------------------------------------------------------------
KAAC12-016 605482.9  701832.6  189.2  -50   135     48     50       2   0.92
                                                   -------------------------
                                                    55     71      16   0.51
----------------------------------------------------------------------------
KAAC12-024 605340.9  702052.3  189.9  -54   135     28     32       4   0.13
                                                   -------------------------
                                                    47     51       4   0.42
----------------------------------------------------------------------------
KAAC12-026 605331.5  702135.6  201.5  -50   135      8     11       3   0.24
----------------------------------------------------------------------------
KAAC12-027 605288.2  702162.8  211.7  -50   135     15     19       4   1.02
                                                   -------------------------
                                                    24     31       7   0.18
----------------------------------------------------------------------------
KAAC12-028   605206  702200.8  182.9  -50   135     10     18       8   0.16
                                                   -------------------------
                                                    33     38       5   0.32
----------------------------------------------------------------------------
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
----------------------------------------------------------------------------
KAAC12-042 605901.7  702717.9  150.6  -50   135     10     20      10   0.95
----------------------------------------------------------------------------
KAAC12-044 606013.5  702604.3  149.5  -50   135      1      3       2   0.13
----------------------------------------------------------------------------
KAAC12-046 606187.4  702612.8  169.1  -50   135     31     33       2   0.16
----------------------------------------------------------------------------
KAAC12-059 606135.1  702638.7  160.8  -50   135     21     31      10   0.24
----------------------------------------------------------------------------
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
----------------------------------------------------------------------------



Fromenda Prospect:

The Fromenda Prospect is located on the north-east striking Fromenda Shear
(Figure 6), which is interpreted from geophysical data to form the eastern
margin of a regional north-east trending structural corridor. Based on
historical exploration results the Fromenda Shear, and in particular the
Fromenda Prospect, is considered by PMI to represent a high priority exploration
target.


Drilling commenced at the prospect in February 2012, to test the broader
potential of a historical 500m long gold in soil anomaly. A total of 68 RC drill
holes have been completed for a total of 6,775m of drilling, to the end of the
reporting period. Results have been received for 13 drill holes, with
significant intercepts listed in Table 3. The remaining assay results are
expected to be received during the September 2012 Quarter.


Preliminary interpretations indicate the mineralization is more widely
distributed than previously suggested by historical exploration. While more
results are awaited and drilling remains relatively shallow (less than 100m),
within the weathered zone, there are encouraging indications that the
mineralisation occurs in a series of steeply plunging zones that remain open
along strike to both the north and south (Figure 9), and also at depth.


Table 3: Fromenda Prospect - Significant June Quarter 2012 Gold Intercepts
(greater than 0.5 g/t Au)


Note: True widths are approximately 60 to 70% of the length of the stated
intersection length.




----------------------------------------------------------------------------
                                                                      Weigh-
                                                                         ted
                                                 Depth  Depth  Inter-   Avg.
            Easting  Northing     RL       Azi-   From     To     val  Grade
Hole ID       (UTM)     (UTM)  (UTM)  Dip  muth    (m)    (m)     (m)  (g/t)
----------------------------------------------------------------------------
NBRC12-001 602553.9  684827.1  215.4  -55   135     35     38      3    1.35
                                                   -------------------------
                                                    67     90     23    1.17
----------------------------------------------------------------------------
                    Including                       81     85      4    3.39
----------------------------------------------------------------------------
NBRC12-002 602542.1  684837.3  215.9  -50   135      0     21     21    2.28
----------------------------------------------------------------------------
                    Including                        3      5      2   13.65
----------------------------------------------------------------------------
NBRC12-002 602542.1  684837.3  215.9  -50   135     45     54      9    4.56
                                                   -------------------------
                                                    45     48      3   10.22
                                                   -------------------------
                                                    92     98      6     0.7
                                                   -------------------------
                                                   109    111      2    1.11
----------------------------------------------------------------------------
NBRC12-003 602290.3  684503.4  154.3  -50   135     50     51      1    2.06
                                                   -------------------------
                                                    58     66      8     0.8
                                                    ------------------------
                                                    76     81      5    1.03
----------------------------------------------------------------------------
NBRC12-004 602309.3  684477.3  155.8  -50   135      0      7      7    0.51
                                                   -------------------------
                                                    31     53     22    0.22
----------------------------------------------------------------------------
                    Including                       45     46      1    12.5
----------------------------------------------------------------------------
NBRC12-004 602309.3  684477.3  155.8  -50   135     78     80      2    0.75
----------------------------------------------------------------------------
NBRC12-005 602391.6  684399.4  162.7  -50   135     26     28      2    1.08
----------------------------------------------------------------------------
NBRC12-006 602356.8  684447.2  163.3  -50   135                          NSR
----------------------------------------------------------------------------
NBRC12-007 602146.5  684710.5  162.5  -50   135                          NSR
----------------------------------------------------------------------------
NBRC12-008 602176.1  684678.2  157.2  -50   135     21     23      2    1.23
----------------------------------------------------------------------------
NBRC12-009 602219.2  684648.1  152.4  -50   135                          NSR
----------------------------------------------------------------------------
NBRC12-010 602249.4  684611.6  152.7  -50   135                          NSR
----------------------------------------------------------------------------
NBRC12-011 602282.3  684582.9  155.7  -50   135                          NSR
----------------------------------------------------------------------------
NBRC12-012 602460.6  684398.1  165.4  -50   135                          NSR
----------------------------------------------------------------------------
NBRC12-015 602326.6  684543.1  170.7  -50   135      1      3      2   27.35
                                                   -------------------------
                                                    24     40     16    1.08
                                                   -------------------------
                                                    52     76     24    1.48
----------------------------------------------------------------------------
                    Including                       66     68      2    8.92
----------------------------------------------------------------------------
NBRC12-015 602326.6  684543.1  170.7  -50   135    106    108      2    0.99
                                                   -------------------------
                                                   120    123      3    2.81
                                                   -------------------------
                                                   134    139      5    0.56
----------------------------------------------------------------------------



Asanko Regional Exploration Project

South of Fromenda, additional strike extensions of the three regionally
prospective structures continue on PMI's Asanko Project for an additional 135km
of structural strike. Historical regional exploration, including drilling, has
identified gold mineralisation at a series of prospects but again the extent of
exploration was superficial during a period of low gold prices. Subsequently,
PMI has identified a series of mineralised and structural targets that are a
priority for future exploration (Figure 6).


Kubi Gold Project, Ghana

The Kubi Gold Project is located 15km south of and along strike from AngloGold
Ashanti's (60Moz pre-mined) high grade Obuasi Mine and 60km east of PMI's Obotan
Project (Figure 10). The Kubi tenements cover the intersections of two
structural trends: the major sub-parallel, northeast trending Ashanti and Kubi
Shear Zones and a series of the east-northeast trending structures that are
interpreted to be associated with Perseus Mining's 6.6Moz Ayanfuri deposit
(Edikan Gold Mine), located 12km to the south-west (Figure 6).


Auger geochemical sampling undertaken by PMI during 2011-2012 delineated a
series of near-surface gold anomalies that confirmed and enhanced the integrity
of the results of historical soil sampling (Figure 11). 


Drilling during the June 2012 Quarter was focussed on a soil anomaly which
occurs over a strike of 500m and was tested previously by only localised
drilling at the 513 Prospect located 1.2km south-west of the Kubi Main Deposit.


513 Prospect:

The 513 Prospect is located on the Ashanti Shear which hosts the world class
AngloGold Ashanti Obuasi Mine located approximately 10km to the north of the
Kubi Gold Project. The mineralization at 513 is hosted within a garnetized
metagabbro, near the contact of a sequence of meta-sedimentary rocks, and
strikes north-east parallel to the Ashanti and Kubi Shears. A series of
cross-cutting east-northeast structures have been identified from airborne and
ground geophysical surveys in association with the auger geochemical anomalism.
The host rock alteration mineralogy is identical to the Kubi Main Deposit
(NI43-101 and JORC compliant Measured Resource of 0.66 million tonnes at 5.30
g/t Au for 112,000oz; Indicated Resource of 0.66 million tonnes at 5.65g/t gold
for 121,000oz; Inferred Resource of 0.67 million tonnes at 5.31 g/t gold for
115,000oz), supporting the wider potential for this style of mineralization
along the Ashanti and Kubi Shear zones.


Diamond drilling at the 513 Prospect was designed to more broadly evaluate the
500m strike length of anomalous gold values intersected in auger and diamond
drill holes completed by PMI in late 2009 and 2010, and to also test the
down-dip continuation of previous drill hole intercepts. 


A total of 17 diamond drill holes were drilled for 2,311m on a nominal 100m
spacing 25m apart. Significant intercepts are listed in Table 4.


Drilling results confirm the broader extent of gold mineralization in the
project area and indicate the occurrence of a higher grade zone within a broad,
continuous, lower grade envelope at the southern extent of the prospect (Figures
12 & 13). Many of the larger gold deposits in Ghana have a short strike extent
with substantial steep plunging deep roots. The presence of this higher grade
shoot provides another valuable exploration target in the Kubi Project.


Table 4: 513 Prospect - Significant June 2012 Quarter Gold Intercepts (greater
than 0.5g/t Au)


Note: True widths are approximately 60 to 70% of the length of the stated
intersection length.




----------------------------------------------------------------------------
                                                                      Weigh-
                                                                         ted
                                                 Depth  Depth  Inter-   Avg.
            Easting  Northing     RL       Azi-   From     To     val  Grade
Hole ID       (UTM)     (UTM)  (UTM)  Dip  muth    (m)    (m)     (m)  (g/t)
----------------------------------------------------------------------------
KV12-523   639204.8  663064.5  163.4  -50   290   78.0   87.0    9.0    1.79
----------------------------------------------------------------------------
                    Including                     83.0   86.0    3.0    3.22
----------------------------------------------------------------------------
KV12-524   639165.8  663073.5  182.0  -50   290   28.5   31.5    3.0    1.09
----------------------------------------------------------------------------
                    Including                     48.0   51.0    3.0    4.59
----------------------------------------------------------------------------
KV12-525   639187.2  663121.8  189.0  -50   290   43.5   46.5    3.0    0.96
----------------------------------------------------------------------------
KV12-526   639205.8  663179.2  188.2  -50   290   25.5   42.0   16.5    0.70
----------------------------------------------------------------------------
                    Including                     25.5   28.5    3.0    1.68
----------------------------------------------------------------------------
                                                  74.0   81.0    7.0    0.80
----------------------------------------------------------------------------
KV12-527   639327.4  663545.0  130.9  -50   290                          NSR
----------------------------------------------------------------------------
KV12-528   639379.4  663525.4  140.7  -50   290  107.0  109.0    2.0    1.33
                                                 ---------------------------
                                                 116.0  119.0    3.0    1.62
----------------------------------------------------------------------------
KV12-529   639344.7  663419.7  154.4  -50   290  138.0  140.0    2.0    2.68
----------------------------------------------------------------------------
KV12-530   639325.9  663426.9  156.7  -50   290  121.0  123.0    2.0    0.51
                                                ----------------------------
                                                 125.0  127.0    2.0    0.37
----------------------------------------------------------------------------
KV12-531   639290.4  663491.1  145.8  -50   290                          NSR
----------------------------------------------------------------------------
KV12-532   639308.4  663484.3  144.7  -50   290                          NSR
----------------------------------------------------------------------------
KV12-533   639260.7  663328.7  133.1  -50   290   77.0   79.0    2.0    0.84
                                                 ---------------------------
                                                  81.0   82.0    1.0    0.70
                                                 ---------------------------
                                                  87.0   89.0    2.0    0.53
----------------------------------------------------------------------------
KV12-533A  639260.7  663328.7  133.1  -50   290                          NSR
----------------------------------------------------------------------------
KV12-534   639249.1  663210.7  158.4  -50   290  121.0  125.0    4.0    0.41
----------------------------------------------------------------------------
KV12-535   639227.0  663217.8  163.7  -50   290   39.0   40.5    1.5    1.50
----------------------------------------------------------------------------
KV12-536   639206.7  663222.8  168.0  -50   290                          NSR
----------------------------------------------------------------------------
KV12-537   639186.7  663185.6  191.2  -50   290   45.0   50.0    5.0     0.5
----------------------------------------------------------------------------
                    Including                     47.0   48.0    1.0    1.85
----------------------------------------------------------------------------
KV12-538   639221.4  663109.4  172.9  -50   290   78.0   80.0    2.0    2.50
                                                 ---------------------------
                                                  85.0   97.0   12.0    2.40
----------------------------------------------------------------------------
                    Including                     85.0   88.0    3.0    5.00
----------------------------------------------------------------------------
KV12-539   639283.8  663320.3  132.3  -50   290  104.0  106.0    2.0    0.84
----------------------------------------------------------------------------



Acquisitions

Subsequent to the Quarter end, PMI entered into an agreement with Midras Mining
Company Ltd to acquire the Datano Mining Lease which is contiguous with the
southern boundary of PMI's Obotan Gold Project, infilling a major gap in PMI's
tenement coverage of the gold mineralised structures. The parties agreed to a
purchase price of US$6 million for PMI to acquire 100% of the project area,
contingent upon obtaining the approval of the sale and transfer of the Mining
Lease to Adansi by the Ghana Minerals Commission and Minister of Lands, Forestry
and Mines.


The concession covers an area of 50km2 and sits strategically south of the Nkran
deposit providing PMI access to additional southern extensions of the
mineralised Nkran and Fromenda structures and the opportunity to develop
additional oxide resource targets close to the Obotan Project (Figure 14). The
lease area also provides greater flexibility in the design of infrastructure
within the Obotan Project Feasibility Study design.


Recruitment

Operations

PMI enhanced its management and operational team in Perth with the appointment
of Mr. Michael Gloyne as Chief Operating Officer (COO) and Mr. Charles Amoah to
the position of General Manager - Obotan Operations in Ghana. 


Mr. Gloyne is a mining engineer with over 25 years' experience in developing
mining projects, from Bankable Feasibility Study, design and development through
to production. He has held senior management positions with major mining and
mining services organizations globally, most recently as General Manager -
Operations with the Australian iron ore company Brockman Resources Limited and
General Manager - Operations with Moly Mines Limited, during the Bankable
Feasibility Study on the 20Mpta Spinifex Ridge Molybdenum Project.


Mr. Amoah is a metallurgist with over 20 years' experience who has held a number
of senior management positions in the Ghanaian gold mining industry. He has been
employed by Gold Fields at its 90% owned Damang Mine for the past 15 years and
for the last 6 years has held the position of Acting General Manager and
Metallurgical Manager. 


Both Mr. Gloyne and Mr. Amoah bring invaluable experience to the Company as it
finalizes the Feasibility Study and moves into the detailed design and
construction phase of the mine.


Appointment of New Non-Executive Director

During the Quarter, PMI announced the appointment of experienced mining finance
executive, Dr. Michael Price, as a new London-based Non-Executive Director,
further strengthening the Board in the key areas of project and corporate
finance and equity related financing. Dr. Price has more than 30 years'
experience in mining and mining finance and arranged, structured and advised on
numerous mining-related financings around the world and advised mining
companies, governments, multi-lateral institutions, corporates and banks on all
aspects of mining and metals-related financings. Dr. Price's finance experience
will assist PMI as it moves towards financing the development of Obotan.


Corporate and Finance

Capital Raising

Prior to commencement of the June Quarter, the Company concluded a C$35 million
capital raising by way of an underwritten bought-deal. PMI entered into an
agreement with a syndicate of underwriters co-led by Clarus Securities Inc. and
RBC Capital Markets and including GMP Securities L.P. and Raymond James Ltd.
(the "Underwriters") under which the Underwriters agreed to buy 28,000,000
Common Shares of the Company on a bought-deal underwritten basis and sell them
to the public at a price of $1.25 per Common Share to raise gross proceeds of
$35,000,000. Total proceeds received from the offering after the payment of the
Underwriters' Fee was $33,250,000. The proceeds from the offer have been used to
fund work on the Feasibility Study for the development of Obotan and for general
corporate purposes.


Annual General Meeting

The Company held its Annual General Meeting of Shareholders on 17 April 2012 in
Vancouver, Canada. All resolutions were passed and full voting information and
AGM presentation is available on the Company's website.


On behalf of the Board,

Collin Ellison, Managing Director & CEO

Competent Person Statement

Exploration Results:

The information in this Quarterly Activity Update Report 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, 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 using either a minimum 0.1 g/t Au (Kaniago Prospect and 513 Prospect)
or 0.5 g/t Au (Fromenda Prospect) 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 (Kaniago Prospect and 513 Prospect) or 0.5 g/t Au (Fromenda Prospect)
internal dilution. True widths are estimated at from 60% to 70% of the stated
core length.


Obotan Resource Estimate:

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. 


This Mineral Resource Statement was prepared by SRK in accordance with the 2010
Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition
Standards for Mineral Resources and Mineral Reserve as incorporated by reference
in Canadian National Instrument 43-101, Standard of Disclosure for Mineral
Projects (the Instrument), the summarised Resource Estimates in Table 1 have
been compiled as of 15 January 2012 close of drilling database by SRK and are
effective as of 26 March 2012. The classification of the mineral resource
estimates into Measured, Indicated and Inferred categories is a function of the
confidence in the historical data, recent confirmation data and data analysis,
geological interpretation, mineralisation geometry and geological context within
which the estimation has taken place. The classification of resources is
consistent with the Australasian Guidelines and Code for the Reporting of
Exploration Results, Mineral Resources and Ore Reserves (revised December 2007)
as prepared by the Joint Institute of Geoscientists and Mineral Council of
Australia (JORC).


Kubi Resource Estimate:

Information in this presentation that relates to Mineral Resources at the Kubi
Main Deposit, Ghana, is based on a resource estimate that has been audited by
Simon Meadows Smith, who is a full time employee of SEMS Exploration Services
Ltd, Ghana. Simon Meadows Smith is a Member of the Institute of Materials,
Minerals and Mining (IMO3), London 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 under NI43-101.
Simon Meadows Smith consents to the inclusion in the presentation of the matters
based on information in the form and context in which it appears.


Cautionary Note Regarding Forward-looking Statements

This Quarterly Activity Update Report 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.


To view Figures 1 - 14 please click on the following link:
http://media3.marketwire.com/docs/0730pmv.pdf