$3.5 million secured loan arranged - Kubi Gold project purchase completed


    TSX Venture Exchange: PMV
    Frankfurt: AOJMW7
    Issued & Outstanding: 79,749,736
    Fully Diluted: 109,908,070

    VANCOUVER, July 8 /CNW/ - PMI Gold Corporation (TSX.V:PMV) announces that
it has arranged and closed a $3.5 million secured loan. The proceeds from this
loan have been applied to the final payment of US$3 million and accrued
interest outstanding and payable to Nevsun Africa (Barbados) Ltd. ("Nevsun"),
a wholly owned subsidiary of Nevsun Resources Ltd. of Canada, pursuant to the
agreement to acquire Kubi announced on September 17, 2007.
    The Kubi Gold project is now 100% owned by PMI Gold, subject only to the
Ghana Government 10% free carried interest and a 3% net profits of production
royalty payable to International Royalty Corporation. Golder Associates Ltd.
('Golder') in their Preliminary Assessment study published on April 10, 2008,
has confirmed that Kubi can be developed as a profitable underground mining
operation with a 28% pre-tax Internal Rate of Return (IRR), and a
US$38.6 million Net Present Value (NPV@10% discount rate) at a gold price of
US$750 per ounce. Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
    The secured loan, arranged with Trafalgar Capital Specialized Investment
Fund, FIS, ("Trafalgar") is made up in equal parts of a Bridge Loan and a
Convertible Loan, both of which bear interest at 14% per annum for the first
90 days, and the Convertible Loan, thereafter at 10% per annum, payable
monthly. PMI Gold has the option to pay all or any amounts owing on the Bridge
Loan on 3 days advance notice, by paying a 12.5% redemption premium. Other
than this optional redemption, PMI Gold is required to redeem the Bridge Loan
and accrued interest within 90 days, with a 7.5% redemption premium.
    The Convertible Loan has a term of 24 months, and will be redeemed in
shares monthly beginning in the 4th month, in equal instalments, and at a
redemption premium of 12.5%. Trafalgar has the option, at any time, to convert
in any one week period up to $50,000 of the loan into shares at the fixed
conversion price of $0.28 until January 7, 2010; and at $0.308 until  July 7,
2010. Following any conversion, Trafalgar may not own more than 9.99% of the
Company's then outstanding shares. If the shares are trading at less than the
fixed conversion price, PMI Gold has the option to pay all or any amounts
owing on 3 days advance notice by paying a 12.5% redemption premium.
    At closing, Trafalgar was paid a 7% cash and a 1,000,000 share commitment
fee. The shares issued pursuant to the convertible debenture are subject to a
4 month hold period, expiring on November 9, 2008. A finders fee, consisting
of $122,500 in cash and warrants to purchase up to 218,750 shares at a price
of $0.24 expiring January 7, 2010, is payable to Rivington Street Corporate
    The Company also announces that the previously announced $4 million
brokered private placement with D&D Securities Company of Toronto has been
terminated by mutual agreement.
    The Company is continuing to work closely with its corporate finance
adviser Devitor AB of Stockholm, Sweden. The Company has previously announced
that Devitor has undertaken to arrange a secured bond to finance the Kubi gold
deposit to a producing mine. It is the Company's intention to pay out the
Bridge Loan with the proceeds from this bond issue, if as and when completed.

    PMI Gold now controls four previous operating mines on 658 square
kilometres of leases and concessions located along the prolific Ashanti and
Asankrangwa gold belts in Ghana. Ghana is Africa's second largest gold
producer and has attracted over $7 billion in foreign direct investment into
the minerals and mining sector over the last decade. Ghana is a destination of
choice because of its long gold mining history, prospective resource base,
reasonable taxation and stable government.

    On behalf of the Board,

    "Douglas R. MacQuarrie"

    President & CEO


    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

For further information:

For further information: Douglas R. MacQuarrie, President & CEO,
Telephone: (604) 682-8089, Toll-Free: 1-888-682-8089, Facsimile: (604)
682-8094; or for European Investors: Florian Riedl-Riedenstein: Tel:
43-2774-28814, e-mail: frram@aon.at; or John Mullen: Tel: 41-522-428795,
e-mail: John Mullen@bluewin.ch; Or visit the PMI Gold Corporation website at
www.pmigoldcorp.com (in German: http://pmi.goldseiten.de)

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PMI Gold Corporation

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