DGAP-Adhoc: Pearl Gold AG: Current company situation

Pearl Gold AG / Key word(s): Miscellaneous

11.10.2013 15:54

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

- Encouraging findings from new geological analysis

- Temporary shut-down of production facilities to enable remodelling and
to strengthen cash flow

Frankfurt, 11. October 2013. Pearl Gold (ISIN: DE000A0AFGF3). The
restructuring process of Wassoul'Or SA, announced in the ad hoc release
from August 23rd 2013 is gaining pace. Due to existing doubts about the
current geological model, Wassoul'Or engaged South African geological
specialists to re-evaluate the Kodieran mine. The findings gathered so far
indicate that the style of mineralization is similar to that of other
significant gold mines in Mali: a succession of highly mineralised veins
separated by sterile meta-sediments. However, establishing a new robust
geological model requires a further drilling campaign. To prepare for this
and to conserve funds, Wassoul'Or has decided to place its treatment plant
temporarily on a care-and-maintenance basis. Meanwhile,
Wassoul'Or continues its discussions with both financial advisers and
external operators.

Careful analysis of previous drilling records has revealed evidence of good
grades at depth in the locations drilled at that time. Combined with the
recent surface field work done by said specialists this begins to provide
evidence of a robust geological model. However, upgrading this developing
model to one which is compliant with international protocols (JORC, CIM)
will require a drilling campaign to provide infill information for areas
not sufficiently covered in earlier drilling, as well as drill-holes to
validate the mineralised zones observed to be present in previous
campaigns.

In order to facilitate the forthcoming drilling activity as well as to
reduce the cash outflow, the production at the Koderian mine will be shut
down for an initial period of 6 months. The opportunity to carry out
whatever modifications are necessary to the plant to cater for what is
likely to be enriched material will also be taken. Pearl Gold approves this
step.

Wassoul'Or's consultations with financial advisors continue, in order for
the forthcoming activities to be adequately funded. All measures mentioned
herein will be managed by an autonomous professional team engaged by
Wassoul'Or. Decisions on the composition of this team are well advanced,
and it will commence its activities as soon as funding for the next steps
is secured. Pearl Gold strongly supports this course of action, and will be
actively monitoring the performance of this team.

Ultimately the intention as far as mining/milling activities are concerned
is to engage an external operator or operators. Expressions of interest
will be sought by the project management team as details of mine planning
and pit design develop. Pearl Gold supports this course of action as well,
and expects to provide input at the time a decision on operator(s) is made.

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
Bockenheimer Landstraße 17/19
60325 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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