PMI Gold Corporation

PMI Gold Corporation

May 29, 2006 13:41 ET

PMI Gold Corporation: Name Change-Warrant Extension-Drill Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 29, 2006) - PMI Gold Corporation (PMI) (TSX VENTURE:PMV)(Frankfurt/Berlin:WKN888063) (formerly PMI Ventures Ltd.) announces that effective May 23, 2006 the name of the Company was changed to "PMI GOLD CORPORATION", in order to better reflect its business. The common shares of the Company were called for trading on the TSX Venture Exchange in the new name but under the same symbol "PMV". Registered shareholders will shortly receive a letter of transmittal from Computershare Trust Company of Canada should they decide to exchange their present certificate(s) for certificate(s) in the new name.

In addition, PMI announces the extension by one year of the term of the 1,237,500 warrants issued on June 22, 2005, from June 22, 2006 to June 22, 2007 at the same exercise price of $0.35.

Drilling is currently in progress on the Ashanti II Gold Project in Ghana. Eight diamond drill holes totalling 1,575 metres, of a planned 5,000 metres program, have been completed, with logging, sampling and assaying underway. Three holes were completed on the Ofoase concession to test for down dip extensions to the gold mineralization noted in trenching. Five holes were completed on the Switchback North concession testing a 800 metres wide by 2,000 metres long gold in soil geochemical anomaly and outlined IP (induced polarization) anomalies.

The drill has now been moved to the Agyaka Manso concession, the southern most of the eight concessions which comprise the Ashanti II Gold Project, to test under galamsey workings in the Appiahkrom showing area where several hundred galamsey have been working a series of narrow quartz reefs carrying strong gold mineralization. Recent IP surveys have also outlined three new drill targets in the Donkokrom area six kilometres to the northeast of Appiahkrom - also in an area of extensive galamsey workings.

The drill will then be moved to the Old Kukunapi Mine area on the Gemap concession, where detail IP surveys on 100 metre line spacing have outlined eight significant targets. Previous drilling of northeast trending (D2) structures in this area has yielded near surface intersections to 16 g/t gold over 4 metres.

The current program will concentrate on drilling strong IP anomalies localized at the intersection of major eastwest trending (D4/D5) and the northeasterly D2 structures; at favourable lithological contacts between granitoids and metasediments; and where locally coincident with strong gold and multielement ICP soil geochemical anomalies.

The technical aspects of this work program are under the direction of Douglas R. MacQuarrie, P.Geo. (B.C).

About PMI Gold

PMI has a net 86% interest in the 382 square kilometre Ashanti II gold project concessions as well as a net 80% interest in the 84 square kilometre Ofoase gold concession, both located in southwest Ghana in one of the world's major gold mining areas. Several of the world's largest gold mining companies are currently investing over US$1.5 billion in new mining projects in Ghana. Since early 2003, PMI has expended over US$5.0 million consolidating and exploring these concessions.

On behalf of the Board,

Pearce M. Bowman, Executive Chairman

This news release contains forward-looking statements which involve known and unknown risks, delays and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectations implied by these forward-looking statements.

Issued & Outstanding: 50,864,153

Fully Diluted: 75,566,725

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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