PMI Gold Closes Private Placement for $5 Million

By Pmi Gold Corporation, PRNE
Monday, October 11, 2010

2:1 Share Consolidation Determined

VANCOUVER, October 12, 2010 -

    TSX Venture Exchange: PMV
    Frankfurt: AOJMW7
    Issued & Outstanding: 284,014,088
    Fully Diluted: 393,434,463

PMI Gold Corporation (TSX.V: PMV): the Company is pleased to announce
that further to its news release dated September 20, 2010, it has received
TSX Venture Exchange approval for, and closed, the private placement of
27,777,778 common shares at a price of $0.18 per share to raise gross
proceeds of $5,000,000.

All of the shares are subject to a hold period and may not be traded in
Canada until February 13, 2011, except as otherwise permitted by applicable
Canadian securities laws and the TSX Venture Exchange. Hartleys Limited of
Perth, Western Australia received a fee of $198,059.28 and 4,000,000
non-transferable warrants, each exercisable for one share at a price of $0.25
per share for a two year period.

The Company has been advised that Macquarie Bank Limited, of Level 1, No.
1 Martin Place, Sydney, New South Wales, 2000, Australia, has acquired
18,877,910 common shares of the Company in this placement. The shares were
purchased for investment purposes. After giving effect to this acquisition,
Macquarie Bank Limited will beneficially own 52,211,243 common shares and
3,900,000 warrants, representing 19.5% of the issued and outstanding common
shares of the company on a partially diluted basis.

Further to the planned IPO and co-listing of PMI Gold in Australia, the
Company has determined that a 2:1 share consolidation will satisfy the
listing requirements with respect to the exercise price and number of
currently outstanding PMI Gold warrants and options. Based on this
determination, and the written irrevocable consents of more than 51% of the
currently issued shares approving the proposed consolidation, the Company
will proceed to seek regulatory approval. On completion of the consolidation,
the shares will continue to trade under the same name and symbol, but with a
new CUSIP number. Further information will be provided as and when available.

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


About PMI Gold


Mining analysts have recently stated that West Africa will soon become
the World's second largest gold producing region after China, with Ghana by
far the largest gold producer in West Africa. PMI Gold controls four previous
operating mines on 85 kilometres of Ghana's major gold belts all located near
the centre of near 200 million ounces of historical gold production and
current 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. At Obotan, where previous mining
yielded 730,000 ounces of gold at a grade of 2.2 g/t, we recently announced a
maiden +1 million ounce gold Mineral Resource estimate, and the commencement
of an aggressive drilling campaign.

    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:

    Or visit the PMI Gold Corporation website at

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

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