PMI Gold Launches A$27.5 Million Australian IPO and ASX Co-Listing

By Pmi Gold Corporation, PRNE
Thursday, November 4, 2010

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

VANCOUVER, November 5, 2010 -

    TSX Venture Exchange:   PMV Issued & Outstanding:    142,282,044
    Frankfurt: PN3N.F       Fully Diluted:               196,717,232

    - PMI Gold has lodged a prospectus with the Australian Securities
      Investment Commission (ASIC) for up to A$27.5 Million IPO and a
      co-listing of its shares on the Australian Securities Exchange (ASX),
      targeted for December 2010. Hartleys Limited of Western Australia is
      Corporate Advisor and Broker to the IPO

    - The Prospectus outlines an aggressive exploration and development
      program at the Company's Obotan, Kubi and regional exploration gold
      projects in Ghana:

    - $8.0 million budgeted for resource upgrade and expansion drilling at
      Obotan to increase to +40,000 metres

    - $2.0 million deep drilling program to test for depth extensions to
      known mineralization under the Nkran pit

    - Feasibility studies at Obotan and Kubi to be advanced

    - Regional exploration budget $5.7 million over 2 years, to test targets
      along 85 km strike length of two of Ghana's major gold belts, Ashanti
      and Asankrangwa

PMI Gold Corporation (TSX.V:PMV) ("PMI Gold" or
"the Company") announces that it has lodged a prospectus with the Australian
Securities and Investment Commission ("ASIC") for its A$27.5 million
Australian Initial Public Offering ("IPO"), ahead of a planned co-listing of
its shares on the Australian Securities Exchange ("ASX"), targeted for
December 2010. Australian, Asian and International institutional investors
have bid for well in excess of the maximum A$27.5 million IPO funding.

Hartleys Limited is Corporate Advisor and Broker to the IPO, which will
consist of up to 39,285,714 CHESS Depository Receipts ("CDIs") to be issued
at A$0.70 per CDI (approximately C$0.70). Subject to regulatory approval,
each CDI will be equivalent to and exchangeable for one common share in the
capital of PMI Gold. Securities issued under the Australian prospectus will
be subject to a four-month plus one day restriction from resale into Canada
or to Canadian investors, and cannot be resold into Canada during such
period, unless an exemption is available from the applicable prospectus
requirements in Canada. The CDIs will however be tradeable on the ASX upon
listing. Hartleys Limited will receive a commission of six percent of the
gross proceeds raised under the prospectus offering as well as a cash payment
of A$100,000, 500,000 shares in the capital stock of the Company, 2.5 million
broker warrants and a corporate advisory fee of A$10,000 per month for a 12
month period after completion of the IPO.

The A$27.5 million Australian IPO financing is in addition to the
previously announced C$7.5 million Canadian Special Warrant private placement
arranged by Cormark Securities Inc. on behalf of a syndicate of investment
dealers including, Haywood Securities Inc., Salman Partners Inc. and M
Partners Inc.

Funds raised pursuant to the Australian IPO and the Canadian placement
will be used primarily to accelerate the progress of drilling and feasibility
studies at the Company's Obotan and Kubi gold projects in Ghana and to
fast-track regional gold exploration. The ASX listing will provide PMI Gold
the opportunity to service its Australian shareholders and provide increased
access to capital in the region, including the rapidly evolving resource
funding centres in Hong Kong, Shanghai and Singapore.

The prospectus is intended for use only in connection with the offering
of the Company's securities in Australia and is not to be construed as an
offering in Canada or any other jurisdiction. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy nor shall
there be any sale of the securities in any jurisdiction where such offer,
solicitation or sale would be unlawful.

The Australian IPO and the Canadian placement are each subject to certain
conditions including, but not limited to, the receipt of all necessary
regulatory approvals, including the approval of the ASX and the TSX Venture
Exchange. Closing of these transactions is expected to occur in early
December 2010.

The Company also announces the granting of 1 million stock options at a
price of $1.05 (150% of the IPO price) to each of Messrs Peter Buck and Ross
, subject to their election to the Board of PMI Gold as Independent
Non-Executive Directors, ASX and TSX Venture Exchange approvals, and
completion of the IPO financing.

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

           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.

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 (NI43-101 mineral resource estimate
of 604,000 ounces @3.66 g/t gold Indicated; 315,000 ounces @1.88 g/t gold
Inferred, see SEDAR) 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)

              or for European Investors: Florian Riedl-Riedenstein: Tel:
    +43-2774-28814, e-mail: Or visit the PMI Gold Corporation
                       website at

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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