Plus One Million Ounce Maiden Resource Estimate At Obotan and Proposed ASX Co-Listing and IPO on Track

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

VANCOUVER, August 31, 2010 -

    TSX Venture Exchange: PMV
    Frankfurt: AOJMW7
    Issued & Outstanding: 252,170,060
    Fully Diluted: 364,034,185

    - Maiden NI43-101 Mineral Resource Estimate reported at Obotan for
      Abore, Adubiaso, Asuadai and Nkran deposits:

        - 1,053,000 oz (at) 2.1g/t Au Inferred, plus
        - 156,000 oz (at) 1.59g/t Au Indicated

    - Aggressive drilling targeting early production at Obotan to commence
      after completion of proposed ASX co-listing and IPO

    - Combined NI43-101 compliant Mineral Resources for Obotan and Kubi
      Gold Projects total 761,000 oz Indicated and 1,368,000 oz Inferred

PMI Gold Corporation (TSX.V:PMV) ("PMI Gold" or "the Company") - PMI Gold
is pleased to announce a 132% increase in NI43-101 compliant Mineral
Resources in Ghana for its Obotan and Kubi Gold Projects, for a total of
761,000 oz Indicated and 1,368,000 oz Inferred, after receiving the maiden
Mineral Resource estimate for Obotan.

Mineral Resources for five nearby gold deposits at Obotan were estimated
by Hellman and Schofield Pty Ltd of Australia: Indicated 3.06 million tonnes
grading 1.59g/t gold for 156,000 oz; Inferred 15.64 million tonnes grading
2.1g/t gold for 1,053,000 oz.

Combined with our previously reported NI43-101 Mineral Resource at our
Kubi Gold Project ("Kubi"), which is located within trucking distance to
Obotan, of: Indicated 5.13 million tonnes grading 3.66g/t gold for 604,000
oz; Inferred 5.38 million tonnes grading 1.88g/t gold for 315,000 oz, brings
PMI's combined total gold resources in Ghana to over 761,000 oz Indicated and
1,368,000 oz Inferred.

Please see the following link for a map of the Obotan Mineral Resource
Estimate deposits:
www.pmigoldcorp.com/i/maps/NR10-10DrillCollarPlan.jpg

Obotan and Kubi are open to expansion at depth, and the balance of the
PMI properties, located in the center of Ghana's major gold deposits and
mining infrastructure, also have exceptional exploration upside for the
discovery of additional resources.

Based on the significant resources now confirmed at Obotan, PMI Gold has
initiated a Pre-Feasibility Study, which on acceptance by the Government of
Ghana, will allow us to convert our mineral licenses at Obotan into a Mining
Lease to prepare for future production. PMI Gold will also undertake a
significant follow-up drilling program following its ASX co-listing which
will be aimed at increasing the gold resource at Obotan.

The Mineral Resource estimate for Obotan was completed by Hellman and
Schofield Pty Ltd of Australia ("H&S"). H&S was retained by the Company to
complete an Independent assessment of the resources and a Technical Report on
the company's Abore-Abirem and Adubea (Edubia) concessions in Ghana, West
Africa. These three concessions are collectively referred to as the Obotan
Gold Project and consist of the following mineral deposits: Abore, Adubiaso,
Asuadai and Nkran. The investigation was undertaken in order to provide an
update of the Mineral Resources based on the inclusion of all resource
drill-hole information available as of the end of July 2010 (1642 drill holes
totaling 147,455 metres). Resources were estimated from surface to circa 200
metre vertical depth; 400 metres at Nkran. All of the deposits are open to
further expansion at depth. This report has been prepared in accordance with
National Instrument 43-101 reporting requirements (Standard of Disclosure for
Mineral Projects) and will be filed on SEDAR within 30 days of the date of
this news release.

The location, quantity and distribution of the current data are
sufficient to allow the classification of Measured, Indicated and Inferred
Resources. For the near surface mineralisation where MIK (multiple indicator
kriging) modeling methodology was employed, mineral resource estimates are
reported above a 0.5g/t Au economic cut-off grade. MIK modeling was also used
for the deeper underground mineralisation (Nkran Underground), and the
mineral resource estimates are reported above a 1.50g/t Au economic cut-off
grade. An assumed oxidation surface was utilised. Summary results for all
individual project areas are presented below and are effective as of the 23rd
of August 2010.

    -------------------------------------------------------------------------
     Deposit             Indicated                        Inferred
      Name    ---------------------------------------------------------------
                 Tonnes    Au g/t     Ounces     Tonnes    Au g/t     Ounces
    -------------------------------------------------------------------------
      Abore    1,019,813    1.51      49,399   2,234,678    1.4       97,546
     Adubiaso  1,033,102    1.58      52,560   2,667,218    1.3      113,248
     Asuadai     389,628    1.29      16,209   1,131,227    1.3       48,431
     Nkran OC    539,341    1.58      27,462   5,945,511    2.0      384,777
     Nkran UG     81,739    4.12      10,824   3,658,468    3.5      408,924
    -------------------------------------------------------------------------
      Total    3,063,624    1.59     156,000  15,637,103    2.1    1,053,000
    -------------------------------------------------------------------------

The table includes possible near surface depletion as a result of local
miner activity to depths estimated to be up to 20 metres. A 10% discount to
inferred and indicated resource estimates was applied to all project areas by
H&S in the table above, with the exception of Nkran where no depletion was
applied due to the inaccessibility of the main mineralized zones and limited
observed surface activity. The figures in the table may not sum due to
rounding. Significant figures do not imply an added level of precision. H&S
has not, to date, undertaken an economic viability analysis with respect to
the inferred resources at the Obotan project.

This news release has been prepared by Douglas R. MacQuarrie,
P.Geo.(B.C.), a Qualified Person under National Instrument 43-101. The
Qualified Person with respect to the information in this news release on the
mineral resource estimates at the Abore, Adubiaso, Asuadai and Nkran
deposits, Obotan Gold Project, is Robert Spiers, BSc Hons, DM Appl Geol /
Geophy MAIG, a full time consulting geologist with Hellman and Schofield Pty
Ltd. based in Melbourne, Australia. Mr. Spiers has been involved in
preparation and reporting of resource estimates in accordance with JORC
guidelines for more than 12 years, and NI43-101 guidelines for approximately
6 years. Mr. Spiers reviewed the available data supplied to him by PMI Gold
Corporation, and performed sufficient tests to conclude that the quality
control measures undertaken by PMI Gold Corporation have established that the
diamond drilling and subsequent sampling is representative and free of any
biases or other factors that may materially impact the reliability of the
drilling, sampling and analytical results; and that the sample preparation,
security and indicated analytical procedures adopted by PMI Gold Corporation
and the laboratories utilized provide an adequate basis for the current
Mineral Resource Estimates. Mr. Spiers has been involved with the Obotan
Project since October 2009, and visited the project site on two separate
occasions, from the 8th to 18th of November 2009 and again from the 14th to
22nd April 2010.

Mining analysts have recently stated that West Africa will soon become
the World's number 2 gold producing regions, after China. Ghana is by far the
largest gold producer in West Africa, and PMI Gold now controls four previous
operating mines on 85 kilometres of Ghana's major gold belts, located near
the centre of some 200 million ounces of historical production and current
gold resources. Our Kubi Gold Project adjoins the 60 million ounce AngloGold
Ashanti Obuasi mine, the largest underground mine in West Africa with a 113
year, continuous mining history.

On behalf of the Board,

"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.

For further information: Douglas MacQuarrie, President & CEO, Telephone:
+1(604)682-8089, Toll-Free: +1(888)682-8089, Facsimile: +1(604)682-8094; or
for European Investors: Florian Riedl-Riedenstein: Tel: +43-2774-28814,
e-mail: frram@aon.at; Or visit the PMI Gold Corporation website at
www.pmigoldcorp.com

For further information: Douglas MacQuarrie, President & CEO, Telephone:
+1(604)682-8089, Toll-Free: +1(888)682-8089, Facsimile: +1(604)682-8094; or
for European Investors: Florian Riedl-Riedenstein: Tel: +43-2774-28814,
e-mail: frram at aon.at