DGAP-Adhoc: Pearl Gold AG: Current company situation

| Source: EQS Group AG
Pearl Gold AG  / Key word(s): Miscellaneous

09.04.2014 18:13

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.


Current company situation

  - Pending approval of Wassoul'Or's accounts, the publication of Pearl
    Gold's annual report has been delayed

  - Major write-downs of Pearl Gold's stake in Wassoul'Or and of its gold
    delivery rights

  - Pearl Gold and Wassoul'Or agree upon the need for fresh money and the
    restructuring of the Koderian mine

Frankfurt, 09 April 2014. Pearl Gold (ISIN: DEOOOAOAFGF3). The publication
of Pearl Gold's annual report and accounts for 2013 will be delayed as the
accounts of its main participation, Wassoul'Or S.A., have yet to be
approved. So as to fully satisfy the information needs of its own
shareholders, and as has been the case in previous years, Pearl Gold's
auditors will incorporate examination of parts of Wassoul'Or's business
into their audit. Management expects the completion and approval of the
accounts in the coming weeks.

In order to secure its liquidity needs for at least the coming twenty-four
months, Pearl Gold has sold a small part of its gold delivery rights
(against Wassoul'Or) to a third party. The price achieved for the 2,000
ounces sold was 300 Euro per ounce. This will necessitate a write-down of
Pearl Gold's remaining delivery rights (for 44,200 ounces), which were
previously valued at 1,262 Euro per ounce. Furthermore, due to operational
issues at the Koderian mine, Pearl Gold feels it would be prudent to write
down the value of its 25 percent stake in Wassoul'Or. Pending the auditor's
assessment, the current book value of 140m Euro is expected to be
substantially reduced. Both write-downs combined are likely to exceed 100m

While production at the Koderian mine is still on hold, a geological
consultancy group, which inspected the mine during the second half of 2013,
concluded its final report. As announced earlier, the findings, based upon
re-examination of historical drilling campaigns, and surface trenching,
logging and analyses confirm the existence of high-grade veins within a
structurally complex environment, suggestive of a gold inventory not
dissimilar to earlier stated indicated resource totals. In order to
establish the robustness of the new geological model, however, a further
drilling campaign will be required to (a) validate the results from earlier
campaigns, (b) infill gaps in the developing three-dimensional model, and
(c) establish sterilization zones for the dumping of expected barren
material generated by a proposed new selective mining phase.

Managements of both Wassoul'Or and Pearl Gold agree that new funding is
required in order to resume production on a significantly improved basis.
Wassoul'Or as well as Pearl Gold are currently in discussion with third
parties about the terms of funding and conceivable operational measures.
Hopefully by the time of implementation political tensions in Mali will
have ceased so that the deployment of specialist engineers from abroad will
pose no more problem.

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
Tel: +49 (0) 69 6612456 8327

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.

09.04.2014 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

Language:     English
Company:      Pearl Gold AG
              Neue Mainzer Straße 28
              60311 Frankfurt
Phone:        +49 (0) 69 971097 555
Fax:          +49 (0) 69 971097 202
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