---PMI Gold completes Kubi Buyout - Arranges $3.5 Million Secured Loan---Golder Associates delivers Positive Pre-Assessment Report on Kubi---Geotech VTEM survey outlines new drill targets at Obotan --- January 31: President MacQuarrie talks to Al Korelin at Cambridge House Investment Show --PMI Gold Options Bankame and Ofoase Concessions to Golden Lion -- New Powerpoint Available...see link below -- Fundamental Research Initiates Coverage on PMI Gold --Click here to contact Fundamental Research-- PMI announces 44.5 m grading 2.61 g/t GOLD at Nkran ... all drill holes now on Google Earth presentation...see link below --


Golder Associates has determined a N.I. 43-101 compliant gold resource on our Kubi Gold Project in Ghana:

Indicated Resources:
604,085 ounces of gold - 5.15 million tonnes grading 3.66 g/t

Inferred Resources:
315,079 ounces of gold - 5.38 million tonnes grading 1.88 g/t

Kubi Preliminary Assessment Report

Based on this resource, Golder has delivered a Preliminary Economic Assessment (the mining section and geological resource calculation have been conducted to a Pre Feasibility Study level) that indicates that Kubi can be developed as a profitable underground mining operation with a pre-tax base case Internal Rate of Return (IRR) of 28%, and a Net Present Value (NPV) at a 10% discount rate, of US$38.6 million. PMI Gold is now advancing Kubi toward a full feasibility study for production of up to 50,000 ounces of gold per year commencing Q1 2011, and at an expected average cash cost of production for the first five years of US$336 per ounce and a US$750 gold price. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

PMI Gold now controls four previous operating mines on its 698 square kilometres of leases and concessions located along the prolific Ashanti and Asankrangwa gold belts in Ghana. In addition to developing a mine at Kubi, PMI Gold has contracted Golder to prepare an initial resource estimate for the Nkran deposit at our Obotan Gold project. Ghana is Africa's second largest gold producer and has attracted over $7 billion in foreign direct investment into the minerals and mining sector over the last decade. Ghana is a destination of choice because of its long mining history, prospective resource base, reasonable taxation and stable government.

PMI Gold is currently in the market to raise the required equity and debt financing for this program.