PMI has received a Preliminary Economic Assessement on bringing our Kubi Gold Project in Ghana to production. Kubi is located immediately south of AngloGold Ashanti's Obuasi mine.

Golder Associates has based their study on a NI43-101 Indicated resource estimate of 604,085 oz Au. The mining section and geological resource calculation have been conducted to the Pre-Feasibility level, and indicate that the Kubi Property has a highly promising resource, and at a base case gold price of $US750 per ounce, and up to 1000 tpd, would provide good financial returns and a relatively quick payback (2.9 years). Project NPV is calculated at US$38 million (@10% discount). At gold prices higher by 10% and lower by 10%, the project investment would provide an IRR in the range of 34 % to 21 %. Increases in capital and operating costs in the order of 10% reduce IRR’s to 25 % for the base case gold price. Golder estimates the mineable gold resource contained within the limits of the planned mine to the minus 400 meter elevation are 3.6 million tonnes with an average grade of 4.35 g/t, to be mined over 14 years, for a total of 505,122 oz of gold (cut off grade 2.43 gpt Au). Capital costs are estimated US$41.5 million (includes a 15% contingency). PMI Gold is currently in the market to raise the necessary financing.

For further information please download the full report: http://www.staff.goknet.net/Reports/Kubi_Preliminary_Assessment_May08.pdf

Based on these findings, Golder has recommended to proceed to full feasibility.

Investment Highlights

Near term production target: 50,000 oz Au per year; 14 year mine life; 500 to 1000 tpd

Experienced Executive, Mining and Exploration team

Four past producers with good exploration upside; 2 million ounce exploration target at Obotan

Large prospective land package on two major gold belts - 86% equity interest

US$58 million exploration data base

Low market capitalization; institutional shareholders; good liquidity