Name: Obotan mine.

Location: The Obotan concessions are in the Amansie West district, of the Ashanti region of Ghana, about 250 km north-west of the capital Accra.

Controlling Company: PMI Gold Corporation.

Brief History: The Obotan project was previously operated by Resolute Mining and closed in 2002, after producing a total of 730 000 oz at an average grade of 2.2 g/t gold and an average gold price of about $350/oz. As a result of this past mining history, the project has been considerably derisked with respect to environ- mental and social permitting, metallurgy and process engineering and infrastructure development.

In June 2011, PMI Gold appointed international engineering and consulting groups to undertake a prefeasibility study (PFS) to reactivate a mining and processing operation at Obotan. The PFS was completed and released in January 2012 and the feasibility study in August that same year.

Brief Description: The Obotan mine is PMI Gold’s flagship operation and comprises four known deposits – the larger Nkran deposit, and the smaller satellite deposits at Abore, Adubiaso and Asuadai. The mine will initially be an openpit operation, providing a nominal rate of three-million tons a year during the process plant’s operating life of 10.2 years, following a one-year waste prestrip operation.

Mining Method: Openpit.

Products: Gold.

Major Infrastructure and Equipment: The Obotan carbon-in-leach (CIL) plant is designed to nominally crush and mill three-million tons a year of primary ore, with a maximum oxide plant capacity of about 3.8-million tonnes a year. The process includes single-stage jaw crushing, a semiautogenous and ball mill in closed circuit with hydrocyclones, pebble crusher, a gravity circuit and a single stage preleach and seven-stage CIL circuit. The process plant will be located proximal to the Nkran deposit, where 80% of the reserves are located.

The mine will include updated and refurbished administration buildings and permanent mine-village facilities, a new 30 km 161 KV power line and the rehabilitation and expansion of the existing borefield.

Geology/Mineralisation: The Obotan concessions are situated in the centre of the Kumasi basin, equidistant between the north-west flank of the Ashanti belt and the south-east flank of the Sefwi-Bibiani belt. The PMI concessions contain part of the Asankrangwa gold belt, a complex north-east-trending shear system, situated along the central axis of the Kumasi basin, bearing quartz reefs and granitic intrusives, within a zone that is about 15 km wide and that can be traced for a north-east–south-west distance of about 150 km.

Gold mineralisation in the area is hosted in Birimian metasediments and basin type granites and is associated with major north-east- striking, 5-m-wide to 40-m-wide fault zones. In particular, gold mineralisation is developed where the north-east fault zones intersect major east-northeast-striking fault zones and especially where they are recognised to have influenced granite emplacement, alteration and gold geochemical trends.

Reserves: Total proven and probable reserves as at August 25, 2012, were 34.2-million tonnes, grading 2.21 g/t gold for 2.43-million ounces of gold.

Resources: Total measured and indicated resources as at April 11, 2012, were 44.79-million tonnes, grading 2.16 g/t gold for 3.11-million ounces of gold. Inferred resources were 21.91-million tonnes, grading 1.99 g/t gold for 1.40-million ounces of gold.

Prospects: PMI Gold has started an early works programme on the Obotan project. The start of construction is targeted for the first half of 2013 to achieve first gold production in the second half of 2014.

Contact Person: MD and CEO, Collin Ellison.

Contact Details:
PMI Gold Corporation, tel +61 8 6188 7900, fax +61 8 9321 8881, website http://www.pmigoldcorp.com.