Pearl Asian Mining Industries, Inc. Reports on Quantity of Gold Produced, Status of Mine Site, and "Gift of Hope and Healing" by the Medical Mission Volunteers.

MANILA, Philippines -- Pearl Asian Mining Industries, Inc., with Stock SYMBOLS: U.S.A. (OTC:PAIM); GERMANY (GER:R1Z) (FWB:R1Z) provides a year-end 2006 update on its Philippine operations. Jason Piamonte, Chief Executive Officer, issues the following report.

A total of 84 grams of gold have been extracted from about 6 metric tons of ore processed at Project Cagayan de Oro (CDO) during the start-up and commissioning phase, excluding ore processed during the trial run, which has been reported previously. The Gold Team expects substantially higher production/capacity utilization rates and gold output once normal production run commences in 2007.

An area covering 5 hectares have been explored, out of the total 20 hectares of the Project CDO mining claim, and the Gold Team is evaluating several other adjacent gold mining claims for possible future development.

The recent typhoons, though not directly hitting CDO, have adversely affected operations by washing out ore stockpiles, covering the rich gold veins and damaging portions of the roads, but the Gold Team has done corrective actions to mitigate extent of damage, i.e., rehabilitation of stockpiles and roads affected.

Project CDO is now ready for full operations, as the mill plant is now fully secured with barbed wire fence and security detail composed of PAIM-employed internal security and security men from the Higaonon tribe manning the perimeter area. The Whispering Hope Healing Center/Clinic, Health Professionals' Living Quarters, Chapel, and the roads have all been completed, way ahead of the medical mission's "Gift of Healing and Hope" last December 14th-16th.

The Pearl Asian Medical Mission composed of committed hard working volunteers: Dr. Sean Wormuth, Sandra Hoskins-RN and Julieta Ludovico-RN, were flown in from the USA by Pearl Asian and initially given a tour of the mine site. They were ably assisted by local health professionals from Iligan City, Lanao Del Norte headed by Dr. Villarin, Head of the Minister of Health, 3 other local doctors, a local nurse, several other health workers and volunteers. The 3-day mission was done at the Whispering Hope Healing Center and then at Rogongon's LLG Foundation Health Center. A total of more than 550 indigent native Indigenous Filipinos were treated of their illnesses and ailments. Pearl Asian wishes to convey its heartfelt gratitude for the selfless efforts of all volunteers and all those who have assisted in making this successful medical mission a reality.

Pearl Asian is committed to improving the lives and welfare of its host communities through its Community Relations Division headed by Bro. Manny Tecson, President/COO of PAIM's Mindanao Gold Projects and shall continue its outreach programs in the years to come with the help of its valued and generous USA Investors.

Pearl Asian looks forward to continuing its gains on to 2007, under the leadership of Chairman/Founder e. Pearl Asian. A Special commendation to the members of the PAIM Gold Team: Jason Piamonte, Randy Villanueva, Manny Tecson, Arnel Morilla, Gary Gotanco, Rick Bernardo, Ariel Caleon, Maria Zonnik, Abby Dormitorio, Mabel Quinto, Elvis Hidalgo, Cesar Rosales, Jonathan Mercado, Regie Selvano, Mike Penalosa, Rochelle Laylay, Andy Cacho, George Carpio, Rene Bravo, Erwin Bravo, Dennis Bravo, Gilbert Jaca, Albert, Arthur, the PAIM Security Forces led by MsSgt. Edward Madrid and Commander Mario Guillermo together with the KAHIB Indigenous People led by Datu(Chieftain Junie) and the 100+ members of the Higaonon mine workers.

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.