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By Kirsti Mattson
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• 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

November 5, 2010 - Vancouver BC - 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

PMI Gold Corporation NEWS RELEASE page2
Suite 511 – 475 Howe Street, Vancouver, B.C., Canada V6C 2B3 Tel: 1 604 682 8089 Fax: 1 604 682 8094

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 Ashton, 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