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PMI Gold Corporation: Obotan Gold Project Feasibility Study Demonstrates a Robust, Viable Project, Poised for Development

VANCOUVER, BRITISH COLUMBIA--(Marketwire -08/28/12)- PMI Gold Corporation (PMV.V)(PN3N.F)(PVM.AX) -

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

Highlights:

  -- Independent NI 43-101 compliant Feasibility Study confirms a financially and technically robust mining operation at Obotan, with key outcomes including: -- Pre-Tax NPV of US$614M and Post-tax NPV of US$387M, assuming a US$1,300/oz gold price, 5% discount rate and contract mining scenario (consistent with January 2012 Pre-feasibility Study) -- Pre-tax IRR of 35% and post-tax IRR of 28% -- Capital payback period of 2.9 years -- At current prices of $1600/ounce, -- Pre-tax NPV rises to US$1.07B and post-tax NPV to US$686M -- Pre-tax IRR of 54% and post-tax IRR of 43% -- Capital payback period of 2.0 years -- Average production of 221,500 oz Au pa over the first five years -- Total production of 2.26 million recovered oz Au over the 11.5 year mine life -- Life-of-mine Project Revenue of US$2.9 billion -- Estimated average life-of-mine cash operating costs of US$626/oz -- Increased Proven and Probable Ore Reserves of 34.2Mt at 2.21g/t for 2.43Moz of gold across four deposits. This is a rise of 170,000 oz from the January 2012 Pre-feasibility Study. -- Capital cost estimate of US$296.6M including a pre-strip mining cost of US$82.2M -- Feasibility Study completed with a high level of cost estimates based on firm tenders from suppliers, and quotes from five mining contractors. -- Final Investment Decision (FID) on track for Q4 2012, with interim Board approval to expedite engineering designs of key long-lead items. -- At the end of July 2012, PMI had US$39m cash. -- Environmental studies, Mining Lease Application and other statutory approvals on track to be finalized during Q4 2012. -- A select group of leading international banks have provided detailed indicative offers to deliver debt financing facilities for the development of the Obotan Project. -- PMI continues to focus exploration on tenements close to the Obotan Project, and the Kubi and Asanko exploration projects which offer potential to become future production centres. -- Together with Obotan, these centres support the Company's medium-term objective of becoming a mid-tier West African gold producer.

PMI Gold Corporation ("PMI" or "the Company") is pleased to report positive results from the independent NI 43-101 Feasibility Study on its flagship 100%-owned Obotan Gold Project in Ghana, through its wholly-owned subsidiary Adansi Gold Company Ghana Limited ("Adansi"). The Feasibility Study has outlined a strong and viable gold project based on a gold price of $1300/ounce that will form the cornerstone of PMI's emerging West African gold production strategy.

The strong economics of the Obotan Project provide a solid investment case with the commencement of construction targeted during Q1 of 2013 to achieve first gold production from Obotan in 2014, conditional on obtaining all statutory approvals, Board Approval, and the finalization of financing arrangements.

The Feasibility Study commenced in the January 2012 Quarter and was completed by GR Engineering Services Limited ("GRES") with support and input from a range of internationally renowned consultancy groups including SRK, Orelogy, Knight Piesold and AERC. Cost estimates have been based on quotes from five mining contractors and firm tenders received from suppliers.

Further details of the Feasibility Study include:

  -- Increased Proven and Probable Reserves of 34.2Mt at 2.21g/t for 2.43Moz of contained gold has been calculated. This represents a 13% increase in tonnage and 8% increase in contained gold compared with the maiden Proven and Probable Ore Reserve in the January 2012 Pre-feasibility Study (30.3Mt at 2.32g/t for 2.26Moz of gold). A 4.7% reduction in grade has been offset by the conversion of additional Inferred Resources to Indicated Resources then into reserves as a result of successful in-fill drilling programs. There are additional Inferred Resources within the open pit which have not been included in the Ore Reserve but which may be converted in future. -- Life-of-mine production of 2.26M oz of recovered gold over an initial 11.5 year production life (exclusive of 1 year pre-strip operations). The waste-to-ore ratio has been reduced from 7.6 in the Pre-feasibility Study to 6.4 (including the pre-strip). Post pre-strip, the life of mine strip ration drops to 5.6:1. -- Life-of-mine average cash operating costs are estimated at US$626/oz (excluding royalties, refining costs). Total cash operating costs are estimated at US$722/oz including royalties and refining costs, positioning the Obotan Project at the lower end of the global cash cost curve.

Commenting on the Feasibility Study results, PMI's Managing Director and CEO, Collin Ellison, said:

"We are very pleased with the results of the Obotan Feasibility Study, which clearly demonstrates the potential to develop a robust, long-term mining operation capable of delivering strong investment returns that will form the cornerstone of our emerging gold business in West Africa.

"We are currently continuing detailed design and engineering work, as well as assessing options to optimize capital and operating costs while we continue discussions with potential project financiers. This puts us firmly on track to make a development decision during the fourth Quarter of 2012, paving the way for us to secure project finance and commence development early next year."

"A select group of leading international banks have provided detailed indicative offers to deliver debt financing facilities and we are currently assessing these offers in conjunction with our advisors, Optimum Capital Pty Ltd, in order to determine the best combination of debt and equity funding to underpin project development. The Company has also made excellent progress with the statutory approvals process and is well placed to finalize its environmental approvals and secure the grant of a Mining Lease during the fourth Quarter of 2012.

"PMI is assembling a highly skilled technical team with extensive experience in developing gold projects in West Africa. This team will realize the Company's broader corporate objective of creating a substantial mid-tier gold producer in West Africa.

"The key elements of this strategy are already well advanced with over 85,000m of exploration drilling completed, focused on identifying potential additional oxide resources within economic trucking distance of the Obotan treatment plant, as well as progressing the Kubi Project as a potential second standalone operational centre and exploring the exciting Asanko Project, which covers a significant portion of the highly prospective Asankrangwa Gold Belt.

"These projects will deliver the second and third growth horizons for PMI Gold, building on the strong foundations established at Obotan."

Mineral Resources & Ore Reserves

The previously-reported JORC / NI43-101 compliant Mineral Resource inventory for the Obotan Gold Project was estimated by SRK Consulting and reported to the ASX/TSX on 11 April 2012.

  -------------------------------------------------------------------------- NI43-101/JORC Code Compliant: SRK Resource Estimate (March 2012), based on 0.5 g/t Au lower cut-off grade -------------------------------------------------------------------------- Measured Indicated ------------------------------- ------------------------------ Tonnes Grade Ounces Tonnes Grade Ounces Deposit (million) (g/t Au) (million) (million) (g/t Au) (million) -------------------------------------------------------------------------- Nkran 11.74 2.55 0.96 20.41 2.12 1.39 -------------------------------------------------------------------------- Adubiaso 1.50 2.98 0.14 2.67 2.41 0.21 -------------------------------------------------------------------------- Abore 2.33 1.78 0.13 3.70 1.53 0.18 -------------------------------------------------------------------------- Asuadai n/a n/a n/a 2.44 1.28 0.10 -------------------------------------------------------------------------- TOTAL 15.57 2.47 1.23 29.21 2.00 1.88 -------------------------------------------------------------------------- -------------------------------------------------------------------------- Measured & indicated Inferred ------------------------------- ------------------------------ Tonnes Grade Ounces Tonnes Grade Ounces Deposit (million) (g/t Au) (million) (million) (g/t Au) (million) -------------------------------------------------------------------------- Nkran 32.15 2.28 2.35 14.47 2.21 1.05 -------------------------------------------------------------------------- Adubiaso 4.17 2.59 0.35 1.25 1.91 0.08 -------------------------------------------------------------------------- Abore 6.03 1.60 0.31 3.92 1.50 0.19 -------------------------------------------------------------------------- Asuadai 2.44 1.28 0.10 2.00 1.33 0.08 -------------------------------------------------------------------------- TOTAL 44.79 2.16 3.11 21.91 1.99 1.40 -------------------------------------------------------------------------- (All resource numbers are rounded to 2 decimal places- 10,000 tonnes).

Following completion of mine optimization and planning, an updated Ore Reserve statement has been completed by Orelogy Mining Consultants, as outlined below:

  ------------------------------------------------------------------------ NI43-101/JORC Code Compliant: Feasibility Study Obotan Ore Reserve ------------------------------------------------------------------------ Tonnes Grade Contained Class (Mt) (g/t Au) Gold (Moz) ------------------------------------------------------------------------ Proven 14.8 2.39 1.14 ------------------------------------------------------------------------ Probable 19.4 2.08 1.30 ------------------------------------------------------------------------ Total 34.2 2.21 2.43 ------------------------------------------------------------------------

Technical Notes:

  1. The Orelogy Mineral Reserve was estimated by construction of a block model within constraining wireframes based on Measured and Indicated resources. 2. The Reserve is reported at lower a cut-off grade of 0.5g/t Au, which defines the continuous/semi-continuous mineralized zone potentially amenable to the low grade, bulk tonnage mining scenario currently being considered by PMI. 3. The grades and Reserve tonnes have been modified by an average ore loss and mining dilution of 4.8% with a mining dilution grade of 0.0g/t gold 4. An average metallurgical recovery of 92.8% was used in defining the optimal pit shell 5. The Mineral Reserves are based on the March 2012 Mineral resource reports for the Nkran, Adubiaso, Abore and Asuadai deposits 6. All tonnes reported are dry tonnes 7. The base case pit optimization utilized a US$1,300/oz gold price 8. Mineral Reserves are reported in accordance with the NI 43-101 & JORC.

This compares to the previous Ore Reserves (below) as reported in the Pre- Feasibility announcement.

  ------------------------------------------------------------------------ NI43-101/JORC Code Compliant: Pre-Feasibility Obotan Ore Reserve ------------------------------------------------------------------------ Tonnes Grade Contained Class (Mt) (g/t Au) Gold (Moz) ------------------------------------------------------------------------ Proven 14.0 2.36 1.06 ------------------------------------------------------------------------ Probable 16.3 2.28 1.20 ------------------------------------------------------------------------ Total 30.3 2.32 2.26 ------------------------------------------------------------------------ (Any inconsistencies due to rounding).

Key Project Parameters

The Feasibility Study results demonstrate a technically robust mining operation with anticipated life-of-mine (LOM) parameters as follows:

  -------------------------------------------------------------------------- Item Description / Estimate -------------------------------------------------------------------------- Mining method Open Pit Mining -------------------------------------------------------------------------- Processing rate 3Mtpa primary ore, 3.8Mtpa oxide ore -------------------------------------------------------------------------- Metallurgical recovery 92.8% average -------------------------------------------------------------------------- Total recovered gold 2.26 million oz -------------------------------------------------------------------------- Mine Production Life 11.5 years -------------------------------------------------------------------------- Cash operating costs $626/ oz -------------------------------------------------------------------------- Pre-Production Capital Cost $296.6M -------------------------------------------------------------------------- Pre-tax operating cashflow $953M -------------------------------------------------------------------------- Life of Mine sustaining mine capital $35.6M -------------------------------------------------------------------------- Construction commencement(i) 1st Quarter 2013 -------------------------------------------------------------------------- First production(i) End of 1st Quarter 2014 -------------------------------------------------------------------------- (i) Subject to Financial Investment Decision (FID) timing

Capital Cost Breakdown

  ----------------------------------------------------------------------- Cost Area US$ Million ----------------------------------------------------------------------- Process Plant Direct $ 83.6 ----------------------------------------------------------------------- Infrastructure $ 49.2 ----------------------------------------------------------------------- Indirect $ 26.1 ----------------------------------------------------------------------- Spares and First Fills $ 8.9 ----------------------------------------------------------------------- Owners Costs $ 26.2 ----------------------------------------------------------------------- Pre-Strip $ 82.2 ----------------------------------------------------------------------- Mining Establishment $ 20.3 ----------------------------------------------------------------------- Initial Capital $ 296.6 ----------------------------------------------------------------------- Deferred & Sustaining Life of Mine Capital $ 35.6 -----------------------------------------------------------------------

Operating Cost Breakdown

  -------------------------------------------------------------------------- Total Cost US$/t US$/oz Au Costs US$ Million Milled Recovered -------------------------------------------------------------------------- Mining $ 850.4 $ 24.84 $ 376.5 -------------------------------------------------------------------------- Processing $ 473.1 $ 13.82 $ 209.4 -------------------------------------------------------------------------- General & Administration $ 90.6 $ 2.65 $ 40.1 -------------------------------------------------------------------------- Sub Total $1414.0 $ 41.31 $ 626.0 -------------------------------------------------------------------------- Bullion and Refining $ 12.1 $ 0.35 $ 5.3 -------------------------------------------------------------------------- Royalties $ 205.6 $ 6.01 $ 91.0 -------------------------------------------------------------------------- Total Operating Cost $1631.7 $ 47.67 $ 722.3 --------------------------------------------------------------------------

Financial Evaluation

  -------------------------------------------------------------------------- @ U$1300 / ounce @ U$1600 / ounce -------------------------------------------------------------------------- Project revenue $ 2.9 B $ 3.61 B -------------------------------------------------------------------------- Project pre-tax cash flow $ 953 M $ 1.58 B -------------------------------------------------------------------------- Project pre-tax NPV (5% discount rate) $ 614 M $ 1.07 B -------------------------------------------------------------------------- Project pre-tax NPV (8% discount rate) $ 472 M $ 856 M -------------------------------------------------------------------------- Project pre-tax IRR 35% 54% --------------------------------------------------------------------------

Project Implementation

Subject to the Board of Directors' Financial Investment Decision (FID), key project milestones comprise;

  --------------------------------------------------------------------------- Key Project Implementation Milestones - Targeted Dates --------------------------------------------------------------------------- CY2012 CY2013 CY2014 --------------------------------------- ----------------- ----------------- 1H 2H 1H 2H 1H 2H --------------------------------------------------------------------------- Completion of Feasibility Study x --------------------------------------------------------------------------- Project Finance x --------------------------------------------------------------------------- Commencement of Construction x --------------------------------------------------------------------------- Mining Pre-strip x --------------------------------------------------------------------------- First Production x ---------------------------------------------------------------------------

Foundations for a Substantial West African Gold Mining House

The completion of the Obotan Feasibility Study puts in place the foundations for development of PMI's first operating gold mine in Ghana, and represents the first step in the execution of the Company's broader growth strategy to become a substantial West African producer across multiple production centres.

The Company believes that its strategic 580km2 land-holding in the highly prospective Ashanti and Asankrangwa Gold Belts in south-west Ghana will support an aggressive organic growth strategy that has the potential to deliver this level of production in the medium term.

In order to realize this objective, PMI has completed over 85,000m of drilling to date on high priority regional targets within its three potential production hubs - the Obotan, Kubi and Asanko projects. The three key objectives of this work are:

  -- Obotan Project: To identify additional oxide resources within an economic trucking distance of Obotan, defined as the Obotan Exploration Area of Influence defined by a 15km radius of the proposed treatment facility at Obotan. Recent drilling has focused on prospects including Fromenda, Afiefiso and Kaniago (Adansi), with recent drilling at Fromenda returning excellent results and indicating the potential for the Fromenda Shear to host significant oxide gold mineralization. The Company is aiming to delineate JORC/NI43-101 compliant resources for some of these oxide prospects next year; -- Kubi Project: To re-evaluate the existing resources (NI43-101/JORC compliant Measured resource of 0.66 million tonnes at 5.30 g/t Au for 112,000oz; Indicated resource of 0.66 million tonnes at 5.65g/t Au for 121,000oz; Inferred resource of 0.67 million tonnes at 5.31 g/t Au for 115,000oz) and assess the potential for new discoveries at the Kubi Project, located 60km south-west of Obotan, as the foundation for PMI's second production centre in south-west Ghana. Recent drilling has intersected significant zones of gold mineralization at the Kubi South Prospect, 1.5km south of the Kubi Main Deposit, highlighting the potential for economic mineralization to be discovered within close trucking distance of the Kubi Main Deposit. Kubi lies immediately along strike from the 60Moz (pre-mined) Obuasi goldfield owned by AngloGold Ashanti; and -- Asanko Project: To discover significant new standalone gold deposits within the Asanko Project, which occupies a commanding position covering over 40 strike kilometres of the under-explored Asankrangwa Gold Belt, providing a strong pipeline of future exploration and development opportunities that could collectively justify the development of a third production centre for the Company.

PMI has this year established a significantly expanded in-house exploration project evaluation and development capability to enable it to unlock the value of its broader portfolio of projects in south-west Ghana and implement the strategies and programs required to realize these growth objectives.

Collin Ellison

On behalf of the Board,

Managing Director & CEO

NI 43-101

Obotan Gold Project:

Feasibility Study Mineral Resources and Reserves Estimate:

Information that relates to Mineral Resources at the Obotan Gold Project is based on a resource estimate that has been carried out by Mr Peter Gleeson, a full time employee of SRK Consulting, Australia. Mr Gleeson is a Member of the Australian Institute of Geoscientists (MAIG). Information that relates to Mineral Reserves (for the Feasibility Study) at the Obotan Gold Project is based on a reserve estimate that has been carried out by Mr Ross Cheyne, a full time employee of Orelogy Mining Consultants. Mr Cheyne is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM). Both have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity undertaken to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC), and as a Qualified Person (by ROPO) as defined in terms of NI43-101 standards for resource estimate of gold. Mr Gleeson and Mr Cheyne have more than 5 years' experience in the field of exploration results and of resource/reserve estimation and consent to and approve the inclusion of matters based on information in the form and context in which it appears.

The Mineral Resource and Mineral Reserve estimates have been prepared in accordance with the 2010 Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserve as incorporated by reference in National Instrument 43-101 of the Canadian Securities Administrators, and is consistent with the Australasian Guidelines and Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (Revised December 2007) as prepared by the Joint Ore Reserves Committee of the AusIMM, AIG and MCA (JORC).

PMI will file a NI 43-101 compliant technical report on the Obotan Project outlining the Mineral Resources and Reserves Estimate and the result of the Feasibility Study. The report will be available on www.sedar.com within 45 days of the date of this press release. The NI 43-101 technical report will be authored by Peter Gleeson MAIG for SRK, Ross Cheyne FAusIMM, for Orelogy, and Gerry Neeling FAusIMM of GRES. These independent Qualified Persons have verified the data in this news release. Collin Ellison, President & CEO, MIMMM, C.Eng, is a "qualified person" within the definition of that term in NI 43-101, has supervised the preparation of the technical information contained in this news release.

Pre-Feasibility Study Mineral Reserves Estimates:

Information that relates to Pre-Feasibility Study Mineral Reserves as previously reported on the Obotan Gold Project is based on a reserve estimate that has been carried out by Mr Duncan Pratt, a full time employee of SRK Consulting, Australia. Mr Pratt (CP Mining) is a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM) and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activities undertaken to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC), and as a Qualified Person in terms of NI43-101. Mr Pratt consents to and approves the inclusion of matters based on information in the form and context in which it appears.

Technical Notes:

  1. The SRK Mineral Reserve was estimated by construction of a block model within constraining wireframes based on Measured and Indicated resources. 2. The Reserve is reported at lower a cut-off grade of 0.5g/t Au, which defines the continuous/semi-continuous mineralized zone potentially amenable to the low grade, bulk tonnage mining scenario currently being considered by PMI. 3. The grades and Reserve tonnes have been modified by a 95% mining recovery and a 5% allowance for mining dilution at 0.0g/t gold. 4. At 93% metallurgical recovery for Oxide and Transitional material and 94.5% metallurgical recovery for Fresh material was used in defining the optimal pit shell 5. The Mineral Reserves are based on the October 2011 Mineral resource reports for the Nkran, Adubiaso, Abore and Asuadai deposits 6. All tonnes reported are dry tonnes 7. The base case pit optimization utilized a US$1,300/oz gold price 8. Mineral Reserves are reported in accordance with the NI 43-101 & JORC.

Kubi Gold Project:

The information that relates to Mineral Resources at the Kubi Main Deposit, Ghana, is based on a resource estimate that has been audited by Simon Meadows Smith, who is a full time employee of SEMS Exploration Services Ltd, Ghana. Simon Meadows Smith is a Member of the Institute of Materials, Minerals and Mining (IMO3), London and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, and under NI43-101. Simon Meadows Smith consents to the inclusion in the presentation of the matters based on information in the form and context in which it appears.

Technical Notes:

  1. Resources figures for Kubi are based on a 2.0g/t Au cut-off grade 2. Mineral Resources are reported in accordance with NI43-101 & JORC.

Exploration Results:

The information that relates to Exploration Results is based on information compiled by Thomas Amoah, who is employed by Adansi Gold Company (Gh) Ltd, a wholly owned subsidiary of PMI Gold Corporation. Mr Amoah, who is a Member of the Australian Institute of Geoscientists (MAIG), has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves'. Mr Amoah consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Scientific and technical information contained in this news release has been reviewed and approved by Thomas Amoah, MAIG, MSEG. a "qualified person" as defined under National Instrument 43-101. Field work was supervised by Mr Amoah (VP-Exploration). Drill cuttings were logged and sampled on site, with 3kg samples sent to the MinAnalytical prep laboratory on site, and analyzed for gold by fire assay-AA on a 50 gram sample charge or by screened metallics AA finish in MinAnalytical laboratory in Perth. Internal QC consisted of inserting both blanks and standards into the sample stream and multiple re-assays of selected anomalous samples. Where multiple assays were received for an interval, the final value reported was the screened metallic assay if available, or in lieu of that the average of the other results for the interval. Results from the QC program suggest that the reported results are accurate. Intercepts were calculated using either a minimum 0.1 g/t Au (Kaniago (Adansi) Prospect, Afiefiso Prospect and 513 Prospect) or 0.5 g/t Au (Fromenda Prospect) cut off at the beginning and the end of the intercept and allowing for no more than three consecutive metres of less than 0.1 g/t Au (Kaniago (Adansi) Prospect, Afiefiso Prospect and 513 Prospect) or 0.5 g/t Au (Fromenda Prospect) internal dilution. True widths are estimated at from 60% to 70% of the stated core length.

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 20, 2011.

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.

To view Nkran Open Pit Mine, Proposed Plant Layout, and Figures 1 and 2, please click on the following link: http://media3.marketwire.com/docs/PMV0828.pdf

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