PMI Gold to Raise $5 Million to Fund 20,000 Metre Ghana Gold Drilling Program

VANCOUVER, September 20, 2010 - /THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO
U.S. NEWS AGENCIES/

TSX Venture Exchange: PMV

Issued & Outstanding: 253,421,537

Frankfurt: AOJMW7

Fully Diluted: 363,864,185

Confirms plans to undertake an Initial Public Offer and listing in
Australia in November 2010

Highlights:

    - PMI Gold to raise C$5 million to accelerate Ghana drilling ahead of

    planned Australian public offering

    - 16,000 metre drill campaign to commence in first week of October at

    the Obotan Project to increase and elevate NI43-101/JORC Mineral

    Resource confidence level

    - 4,000 metre drill campaign to commence immediately at Kubi Project to

    test the 513 Zone Discovery and other new high priority targets

    - Macquarie Bank to increase its stake in PMI Gold to 19.7%

    - Share consolidation planned to facilitate IPO in Australia

    - Proposed IPO in Australia on track for November 2010, with Hartleys

Limited as Lead Broker

PMI Gold Corporation (TSX.V: PMV): Douglas MacQuarrie President & CEO is
pleased to announce that the Company has received commitments from accredited
investors to raise a total of up to C$5 million, primarily to accelerate and
expand resource drilling programs at its two flagship gold projects in Ghana,
West Africa.

The funds will be raised through the issuance of up to 27,777,778 common
shares at $0.18 per common share. Commissions of up to 6% are payable on the
subscriptions. The private placement is subject to receipt of necessary stock
exchange approvals.

The proceeds will be used primarily to fund 20,000 metres of drilling at
the Obotan and Kubi Gold Projects, to upgrade and expand existing resources,
and to provide additional working capital ahead of the Company's planned IPO
in Australia later this year.

The Company is also pleased to report that on closing of this financing,
Macquarie Bank Limited ("Macquarie") of Australia will hold a 19.7% interest
in the issued capital of the Company on a partially diluted basis.

Macquarie is a leading provider of services and products to the global
resources industry including equity, debt and mezzanine financing, and has
over 15 years' experience in successfully funding gold projects in West
Africa into production. Macquarie has been a cornerstone/major investor in a
number of successful West African gold companies including RedBack Mining,
Perseus Mining, Gryphon Mining and Adamus Resources, amongst others,
assisting them to advance from the development stage through to production.

Expanded Ghana Gold Drilling Program

At Obotan, drilling will commence in the first week of October, and will
include 16,000 metres of in-fill drilling to upgrade and expand the existing
gold resources, and to target gold mineralization down-dip of previous
mining, where recent results at Nkran have included intersections to 153.40
metres (at) 2.37g/t Au, including 46.0 metres (at) 5.23g/t Au from the base
of the pit at -140 metres to -280 metres in depth. Geotechnical and other
engineering and environmental studies will also be initiated.

The Nkran deposit was previously mined over a length of 600 metres and to
a depth of circa 140 metres prior to its closing in late 2002 when gold was
US$320 per oz. Drilling clearly demonstrates that the deposit plunges to
depth - with the deepest mineralized intersections at over 400 metres below
the pit base. In the core of the deposit true widths of 40 metres are
typical.

Current NI43-101 Mineral Resource estimates for Obotan in the Nkran and
satellite Abore, Adubiaso and Asuadi deposits total 1,053,000 oz Au (at)
2.1g/t Inferred and 156,000 oz Au (at) 1.59g/t Indicated (please see:
www.pmigoldcorp.com/i/pdf/2010-08-31_NR.pdf).

At Kubi, 4,000 metres of drilling will commence immediately to target the
513 Zone gold discovery, located 1.2km west of the Kubi Main gold deposit
(NI43-101 Mineral Resource estimate of 604,000 oz Au (at) 3.66g/t Indicated
and 315,000 oz Au (at) 1.88g/t Inferred, please see our news release:
www.pmigoldcorp.com/i/pdf/2008-04-10_NR.pdf), and numerous other high
priority auger geochemical/geophysical and structural targets, including
targets located under heavy alluvial cover with historical and current
alluvial gold operations.

Update on Australian Initial Public Offering

The Company also advises that its Australian IPO is progressing well, and
is expected to be completed in early November 2010. Hartleys, a leading
Australian resource broker, is assisting the Company as Lead Broker to the
Offer.

To facilitate the Australian public offering, the Company will undertake
a consolidation of its outstanding capital on the basis of 1 new common share
for every 4 existing common shares, subject to final advice from the
Australian Regulatory Authorities.

Douglas R. MacQuarrie, PMI Gold's President and CEO, commented: "This $5
million raising, which has been strongly supported by both Macquarie and
Hartleys, will further strengthen our balance sheet and enable us to maintain
a very aggressive pace of gold exploration drilling in Ghana while we
finalise our proposed Australian IPO."

"This raising, in conjunction with a moderate tightening of our share
capital, advances the restructuring of PMI Gold in anticipation of the
Australian IPO."

"With the Australian IPO on track for early November 2010, it is with
great confidence that I and all of our shareholders in Africa, Europe,
Australia, and North America should look forward to the coming years and our
transformation from a gold explorer to a gold producer."

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.

About PMI Gold

Mining analysts have recently stated that West Africa will soon become
the World's second largest gold producing region, after China. Ghana is by
far the largest gold producer in West Africa, and PMI Gold 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. At Obotan, where previous
mining to 2003 yielded 730,000 ounces at a grade of 2.2 g/t Au, we announced
a maiden +1 million ounce gold Mineral Resource estimate on August 31, 2010.

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; Or visit the PMI Gold Corporation website at
www.pmigoldcorp.com