PMI Secures US$30m Standby Funding Facility

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS
AGENCIES 


PMI Gold Corporation ("PMI") (TSX VENTURE:PMV)(FRANKFURT:PN3N)(ASX:PVM) is
pleased to announce that it has entered into a committed letter offer for a
US$30 million standby funding facility from Macquarie Bank Limited while it
completes the full funding package for development of its flagship 100%-owned
Obotan Gold Project in Ghana. 


While PMI remains in a strong financial position with $30 million in cash at the
end of August 2012, the standby funding facility gives the Company additional
flexibility, if required, to draw down on the additional funding to undertake
key pre-development activities including engineering design, environmental
studies and other statutory approvals. 


This additional flexibility will put the Company in the strongest possible
position while it finalises an appropriate funding package for Obotan. PMI is
currently in advanced discussions with a number of parties to fully fund the
Project and looks forward to advising the market when those arrangements are
finalised.


The Board is pleased to obtain the support of Macquarie, PMI's largest
shareholder and an experienced Project Finance provider for projects in West
Africa, and views this arrangement as a positive endorsement of the Company and
the Project. Some of the key terms of the Macquarie Facility include:




--  Maturity date is the earlier of 30 June 2014 or the first draw-down
    under a project financing/equity funding of the Project; 
--  Interest rate of 6% over LIBOR; 
--  Associated warrant issue terms are as follows: 
    --  600,000 facility fee warrants; 
    --  Draw-down warrants: being 50% of drawn down funds divided by the
        exercise price; and 
    --  All warrants expiring 3 years from date of issue at an exercise
        price at a premium to VWAP in CAD;
--  Cancellable in whole or in part at the discretion of the borrower; 
--  Security and general commercial terms standard for this type of
    facility; and 
--  This facility and the project finance facility are non-related. 



In addition, the Board has resolved to apply for quotation of its securities on
the main board of the Toronto Stock Exchange (TSX), which is expected to raise
the profile of the Company as well as make investment in PMI available to a
broader shareholder base as it moves towards production at Obotan.


Commenting on the recent developments, PMI Gold's Managing Director and CEO,
Collin Ellison, said:


"With the Obotan Feasibility Study now behind us, we are moving quickly towards
the development of a substantial new gold mine in West Africa. As such, it is
important that we have maximum financial flexibility to continue our
pre-development activities and build on the momentum gained through the
feasibility study to progress the Obotan Project rapidly towards a production
decision.


"This standby financing facility will give us the capability, if required, to
draw down on additional funds over and above our cash reserves, to undertake key
pre-development activities in the intervening period while we finalise the main
project funding package. We are pleased to have received the support of our
largest shareholder, Macquarie, in providing this standby facility which can be
drawn down, or cancelled, totally at our discretion.


"The Company has also announced that it intends to apply for a listing on the
Main Board of the Toronto Stock Exchange, a decision which reflects our
continued rapid progress towards making the all-important transition to producer
status. A Main Board listing will help to broaden our investor base and make PMI
more appealing to major institutional investors globally."


Collin Ellison

On behalf of the Board,

Managing Director & CEO

Forward-Looking Statements

This news release includes forward-looking statements or information.
Forward-looking statements or information involve risks, uncertainties and other
factors that could cause actual results, performances, prospects and
opportunities to differ materially from those expressed or implied by such
forward-looking statement. All statements other than statements of historical
fact included in this release, including, without limitation, statements
regarding future gold production; initial mine life; average annual gold
production; forecast life of mine cash cost; initial capital cost; forecast
operating parameters including ore mined, mill feed and recoveries;
determination of a development decision for the Obotan Project; full production;
and financial outcomes of the FS, including NPV, are forward-looking statements
of information. There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ materially from those
anticipated in such statements or information. Important factors that could
cause actual results to differ materially from the Company's plans or
expectations include the actual results of current exploration activities;
changes in gold prices; changes in exchange rates; possibility of equipment
breakdowns, delays and availability; changes in mine plans; exploration cost
overruns; unexpected increases in costs of equipment, steel, cement and
consumables such as diesel and fuel oil; unexpected environmental liabilities or
social charges; the unknown impact of the 10% windfall profit tax announced by
the Government of Ghana; title defects; the failure of contract parties to
perform the unavailability of capital and financing; adverse general economic,
market or business conditions; regulatory changes; failure to receive necessary
government or regulatory approvals; and other risks and factors detailed herein
and from time to time in the filings made by the Company with securities
regulators and stock exchanges, including in the section entitled "Risk Factors"
in the Company's Annual Information Form dated September 25, 2012. 


Any forward-looking statement or information only speaks as of the date on which
it was made and, except as may be required by applicable securities laws, the
Company disclaims any intent or obligation to update any forward-looking
statement, whether as a result of new information, future events or otherwise.
Although the Company believes that the assumptions inherent in the
forward-looking statements are reasonable, forward-looking statements are not
guarantees of future performance and accordingly undue reliance should not be
put on such.
Pmi Gold Corporation (TSXV:PMV)
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