Extensive Gold Zones Intersected in Latest Drilling at Obotan Project

VANCOUVER, May 4 /CNW/ -- 

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

TSX Venture Exchange: PMV

Australian Securities Exchange: PVM

Frankfurt: PN3N.F

 Robust Results to Help Underpin Resource Upgrade in September Quarter
2011

Highlights:

    --  Results from resource extension and in-fill drilling at PMI
        Gold's flagship Nkran deposit, Obotan Gold Project (Ghana) with
        broad intersections from latest four diamond holes including
        (1):
  o 64.0m @ 1.83g/t Au from 330m
    Including  14.0m @ 2.20g/t
    17.6m @ 2.42g/t Au
  o 21.0m @ 1.79g/t Au from 255m,
    Including 10.2m @ 2.87g/t
    4.4m @ 5.16g/t
  o 55.0m @ 1.63g/t Au from 338m,
    Including  3.3m @ 3.38g/t Au
    3.0m @ 4.58g/t Au
    20.0m @ 2.25g/t
    --  Broad widths of gold mineralisation below the base of the open
        pit previously mined by Resolute and within 350 metres of
        surface (within approximately 200 metres below the base of the
        open pit), further confirming the potential for both depth and
        strike extensions.

    --  Results to help underpin updated resource estimate for the
        Obotan Project, targeted for September Quarter of 2011.

    --  19,000 metres completed of a 40,000 metre extensional and
        in-fill drilling programme at Obotan.

    --  Three drill rigs currently active at Obotan and additional rigs
        set to start in second half of 2011 on other satellite targets.

    --  Pre-feasibility study on track for completion at end of
        calendar 2011.

VANCOUVER, May 4 /CNW/ - PMI Gold Corporation (TSX-V: PMV) (ASX: PVM) is
pleased to report further drilling results from its Obotan Project in
Ghana, paving the way for a resource upgrade in the September Quarter
of 2011.

The results stem from PMI's aggressive 2011 drilling programmes, which
are aimed at a resource upgrade in September Quarter 2011 ahead of a
planned Pre-Feasibility Study at the Obotan Project, on track for
completion by year-end.

The programmes also include exploration activities at the Kubi Project
in Ghana and expanded regional exploration programmes within its
extensive ground holding within the regionally mineralised Asankrangwa
Gold Belt in Ghana.

Drilling Results, Nkran Deposit - Obotan Project

Obotan, which offers the opportunity for a near-term development
project, is the Company's flagship gold project in south-west Ghana (see Figure 1). The project comprises four known deposits - the larger Nkran deposit,
and the smaller satellite deposits at Abore, Adubiaso and Asuadi (see Figure 2). The current global mineral resource estimate for Obotan comprises:
Indicated 3.06 million tonnes grading 1.59g/t gold for 156,000oz;
Inferred 15.64 million tonnes grading 2.1g/t gold for 1,053,000oz.(2)

Obotan was mined by Resolute Limited before closing prematurely in 2002
after producing a total of 730,000 ounces at an average grade of 2.2
g/t gold and at a time of low prevailing gold prices averaging US$350
per ounce.

PMI Gold has to date completed 46 resource extension, confirmation and
in-fill diamond drill holes for 19,070 metres at the Obotan Project. Of
these, 21 holes have previously been reported, and 4 holes are reported
as part of this release. Due to delays in receipt of assay data, the
remaining 21 holes are currently held up awaiting data and
interpretation.  PMI have been advised that this backlog is being
addressed and data flow is expected to improve over the next few weeks.
The particular drilling programme currently underway at Nkran is aimed
at delineating an Indicated Resource down to approximately 350 metres
below the surface or 200 metres below the historical Resolute pit which
produced approximately 590,000oz to a vertical depth of 150 metres
below the current surface. While final assay results are still awaited
for a large number of holes, the available data provided by recent
detailed drilling suggests that the internal integrity of the deposit
continues down dip. Broad spaced drilling below 350 metres indicates
that the deposit continues to extend below circa 450 metres, the level
tested by the deepest holes completed to date.

The drilling is focused on delineating all potential open pitable
resources and ultimately to determine the potential for continued
mining down the plunge of the deposit. Better intercepts from the 4
holes reported as part of this release are summarized below. A full
list of intersections from the four holes is provided in Table 1 on
page 5 below:

    --  NKR11-032: 3.0m @ 18.38g/t Au from 349.0m

    --  NKR11-033: 64.1m @ 1.83g/t Au from 307.9m:
        Including  14.0m @ 2.20g/t Au from 307.9 m
        17.6m @ 2.42g/t Au from 330.0 m
        21.6m @ 1.76g/t Au from 350.3m

    --  NKR11-034: 21.0m @ 1.79g/t Au from 255.0m:
        Including 10.2m @ 2.87g/t Au from 265.7m
        4.4m @ 5.16g/t Au from 359.0m

    --  NKR11-035: 55.1m @ 1.63g/t Au from 337.9m:
        Including 3.3m @ 3.48g/t Au from 337.9m
        3.0m @ 4.58g/t Au from 347.0m
        20.0m @ 2.25g/t Au from 373.0m

Note: True widths are approximately 60% to 70% of the length of the
stated intersection lengths. A full list of intersections from the
drilling is provided in Table 1 attached, together with drill hole
collar locations shown in Table 2 and on Figure 3 attached. Results for
the remaining six holes will be reported once they have been received
and collated.

All four holes intersected multiple zones of mineralisation from the
parallel Western and Eastern Lodes (see Figures 3 to 5) and the broad, central stockwork zone.

Three diamond drill rigs are presently operating. One rig will remain at
Nkran to continue the resource expansion programme and two drill rigs
have been relocated, one at each of the satellite deposits, Adubiaso
and Asuadi.  The purpose is to delineate the potential for shallower
occurrences of oxide gold mineralisation which could provide earlier
cash flow opportunities.  A further three drill rigs have been sourced
and are to commence operation later in 2011.  Two of these additional
drill rigs are multipurpose rigs (RC/Diamond) and one is a RAB/AirCore
rig.  These types of drill rig will allow PMI Gold to increase the
drilling rate and will assist in reducing the overall drilling costs.

The recently completed drill holes at Nkran are part of a broader
ongoing circa 40,000 metres drilling campaign designed to upgrade and
expand the current gold resource inventory at Obotan.  The
Obotan drilling programme will be used for a new resource estimate
currently scheduled for completion at the end of the September Quarter
and will underpin a technical and economic study to be completed by the
end of 2011.

As part of the geological appraisal of the Nkran deposit, suitable sites
will be identified to drill metallurgical holes for a future
metallurgical test work programme and geotechnical holes for a
geotechnical programme.

Geological studies have commenced on Nkran and are providing valuable
additional information to improve the understanding of the deposit and
in particular the controls on the mineralisation and the directions for
resource extensions.

As part of the expanded drilling programme, the Company also plans to
test for deeper, down-plunge extensions of the mineralisation below the
limit of the current resource, greater than 450 metres below the
surface (greater than 300 metres below the base of the open pit).

On behalf of the Board,


'Collin Ellison'


Managing Director & CEO

  1. Indicated Resource of 3.06 million tonnes grading 1.59 g/t gold
     for 156,000 oz; Inferred Resource of 15.64 million tonnes grading
     2.1 g/t gold for 1,053,000 oz., as reported in the December 8,
     2010 technical report prepared by Hellman & Schofield Pty. Ltd.,
     available at www.sedar.com.
  2. Measured Resource of 0.66 million tonnes grading 5.30 g/t gold for
     112,000oz; Indicated Resource of 0.66 million tonnes grading
     5.65g/t gold for 121,000oz; Inferred Resource of 0.67 million
     tonnes grading 5.31 g/t gold for 115,000oz., as reported in the
     December 3, 2010 technical report prepared by SEMS Exploration
     Services Ltd., available at
     www.sedar.com.

Scientific and technical information contained in this news release has
been reviewed and approved by Collin Ellison, C.Eng. a 'qualified
person' as defined under National Instrument 43-101.  Field work was
supervised by Donald Allen, MASc. P.Eng. (B.C.) and Paul Abbott MSc.
Consulting Geologists. HQ and NQ core was logged, sawn and sampled on
site, with half samples sent to SGS Laboratory in Tarkwa, and analyzed
for gold by fire assay-AA on a 50 gram sample charge or by screened
metallics AA finish.  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 programme suggest that the reported results are
accurate. Intercepts were calculated with a minimum 1.0 g/t Au cut off
at the beginning and the end of the intercept and allowing for no more
than ten consecutive metres of less than 0.5 g/t Au internal dilution.
Intercepts above 10.0 g/t Au metres are reported separately. Grade x
Width intercepts of less than 10.0 g/t Au metres were not reported.
True widths are estimated at from 60% to 70% of the stated core length.

The information in this announcement that relates to Exploration
Results, Mineral Resources or Ore Reserves is based on information
compiled by Donald Allen, who is a Member or Fellow of the Association
of Professional Engineers of BC, a 'Recognised Overseas Professional
Organisation' (ROPO) included in a list promulgated by the ASX from
time to time. Donald Allen is employed by PMI Gold Corporation. Donald
Allen 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
Exploration Results, Mineral Resources and Ore Reserves'.  Donald Allen
consents to the inclusion in this report of the matters based on his
information in the form and context in which it appears.

Cautionary Note Regarding Forward-looking Statements


This news release 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 mineralisation and geological merits of the
Obotan and Kubi 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 December 8, 2010.  In
particular, statements relating to the Company's plans to complete a
pre-feasibility study on the Obotan project by the end of 2011 are
subject to various factors, including positive results from ongoing
exploration; expansion and upgrading of existing mineral resources
(which are currently primarily in the inferred resource category); and
completion of favourable geotechnical drilling programmes,
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 at Obotan 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.

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.

Table 1 - Significant Gold Intercepts (>5.00 g/t Au metres):

 _____________________________________________________________
|Drill Hole |From  | To   |Intersection |   Weighted Avg.     |
|           |Metres|Metres|Length Metres|Grade g/t Au  (uncut)|
|___________|______|______|_____________|_____________________|
|NKR11-032  |255.00|258.50|         3.50|                 3.16|
|___________|______|______|_____________|_____________________|
|           |349.00|352.00|         3.00|                18.38|
|___________|______|______|_____________|_____________________|
|           |379.40|387.20|         7.80|                 1.79|
|___________|______|______|_____________|_____________________|
|           |404.00|409.00|         5.00|                 1.13|
|___________|______|______|_____________|_____________________|
|NKR11-033  |307.93|372.00|        64.07|                 1.83|
|___________|______|______|_____________|_____________________|
| |including|307.93|322.00|        14.07|                 2.20|
|_|_________|______|______|_____________|_____________________|
| |including|330.00|347.67|         2.42|                17.67|
|_|_________|______|______|_____________|_____________________|
| |including|350.36|372.00|        21.64|                 1.76|
|_|_________|______|______|_____________|_____________________|
|NKR11-034  |255.00|276.04|        21.04|                 1.79|
|___________|______|______|_____________|_____________________|
| |including|265.76|276.04|        10.28|                 2.87|
|_|_________|______|______|_____________|_____________________|
|           |295.00|300.00|         5.00|                 2.40|
|___________|______|______|_____________|_____________________|
|           |309.00|311.00|         2.00|                 6.09|
|___________|______|______|_____________|_____________________|
|           |332.00|338.31|         6.10|                 2.52|
|___________|______|______|_____________|_____________________|
|           |359.00|363.48|         4.48|                 5.16|
|___________|______|______|_____________|_____________________|
|           |407.00|411.00|         5.00|                 1.72|
|___________|______|______|_____________|_____________________|
|           |417.00|421.00|         4.00|                 2.08|
|___________|______|______|_____________|_____________________|
|           |440.00|446.61|         6.61|                 1.84|
|___________|______|______|_____________|_____________________|
|NKR11-035  |337.92|393.00|        50.08|                 1.63|
|___________|______|______|_____________|_____________________|
| |including|337.92|341.30|         3.38|                 3.48|
|_|_________|______|______|_____________|_____________________|
| |including|347.00|350.00|         3.00|                 4.58|
|_|_________|______|______|_____________|_____________________|
| |including|373.00|393.00|        20.00|                 2.25|
|_|_________|______|______|_____________|_____________________|

**NSR - no significant results

For project and drill locations, please view the complete news release
at our website at www.pmigoldcorp.com

_________________________________


(1) Note: a full list of drilling results from all four holes for which
assays have been received is provided in Table 1 on page 5 of this
Release.


(2) As reported in the technical report entitled 'Technical Report Mineral
Resources Estimation for the Obotan Gold Projects, Ghana' dated
December 8, 2010 and prepared for the Company by Robert Spiers, B Sc
(Hons) MAIG, of Hellman & Schofield Pty. Ltd., available at www.sedar.com.

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