SOURCE: Pearl Asian Mining Industries Inc.

May 04, 2005 08:00 ET

"Operation Gold Finger" XYZ Gold Project Phase 2 Is Now Underway!

METRO MANILA, PASIG CITY, PHILIPPINES -- (MARKET WIRE) -- May 4, 2005 -- Pearl Asian Mining Industries, Inc. (OTC: PRLGF) announces the progress of its Operation Gold Finger as its Phase 2 continues underway.

Phase 2: The Construction & Development Stages May to July 2005

The XYZ Baleno Gold Project - "Operation Gold Finger" construction of road is underway towards the 20 hectares of PRLGF's Small-Scale Mining Claim. The project team led by the President/CEO Eng. Peter C. Caleon and Sr. V.P. & Chief Mining Operating Officer, Eng. Nick Pastoriza, both of whom are very experienced mining professionals with a depth of first hand knowledge of the Philippine Mining Industry and government regulations. The construction of the approximately 4.5 kms access road will permit the Gold Team to access the XYZ Mine Site so that the necessary operations of a small-scale mine (mining and processing) will commence within the next 60 days.

The Gold Team will also construct a building facility (such as a Staff House, 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 & process equipments plus generator set and mobile vehicles will immediately follow. PRLGF will construct base foundations for process equipments and power generating set, installation of generator and electrical power distribution lines, construction of a Tailings Impoundment Facility and construction of plant & installation of processing equipments. Initially, PRLGF will begin the hiring of more mine workers to assist during the construction phase -- particularly on-site preparation, clearing and grubbing of the mine and tailings dam area. During the progress of road construction, it is also the PRLGF's intention to re-forest the side pathways with trees such as mahogany, gmelina, etc. Once construction nears completion, deployment of the core project team will be put in place, and this is anticipated by the end of August 2005. Simultaneously, Pearl Asian will be working on the design of the new schoolhouse to rebuild the community's learning center as well as set up the proper water supply systems.

May, June, and July will see the transition of a once neglected mine site into an operational and productive site, bringing employment to the local community and heralding in a new era of mining industry to the Philippines. It is anticipated that after the completion of this Phase 2, gold will once again be produced during the 3Q (third quarter) of 2005.

The "Operation Gold Finger" - XYZ Baleno Gold Project is planned as a minimum-risk, cost-effective enterprise and will serve as a model for further projects planned by Pearl Asian Mining (PRLGF) in the near future!

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. This Forward-Looking Statement is 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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