PMI Ventures Ltd. (the "Company") [TSX Venture: PMV], is pleased to announce that it has entered into an option agreement with Goknet Mining Company Ltd. of Accra, Ghana, ("Goknet") to acquire an interest in the 84 square kilometre OFOASE concession located on the Ashanti Gold Belt, 20 kilometres due west of Newmont's 7 million ounce Akyem gold project, and 45 kilometres northeast of Anglo Ashanti's 30 million ounce Obuasi Mine.

The concession is primarily underlain by: Tarkwaiian meta-sedimentary rocks including quartz pebble "Banket" type conglomerates, quartz (tourmaline, ilmenite, pyrite) sandstones and siltstones; Birimian meta-volcanics; and granite -- on the southern margin of the Banso batholith.

Previous regional work conducted by the Ghana Geological Survey outlined gold anomalies in silt samples from streams draining the concession area. In 1999, a further 33 stream sediment samples were taken. Fire assay results on the 2kg samples were reported to range from 0.019 to 16.074 g/t Au, with 20 samples assaying greater than 1.0 g/t Au.

Recent work completed on behalf of Goknet has outlined two sub-parallel gold in soil geochemical anomalies, each with indicated strike lengths of up to 2,500 metres. The program consisted of 516 line kilometres of helicopter borne high resolution DIGHEM V EM/Magnetometer surveys over the entire concession, and in the vicinity of the 16 g/t silt sample - 1242 soil samples, two lines of IP/Resistivity surveys, and geological mapping were completed.

The "Banket 1" soil anomaly is co-incident with: outcrops of quartz pebble conglomerate; an iron rich ferricrete capped ridge - topographic high; and sub-parallels a distinctive airborne resistivity contact feature. Multiple artisanal adits and shafts are located along this ridge. The Banket 1 trend is defined by gold in soil anomalies ranging from 25 ppb Au to 350 ppb Au, and the second, Banket 2, located some 550m to the southeast, with anomalous gold in soil values to 260 ppb.

The Company has the option to acquire a 60% interest in the concession from Goknet, by paying the underlying vendor US$4,000 per quarter; paying Goknet US$10,000 per year and, if then warranted, completing a feasibility study within five years. The Company has the additional option to increase its interest to 70% by financing Goknet's share of the capital expenditures to build a mine or to 80% by purchasing all of Goknet's interest for US$1 million plus a 2% Net Smelter Return interest.

The addition of the large tonnage potential 'banket gold' type OFOASE concession complements PMI's existing Ashanti II Gold Project -- 382 square kilometres/eight concessions covering extensive galamsey workings, drill intersections grading to 23 metres/5.7 g/t Au and most recently, identification of many first class geophysical (IP) defined drill targets.

This news release is based on published and other third party data provided to the Company. The information is from generally reliable sources however the Company has not confirmed the accuracy or completeness thereof. Douglas R. MacQuarrie, President, P.Geo., a qualified person under National Instrument 43-101 prepared this news release. This acquisition was approved by the Company's Technical Review Committee, and Mr. MacQuarrie, an original shareholder and a founder of Goknet, abstained from voting. Further maps and diagrams which complement the above disclosure will be available in due course on the Companies web site.

On behalf of the Board,

"Pearce Bowman"

Pearce Bowman
Executive Chairman

For more information please contact:
Douglas R. MacQuarrie, President
Telephone:(604)682-8089   Toll-Free:(888)682-8089   Facsimile:(604)682-8094
Or visit the PMI Ventures Ltd. website at www.pmiventures.com

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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.

Ofoase Ashanti II Gold Projects, S.W. Ghana

Ofoase Option - Banket Hill Area - Gold in Soils (ppb gold)