SALE OF KUBI PROJECT

Nevsun Resources Ltd., (NSU-TSX/AMEX) (�Nevsun�) is pleased to announce the sale of the Kubi property in Ghana to PMI Gold Corporation (PMV-TSX-V) (�PMI�). The Kubi transaction involves the sale of Nevsun Resources (Ghana) Ltd. (�Nevsun Ghana�), a wholly owned subsidiary of Nevsun. The Kubi property hosts a former open pit operation that was mined by AngloGold Ashanti during the period between 1999 and 2006 whereby Nevsun received royalty payments from Ashanti until early 2006.

In consideration of the purchase of Nevsun Ghana, PMI has agreed to issue to Nevsun nine (9) million PMI common shares and, on or before 6 months after closing of the transaction, will pay to Nevsun a further US$3 million. The second installment is payable in cash or in PMI shares, or a combination of both cash and shares at the option of PMI, so long as Nevsun�s shareholdings do not exceed 20% of the outstanding shares of PMI.

Following the close of the first step of this transaction, Nevsun will become a significant shareholder of PMI, holding approximately 12% of PMI, and as part of the transaction has the right to appoint a nominee as a director of PMI.

Nevsun is pleased to maintain an interest and value in Kubi through PMI which has successfully built up its Ghana exploration portfolio over the past few years, including three former gold producing properties in addition to the Kubi property. The transaction has received preliminary regulatory approval, however, is subject to normal closing terms.