Further Strong Drilling Results from Obotan Gold Project, Ghana

VANCOUVER, Aug. 23, 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

VANCOUVER, Aug. 23, 2011 /CNW/ -

Highlights

Further positive drilling results received from resource extension and
in-fill drilling at the Obotan Project confirming the potential to
upgrade resources for both the flagship Nkran and satellite Asuadai
deposits.

    --  Broad intersections returned from the latest seven infill
        diamond holes at both deposits including(1):

Nkran Deposit

Nkran deposit drill results include several high-grade intersections
approximately 150 metres below the base of the previously mined open
pit.

    --  29.0m @ 4.27g/t Au from 466m, including:
  o 15.0m @ 5.89g/t Au from 480m
    --  7.0m @ 11.96g/t Au from 331m, including:
  o 2.0m @ 40.88g/t Au from 336m
    --  10.0m @ 15.04g/t Au from 345m, including:
  o 2.0m @ 66.68g/t Au from 352m

Asuadai Deposit

First Asuadai drill results of this campaign showing broad intersections
within this 'greenfield' deposit.

    --  27.0m @ 1.36g/t Au from 77m, including:
  o 2.0m @ 4.34g/t Au from 80m
    --  23.0m @ 1.63g/t Au from 76m, including:
  o 1.0m @ 18.25g/t Au from 80m
    --  Aggressive extensional and resource in-fill diamond drilling
        programmes continuing at Obotan Gold Project - with three
        diamond drill rigs operating.

    --  JORC/NI 43-101 resource update for the Obotan project on track
        for late September 2011.

PMI Gold Corporation (TSX-V: PMV) (ASX: PVM) is pleased to report
further positive drilling results from the ongoing in-fill and resource
extension drilling at the key Nkran deposit at its 100%-owned Obotan Gold Project in Ghana, West Africa, where PMI is currently undertaking a
Pre-Feasibility Study.  Additionally, encouraging results have also
been received from the 'greenfield' satellite Asuadai deposit, where
in-fill and down-dip extension holes have confirmed the presence of
broad zones of gold mineralisation which remains open at depth.

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 has previously been announced for the Obotan Project
(dated 31 August 2010, Prospectus dated 17 December 2010).

The Obotan Project resource drilling programme is designed to both
upgrade the confidence in the resources and to increase the resources
through the development of recognized mineral extensions along strike,
down-dip and along parallel structures to the known deposits.

Strong results have been received from three holes from Nkran and four
from Asuadai (see Table 1 and 2 for a full list of intersections).

Two of the three infill holes at Nkran intersected multiple zones of
mineralization within the Western Lode zone (see Figures 2 & 3). 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.

Asuadai lies on the same geological structure as Nkran and is located
approximately 11km NNE of the Nkran gold deposit. It lies on the
intersection between the NNE-SSW geological structure (parallel to the
regional shears controlling mineralisation) and a cross-cutting WNW-ESE
structure. All four holes at Asuadai intersected multiple zones of
mineralisation confirming the resource potential of the prospect.  The
mineralisation at Asuadai dips to the west and further drilling is
planned to strengthen the gold resource potential in this area.

The Obotan Project was previously mined by Resolute Mining Limited with
production totaling 730,000oz at an average grade of 2.2 g/t gold
before closing in 2002, when the gold price averaged circa US$350/oz.

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 207 resource extension and in-fill drill
holes for 49,993 metres to date. Drilling at Obotan between January and
July 2011 totals 113 holes for 29,021 metres.

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 continue to operate 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.

'Work is progressing according to schedule on the Pre-Feasibility
Study,' said Managing Director Collin Ellison, 'and these latest
drilling results continue to highlight the potential to grow the
resource inventory at Obotan.'

'PMI's understanding of the deposit and, in particular, the geological
controls on the mineralisation is aiding our targeting in the
development of 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 programmeme
suggest that the reported results are accurate. Intercepts were
calculated with a minimum 0.5 g/t Au cut off at the beginning and the
end of the intercept and allowing for no more than three 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 programmemes,
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 - Nkran Deposit Gold Intercepts (>5.00 g/t Au metres - uncut
grade values):

 _________________________________________________________________________________
|   Drill |Northing|Easting|Azimuth°|Dip°| RL |From  | To   |Intersection|Weighted|
|   Hole  |        |       |        |    |    |Metres|Metres|            | Avg.   |
|         |        |       |        |    |    |      |      |  Length    | Grade  |
|         |        |       |        |    |    |      |      |   Metres   |g/t Au  |
|         |        |       |        |    |    |      |      |            |(uncut) |
|_________|________|_______|________|____|____|______|______|____________|________|
|NKR11-065| 700756 |611640 |   121  |-60 |216 |  320 |  326 |        6.00|    1.28|
|_________|________|_______|________|____|____|______|______|____________|________|
|         |        |       |        |    |    |  331 |  338 |        7.00|   11.96|
|_________|________|_______|________|____|____|______|______|____________|________|
|Including|        |       |        |    |    |  336 |  338 |        2.00|   40.88|
|_________|________|_______|________|____|____|______|______|____________|________|
|         |        |       |        |    |    |  345 |  355 |       10.00|   15.04|
|_________|________|_______|________|____|____|______|______|____________|________|
|Including|        |       |        |    |    |  352 |  354 |        2.00|   66.68|
|_________|________|_______|________|____|____|______|______|____________|________|
|         |        |       |        |    |    |  362 |  373 |       11.00|    3.54|
|_________|________|_______|________|____|____|______|______|____________|________|
|Including|        |       |        |    |    |  365 |  372 |        7.00|    4.80|
|_________|________|_______|________|____|____|______|______|____________|________|
|         |        |       |        |    |    |  383 |  401 |       18.00|    1.95|
|_________|________|_______|________|____|____|______|______|____________|________|
|Including|        |       |        |    |    |  399 |  401 |        2.00|    5.57|
|_________|________|_______|________|____|____|______|______|____________|________|
|         |        |       |        |    |    |  411 |  427 |       16.00|    2.35|
|_________|________|_______|________|____|____|______|______|____________|________|
|Including|        |       |        |    |    |  411 |  414 |        3.00|    3.03|
|_________|________|_______|________|____|____|______|______|____________|________|
|         |        |       |        |    |    |  417 |  424 |        7.00|    3.57|
|_________|________|_______|________|____|____|______|______|____________|________|
|         |        |       |        |    |    |  420 |  422 |        2.00|    8.29|
|_________|________|_______|________|____|____|______|______|____________|________|
|NKR11-068| 700127 |611806 |   307  |-45 |204 |      |      |            |     NSR|
|_________|________|_______|________|____|____|______|______|____________|________|
|NKR11-070| 700711 |611619 |   129  |-60 |218 |  457 |  462 |        5.00|    3.05|
|_________|________|_______|________|____|____|______|______|____________|________|
|         |        |       |        |    |    |  466 |  495 |       29.00|    4.27|
|_________|________|_______|________|____|____|______|______|____________|________|
|Including|        |       |        |    |    |  474 |  476 |        2.00|    9.63|
|_________|________|_______|________|____|____|______|______|____________|________|
|         |        |       |        |    |    |  480 |  495 |       15.00|    5.89|
|_________|________|_______|________|____|____|______|______|____________|________|
|         |        |       |        |    |    |  499 |  504 |        5.00|    1.96|
|_________|________|_______|________|____|____|______|______|____________|________|

NSR - no significant results

Table 2- Asuadai Deposit Gold Intercepts (>5.00 g/t Au metres - uncut
grade values):

 ________________________________________________________________________________
|   Drill |Northing|Easting|Azimuth°|Dip°|RL | From |  To  |Intersection|Weighted|
|   Hole  |        |       |        |    |   |Metres|Metres|  Length    | Avg.   |
|         |        |       |        |    |   |      |      |   Metres   | Grade  |
|         |        |       |        |    |   |      |      |            |g/t Au  |
|         |        |       |        |    |   |      |      |            |(uncut) |
|_________|________|_______|________|____|___|______|______|____________|________|
|ASP10-002| 709216 |618003 |   127  |-45 |313|   61 | 66.8 |       22.00|    0.66|
|_________|________|_______|________|____|___|______|______|____________|________|
|ASP10-016| 709289 |617990 |   127  |-45 |324|76.15 |   79 |        2.85|    3.71|
|_________|________|_______|________|____|___|______|______|____________|________|
|         |        |       |        |    |   |  105 |  110 |        5.00|    0.85|
|_________|________|_______|________|____|___|______|______|____________|________|
|         |        |       |        |    |   |  115 |  120 |        5.00|    2.46|
|_________|________|_______|________|____|___|______|______|____________|________|
|ASP11-013| 709245 |617999 |   127  |-45 |323|   35 |   42 |        7.00|    1.30|
|_________|________|_______|________|____|___|______|______|____________|________|
|         |        |       |        |    |   |   76 |   99 |       23.00|    1.63|
|_________|________|_______|________|____|___|______|______|____________|________|
|Including|        |       |        |    |   |   80 |   81 |        1.00|   18.25|
|_________|________|_______|________|____|___|______|______|____________|________|
|         |        |       |        |    |   |  104 |  107 |        3.00|    2.99|
|_________|________|_______|________|____|___|______|______|____________|________|
|Including|        |       |        |    |   |  104 |  105 |        1.00|    7.56|
|_________|________|_______|________|____|___|______|______|____________|________|
|ASP11-018| 709306 |618055 |   127  |-45 |348|   67 |   72 |        5.00|    0.56|
|_________|________|_______|________|____|___|______|______|____________|________|
|         |        |       |        |    |   |   76 |   92 |       16.00|    1.82|
|_________|________|_______|________|____|___|______|______|____________|________|
|Including|        |       |        |    |   |   82 |   85 |        3.00|    3.06|
|_________|________|_______|________|____|___|______|______|____________|________|
|Including|        |       |        |    |   |   88 |   91 |        3.00|    3.55|
|_________|________|_______|________|____|___|______|______|____________|________|
|         |        |       |        |    |   |   97 |  101 |        4.00|    8.39|
|_________|________|_______|________|____|___|______|______|____________|________|
|Including|        |       |        |    |   |   99 |  101 |        2.00|   14.72|
|_________|________|_______|________|____|___|______|______|____________|________|
|Including|        |       |        |    |   |  100 |  101 |        1.00|   29.30|
|_________|________|_______|________|____|___|______|______|____________|________|
|         |        |       |        |    |   |  111 |  113 |        2.00|    2.65|
|_________|________|_______|________|____|___|______|______|____________|________|
|ASP11-022| 709350 |618105 |   127  |-45 |347|50.29 |57.91 |        7.62|    1.36|
|_________|________|_______|________|____|___|______|______|____________|________|
|         |        |       |        |    |   |   66 |   69 |        3.00|    2.26|
|_________|________|_______|________|____|___|______|______|____________|________|
|ASP11-037| 709210 |617964 |   127  |-55 |301|   77 |  104 |       27.00|    1.36|
|_________|________|_______|________|____|___|______|______|____________|________|
|Including|        |       |        |    |   |   80 |   82 |        2.00|    4.34|
|_________|________|_______|________|____|___|______|______|____________|________|

For project and drill locations, please visit http://files.newswire.ca/917/PMImaps.pdf

______________________________


(1) Note: a full list of drilling results from all nine holes for which
assays have been received is provided in Table 1 and 2 on page 4 of
this Release.

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