Pearl Asian Mining Industries to Start Diamond Core Drilling on Binasan Gold Project-Operation Cagayan De Oro.

As Part of its Aggressive Search for New Mine Prospects, Pearl Asian also Outlines its Exploration Program on Five (5) Very Promising Abandoned Mines

MANILA, Philippines -- Pearl Asian Mining Industries, Inc. with Stock SYMBOLS: U.S.A. (OTC:PAIM); Germany (XETRA:R1Z) and (Frankfurt:R1Z) announces that it is about to start diamond core drilling on Binasan Gold Project-Operation Cagayan de Oro (CDO). With the imminent end to a particularly severe 6-month wet season in the Philippines and the start of the dry season fast approaching, PAIM's Chief Geologist Regino Selvano reports that he is currently reviewing proposals from 3 companies specializing in diamond drilling for the Operation CDO - Binasan Gold Project as the next two months would be the ideal time to start diamond drilling activities. "Up to the present time, exploration activities involved sampling and geological mapping covering only 10 hectares (24 Acres) of the total 20 hectare (49 Acre) Binasan Gold Claim. We are targeting to start diamond drilling by end-February to early March 2007, to cover the entire 20-hectare (49 Acres) coverage area," states Chief Geologist Selvano.

A core drilling campaign is an important part of the overall geological exploration survey of any mineral deposit which assists one to gain a better insight to the geological structure and deposit type of an ore body. It will also be possible to establish quantitative and qualitative parameters of the gold deposits that may be present in the area by accurate sampling of the borehole cores retrieved during the drilling program. It is therefore essential that representative core samples be recovered. The drilling contractor is expected to perform the drilling and extraction work of continuous rock cores, according to the specifications detailed by Chief Geologist Selvano.

The exploration area in Binasan Mine Site, Iligan City, is host to the Himalyan Formation, which consists of metamorphic rock i.e. schist metamorphic grade from nearly undeformed to totally schistose. Continuous diamond core drilling using the wireline system is recommended. To reduce losses, at least double tube core barrels shall be employed in the exploration drill holes. In zones of soft rock formations, heavily fractured rock or clay altered rock formation, it is recommended to use triple tube split core barrels. In all cases, water flushing and cooling systems are to be employed. For the exploratory drillholes consisting of ten (10) boreholes, initial subsurface drill meterages of at least 1,000-meters with an average depth of 100 meters per borehole will be drilled. These will be located and marked in the field at the Binasan prospect by the newly hired Site Geologist Bartolome Apuan, who has had more than 15 years' field experience in various mine sites.

Detailed records of the drilling progress will be kept by the contractor in a daily log giving information on all particulars of the drilling, and reported to Pearl Asian. Results of the drilling activity will then be analyzed, using 3-Dimensional Imaging Software to obtain an actual orientation of the ore body.

Meanwhile, aggressive exploration for new mine projects is in full swing, to ensure continued good revenue prospects for the company. Five (5) abandoned mines are currently being evaluated by a Team headed by VP-Business Dev. & IRO Gary Gotanco. Documentary evaluation has been completed on these, and ocular inspection/ore sampling has been done on one very promising mine site by Engineer Gotanco accompanied by Chief Geologist Selvano and newly hired Field Geologist Arlene Aguila. Ocular inspections are scheduled on the other prospects in the next few weeks as well. Once the initial feasibility report has been completed, projects will then be endorsed to the Detailed Exploration Team headed by VP-COO Ricardo Bernardo. "In addition to the five mines being studied, new joint venture proposals are being accepted, at a rate of at least 3 projects a week, which just shows the huge untapped mining potential in the Philippines," adds Engineer Gotanco.

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.