PMI Gold Corporation - Share Consolidation Approved

This News Release is not for Distribution in the United States or to U.S. News Agencies

VANCOUVER, October 21, 2010 -

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

PMI Gold Corporation (TSX.V:PMV) ("PMI Gold" or "the Company") confirms
that, further to its news release of October 12, 2010, its intended share
consolidation on a 2 (old) for 1 (new) share basis has been accepted by the
TSX Venture Exchange, and effective Friday, October 22, 2010 the Company's
shares will trade on the consolidated basis. The Company's shares will
continue to trade under the same name and trade symbol, but with a new CUSIP
number of 730 153 202 to distinguish between pre- and post-consolidation
shares.

Shareholders will be receiving a Letter of Transmittal from Computershare
Investor Services Inc. to enable them to exchange certificates for
post-consolidation shares.

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

(PMV. PMVGF)

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 Or visit the PMI Gold Corporation