Breakthrough Reached in Right-of-Way Negotiations for XYZ Gold Mine Site, PAIM Announces.

Pearl Asian Mining Industries Reports Landowner of Property Adjacent to XYZ Mine Site Agreeable to Allow Immediate Passage to Commence Geological Survey and More Detailed Sampling, Subject to Mutually Beneficial Terms; PAIM Provides Clarification on Issuance of Stock Dividends of PGMC to PAIM Common Shareholders as of Record Date of Feb. 18, 2007

MANILA, Philippines -- Pearl Asian Mining Industries, Inc. with stock symbols: U.S.A. (OTC: PAIM); GERMANY (GER: R1Z) (FWB: R1Z), reports that it has reached a breakthrough in its right-of-way negotiations with a landowner near the XYZ mine site. Executive President Randolf Villanueva reports: "We recently met with the landowner of an adjacent property, who has a pending small-scale mining permit. The discussions were directed towards reaching a mutually beneficial arrangement. The details of the arrangement will be disclosed at the most opportune time so as not to preempt nor jeopardize the talks." The immediate result of the positive discussions: both parties have agreed to schedule the conduct of a geological survey utilizing passage through the subject property, within the week, involving PAIM's team composed of Chief Mining Engineer Cesar Rosales, Field Geologist Bart Apuan Jr., Executive President Villanueva, and VP-PRO Ariel Caleon. With this development, PAIM is more confident of achieving one of its main targets: to get the very promising and potentially profitable XYZ Mine Project operational this year.

Meanwhile, because of the numerous queries from eager PAIM shareholders, Pearl Asian is again providing a clarification on the issuance of stock dividends of Philippines Royal Oil & Alternative Energy Co., Inc. (formerly PGMC, new stock symbol to be announced when available). For every 100 common shares of PAIM held as of record date of Feb. 18, 2007, shareholders will receive 1 share of PGMC/PHIL OIL. Ex-dividend date shall be announced once determined by NASD. For example, a shareholder who owns 1 million common shares of PAIM as of close of business day on Feb. 18, 2007, will receive a dividend equivalent to 10,000 common shares of PGMC/PHIL OIL (Restricted, subject to Rule 144 - 1 year holding); based on the following calculation: 1,000,000/100 = 10,000 common shares of PGMC/PHIL OIL. It is important to note that the PGMC stock dividends issued are already post-forward split. It is also worth noting that only Common Shares held as of record date of Feb. 18, 2007 are entitled to the stock dividend of PGMC/PHIL OIL, which means shareholders who exclusively own Preferred Shares and/or Convertible Debentures only are NOT entitled to the stock dividend. Pearl Asian shall furnish in future PRs the mechanics of the stock dividend issuance and the procedure shareholders need to follow to claim their stock dividends.

Forward-Looking 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.