DGAP-Adhoc: Pearl Gold AG: Current company situation Pearl

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 Euro. 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 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. 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 Stra�e 28 60311 Frankfurt Germany 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 ---------------------------------------------------------------------------