Strong Results from Obotan Gold Project Drilling

VANCOUVER, Aug. 2, 2011 /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

Latest intersections include 57.0m @ 3.48g/t Au & 26.0m @ 8.83g/t Au 

Highlights

    --  Further positive drilling results received from resource
        extension and in-fill drilling at the key Nkran deposit at
        PMI's flagship Obotan Gold Project in Ghana
    --  Broad intersections returned from the latest nine infill
        diamond holes including(1):
    --  42.0m @ 2.83g/t Au from 393m, including:
  o 11.0m @ 4.19g/t Au from 407m
    --  57.0m @ 3.48g/t Au from 237m, including:
  o 7.0m @ 8.02g/t Au from 249m
  o 5.0m @ 10.31g/t Au from 289m
    --  26.0m @ 8.83g/t Au from 315m, including:
  o 9.0m @ 16.29g/t Au from 321m
    --  23.0m @ 3.17g/t Au from 390m, including:
  o 2.0m @ 23.77g/t Au from 398m
    --  27.0m @ 2.23g/t Au from 419m, including
  o 13.0m @ 4.06g/t Au from 425m
    --  Broad widths of gold mineralisation with high grade sections
        intersected approximately 150 metres below the base of the
        previously mined Nkran open pit
    --  Aggressive extensional and resource in-fill diamond drilling
        programmes continuing at Obotan Gold Project
    --  3 diamond drill rigs continue to operate at Obotan Gold Project

VANCOUVER, Aug. 2, 2011 /CNW/ - PMI Gold Corporation (TSXV: PMV) (ASX:
PVM) is pleased to report further positive drilling results from
ongoing in-fill and resource extension drilling at the key Nkran
deposit at its flagship 100%-owned Obotan Gold Project in Ghana, West
Africa, where PMI is currently undertaking a Pre-Feasibility Study.

Strong results have been received from nine additional holes (see Table 1 on page 4 for a full list of intersections) including several broad intersections of high-grade gold
mineralisation.

Eight of the nine infill holes intersected multiple zones of
mineralisation from the parallel Western and Eastern Lodes and the
broad, central stockwork zone within the Nkran deposit (see Figures 3, 4 & 5).  The drill holes further confirm the internal integrity of the
deposit and indicate the occurrence of higher grade zones within a
broad, continuous, lower grade envelope.

The Obotan Gold Project comprises four known deposits - the larger Nkran
deposit and the smaller satellite deposits at Abore, Adubiaso and
Asuadai (see Figure 1). A resource estimate has previously been announced for Obotan Project
(dated 31 August 2010, Prospectus dated 17 December 2010).

Obotan was previously mined by Resolute Mining Limited with production
totaling 730,000oz at an average grade of 2.2 g/t gold, when the gold
price averaged circa US$350/oz, to a depth of approximately 150 metres
below the present surface, before closing in 2002.

The current drilling is focused on defining potential resources for
exploitation by open pit and ultimately underground mining down the
plunge of the deposit. A new resource estimate is currently scheduled
for completion at the end of the September 2011 Quarter, and this will
underpin the Pre-Feasibility Study currently underway with planned
completion at the end of the year.

At Obotan, PMI has completed 180 resource extension and in-fill drill
holes for 43,315 metres to date. Drilling in 2011, to the end of June,
totals 86 holes for 22,343 metres. Assay results are outstanding for 27
of these holes, which will continue to be reported as received.

Reporting from the 2011 drilling programme has been hampered by
significant delays in assay turn-around times from the contract
laboratory in Ghana, due to the high levels of drilling activity in
West Africa. These delays are being addressed and data flow is
beginning to improve.

Three diamond drill rigs are presently operating at Obotan. Two rigs
have been dedicated to the resource expansion programme and
metallurgical sample drilling at Nkran, and one rig has been relocated
to the Abore satellite deposit.

'PMI's planned transition from gold explorer to producer is progressing
to plan,' said Managing Director Collin Ellison. 'These latest drilling
results highlight the potential to grow the resource inventory at
Obotan. Work is progressing according to schedule on the
Pre-Feasibility Study.'

'Geological studies which we initiated at Nkran earlier this year have
been providing valuable additional information, giving us an improved
understanding of the deposit and, in particular, the controls on the
mineralisation and the directions to focus for potential resource
extensions,' he added.

On behalf of the Board,


'Collin Ellison'


Managing Director & CEO

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 Thomas Amoah (Exploration Manager). 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 5.0
g/t Au metres are reported separately. Grade x Width intercepts of less
than 5.0 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 Collin Ellison, who is employed by PMI Gold Corporation. Mr
Ellison 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'.  Mr Ellison
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 - Gold Intercepts (>5.00 g/t Au metres - uncut grade values):

 _________________________________________________________________________________________________
|Drill Hole| Northing | Easting | Azimuth° | Dip° |  RL | From   |  To    | Intersection| Weighted|
|          |          |         |          |      |     | Metres | Metres |             |  Avg.   |
|          |          |         |          |      |     |        |        |   Length    |Grade g/t|
|          |          |         |          |      |     |        |        |   Metres    |  Au     |
|          |          |         |          |      |     |        |        |             | (uncut) |
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
|NKR11-050 |  700,410 | 612,012 |     307  |  -51 | 218 | 393.00 | 435.00 |        42.00|     2.83|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 407.00 | 418.00 |        11.00|     4.19|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 420.00 | 425.00 |         5.00|     4.52|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 431.00 | 435.00 |         4.00|     6.87|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
|NKR11-052 |          |         |          |      |     |        |        |             |    **NSR|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
|NKR11-054 |  700,657 | 612,225 |     307  |  -50 | 225 | 276.00 | 311.00 |        35.00|     1.85|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 276.00 | 278.00 |         2.00|    12.27|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
|          |          |         |          |      |     | 374.00 | 395.00 |        21.00|     1.58|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
|NKR11-055 |  700,821 | 612,216 |     307  |  -60 | 186 | 173.00 | 189.40 |        16.40|     5.23|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 173.00 | 180.00 |         7.00|    10.24|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
|          |          |         |          |      |     | 239.00 | 262.00 |        23.00|     1.26|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 239.00 | 241.50 |         2.50|     4.72|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 260.00 | 262.00 |         2.00|     6.57|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
|          |          |         |          |      |     | 355.00 | 357.00 |         2.00|     5.77|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
|NKR11-056 |  700,836 | 612,235 |     305  |  -51 | 188 | 177.00 | 182.00 |         5.00|     6.59|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 181.00 | 182.00 |         1.00|    18.80|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
|NKR11-057 |  700,549 | 612,118 |     307  |  -52 | 217 | 218.00 | 235.30 |        17.30|     1.89|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 233.00 | 235.30 |         2.30|     5.58|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
|          |          |         |          |      |     | 249.00 | 268.00 |        19.00|     3.51|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 255.00 | 259.00 |         4.00|    12.11|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
|          |          |         |          |      |     | 278.00 | 296.00 |        18.00|     1.84|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 287.00 | 289.00 |         2.00|     5.46|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 292.00 | 296.00 |         4.00|     3.38|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
|NKR11-058 |  700,859 | 612,251 |     305  |  -53 | 191 | 206.00 | 214.00 |         8.00|     6.55|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 208.00 | 211.00 |         3.00|    12.19|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 212.00 | 214.00 |         2.00|     6.22|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
|          |          |         |          |      |     | 237.00 | 294.00 |        57.00|     3.48|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 249.00 | 256.00 |         7.00|     8.02|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 289.00 | 294.00 |         5.00|    10.31|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
|          |          |         |          |      |     | 315.00 | 341.00 |        26.00|     8.83|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 315.00 | 316.00 |         1.00|    63.73|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 321.00 | 330.00 |         9.00|    16.29|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
|NKR11-059 |  700,579 | 612,165 |     307  |  -49 | 223 | 243.50 | 310.00 |        66.50|     1.23|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 243.50 | 246.00 |         2.50|     8.37|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 253.00 |2.55.00 |         2.00|     9.13|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 304.00 | 306.00 |         2.00|     4.90|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
|          |          |         |          |      |     | 342.00 | 346.00 |         4.00|     2.38|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
|          |          |         |          |      |     | 422.00 | 460.00 |        38.00|     1.39|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 426.00 | 428.00 |         2.00|     3.77|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 430.00 | 435.00 |         5.00|     3.85|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 439.00 | 444.00 |         5.00|     2.31|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
|NKR11-060 |  700,473 | 612,057 |     306  |  -45 | 215 | 208.00 | 224.00 |        16.00|     1.32|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
|          |          |         |          |      |     | 334.00 | 338.00 |         4.00|     6.03|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
|          |          |         |          |      |     | 354.00 | 383.00 |        29.00|     1.46|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 360.00 | 364.00 |         4.00|     3.24|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 373.00 | 376.00 |         3.00|     3.73|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
|          |          |         |          |      |     | 390.00 | 413.00 |        23.00|     3.17|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 398.00 | 400.00 |         2.00|    23.77|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
|          |          |         |          |      |     | 419.00 | 446.00 |        27.00|     2.23|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|
| including|          |         |          |      |     | 425.00 | 438.00 |        13.00|     4.06|
|__________|__________|_________|__________|______|_____|________|________|_____________|_________|

**NSR - no significant results

For project and drill locations, please go to http://files.newswire.ca/917/PMIDrillLocations.pdf

_________________________


(1) Note: a full list of drilling results from all nine holes for which
assays have been received is provided in Table 1 on page 4 of this
Release.

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