DGAP-Adhoc: Pearl Gold AG: Current company situation

Pearl Gold AG / Key word(s): Miscellaneous

23.08.2013 15:56

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Current company situation

- Financing for optimization necessary

- Appointment of an operator planned

Frankfurt, 23.08.2013. Pearl Gold AG(ISIN:DE000A0AFGF3). Despite the
positive improvement in the selection of ore in July - the gold grade of
treated ore was nearly four times that of the previous month - the results
of production continue to remain unsatisfactory.

For this reason, Wassoul'Or SA has consulted geology specialists
recommended by the consulting companies that have been advising the company
since March. Initial inspections have shown that the current geological
model is misleading and suggests that an alternative selective extraction
method could improve production efficiency and move the mine towards
realisation of its full potential.

Due to the fact that Wassoul'Or's liquidity does not cover the costs
necessary for the execution of the intensive sampling program required to
validate the amended geological model and other investments necessary to
achieve the production goals, the company has consulted financial advisors
to discuss different financing possibilities.

Notwithstanding the redevelopment of the extraction processes and those
improvement measures which have already been initiated and are currently
running, Wassoul'Or has made a proposal to its shareholders to hand over
the management of the mine to an external operator. Pearl Gold welcomes
this decision which corresponds to the original concept. However, the
military turmoil in Mali at the beginning of last year at a crucial stage
in the mine's development led the Canadian operator to withdraw their
personnel and this has had a negative influence on the productivity of the
mine up to today. Talks have already been initiated with several firms and
a decision is expected within three months.

Pearl Gold AG

Pearl Gold AG is a project developer and active investor listed in the
General Standard 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 has a stake of 25 per cent. Wassoul'Or concentrates on
the exploration and production of gold and runs the Kodiéran gold mine in
the South of Mali. For further information as well as the securities
prospectus visit http://www.pearlgoldag.com

For Inquiries:

MSL Financial
Press@pearlgoldag.com
Tel: +49 (0) 69 6612456 8327

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.

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Language: English
Company: Pearl Gold AG
An der Welle 4
60322 Frankfurt
Germany
Phone: +49 (0) 69 7593 8587
Fax: +49 (0) 69 7593 8200
E-mail: info@pearlgoldag.com
Internet: www.pearlgoldag.com
ISIN: DE000A0AFGF3
WKN: A0AFGF
Listed: Regulierter Markt in Frankfurt (General Standard)

End of Announcement DGAP News-Service

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