PEARL GOLD AG

Update on Pearl Gold's situation - Seite 2

Furthermore, the purpose of these lawsuits against Wassoul'Or is to obtain the necessary information for Pearl Gold AG's auditors. The President of Wassoul'Or has refused to deliver this information to our company for more than one year. This puts us in a very difficult situation with the German authorities and makes it impossible for us to obtain audited financial statements for the years 2013 and 2014. Pearl Gold will certainly be obliged to pay fines of up to EUR 50,000 if this situation persists.

Finally, we are also trying to take some protective measures with the personal assets of the President of Wassoul'Or SA as well as those of the numerous companies controlled by him as the financial flow between these companies and the President have in the past created an amalgamation of assets.

Our objectives are to safeguard as far as possible the very important claim that our company has against Wassoul'Or, its President and his personal holding company Sodinaf. We intend to put any funds that we recover at the disposal of Wassoul'Or in order to protect the assets of this company as well to prevent their misuse.

The boards of Pearl Gold AG have decided to take all measures at their disposal to prevent the current fraudulent and destructive activities of the President of Wassoul'Or.

In local radio interviews and paid newspaper articles, The President of Wassoul'Or states that our measures are "activities of predators". In our opinion, it is totally understandable, necessary and legal that a company, whose shareholders have invested over $ 140 million, is entitled to request justification on the manner in which these funds are being used, on the situation of the investment and on the plans of the current management to save the investment.

In order to inform our shareholders, our partners and the German and Malian authorities, we have put together some newspaper articles dealing with the various aspects of the Wassoul'Or case, which have been recently published in Mali, online on the Pearl Gold website. These articles and the information that we receive from Mali shows the complete incapacity of Wassoul'Or's management to meet the financial needs, legal obligations and industrial challenges that Wassoul'Or is facing today.