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

Friday, October 26, 2012

PMI Gold Corporation: Quarter Activity Update for the Period Ended 30 September 201216:42 EDT Friday, October 26, 2012VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 26, 2012) - PMI Gold Corporation (TSX VENTURE:PMV)(ASX:PVM)(FRANKFURT:PN3NF) - THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIESHighlights: Obotan Gold Project (SW Ghana, West Africa) Independent NI 43-101 compliant Feasibility Study confirms a financially and technically robust mining operation at Obotan, with key outcomes including: Pre-tax NPV of US$614M and Post-tax NPV of US$387M, assuming a US$1,300/oz gold price, 5% discount rate and contract mining scenario (consistent with the January 2012 Pre-feasibility Study): Pre-tax IRR of 35% and post-tax IRR of 28%Capital payback period of 2.9 yearsAt a gold price of US$1600/oz: Pre-tax NPV rises to US$1.07B and post-tax NPV to US$686MPre-tax IRR increases to 54% and post-tax IRR to 43%Capital payback period reduced to 2.0 yearsAverage gold production of 221,500oz pa over the first five years Total production of 2.26 million recovered ounces of gold over the 11.5-year mine life Life-of-mine Project Revenue of US$2.9 billion Estimated average life-of-mine cash operating costs of US$626/oz Increased Proven and Probable Ore Reserves of 34.2Mt at 2.21g/t for 2.43Moz of gold across four deposits - an increase of 170,000oz from the January 2012 Pre-feasibility Study Capital cost estimate of US$296.6M including a pre-strip mining cost of US$82.2M Minerals Commission of Ghana has favorably recommended that the Mining Leases for the Obotan Gold Project be granted. Regional Exploration Encouraging results from first-pass aircore drilling at the Afiefiso Project, 12km SW of Obotan, including: 16m @ 1.73 g/t Au from 11m (including 3m @ 7.58 g/t Au from 19m) 15m @ 1.16 g/t Au from 48m (including 2m @ 4.99 g/t Au from 48m) 3m @ 13.64 g/t Au from 12m (including 1m @ 40.57 g/t Au from 12m) First-phase drilling completed at the Fromenda Prospect, 15km SW of Obotan, intersecting high-grade gold mineralization of up to 38.18g/t Au. Encouraging results from diamond drilling at Kubi South, 1.5km south of the Kubi Main Deposit, including: 5m @ 3.33 g/t Au from 103m (including 2m @ 5.3 g/t Au from 103m) 8m @ 1.39 g/t Au from 116m (including 2m @ 2.56 g/t Au from 119m) 4m @ 1.55 g/t Au from 98m (including 1m @ 5.23 g/t Au from 101m) 2m @ 2.40 g/t Au from 120m (including 1m @ 4.1 g/t Au from 121m) Acquisitions & Business Development Government approval received for the acquisition of a strategically located Mining Lease from Midras Mining Co. This important Mining Lease is contiguous with the southern boundary of the Obotan Gold Project. Corporate and Finance Optimum Capital Pty Ltd engaged to assist PMI to identify and secure appropriate debt finance for development of the Obotan Project. Decision to apply for listing on the Toronto Stock Exchange. US$30M standby funding facility secured with Macquarie Bank Ltd while full funding facility for Obotan development is completed. C$100 million equity financing announced subsequent to Quarter end. The Company's cash position at the end of the September 2012 Quarter was C$26,667,749. SummarySince the completion of the Pre-feasibility Study on its flagship Obotan Gold Project at the beginning of 2012, PMI Gold Corporation (TSX VENTURE:PMV)(ASX:PVM)(FRANKFURT:PN3NF) has implemented a growth strategy encompassing activities on three fronts in Ghana, West Africa, namely:Completion of a Feasibility Study to enable a development decision to be made for the Obotan Gold Project, paving the way for PMI to join the ranks of gold producers in West Africa; Ongoing regional exploration of a series of targets on its extensive tenement holdings to identify new resources, both additional sources of oxide ore to feed the Obotan gold plant and potential future standalone gold production centres; and To identify and implement strategic acquisitions to strengthen the Company's regional position in the highly prospective Asankrangwa Gold Belt of SW Ghana. To view, Figure 1: PMI Gold's project locations in south-west Ghana, please click on the following link: http://media3.marketwire.com/docs/1026pmi.jpgPROJECT DEVELOPMENT Obotan Gold Project The Obotan Gold Project is an advanced gold development project in south-west Ghana, with established resources located within the Company's Abore-Abirem and Adubea concessions. These concessions lie within the northern 15km of the total 70km strike length of contiguous concessions the Company holds in the Asankrangwa Gold Belt (Figure 2). The Obotan Project comprises four known deposits (see resource estimates below) - the larger Nkran Deposit and the smaller satellite deposits at Abore, Adubiaso and Asuadai. The Obotan Project was previously operated by Resolute Mining Ltd; mining ceased 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, the Asuadai deposit has not previously been mined. To view, Figure 2: Obotan Project - Location of PMI Gold's Concessions and Project Deposits, http://media3.marketwire.com/docs/1026pmi1.jpgFeasibility StudyDuring the September 2012 Quarter, PMI reported positive results from an independent NI 43-101 Feasibility Study on the Obotan Project, through its wholly-owned subsidiary Adansi Gold Company Ghana Limited ("Adansi"). The Feasibility Study outlined a strong and viable gold project based on a gold price of US$1,300/ounce that will form the cornerstone of PMI's emerging West African gold production strategy. The strong economics of the Obotan Project provide a solid investment case for financing and development of the Obotan Project with the commencement of construction targeted during Q1 of 2013 to achieve first gold production from Obotan in 2014, conditional on obtaining all statutory approvals, Board Approval, and the finalization of financing arrangements. The Feasibility Study, which commenced in the January 2012 Quarter, was completed by GR Engineering Services Limited ("GRES") with support and input from a range of internationally renowned consultancy groups including SRK, Orelogy, Knight Piesold and AERC. Cost estimates were based on quotes from five mining contractors and firm tenders received from suppliers. Key highlights of the Feasibility Study include:Increased Proven and Probable Reserves of 34.2Mt at 2.21g/t for 2.43Moz of contained gold were calculated as part of the Feasibility Study. This represents a 13% increase in tonnage and 8% increase in contained gold compared with the maiden Proven and Probable Ore Reserve in the January 2012 Pre-feasibility Study (30.3Mt at 2.32g/t for 2.26Moz of gold). A 4.7% reduction in grade has been offset by the conversion of additional Inferred Resources to Indicated Resources then into reserves as a result of successful in-fill drilling programs. There are additional Inferred Resources within the open pit which have not been included in the Ore Reserve but which may be converted in future. Life-of-mine production of 2.26Moz of recovered gold over an initial 11.5-year production life (exclusive of 1 year pre-strip operations). The waste-to-ore ratio has been reduced from 7.6 in the Pre-feasibility Study to 6.4 (including the pre-strip). Post pre-strip, the life-of-mine strip ratio drops to 5.6:1. Life-of-mine average cash operating costs are estimated at US$626/oz (excluding royalties, refining costs and pre-strip). Total cash operating costs are estimated at US$722/oz including royalties and refining costs, (excluding pre-strip). Mineral Resources & Ore ReservesThe previously-reported JORC / NI43-101 compliant Mineral Resource inventory for the Obotan Gold Project was estimated by SRK Consulting and reported to the ASX/TSX on 11 April 2012, as outlined below:NI43-101/JORC Code Compliant: SRK Resource Estimate (March 2012), based on 0.5 g/t Au lower cut-off gradeDepositMeasuredIndicatedMeasured & indicatedInferredTonnes (million)Grade (g/t Au)Ounces (million)Tonnes (million)Grade (g/t Au)Ounces (million)Tonnes (million)Grade (g/t Au)Ounces (million)Tonnes (million)Grade (g/t Au)Ounces (million)Nkran11.742.550.9620.412.121.3932.152.282.3514.472.211.05Adubiaso1.502.980.142.672.410.214.172.590.351.251.910.08Abore2.331.780.133.701.530.186.031.600.313.921.500.19Asuadain/an/an/a2.441.280.102.441.280.102.001.330.08TOTAL15.572.471.2329.212.001.8844.792.163.1121.911.991.40(All resource numbers are rounded to 2 decimal places - 10,000 tonnes).Following completion of mine optimization and planning, an updated Ore Reserve statement was completed by Orelogy Mining Consultants, as outlined below:NI43-101/JORC Code Compliant: Feasibility Study Obotan Ore ReserveClassTonnes (Mt)Grade (g/t Au)Contained Gold (Moz)Proven14.82.391.14Probable19.42.081.30Total34.22.212.43This compares to the previous Ore Reserves (below) as reported in the Pre-feasibility Study announcement:NI43-101/JORC Code Compliant: Pre-Feasibility Obotan Ore ReserveClassTonnes (Mt)Grade (g/t Au)Contained Gold (Moz)Proven14.02.361.06Probable16.32.281.20Total30.32.322.26(Any inconsistencies due to rounding.)To view, Figure 3: Obotan Project - 3D View of the Nkran Deposit and Proposed Open Pit Design, please click on the following link: http://media3.marketwire.com/docs/1026pmi2.jpgKey Project ParametersThe Feasibility Study results demonstrate a technically robust mining operation with anticipated life-of-mine (LOM) parameters as follows:ItemDescription / EstimateMining methodOpen Pit MiningProcessing rate3Mtpa primary ore, 3.8Mtpa oxide oreMetallurgical recovery92.8% averageTotal recovered gold 2.26 million ozMine Production Life11.5 yearsCash operating costs$626/ ozPre-Production Capital Cost$296.6MPre-tax operating cashflow$953MLife of Mine sustaining mine capital$56.2MConstruction commencement*1st Quarter 2013First production*End of 1st Quarter 2014*Subject to Financial Investment Decision (FID) timingCapital Cost BreakdownCost AreaUS$ MillionProcess Plant Direct$83.6Infrastructure$49.2Indirect$26.1Spares and First Fills$8.9Owners Costs$26.2Pre-Strip$82.2Mining Establishment$20.3Initial Capital$296.6Deferred & Sustaining Life of Mine Capital$56.2Operating Cost BreakdownCostsTotal Cost US$ MillionUS$/t Milled (excl. pre-strip)US$/oz Au Recovered (excl. pre-strip)Mining$850.4$24.84$376.5Processing$473.1$13.82$209.4General & Administration$90.6$2.65$40.1Sub Total$1414.0$41.31$626.0Bullion and Refining$12.1$0.35$5.3Royalties$205.6$6.01$91.0Total Operating Cost$1631.7$47.67$722.3To view, Figure 4: Obotan Gold Project - 3D View of CIL 3.0Mtpa Gold Processing Plant, http://media3.marketwire.com/docs/1026pmi6.jpgFinancial Evaluation@ U$1300 / ounce@ U$1600 / ounceProject revenue$2.9 B$3.61 BProject pre-tax cash flow$953 M$1.58 BProject pre-tax NPV (5% discount rate)$614 M$1.07 BProject pre-tax NPV (8% discount rate)$472 M$856 MProject pre-tax IRR35%54%Project ImplementationSubject to the Board of Directors' Financial Investment Decision (FID), key project milestones comprise; Key Project Implementation Milestones - Targeted DatesCY2012CY2013CY20141H2H1H2H1H2HCompletion of Feasibility StudyXProject FinanceXCommencement of ConstructionXMining Pre-stripXFirst ProductionXRecommendation to Grant Mining LeasesDuring the Quarter, the Company received notification that the Minerals Commission of Ghana has favorably recommended that the Minister of Lands and Natural Resources grant the Mining Leases covering the Obotan Gold Project. PMI subsequently paid the required fees and the application has been sent to the Minister for signature. Once formally issued, the three 15-year Mining Leases (renewable under the terms of the Minerals and Mining Act, 2006) will cover a total area of 93.24 sq km, encompassing the four key deposits at Obotan, the main Nkran Deposit and the smaller satellite deposits, Abore, Adubiaso and Asuadai.The grant of the Obotan Mining Leases represents a key step towards commencement of construction at Obotan with approval from the Environmental Protection Agency (EPA) representing the final remaining outstanding regulatory approval required to enable project construction to commence.REGIONAL EXPLORATIONDuring the September 2012 Quarter, the Company continued an extensive regional exploration push focusing on 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 multi-pronged exploration program has the objectives of: (1) identifying additional oxide resources within trucking distance of Obotan; (2) discovering new standalone gold deposits within the adjoining Asanko concessions within the Asankrangwa Gold Belt; and (3) drill testing multiple gold targets delineated by airborne magnetics and near-surface geochemical sampling undertaken in 2011 at Kubi. Obotan Gold Project - Exploration Area of Influence The Obotan Exploration Area of Influence is defined by a 15km trucking radius of the Nkran Deposit.Afiefiso Prospect The Afiefiso Prospect is a new discovery strategically located 15km south-west of Obotan (Figure 5).During the Quarter drilling was completed and all assay results returned from first-pass Air Core exploration drilling program at the Afiefiso Prospect - a high priority target identified and tested in the Company's +100,000m regional exploration push undertaken during the first half of 2012. To view, Figure 5: Location of Afiefiso, Fromenda and Kubi South Prospects, please click on the following link: http://media3.marketwire.com/docs/1026pmi4.jpgDrilling was designed as a first-pass test of a strong (>100ppb) gold-in-soil geochemical anomaly, defined by previous explorers, which extends over a length of 2km striking north-east and is 200-500m wide. The soil anomaly is situated in a similar geological setting to the Obotan gold deposits, at the junction of the regional north-east trending Fromenda Shear and interpreted east-northeasterly cross-cutting structures within a sequence of meta-sedimentary rocks. The program comprised broadly spaced reconnaissance Air Core traverses (145 holes on four traverses at 200-800m intervals; Figure 2) which commenced in March 2012. A total of 10,018m has been drilled into the prospect.The reconnaissance Air Core drilling program intersected multiple zones of anomalous gold at shallow depths (<100m), striking parallel to the Fromenda Shear over a length of up to 1,600m and downhole widths of 2-12m. All assay results have been received for the 145 holes from MinAnalytical Laboratory in Perth, Australia. Encouraging shallow gold intersections recorded include:AFAC12-001 16m @ 1.73 g/t Au from 11m (including 3m @ 7.58 g/t Au from 19m) AFAC12-003 6m @ 0.72 g/t Au from 21m AFAC12-011 15m @ 1.16 g/t Au from 44m (including 2m @ 4.99 g/t Au from 48m) AFAC12-016 9m @ 0.97 g/t Au from 49m (including 2m @ 2.76 g/t Au from 50m) AFAC12-073 3m @ 13.64 g/t Au from 12m (including 1m @ 40.57 g/t Au from 12m) The results highlight the potential of the Fromenda Shear to host gold mineralization, and the success of utilising the historical soil geochemical data - notwithstanding the obscuring effects of alluvial and cultural processes.PMI is currently reviewing the results of its regional exploration push with the aim of prioritizing the prospects for further follow up drilling for the last quarter of 2012 and leading into 2013.Fromenda ProspectFurther positive results were received from the first phase of RC drilling carried out at the Fromenda Prospect, part of the Obotan Exploration Area of Influence (Figure 5).The prospect is situated on the north-east trending regional Fromenda Shear, which is interpreted from geophysical data to occur towards the eastern margin of a regional, north-east trending structural corridor which extends over the 70km strike extent of PMI's Asankrangwa tenements. The corridor comprises a parallel series of at least three continuous shear zones (Abore, Nkran and Fromenda) interpreted to control the regional distribution of gold mineralization, particularly at intersections with cross-cutting east-northeast structures as characterizes PMI's Obotan deposits to the north.Drilling at the Fromenda Prospect commenced in February 2012, with 68 RC holes drilled for a total of 6,775m. The drilling program was planned to evaluate the broader extent of the mineralized system at shallow depths, with some in-filling of the historical drill pattern over a previously delineated gold in soil anomaly. The results of 13 holes were released in April (refer to ASX/TSX release dated April 30th 2012). All outstanding assays were received during the Quarter, with highlights of the remaining results including:NBRC12-021 5m @ 1.33g/t Au from 36m NBRC12-030 2m @ 3.94g/t Au from 21m NBRC12-035 36m @ 1.74g/t Au from 82m (including 1m @ 11.78g/t Au from 86m) NBRC12-036 3m @ 2.07g/t Au from 116m NBRC12-038 40m @ 2.06g/t Au from 55m NBRC12-054 8m @ 6.80g/t Au from 18m (including 1m @ 38.18g/t Au from 25m) NBRC12-055 17m @ 4.28g/t Au from 4m (including 3m @ 15.58g/t Au from 12m) Drilling has delineated a gold system over a strike extent of more than 500m (Figure 6). Many of the largest gold deposits in Ghana have short strike lengths with substantial steep-plunging deep roots. The gold is hosted in a steeply dipping stockwork of quartz veins hosted by a sequence of metavolcanics and sedimentary rocks. The drilling results have confirmed the internal continuity of known mineralization and extended it to depths in excess of 100m. It has also shown that the gold mineralization is open along strike to both the north and south, and is open down-dip offering the potential to be a more extensive system than presently drilled.To view, Figure 6: Collar Location Plan of RC Drilling at the Fromenda Prospect, http://media3.marketwire.com/docs/1026pmi5.jpg Kubi Gold Project The 100%-owned Kubi Gold Project is located 65km east of the Obotan Project and 15km south and along strike from AngloGold Ashanti's 60Moz Obuasi Mine within the +100Moz Ashanti trend. The Project contains existing resources comprising a Measured Resource of 112,000oz, an Indicated Resource of 121,000oz and an Inferred Resource of 115,000oz. The Kubi Project was mined by the previous tenement holder, with a total of 500,000 tonnes grading 3.65g/t extracted from two shallow pits yielding 59,000oz of gold up until 2005. This previous mining focused on just 400m of a total strike length of +1km of the deposit, with the project offering the potential to develop and mine steeply-plunging 6-8g/t shoots which remain open at depth.PMI is undertaking an evaluation of this resource in parallel with a broader regional exploration push targeting major new discoveries at the intersection of two major regional geological structures - the north-south trending Ashanti shear zone and the east-west trending structures associated with Perseus Mining's 6.6Moz Ayanfuri deposit, located 12km to the south-west. Kubi South ProspectDiamond drilling at the Kubi South Prospect, within PMI's 100%-owned Kubi Project (Figure 5), was completed in the June Quarter with all assay results received during the reporting Quarter. Drilling intersected multiple zones of significant gold mineralization ranging in strike length from 150m to 300m, open along strike to both the north and south, and also down dip.The diamond drilling program was aimed at in-filling historical intercepts and testing the continuity of known mineralization along strike and down dip. Holes were drilled on a nominal 100m line spacing 25m apart. A total of 12 holes for 2,164.5m were drilled. All samples were sent to MinAnalytical Laboratory, Perth, with encouraging results including:KV12-540 5m @ 3.33 g/t Au from 103m (including 2m @ 5.3 g/t Au from 103m) KV12-546 2m @ 2.40 g/t Au from 120m (including 1m @ 4.1 g/t from 121m) KV12-549 8m @ 1.39 g/t Au from 116m (including 2m @ 2.56 g/t Au from 119m) KV12-551 4m @ 1.55 g/t Au from 98m (including 1m @ 5.23 g/t Au from 101m) Mineralization is hosted within a 1m to 15m thick garnetiferous horizon within Birimian-age metasediments, near the contact with Tarkwaian-age metasedimentary rocks, which has been confirmed over a strike of 300m and is open both to the north and south and also down-dip. The geological and structural setting of the Kubi South Prospect is identical to that at the Kubi Main Deposit. A series of east-northeast structures have also been identified from airborne and ground geophysical surveys. These structures coincide with Perseus Mining's Edikan Gold Mine (6.6Moz), 12km to the southwest, and are considered favourable hosts for gold mineralization in Ghana. AcquisitionsOn the 9th of July, 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, in-filling a major gap in PMI's tenement coverage of the gold mineralized 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.Adansi received formal notification from the Ghanaian Minister of Lands, Forestry and Mines, Hon. M. Hammah, that he had approved the assignment of the Datano-Manso Mining Lease from Midras to Adansi on 16 August.This cleared the way for the acquisition to be completed, with settlement completed at the end of August 2012.The concession covers an area of 50km2 and sits strategically south of the Nkran Deposit, providing PMI access to additional southern extensions of the mineralized Nkran and Fromenda structures and the opportunity to develop additional oxide resource targets close to the Obotan Project. The lease area also provides greater flexibility in the design of infrastructure within the Obotan Project Feasibility Study design. CORPORATE & FINANCEUS$30 Million Standby Funding Facility During the Quarter the Company entered into a committed letter offer for a US$30 million standby funding facility from Macquarie Bank Limited while it completes the full funding package for development of its flagship 100%-owned Obotan Gold Project in Ghana. The standby funding facility gives the Company additional flexibility, if required, to draw down on the additional funding to undertake key pre-development activities including engineering design, environmental studies and other statutory approvals. This additional flexibility will put the Company in the strongest possible position while it finalises an appropriate funding package for Obotan. PMI is currently in advanced discussions with a number of parties to fully fund the Project and looks forward to advising the market when those arrangements are finalised.The Board is pleased to obtain the support of Macquarie, PMI's largest shareholder and an experienced Project Finance provider for projects in West Africa, and views this arrangement as a positive endorsement of the Company and the Project. Some of the key terms of the Macquarie Facility include:Maturity date is the earlier of 30 June 2014 or the first draw-down under a project financing/equity funding of the Project; Interest rate of 6% over LIBOR; Associated warrant issue terms are as follows: 600,000 facility fee warrants; Draw-down warrants: being 50% of drawn down funds divided by the exercise price; and All warrants expiring 3 years from date of issue at an exercise price at a premium to VWAP in CAD; Cancellable in whole or in part at the discretion of the borrower; Security and general commercial terms standard for this type of facility; and This facility and the project finance facility are non-related. Proposed TSX ListingPMI's Board has resolved to apply for quotation of its securities on the main board of the Toronto Stock Exchange (TSX), which is expected to raise the profile of the Company as well as make investment in PMI available to a broader shareholder base as it moves towards production at Obotan.Appointment of Optimum Capital to assist with securing project finance In July PMI engaged Optimum Capital Pty Ltd. ("Optimum Capital") to assist the Company to identify and secure appropriate debt finance for development of the Obotan Gold Project.Optimum Capital is a well-known and independent advisory house based in Australia that focuses on the mid-tier mining sector. Optimum Capital's team provides commercial, financial and technical skills and experience aimed at assisting clients to optimize their debt funding outcomes.The full range of available financing alternatives is being explored in order to ensure the best result for shareholders. PMI has received expressions of interest to provide project debt finance for the Obotan Project from 12 international banks. Together with Optimum Capital, PMI has reduced these to a short-list of potential funders to provide project finance to PMI. Each of the shortlisted banks has a strong global reputation and demonstrated experience in financing mining projects in Ghana.Communications with the shortlisted banks have commenced on a range of issues and due diligence is also underway. C$100 Million Equity FinancingSubsequent to the end of the Quarter, in early October PMI announced that it had entered into an underwriting agreement with a syndicate of underwriters led by Clarus Securities Inc. and RBC Capital Markets as joint bookrunners and co-lead underwriters, and including Canaccord Genuity Corp., Euroz Securities Limited, GMP Securities L.P. and Raymond James Ltd. (collectively, the "Underwriters") to sell 119,050,000 Common Shares of the Company at a price of C$0.84 per share for gross proceeds of C$100,002,000. In addition, the Company has granted the Underwriters an over-allotment option to purchase up to that number of additional Common Shares equal to 15% of the Common Shares sold pursuant to the Offering, exercisable at any time up to 30 days after the closing of the Offering.The Company plans to use the net proceeds of the Offering to fund the development of the Company's Obotan Gold Project in accordance with its Feasibility Study, for Ghana exploration activities and for general and administrative expenses.The Offering is subject to customary conditions and receipt of required regulatory approvals, including the approval of the TSX Venture Exchange, as well as shareholder approval by application of certain rules of the Australian Securities Exchange. The Common Shares will be offered in Canada (other than Québec) by short form prospectus, and in Australia and the United States on a private placement basis, and in other jurisdictions outside of Canada, Australia and the United States which are agreed to by the Company and the Underwriters, where the Common Shares can be issued on a private placement basis, exempt from any prospectus, registration or other similar requirements. The Offering is expected to close on or about November 13, 2012.Collin EllisonOn behalf of the Board,Managing Director & CEOCompetent Person StatementObotan Gold Project:Feasibility Study Mineral Resources and Reserves Estimate:Information that relates to Mineral Resources at the Obotan Gold Project is based on a resource estimate that has been carried out by Mr. Peter Gleeson, a full time employee of SRK Consulting, Australia. Mr. Gleeson is a Member of the Australian Institute of Geoscientists (MAIG). Information that relates to Mineral Reserves (for the Feasibility Study) at the Obotan Gold Project is based on a reserve estimate that has been carried out by Mr. Ross Cheyne, a full time employee of Orelogy Mining Consultants. Mr. Cheyne is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM). Both have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity undertaken 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 (JORC), and as a Qualified Person (by ROPO) as defined in terms of NI 43-101 standards for resource estimate of gold. Mr. Gleeson and Mr. Cheyne have more than 5 years' experience in the field of exploration results and of resource/reserve estimation and consent to and approve the inclusion of matters based on information in the form and context in which it appears.Technical Notes:The Orelogy Mineral Reserve was estimated by construction of a block model within constraining wireframes based on Measured and Indicated resources.The Reserve is reported at lower a cut-off grade of 0.5g/t Au, which defines the continuous/semi-continuous mineralized zone potentially amenable to the low grade, bulk tonnage mining scenario currently being considered by PMI.The grades and Reserve tonnes have been modified by an average ore loss and mining dilution of 4.8% with a mining dilution grade of 0.0g/t gold.An average metallurgical recovery of 92.8% was used in defining the optimal pit shell.The Mineral Reserves are based on the March 2012 Mineral resource reports for the Nkran, Adubiaso, Abore and Asuadai deposits.All tonnes reported are dry tonnes.The base case pit optimization utilized a US$1,300/oz gold price.Mineral Reserves are reported in accordance with the NI 43-101 & JORC.The Mineral Resource and Mineral Reserve estimates have been prepared 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 National Instrument 43-101 of the Canadian Securities Administrators, and 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 Ore Reserves Committee of the AusIMM, AIG and MCA (JORC). PMI filed a NI 43-101 compliant technical report on the Obotan Project outlining the Mineral Resources and Reserves Estimate and the result of the Feasibility Study on September 17, 2012. The NI 43-101 technical report was prepared by GR Engineering Services Limited, and co-authored by P. Gleeson, B.Sc. (Hons), M.Sc, MAIGS, MGSA, J. Price, FAusIMM (CP), FGS, MIE(Aust.), R Cheyne, BEng. (Mining), FAusIMM, CEng (IEI), and G. Neeling, BAppSc. (Multidisciplinary) FAusIMM, each of whom is independent for the purposes of NI 43-101. Mr. Collin Ellison, President & CEO, BSc Mining, IMO3, C.Eng, a "qualified person" within the definition of that term in NI 43-101, has supervised the preparation of the technical information regarding the Company's mineral projects which is not covered by the filed NI 43-101 technical reports on the Obotan Project. Pre-Feasibility Study Mineral Reserves Estimates:Information that relates to Pre-feasibility Study Mineral Reserves as previously reported on the Obotan Gold Project is based on a reserve estimate that has been carried out by Mr. Duncan Pratt, a full time employee of SRK Consulting, Australia. Mr. Pratt (CP Mining) is a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM) and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activities undertaken 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 (JORC), and as a Qualified Person in terms of NI43-101. Mr. Pratt consents to and approves the inclusion of matters based on information in the form and context in which it appears.Technical Notes:The SRK Mineral Reserve was estimated by construction of a block model within constraining wireframes based on Measured and Indicated resources.The Reserve is reported at lower a cut-off grade of 0.5g/t Au, which defines the continuous/semi-continuous mineralized zone potentially amenable to the low grade, bulk tonnage mining scenario currently being considered by PMI.The grades and Reserve tonnes have been modified by a 95% mining recovery and a 5% allowance for mining dilution at 0.0g/t gold.At 93% metallurgical recovery for Oxide and Transitional material and 94.5% metallurgical recovery for Fresh material was used in defining the optimal pit shell.The Mineral Reserves are based on the October 2011 Mineral resource reports for the Nkran, Adubiaso, Abore and Asuadai deposits.All tonnes reported are dry tonnes.The base case pit optimization utilized a US$1,300/oz gold price.Mineral Reserves are reported in accordance with the NI 43-101 & JORC.Kubi Gold Project:The information 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 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 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.Technical Notes:Resources figures for Kubi are based on a 2.0g/t Au cut-off gradeMineral Resources are reported in accordance with NI43-101 & JORC.Exploration Results:The information 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 relating to Exploration Results 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 (Afiefiso Prospect) or 0.5 g/t Au (Fromenda Prospect and Kubi South) 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 (Afiefiso Prospect) or 0.5 g/t Au (Fromenda Prospect and Kubi South Prospect) internal dilution. True widths are estimated at from 60% to 70% of the stated core length.Forward-Looking StatementsThis Quarterly Activity Update Report includes forward-looking statements or information. Forward-looking statements or information involve risks, uncertainties and other factors that could cause actual results, performances, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statement. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding future gold production; initial mine life; average annual gold production; forecast life of mine cash cost; initial capital cost; forecast operating parameters including ore mined, mill feed and recoveries; determination of a development decision for the Obotan Project; full production; and financial outcomes of the FS, including NPV; the timing and use of proceeds of the Offering and the completion of the Offering, are forward-looking statements of information. 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 or information. Important factors that could cause actual results to differ materially from the Company's plans or expectations include the actual results of current exploration activities; changes in gold prices; changes in exchange rates; possibility of equipment breakdowns, delays and availability; changes in mine plans; exploration cost overruns; unexpected increases in costs of equipment, steel, cement and consumables such as diesel and fuel oil; unexpected environmental liabilities or social charges; the unknown impact of the 10% windfall profit tax announced by the Government of Ghana; title defects; the failure of contract parties to perform; the unavailability of capital and financing; marketing activities, changes in gold prices; adverse general economic, market or business conditions; regulatory changes; failure to receive necessary government or regulatory approvals; and other risks and factors detailed herein and from time to time in the filings made by the Company with securities regulators and stock exchanges, including in the section entitled "Risk Factors" in the Company's Annual Information Form dated September 25, 2012. Any forward-looking statement or information only speaks as of the date on which it was made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such.Table 1: Significant Gold Intercepts Afiefiso Prospect (>0.1% Au)NOTE: True widths are approximately 60-70% of the length of the stated intersection lengths ProspectHole IDEasting (UTM)Northing (UTM)RL (UTM)DipAzimuthDepth From (m)Depth To (m)Interval (m)Weighted Avg. Grade (g/t)AfiefisoAFAC12-001606819.0687799.0157.00-5013511.0027.0016.001.73Including19.0022.003.007.5831.0034.003.000.43AfiefisoAFAC12-002606547.8688098.4157.3-5013512.0014.002.000.13AfiefisoAFAC12-003606582.5688062.9157.0-5013521.0027.006.000.72AfiefisoAFAC12-004606616.3688026.0155.7-50135No Significant ResultsAfiefisoAFAC12-005606649.2687988.9156.0-50135No Significant ResultsAfiefisoAFAC12-006606681.6687950.3156.8-50135No Significant ResultsAfiefisoAFAC12-007606714.9687912.4155.3-50135No Significant ResultsAfiefisoAFAC12-008606749.3687877.4151.3-50135No Significant ResultsAfiefisoAFAC12-009606781.9687840.2145.8-50135No Significant ResultsAfiefisoAFAC12-010606815.0687802.1144.6-50135No Significant ResultsAfiefisoAFAC12-011606485.3688177.4158.0-5013530.0032.002.001.1144.0059.0015.001.16Including48.0050.002.004.99AfiefisoAFAC12-012606449.0688212.0158.0-5013573.0075.002.000.26AfiefisoAFAC12-013606419.2688251.9158.0-501351.004.003.000.25AfiefisoAFAC12-014606383.6688286.6157.7-50135No Significant ResultsAfiefisoAFAC12-015606351.5688325.4157.1-50135No Significant ResultsAfiefisoAFAC12-016606319.3688362.9157.0-5013549.0058.009.000.97Including50.0052.002.002.76AfiefisoAFAC12-017606283.1688397.4157.5-50135No Significant ResultsAfiefisoAFAC12-018606249.2688434.3158.7-50135No Significant ResultsAfiefisoAFAC12-019606213.6688468.9159.3-50135No Significant ResultsAfiefisoAFAC12-020606180.5688506.5159.2-50135No Significant ResultsAfiefisoAFAC12-021606145.0688541.8159.8-50135No Significant ResultsAfiefisoAFAC12-022606110.2688577.5159.8-50135No Significant ResultsAfiefisoAFAC12-023606076.8688614.6159.0-5013538.0040.002.000.344.0046.002.000.25AfiefisoAFAC12-024606041.8688650.4158.4-50135No Significant ResultsAfiefisoAFAC12-025606007.7688686.6158.4-50135No Significant ResultsAfiefisoAFAC12-026605974.4688724.5158.6-50135No Significant ResultsAfiefisoAFAC12-027605936.2688753.8159.4-50135No Significant ResultsAfiefisoAFAC12-028605899.3688789.6160.1-50135No Significant ResultsAfiefisoAFAC12-029605864.8688826.1157.7-50135No Significant ResultsAfiefisoAFAC12-030605827.4688858.4161.7-5013519.0020.001.001.39AfiefisoAFAC12-031605791.2688892.9161.3-50135No Significant ResultsAfiefisoAFAC12-032605754.3688927.2159.4-50135No Significant ResultsAfiefisoAFAC12-033605718.0688961.3156.3-50135No Significant ResultsAfiefisoAFAC12-034605680.4688993.8153.0-5013530.0032.002.000.27AfiefisoAFAC12-035605642.4689026.3149.0-50135No Significant ResultsAfiefisoAFAC12-036605607.1689061.7147.8-50135No Significant ResultsAfiefisoAFAC12-037605572.7689097.8144.5-501354.008.004.000.18AfiefisoAFAC12-038605533.6689128.5140.7-50135No Significant ResultsAfiefisoAFAC12-039605496.1689161.8137.9-501351.003.002.000.17AfiefisoAFAC12-040605458.4689194.5137.2-50135No Significant ResultsAfiefisoAFAC12-041605421.7689227.9137.0-50135No Significant ResultsAfiefisoAFAC12-042605385.0689261.9136.4-50135No Significant ResultsAfiefisoAFAC12-043605298.0689328.3135.9-50135No Significant ResultsAfiefisoAFAC12-044605255.6689366.4146.5-50135No Significant ResultsAfiefisoAFAC12-045605221.8689397.0141.5-50135No Significant ResultsAfiefisoAFAC12-046605183.2689430.8142.5-50135No Significant ResultsAfiefisoAFAC12-047605145.3689463.9149.7-50135No Significant ResultsAfiefisoAFAC12-048605107.6689495.5157.7-50135No Significant ResultsAfiefisoAFAC12-049605074.6689532.2160.6-50135No Significant ResultsAfiefisoAFAC12-050605035.7689565.1158.4-50135No Significant ResultsAfiefisoAFAC12-051605001.3689600.6156.4-50135No Significant ResultsAfiefisoAFAC12-052604974.8689645.3148.9-50135No Significant ResultsAfiefisoAFAC12-053606620.1689134.6139.9-50135No Significant ResultsAfiefisoAFAC12-054606577.2689163.6141.5-50135No Significant ResultsAfiefisoAFAC12-055606541.1689196.5149.1-50135No Significant ResultsAfiefisoAFAC12-056606507.2689232.8154.2-50135No Significant ResultsAfiefisoAFAC12-057606475.1689270.0157.0-50135No Significant ResultsAfiefisoAFAC12-058606441.2689305.3158.3-50135No Significant ResultsAfiefisoAFAC12-059606402.8689341.7159.8-50135No Significant ResultsAfiefisoAFAC12-060606371.1689378.4160.4-50135No Significant ResultsAfiefisoAFAC12-061606334.2689413.0160.9-5013537.0048.0011.000.27AfiefisoAFAC12-062606303.9689443.3161.5-501356.008.002.000.38AfiefisoAFAC12-063606264.5689482.5161.9-501356.008.002.000.77AfiefisoAFAC12-064606227.0689516.3161.3-501356.009.003.000.24AfiefisoAFAC12-065606191.8689551.9160.5-501356.008.002.000.27AfiefisoAFAC12-066606155.5689586.3159.2-50135No Significant ResultsAfiefisoAFAC12-067606123.7689620.1158.5-50135No Significant ResultsAfiefisoAFAC12-068606081.6689653.3157.3-501353.004.001.002.7212.0013.001.001.31AfiefisoAFAC12-069606044.9689687.5156.6-5013510.0012.002.001.12AfiefisoAFAC12-070606005.4689718.5156.2-5013515.0020.005.000.42AfiefisoAFAC12-071605967.9689751.0155.2-50135No Significant ResultsAfiefisoAFAC12-072605928.7689782.3155.2-50135No Significant ResultsAfiefisoAFAC12-073605893.1689817.3156.8-501357.009.002.000.6AfiefisoAFAC12-073605893.1689817.3156.8-5013512.0015.003.0013.64Including12.0013.001.0040.57AfiefisoAFAC12-074605854.5689849.5157.8-50135No Significant ResultsAfiefisoAFAC12-075605812.5689877.7160.0-50135No Significant ResultsAfiefisoAFAC12-076605772.6689908.0161.9-501350.002.002.000.51AfiefisoAFAC12-077605733.8689939.4163.7-50135No Significant ResultsAfiefisoAFAC12-078605696.9689973.2166.2-50135No Significant ResultsAfiefisoAFAC12-079605660.4690007.3168.9-50135No Significant ResultsAfiefisoAFAC12-080605626.1690041.7169.6-50135No Significant ResultsAfiefisoAFAC12-081605587.2690074.7170.8-50135No Significant ResultsAfiefisoAFAC12-082605550.9690109.5171.6-50135No Significant ResultsAfiefisoAFAC12-083605511.9690140.9171.7-50135No Significant ResultsAfiefisoAFAC12-084607693.3689175.9139.4-50135No Significant ResultsAfiefisoAFAC12-085607671.3689211.2139.6-5013552.0053.001.001.10AfiefisoAFAC12-086607634.7689248.5141.3-5013527.0035.008.000.44AfiefisoAFAC12-087607599.6689283.6143.6-501351.006.005.000.5AfiefisoAFAC12-088607516.3689346.4147.8-501351.003.002.000.8572.0074.002.001.74AfiefisoAFAC12-089607495.5689392.2149.0-5013513.0016.003.000.11AfiefisoAFAC12-090607460.3689427.0152.1-50135No Significant ResultsAfiefisoAFAC12-091607425.5689463.2155.8-501354.0012.008.000.1665.0071.006.000.34AfiefisoAFAC12-092607390.3689497.5155.7-50135No Significant ResultsAfiefisoAFAC12-093607343.5689516.1155.9-5013522.0024.002.000.2AfiefisoAFAC12-094607324.5689565.2153.5-50135No Significant ResultsAfiefisoAFAC12-095607291.9689603.2155.4-50135No Significant ResultsAfiefisoAFAC12-096607257.7689640.1156.6-50135No Significant ResultsAfiefisoAFAC12-097607221.2689674.9157.1-5013519.0021.002.000.53AfiefisoAFAC12-098607186.1689709.8156.8-50135No Significant ResultsAfiefisoAFAC12-099607150.7689746.0156.9-50135No Significant ResultsAfiefisoAFAC12-100607115.4689781.2157.0-50135No Significant ResultsAfiefisoAFAC12-101607079.9689816.7158.5-50135No Significant ResultsAfiefisoAFAC12-102607045.6689853.7159.0-50135No Significant ResultsAfiefisoAFAC12-103607011.0689889.0160.0-501353.007.004.000.63AfiefisoAFAC12-104606975.1689924.2161.7-50135No Significant ResultsAfiefisoAFAC12-105606938.5689957.5163.7-50135No Significant ResultsAfiefisoAFAC12-106606903.7689994.7163.8-50135No Significant ResultsAfiefisoAFAC12-107606868.7690028.2163.1-5013542.0044.002.000.34AfiefisoAFAC12-108606832.2690062.0163.0-501354.007.003.000.92AfiefisoAFAC12-109606783.0690084.4162.7-501355.007.002.000.15AfiefisoAFAC12-110606759.9690132.3163.4-5013525.0027.002.000.59AfiefisoAFAC12-111606721.3690165.6163.6-501351.004.003.000.16AfiefisoAFAC12-112606684.1690197.9163.6-50135No Significant ResultsAfiefisoAFAC12-113606644.4690228.8164.0-501351.004.003.000.16AfiefisoAFAC12-114606603.4690266.2163.4-501354.006.002.000.62AfiefisoAFAC12-115B606566.5690297.4162.0-50135No Significant ResultsAfiefisoAFAC12-116606526.0690327.8160.7-50135No Significant ResultsAfiefisoAFAC12-117606485.7690355.9160.4-501353.006.003.000.13AfiefisoAFAC12-118606445.5690385.7160.8-50135No Significant ResultsAfiefisoAFAC12-119606404.5690413.8161.4-50135No Significant ResultsAfiefisoAFAC12-120606362.7690441.9162.4-50135No Significant ResultsAfiefisoAFAC12-121606321.4690470.7162.4-50135No Significant ResultsAfiefisoAFAC12-122606306.9690483.7162.3-50135No Significant ResultsAfiefisoAFAC12-123607540.4689319.0146.5-5013532.0035.003.000.41AfiefisoAFAC12-124607293.1689115.1132.9-50135No Significant ResultsAfiefisoAFAC12-125607244.4689111.0138.1-50135No Significant ResultsAfiefisoAFAC12-126607195.0689106.8140.5-50135No Significant ResultsAfiefisoAFAC12-127607201.7689107.3142.5-50135No Significant ResultsAfiefisoAFAC12-128607251.3689111.5144.4-5013520.0024.004.000.9841.0042.001.004.48AfiefisoAFAC12-129607301.6689115.8143.9-50135No Significant ResultsAfiefisoAFAC12-130607227.9689109.6143.8-50135No Significant ResultsAfiefisoAFAC12-131607178.6689105.4143.1-50135No Significant ResultsAfiefisoAFAC12-132607128.7689101.1143.4-50135No Significant ResultsAfiefisoAFAC12-133607079.0689096.9143.9-50135No Significant ResultsAfiefisoAFAC12-134607064.6689095.7143.6-50135No Significant ResultsAfiefisoAFAC12-135607088.8689097.8145.3-50135No Significant ResultsAfiefisoAFAC12-136606430.9687945.7146.9-5013520.0021.001.002.26AfiefisoAFAC12-137606390.3687975.9149.5-501353.005.002.000.4124.0030.006.000.3058.0059.001.001.10AfiefisoAFAC12-138606349.7688008.3152.4-50135No Significant ResultsAfiefisoAFAC12-139606311.6688040.5154.6-5013538.0040.002.000.5863.0067.004.000.33AfiefisoAFAC12-140606272.1688071.9154.5-50135No Significant ResultsAfiefisoAFAC12-141606235.8688105.9155.2-50135No Significant ResultsAfiefisoAFAC12-142606195.5688137.0156.3-50135No Significant ResultsAfiefisoAFAC12-143606156.3688169.0157.4-5013551532.000.19AfiefisoAFAC12-144606114.7688203.3158.0-5013551565.000.25AfiefisoAFAC12-145606076.92688235.32157.73-5013511143.000.22Fromenda Prospect (>0.5% Au)NOTE: True widths are approximately 60-70% of the length of the stated intersection lengths ProspectHole IDEasting (UTM)Northing (UTM)RL (UTM)DipAzimuthDepth From (m)Depth To (m)Interval (m)Weighted Avg. Grade (g/t)FromendaNBRC12-013602431.8684430.3167.7-501358911.33FromendaNBRC12-014602400.1684467.1170.8-501354620.55FromendaNBRC12-016602213.4684790.5152.1-501352310.90474810.98FromendaNBRC12-017602251.6684753.7159.5-50131788020.56FromendaNBRC12-018602285.5684723.0164.3-50135No Significant ResultFromendaNBRC12-019602321.2684681.9172.0-501355611.04434630.77FromendaNBRC12-020602367.8684642.9192.3-50135No Significant ResultFromendaNBRC12-021602394.7684608.3198.7-50135364151.33FromendaNBRC12-022602421.7684572.8192.6-50135232413.68272810.96434631.61727421.14FromendaNBRC12-023602458.3684543.7188.2-50135586241.86FromendaNBRC12-024602526.0684473.1171.6-50135No Significant ResultFromendaNBRC12-025602493.9684506.0176.4-50135484911.30FromendaNBRC12-026602545.0684619.7206.7-50136No Significant ResultFromendaNBRC12-027602578.8684585.2198.2-50135No Significant ResultFromendaNBRC12-028602607.5684553.0191.1-50135No Significant ResultFromendaNBRC12-029602476.2684695.4210.3-50135No Significant ResultFromendaNBRC12-030602799.3684914.7150.9-501350220.87212323.94FromendaNBRC12-031602830.4684878.7151.5-50135484911.11FromendaNBRC12-032602865.8684845.1155.2-50135No Significant ResultFromendaNBRC12-033602673.1684851.9190.5-60135121640.80535740.61FromendaNBRC12-034602683.9684891.4194.7-60135161711.75242732.21585911.18727311.9711711811.52FromendaNBRC12-035602610.1684882.8206.0-60135161711.2982108261.74including8687111.78FromendaNBRC12-036602640.1684889.0201.5-6013511611932.07FromendaNBRC12-037602630.0684864.9202.3-60135576140.61737523.19FromendaNBRC12-038602599.5684852.7207.6-601355595402.0612813130.93FromendaNBRC12-039602569.9684870.7210.3-60135303112.02889680.7313313411.02FromendaNBRC12-040602367.6684792.7168.1-50135768151.60FromendaNBRC12-041602392.0684763.3174.3-5013591120.95FromendaNBRC12-042602424.0684715.7191.7-50135No Significant ResultFromendaNBRC12-043602512.2684886.4197.3-60135No Significant ResultFromendaNBRC12-044602690.9684944.8185.3-60135353611.8697231.86FromendaNBRC12-045602533.3684882.8202.3-60135No Significant ResultFromendaNBRC12-046602143.3684364.5164.5-50135No Significant ResultFromendaNBRC12-047602185.2684347.5175.7-61139No Significant ResultFromendaNBRC12-048602247.8684260.1236.7-50135No Significant ResultFromendaNBRC12-049602214.3684297.4180.8-50135No Significant ResultFromendaNBRC12-050602309.2684339.7156.4-50135No Significant ResultFromendaNBRC12-051602234.9684406.6163.0-50135No Significant ResultFromendaNBRC12-052602272.1684369.7227.3-55135151830.99616211.29848840.57FromendaNBRC12-053602207.1684445.5166.1-50135No Significant ResultFromendaNBRC12-054602640.5684854.1197.7-601358913.57182686.8including2526138.18NBRC12-054602640.5684854.1197.7-60135565712.19838411.34FromendaNBRC12-055602617.0684821.3198.2-55135421174.28including1215315.58FromendaNBRC12-056602782.9684949.0152.0-50135495012.98FromendaNBRC12-057602747.6684993.1154.0-55135495120.63FromendaNBRC12-058602694.8685020.9151.8-50135No Significant ResultFromendaNBRC12-059603006.8684843.5156.4-50135No Significant ResultFromendaNBRC12-060602974.2684877.6154.7-60135No Significant ResultFromendaNBRC12-061602936.1684916.6152.5-50135No Significant ResultFromendaNBRC12-062B602907.1684941.9213.7-50135No Significant ResultFromendaNBRC12-063602868.3684995.5149.9-50135272813.02FromendaNBRC12-064602841.8685035.9148.9-50135474810.86FromendaNBRC12-065602764.6685095.2148.6-50135No Significant ResultFromendaNBRC12-066602803.1685064.2148.8-50135No Significant ResultFromendaNBRC12-067601937.4683865.5153.4-601353410.79FromendaNBRC12-068602639.8684945.3186.1-6013513213316.77Kubi South Prospect (>0.5% Au)NOTE: True widths are approximately 60-70% of the length of the stated intersection lengths ProspectHole IDEasting (UTM)Northing (UTM)RL (UTM)DipAzimuthDepth From (m)Depth To (m)Interval (m)Weighted Avg. Grade (g/t)Kubi SouthKV12-540639952662280132-50290103.0108.05.03.33including103.0105.02.05.30Kubi SouthKV12-541639932662287135-5029074.078.04.00.68138.0140.02.01.00Kubi SouthKV12-542639969662274130-50290128.0129.01.01.51136.0138.02.01.50Kubi SouthKV12-543640002662367149-50290123.0133.010.00.67Kubi SouthKV12-544640067662553140-50290130.0131.01.02.72136.0137.01.01.96Kubi SouthKV12-545640046662561147-5029059.060.01.01.38Kubi SouthKV12-546640030662567149-50290120.0122.02.02.42including121.0122.01.04.10Kubi SouthKV12-547640017662466157-50290133.0136.03.01.01140.0142.02.00.64Kubi SouthKV12-548640031662460152-50290No Significant ResultKubi SouthKV12-549639998662473164-50290116.0124.08.01.39including119.0121.02.02.56Kubi SouthKV12-550639964662380162-50290No Significant ResultKubi SouthKV12-551639983662374157-5029098.0102.04.01.55including101.0102.01.05.23FOR FURTHER INFORMATION PLEASE CONTACT: Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Contact Information: Fig House CommunicationsRebecca GrecoInvestor Relations Canada+1 (416) 822-6483fighouse@yahoo.comRead CorporateNicholas Read/Paul ArmstrongInvestor Relations Australia+61 8 9388 1474 or M. +61 419 929 046PMI Gold Corporation - CanadaMarion McGrathCorporate Secretary+1 (604) 684-6264 or Toll-Free: 1 (888) 682-8089PMI Gold Corporation - AustraliaCollin EllisonManaging Director & CEO+61 8 6188 7900www.pmigoldcorp.com