Name and Location
Obotan gold project, Ghana.

Client
PMI Gold Corporation through its wholly owned subsidiary Adansi Gold Company.

Project Description
A feasibility study completed on the Obotan project has confirmed the financially and technically robust mining operation.

The project has proven and probable reserves of 34.2-million tons at 2.21 g/t for 2.43-million ounces of gold.

The feasibility study envisions the development of an openpit mining operation, with a life-of-mine production of 2.26-million ounces of recovered gold over an initial 11.5-year production life.

Value
Preproduction capital is estimated at $296.6-million.

Duration
Construction is expected to start in the first quarter of 2013 to achieve first gold production in 2014. This is conditional on obtaining all statutory approvals, board approval and the finalisation of financing arrangements.

Latest Developments
The Obotan mining leases have been approved by the Minister of Lands and Natural Resources of Ghana.

The environmental permit application process has progressed well, with discussions regarding permit conditions currently at an advanced stage.

Permit approval has been received for the dewatering of the Obotan openpits. Detailed design and quotation for the pit dewatering system is under way to ensure the mining prestrip operations proceed unhindered.

The semiautogenous and ball mills, which were the most significant long-lead items, with a minimum delivery time of 12 months, have been bought.

A further geotechnical programme has been completed, which has confirmed the suitability of the plant and tailings dam sites.

Detailed earthworks, drainage and foundation design, plant layout and process flow sheets have started.

Negotiations are advancing on the supply of 161 Kv grid power to the Obotan site.

Negotiations with shortlisted project construction engineering contractors prior to the award of Obotan construction contracts have been finalised.

Negotiations have also been finalised with shortlisted mining contractors prior to the award of the Obotan mining contract.

The refurbishment of the Obotan camp to enable rapid mobilisation to site following a development decision has started.

Key experienced personnel have started on the next stage of the project development and construction.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
PMI Corporation, tel +61 8 6188 7900 or fax +61 8 9321 8881.