PLUS ONE MILLION OUNCE MAIDEN RESOURCE ESTIMATE AT OBOTAN AND PROPOSED ASX
CO-LISTING AND IPO ON TRACK

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

    
    TSX Venture Exchange: PMV
    Frankfurt: AOJMW7
    Issued & Outstanding: 252,170,060
    Fully Diluted: 364,034,185

    -   Maiden NI43-101 Mineral Resource Estimate reported at Obotan for
        Abore, Adubiaso, Asuadai and Nkran deposits:
        -  1,053,000 oz @ 2.1g/t Au Inferred, plus
        -  156,000 oz @ 1.59g/t Au Indicated
    -   Aggressive drilling targeting early production at Obotan to commence
        after completion of proposed ASX co-listing and IPO
    -   Combined NI43-101 compliant Mineral Resources for Obotan and Kubi
        Gold Projects total 761,000 oz Indicated and 1,368,000 oz Inferred
    

VANCOUVER, Aug. 31 /CNW/ - PMI Gold Corporation (TSX.V:PMV) ("PMI Gold" or "the Company") - PMI Gold is pleased to announce a 132% increase in NI43-101 compliant Mineral Resources in Ghana for its Obotan and Kubi Gold Projects, for a total of 761,000 oz Indicated and 1,368,000 oz Inferred, after receiving the maiden Mineral Resource estimate for Obotan.

Mineral Resources for five nearby gold deposits at Obotan were estimated by Hellman and Schofield Pty Ltd of Australia: Indicated 3.06 million tonnes grading 1.59g/t gold for 156,000 oz; Inferred 15.64 million tonnes grading 2.1g/t gold for 1,053,000 oz.

Combined with our previously reported NI43-101 Mineral Resource at our Kubi Gold Project ("Kubi"), which is located within trucking distance to Obotan, of: Indicated 5.13 million tonnes grading 3.66g/t gold for 604,000 oz; Inferred 5.38 million tonnes grading 1.88g/t gold for 315,000 oz, brings PMI's combined total gold resources in Ghana to over 761,000 oz Indicated and 1,368,000 oz Inferred.

Please see the following link for a map of the Obotan Mineral Resource Estimate deposits: http://www.pmigoldcorp.com/i/maps/NR10-10DrillCollarPlan.jpg

Obotan and Kubi are open to expansion at depth, and the balance of the PMI properties, located in the center of Ghana's major gold deposits and mining infrastructure, also have exceptional exploration upside for the discovery of additional resources.

Based on the significant resources now confirmed at Obotan, PMI Gold has initiated a Pre-Feasibility Study, which on acceptance by the Government of Ghana, will allow us to convert our mineral licenses at Obotan into a Mining Lease to prepare for future production. PMI Gold will also undertake a significant follow-up drilling program following its ASX co-listing which will be aimed at increasing the gold resource at Obotan.

The Mineral Resource estimate for Obotan was completed by Hellman and Schofield Pty Ltd of Australia ("H&S"). H&S was retained by the Company to complete an Independent assessment of the resources and a Technical Report on the company's Abore-Abirem and Adubea (Edubia) concessions in Ghana, West Africa. These three concessions are collectively referred to as the Obotan Gold Project and consist of the following mineral deposits: Abore, Adubiaso, Asuadai and Nkran. The investigation was undertaken in order to provide an update of the Mineral Resources based on the inclusion of all resource drill-hole information available as of the end of July 2010 (1642 drill holes totaling 147,455 metres). Resources were estimated from surface to circa 200 metre vertical depth; 400 metres at Nkran. All of the deposits are open to further expansion at depth. This report has been prepared in accordance with National Instrument 43-101 reporting requirements (Standard of Disclosure for Mineral Projects) and will be filed on SEDAR within 30 days of the date of this news release.

The location, quantity and distribution of the current data are sufficient to allow the classification of Measured, Indicated and Inferred Resources. For the near surface mineralisation where MIK (multiple indicator kriging) modeling methodology was employed, mineral resource estimates are reported above a 0.5g/t Au economic cut-off grade. MIK modeling was also used for the deeper underground mineralisation (Nkran Underground), and the mineral resource estimates are reported above a 1.50g/t Au economic cut-off grade. An assumed oxidation surface was utilised. Summary results for all individual project areas are presented below and are effective as of the 23rd of August 2010.

    
    -------------------------------------------------------------------------
     Deposit             Indicated                        Inferred
      Name    ---------------------------------------------------------------
                 Tonnes    Au g/t     Ounces     Tonnes    Au g/t     Ounces
    -------------------------------------------------------------------------
      Abore    1,019,813    1.51      49,399   2,234,678    1.4       97,546
     Adubiaso  1,033,102    1.58      52,560   2,667,218    1.3      113,248
     Asuadai     389,628    1.29      16,209   1,131,227    1.3       48,431
     Nkran OC    539,341    1.58      27,462   5,945,511    2.0      384,777
     Nkran UG     81,739    4.12      10,824   3,658,468    3.5      408,924
    -------------------------------------------------------------------------
      Total    3,063,624    1.59     156,000  15,637,103    2.1    1,053,000
    -------------------------------------------------------------------------
    

The table includes possible near surface depletion as a result of local miner activity to depths estimated to be up to 20 metres. A 10% discount to inferred and indicated resource estimates was applied to all project areas by H&S in the table above, with the exception of Nkran where no depletion was applied due to the inaccessibility of the main mineralized zones and limited observed surface activity. The figures in the table may not sum due to rounding. Significant figures do not imply an added level of precision. H&S has not, to date, undertaken an economic viability analysis with respect to the inferred resources at the Obotan project.

This news release has been prepared by Douglas R. MacQuarrie, P.Geo.(B.C.), a Qualified Person under National Instrument 43-101. The Qualified Person with respect to the information in this news release on the mineral resource estimates at the Abore, Adubiaso, Asuadai and Nkran deposits, Obotan Gold Project, is Robert Spiers, BSc Hons, DM Appl Geol / Geophy MAIG, a full time consulting geologist with Hellman and Schofield Pty Ltd. based in Melbourne, Australia. Mr. Spiers has been involved in preparation and reporting of resource estimates in accordance with JORC guidelines for more than 12 years, and NI43-101 guidelines for approximately 6 years. Mr. Spiers reviewed the available data supplied to him by PMI Gold Corporation, and performed sufficient tests to conclude that the quality control measures undertaken by PMI Gold Corporation have established that the diamond drilling and subsequent sampling is representative and free of any biases or other factors that may materially impact the reliability of the drilling, sampling and analytical results; and that the sample preparation, security and indicated analytical procedures adopted by PMI Gold Corporation and the laboratories utilized provide an adequate basis for the current Mineral Resource Estimates. Mr. Spiers has been involved with the Obotan Project since October 2009, and visited the project site on two separate occasions, from the 8th to 18th of November 2009 and again from the 14th to 22nd April 2010.

Mining analysts have recently stated that West Africa will soon become the World's number 2 gold producing regions, after China. Ghana is by far the largest gold producer in West Africa, and PMI Gold now controls four previous operating mines on 85 kilometres of Ghana's major gold belts, located near the centre of some 200 million ounces of historical production and current gold resources. Our Kubi Gold Project adjoins the 60 million ounce AngloGold Ashanti Obuasi mine, the largest underground mine in West Africa with a 113 year, continuous mining history.

On behalf of the Board,

"Douglas R. MacQuarrie"

President & CEO

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.

This news release contains forward-looking statements which involve known and unknown risks, delays and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectations implied by these forward-looking statements. We Seek Safe Harbour.

%SEDAR: 00005434E

SOURCE PMI Gold Corporation

For further information: For further information: Douglas MacQuarrie, President & CEO, Telephone: 1 (604) 682-8089, Toll-Free: 1 (888) 682-8089, Facsimile: 1 (604) 682-8094; or for European Investors: Florian Riedl-Riedenstein: Tel: 43-2774-28814, e-mail: frram@aon.at; Or visit the PMI Gold Corporation website at www.pmigoldcorp.com

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