News Release # 07-05

January 31, 2007, Vancouver BC - PMI Gold Corporation (TSX/V:PMV) - Douglas MacQuarrie, President, announces that it has reached agreement with Goknet Mining Company Limited of Accra, Ghana to explore their recently acquired 101 square kilometre Bankame reconnaissance license.

The license adjoins to the north of our Ofoase concession, and is located on the Ashanti Gold Belt 20 kilometres northwest of Newmont's 8.5 million ounce Akyem gold project; 50 kilometres northeast of Anglo Gold Ashanti's 55 million ounce Obuasi Mine; 10 km south of the 1.2 million ounce Konongo Mine; and shares its western boundary with AMI Resources Praso concession.

Bankame is primarily underlain by granite of the Banso batholith, with minor Birimian and Tarkwaiian series meta-sedimentary rocks located around its western margin. The Banso granite has an anomalously high radiometric potassium signature and based on the contact metasomatism noted in the surrounding meta-sediments is interpreted to be post Tarkwaiian in age. The batholith is bisected by a late stage, north south trending dolerite dyke and northwest -- southeast trending faults.

Previous regional work conducted by the Ghana Geological Survey has noted a few gold anomalies in silt samples from streams draining the Bankame area. PMI Gold will commence exploration by completing regional silt sampling for gold and other anomalous minerals. In the past granitic terranes were purposely not explored for gold, however with Newmont's major success in the granites at their new Ahafo mine (10.6 million ounces) structurally prepared granitic terranes are now known to have significant potential.

PMI can earn up to an 80% direct interest in the concession from Goknet by undertaking all exploration, keeping the concession in good standing, making payments of US$5,000 per year and reserving a 2%NSR royalty on behalf of Goknet.

Ghana is Africa's second largest gold producer and has recently attracted US$1.5 billion in committed foreign investment due to its long mining history, prospective resource base, reasonable taxation and stable government. PMI Gold's properties now include the former Nkran, Adubiaso and Abore mines, which collectively produced 730,000 ounces of gold prior to their closing in 2003. The concessions cover 657 square kilometres on two of Ghana's major gold belts.

On behalf of the Board,

"Douglas R. MacQuarrie"

Douglas R. MacQuarrie
President & CEO

For further information please contact:

Douglas R. MacQuarrie, President & CEO
Malcolm Ashford, Vice President, Corporate Communications [mobile 604. 765-4775]
Telephone: 1 (604) 682-8089 Toll-Free: 1 (888) 682-8089 Facsimile: 1 (604) 682-8094
Or visit the PMI Gold Corporation website at www.pmigoldcorp.com
or in German: http://pmi.goldseiten.de

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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.