KUBI GOLD PROJECT - ASHANTI GOLD BELT

Kubi Project is PMI Gold's second proposed "mining centre" which has advanced exploration and development potential. Located 65km east of our Obotan Gold Project, is the project sits along strike 15km south of AngloGold Ashanti's 60Moz Obuasi mine, the largest underground mine in West Africa with 113 year continuous mining history. Ashanti mined 59,000oz Au @ 3.65 g/t at Kubi in two shallow pits up until 2005. Kubi also lies 12km northeast of the recently commissioned 6.6Moz Edikan Gold Mine owned by Perseus Mining.

The Kubi Project comprises two mining leases which cover a total of 19.34km² and prospecting licenses which covers 32.83km². The Kubi Project is predominantly located in the Adansi South District of the Ashanti Region and a portion of the Upper Denkyira District of the Central Region of Ghana.

Prior exploration work within the Kubi Project was completed by Nevsun Resources Ghana Limited (NRGL) between 1997 and 1998. During this time over 35,500 metres of RAB, RC and diamond core drilling was completed and almost 14km of trenches excavated. PMI Gold commenced exploration activities on the Kubi Project in 2009. The focus of the Company's work was to further assess target areas outside the limits of the defined mineral resource. Work included airborne magnetic and radiometrics, ground VLF-EM, induced polarization surveys, soil and auger geochemical sampling in selected parts of the concession area, followed by 2,559 metres of diamond drilling in 22 holes. A total of 66,312 metres of diamond core drilling in 226 drill holes in the Kubi Main Zone area was used for the current resource estimate.

NI43-101/JORC Compliant Gold Resource

The Company commissioned SEMS Exploration Services Ltd. (SEMS), Ghana in November 2010 to prepare a revised independent mineral resource estimate for the Kubi Project that was to better reflect the proposed underground mining methods suitable for a narrow, high grade, gold deposit such as Kubi.

Kubi has an NI 43-101/JORC compliant gold resource totalling 0.35Moz:

Measured: 0.66Mt @ 5.30g/t Au for 112,000oz
Indicated: 0.66Mt @ 5.65g/t Au for 121,000oz
Meas+Ind: 1.32Mt @ 5.48g/t Au for 233,000oz
Inferred: 0.67Mt @ 5.31g/t Au for 115,000oz

Click here to read the announcement on the resource estimate at Kubi Gold Project, December 10, 2010.

Recent Exploration

The Company commenced exploration field activities in September 2010. Three holes were drilled along strike of the "513 Zone" (Click here to read the announcement on the 513 Zone Discovery, November 30, 2009) and confirmed the southwest continuation of this zone. The Company recommenced its exploration activities in early 2011 with the start of a 10,000 metres auger drilling program carried out in two stages, designed to test for additional gold mineralization beneath transported cover on strike with the 513 Zone and to test the full 12km strike length of the Ashanti Shear Zone including the western Ashanti Shear and eastern parallel Kubi Shear.

Latest results highlight the significant potential for high-grade gold mineralisation along the Ashanti Shear and the parallel Kubi Shear, and have successfully defined extensions to the 513 Prospect and the occurrence of a number of east-northeast corridors that contain multiple gold anomalous targets.

Click here to read the announcements on the auger drilling program.

Following completion of the auger program and receipt of all assays, targets generated from the program will be drilled at depth by RAB/Aircore and RC drilling to confirm their economic significance. This work is currently scheduled to commence in Q1, 2012.

The Company is also further planning a re-evaluation of the Kubi Main Deposit resources to better understand controls, distribution of mineralisation and the scope for resource extensions as part of its development strategy at Kubi with a view to commencing a Pre-feasibility study during 2012.