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Pearl Gold AG: Production at Kodieran Gold Mine to start this year

DGAP-News: Pearl Gold AG / Key word(s): Miscellaneous
Pearl Gold AG: Production at Kodieran Gold Mine to start this year

31.10.2011 / 08:00

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  - Production start of Pearl Gold´s first investment, Wassoul´Or S.A. in
    Mali

  - All machinery on site to ramp-up production soon

  - Proven reserves of at least 1,75 million ounces at Kodieran

  - Pearl Gold AG signs shareholder agreement with Malian State and
    majority shareholder of Wassoul´Or S.A.

  - Preparations for upgrade of Pearl Gold to General Standard (Frankfurt)
    right on track

Frankfurt, 31 October 2011 - Pearl Gold AG (02P:GR) still confirms the
production start at Kodieran gold mine in Mali this year. The Frankfurt
based holding company holds a 25% stake in Wassoul´Or S.A. which operates
the gold mine. Due to a delayed delivery of essential spare parts, the
originally predicted production start has been postponed by two months.
Robert F. Goninon, chairman of Pearl Gold´s supervisory board, who is on
site at the mine reports: ´To date, all delivery problems are solved. The
mining fleet for the start of production has been mobilised to site and the
pilot phase has been successfully completed. Commercial production in Mali
should still be underway before the end of the year. The team on site is
currently installing all the cables for the over 110 different components
already installed on site.  Apart from that, negotiations with potential
purchasers of the semi-refined gold are well advanced.´

The Kodieran gold mine is one of five potential mine sites in its
concession and is designed as an open pit mine, that allows low-cost and
environmentally sustainable production. The mine has a daily production
capacity of 11.000 tons raw material which will lead to an output of around
630 ounces of gold per day. Pearl Gold is considering a doubling of the
production capacity in at least two years is realistic. The gold deposit in
Kodieran is expected to contain at least 1,75 million ounces of recoverable
gold. It will be produced over the next six years, with realistic potential
for mine life extension. The operations are managed by an experienced team
consisting of Aliou Diallo (Chairman of Wassoul´Or), Dramane Traore
(Project Manager of the plant), Sekou Oumar Tidiani Kane (Mine
Manager/Geologist & Metallurgist) and Boubacar Habib Coulibaly (HSSE
Manager/environmental impacts assessment) that are joined within the
Technical Oversight Committee by the chairman of Pearl Gold, Robert F.
Goninon and Mr. V. George Bennett.

Wassoul´Or S.A. is the first investment of Pearl Gold. The German holding
is listed in the Open Market of the Frankfurt Stock Exchange and has
recently initiated measures for an upgrade to its Regulated Market segment
(General Standard). Jean Louis Dupuy, CEO of Pearl Gold, explains: ´The
preparations are progressing very well. We are glad to have gained BankM as
the designated sponsor for our stock and are currently developing the
required prospectus to transfer to the General Standard. The commencement
of gold production of our first investment in Mali will reinforce this
important step.´

Pearl Gold AG has formally signed the shareholder agreement binding it to
the Malian state and SODINAF, the majority shareholder of Wassoul´Or. This
agreement will secure Pearl Gold´s´ interests as it gives Pearl Gold a veto
right for important decisions, such as capital increases and sale of
businesses. Finally it grants Pearl Gold two seats in the non-executive
board of Wassoul´Or. These are currently held by the chairman of the
supervisory Board, Mr. Robert Goninon and the chairman of the management
board, Mr. Jean-Louis Dupuy.

Pearl Gold AG

Pearl Gold AG is a holding company listed on the Open Market of the German
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 noble 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 Inquiries:

MSL Financial
Steffi Fahjen
Email: [e-mail]
Tel: [phone] 8394

End of Corporate News

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31.10.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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144049 31.10.2011