1,074,000,000 (One Billion and Seventy-Four Million) PAIM Common Shares Requested To Be Cancelled, Pearl Asian Mining Reports.

MANILA, Philippines -- Pearl Asian Mining Industries, Inc., with Stock Symbols: U.S.A. (OTC:PAIM)(OTC:PAIMP); Germany (GER:R1Z) and (FWB:R1Z), reports that on March 1, 2007, Pearl Asian Mining requested the cancellation of one billion and seventy-four million (1,074,000,000) of PAIM common shares from an Investor/Buyer for apparent non-compliance with the agreed terms, i.e. the said Investor/Buyer reportedly paid only 1/16th of the agreed amount that should have been paid to the seller. Despite this and even after PAIM duly notified them of such cancellation, the said Investor/Buyer managed to sell PAIM common stocks that they did not own, resulting in a short position in PAIM common shares. This is supported by the fact that PAIM has been reported to have considerable short interest in the OTC Equity Short Interest report for the past several months.

Pearl Asian Mining was informed that in December 2006, a PAIM shareholder, as seller, entered into a stock sale agreement with an investor/buyer. Having allegedly failed to remit the total agreed consideration, the seller reported the incident to both Pearl Asian Mining and its transfer agent. Meanwhile, said Investor reportedly continued to sell off the shares that it did not have. This resulted in a substantial short position in PAIM shares, which apparently caused the recent gradual yet continued fall in the price per share from December 2006 up to a few days ago.

CEO Jason Piamonte states "To protect the identities of the parties concerned, PAIM cannot divulge any names while we continue to ascertain the facts. We continue to consult with our US lawyer specializing in SEC matters that we recently engaged to handle PAIM's listing in a higher exchange. We are closely coordinating with our lawyer in considering all possible options to arrive at a resolution beneficial to all PAIM shareholders."

FORWARD STATEMENTS;

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this release include statements regarding the Company's projections regarding gold production in future periods. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to estimates of reserves, mineral deposits and production costs; mining and development risks; the risk of commodity price fluctuations; political and regulatory risks; risks of obtaining required operating permits and other risks and uncertainties. Penny Stocks are very highly speculative and may be unsuitable for all but very aggressive investors. 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.