PMI Gold Increases Private Placement to $3.62 Million

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

    TSX Venture Exchange: PMV
    US PMVGF.PK
    Frankfurt/Berlin: AOJMW7
    Issued & Outstanding: 148,989,570
    Fully Diluted: 231,583,533
    

VANCOUVER, Oct. 7 /CNW/ - PMI Gold Corporation (TSX.V:PMV), the Company announces that the unit private placement announced on August 25, 2009 to raise $2.75 million by placing up to 27.5 million units of the Company to accredited investors at the price of $0.10 per unit has been oversubscribed and has now been increased to $3.62 million by placing up to 36.2 million units of the Company. Each unit will be comprised of one common share and one share purchase warrant exercisable at a price of $0.15 per share for two years.

Proceeds from the private placement will be used to retire our outstanding secured debt, to pay down accounts payable and to expand the drilling program currently underway on our Kubi Gold project in Ghana. A finders fee will be payable on a portion of the offering.

The private placement is subject to receipt of necessary stock exchange approvals.

    
    On behalf of the Board,

    "Douglas R. MacQuarrie"

    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

For further information: Douglas MacQuarrie, President & CEO, Telephone: [phone], Toll-Free: 1-888-682-8089, Facsimile: [phone]; or for European Investors: Florian Riedl-Riedenstein: Tel: [phone], e-mail: [email protected]; Or visit the PMI Gold Corporation website at www.pmigoldcorp.com