PEARL Gold AG

Earnings Release • Jun 29, 2012

News Details

Corporate | 29 June 2012 11:04

Pearl Gold AG: Gold plant progress and new drilling completed

Pearl Gold AG / Key word(s): Miscellaneous

29.06.2012 / 11:04

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Pearl Gold AG: Gold plant progress and new drilling completed

Frankfurt, 29 June 2012 – Pearl Gold AG (02:GR) reports that Wassoul'Or S.A., in which Pearl Gold holds a 25 percent stake, has taken active steps to manage the effects of the political disruptions in Mali. Despite the political situation, the company is making further progress with its operations in the south of Mali.

The testing program at Wassoul'Or's potential gold mining site at Traorela has been successfully completed. Within the last two months, 389 RC holes have been drilled, totalling 8893 meters. The holes have been sampled at one meter intervals and sample preparation is now underway prior to testing at an independent laboratory for gold analysis. The first concrete and significant compilation of results of this program are expected in October.

As a consequence of the temporary absence of international suppliers and operators, who had left the country in the face of the political uncertainties in Mali, the commissioning process at Wassoul'Or's operating gold mine in Kodieran had slowed down. The plant's full capacity of 11,000 tons raw material per day has not yet been reached. Although Pearl Gold and Wassoul'Or have facilitated the return of several international elements, the situation in Mali did not allow for all international specialists to return. In order to reduce dependence on the full return of all international teams and to advance commissioning towards nameplate capacity, Wassoul'Or has recently directly engaged international experts. Lutz Hartmann, member of the management board of Pearl Gold: 'We are confident that with these international experts the plant will soon reach its full efficiency. They are now proving instrumental in the successful operation of each part of the production process in the drive to attain overall nameplate capacity. The plant is currently processing 5,000 tons of raw material per day and is constantly increasing its daily production output.'

Within the next weeks, the successfully-run individual plant elements, particularly in the gold-room, will be run as part of a continuous flow-sheet process. This aims at an optimum recovery of the gold contained within the useful backlog of partially processed feed-stock generated during the individual tests of the production elements. Processing of this backlog will enable Wassoul'Or to provide production statistics, albeit initially from trial tonnages. The management is expecting to make the first such announcement before the end of July and to continue announcements on a regular basis thereafter.

Pearl Gold AG

Pearl Gold AG is a holding company listed on the Open Market of the Frankfurt Stock Exchange, based in Frankfurt. The company focuses on investments in West African exploration and mining corporations, especially in the field of gold and other precious metals. The first investment of Pearl Gold is the Malian mining company Wassoul'Or, in which Pearl Gold holds 25% of shares. Wassoul'Or concentrates on the exploration and production of gold and runs the Kodieran gold mine in the South of Mali.

For further information visit http://www.pearlgoldag.com

For Inquiries:

MSL Financial

Steffi Fahjen

Email: steffi.fahjen@mslgroup.com

Tel: +49 (0) 69 6612456 8394

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain information included in this news release constitutes 'forward-looking statements'. The words 'expect', 'plan', 'will', 'intend', 'estimate' and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Pearl Gold AG cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. These risks, uncertainties and other factors include, but are not limited to, risks associated with the mining industry such as government regulation, environmental and reclamation risks, title disputes or claims, success of mining activities, future commodity prices, costs of production, possible variation in mineral reserves, mineral resources, grade or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes, the timing of estimated future production, capital expenditures, financial market fluctuations, requirements for additional capital, conclusions of economic evaluations, limitations on insurance coverage, risks associated with using third-party contractors and inflation. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

End of Corporate News

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175943  29.06.2012