Pearl Asian Mining Industries Completed More Than 90% of the 90% Buy-Back of Common Shares.

MANILA, Philippines -- Received Its Second Small-Scale Mining Permit; Arrival of Gold Processing Plant from China; Develops Road and Other Infrastructure in Cagayan De Oro -- Binasan Gold Mine Site

Pearl Asian Mining Industries (OTC:PAIM) announced the completion of more than 90% of the 90% buy-back of all its common shares. The post-buy-back outstanding common shares are now less than 4,000,000,000. However, PAIM suspects that short interest could be greater than the number of shares outstanding based on the recent report of BuyIns.net. Furthermore, all Convertible Debentures and Preferred Shares are to be converted to Common Shares, only for its Beneficial Owners after they register the certificates in their names, both Objecting (OBO) and Non-Objecting (NOBO), and must be signed with a medallion signature guaranteed stamp. This properly endorsed original certificate must be presented and surrendered for actual transfer or conversion.

Pearl Asian received its second small-scale mining permit while the gold processing equipment designed to produce gold/silver concentrates arrived from China into the Port of Manila.

Small-Scale Mining Permit: Mayor Lawrence Li Cruz of Iligan City, Lanao Del Norte, issued and signed on August 9, 2006, the second small-scale mining permit (SSMP) of Pearl Asian Mining Industries through its partner, KAHIB, an organized Higaonon Tribal Group. This will enable Pearl Asian to start operating and producing the gold and other mineral resources in the Binasan Mine Site. The City of Iligan is partnering with PAIM in the development of the road infrastructures to enhance the accessibility towards the mine site of approximately 640 meters high (app. 1,920 feet above sea level). Pearl Asian agreed to cover all the cost of fuel and miscellaneous expenditures to build the road, while the City of Iligan provides materials, heavy tractors, bulldozers, back hoes and manpower. The development of the roads and other infrastructure in Cagayan De Oro -- Binasan Gold Mine Site is progressing rapidly as the estimated arrival of the gold equipment is August 18, 2006.

Gold Equipment Plant Site: The Gold Team of PAIM and the Indigenous People (Higaonon Tribe) are finalizing the completion of the gold equipment plant site as their top priority. This will be followed by the development of a helicopter landing-pad, the building of a schoolhouse, a community chapel, a multi-purpose hall, a medical clinic, and other housing improvements.

Electric Power: Atty. Conchito Oclaret, Head of the Misamis Oriental Electric Systems Cooperative (Moresco), agreed to assist in providing Pearl Asian the extension of electrical power lines towards the Binasan Mine Site. This will allow Pearl Asian to use electricity without generators, in order to run the gold mining equipment and to sustain the other electrical necessities at the mine site.

Chemical & Metallurgical Laboratory: Chief Metallurgist Engr. Elvis Hidalgo and his team member Engr. Rochelle Laylay (R&D) are actively preparing the chemical laboratory site. They are responsible for the accurate chemical analysis, metallurgical assaying, smelting, and refining of the gold concentrates to its 99.999 weight % purity.

According to the Company, Pearl Asian's vision and mission for the mining alliance with the Philippine Government, its Indigenous People (IP) and Small-Scale Mining Operators (SSMO) were fully welcomed. PAIM is committed to using the best environmentally friendly mining practices, projecting low capital costs for each project for this income-generating mining company. Pearl Asian is aiming to provide community upliftment, by strengthening local governance, providing sustainable jobs to the community, thus enhancing the living standards of its employees and the whole community into sustainable economic growth.

"Since the equipment arrived before the completion of the road infrastructure, Pearl Asian's Gold Team is ready to use alternative means, the use of a helicopter to air-lift the gold equipment onto the Binasan Mine Site. The other alternative is the use of four caribou to pull the crates of gold equipment towards the steep Binasan mountains to the mine site," reported Brother Manny Tecson, EVP/Chief Community Relations Officer.

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. The factors that could cause actual results to differ materially from anticipated results includes 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 the result of new information, future events or otherwise.