SOURCE: Pearl Asian Mining Industries Inc.

April 05, 2005 08:00 ET

Operation Gold Finger -- Pearl Asian Mining Industries, Inc. Announces Business Strategy of Its XYZ - Baleno Gold Project

MANILA, PASIG CITY, PHILIPPINES -- (MARKET WIRE) -- April 5, 2005 -- Pearl Asian Mining Industries, Inc. (OTC: PRLGF) announces the progress of its "Operation Gold Finger."

The project business plan for the XYZ Baleno Gold Project, as submitted by the Lead Team, Sr. VP/C.O.O. & Chief Geologist, Peter C. Caleon and Exec.V.P. & Chief Field Gold Mining Officer, Eng. Nick Pastoriza, entails the application of a 20-hectare Small-scale Mining Claim to fast track approval of the property and associated permitting necessary for the operations of a small-scale mine (mining and processing). Fast-tracking would allow approval only at the regional level (Region V) rather than at the national level, which takes approximately two years from full completion of the exploration phase to the construction and development stage.

There are three (3) phases involved in the development of the project as follows: (a) Pre-Development Phase; (b) Development and Construction Phase; and (c) Commissioning and Full Production Phase. Each phase of project development entails the following activities:

PHASE I: Pre-Development - December 2004 to June 2005

The geological evaluation, site investigation and resource estimate, the metallurgical investigation and laboratory test works, the discussion / verification on project permitting requirements with MGB & EMB Region V, Regional Office, and the filing of an application for perfection of small scale mining claim (20 hectares) and necessary permitting have all been completed. The following actions are currently in progress and are on schedule for completion: Environmental Study; Socio-Economic and Community Baseline Study; Feasibility Study; Detailed Engineering Study and Design; sourcing and procurement of mine and process equipment, including a generator set and mobile vehicles; and access road surveys and plans.

PHASE II: Construction & Development - March to July 2005

The Gold Team continues to accept contract tenders / bids on the access road, building structures, and plant and tailings dam. This will include the mobilization of equipment and the establishment of a temporary camp by contractor. The construction of an access road of approximately 3.5 km from Bgy. Mapina junction towards the XYZ Mine Site is scheduled to start in early April, 2005. The Gold Team will also construct building facilities (such as a staffhouse, offices, power house, warehouse and change house). The rehabilitation and development of old tunnels will be a part of this phase. As soon as the road is constructed, the delivery of mine and process equipment, including a generator set and mobile vehicles, will immediately follow. PRLGF will construct base foundations for process equipment and the power generating set. Installation of generator and electrical power distribution lines, construction of tailings impoundment facility, construction plant and installation of processing equipment. Last but not least PRLGF will begin the hiring of more mine workers to work on the plant and dam site for clearing and grubbing.

PHASE III. Commissioning and Production - August, 2005

During this period, the commissioning at start-up capacity of 30 tpd (tonnes per day) - Estimated Full Production at 50 - 100 tpd - capacity is envisioned. The first gold bullion pour is targeted on the 4th week of August, 2005, and the first gold bullion shipment is targeted on the 2nd week of September, 2005.

The overlapping of schedule (pre-development & development) is mainly due to the allowable timeframe considered for the approval of various permits. Please note that this is just a draft of the business plan. Associated cost estimates will follow.

Forward-Looking Statements:

This news release may contain forward-looking statements concerning the Company's business and future prospects and other similar statements that do not concern matters of historical fact. Forward-looking statements are based on the Company's current expectations. There are numerous factors that could cause results to differ and the Company's current expectations are subject to all of the uncertainties and risks customarily associated with developing business ventures. The Company's actual results may differ materially from current expectations. Readers are cautioned not to put undue reliance on forward-looking statements contained in this release. The Company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or for any other reason.

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