Philippines Gold Mining Corp. Announces Acquisition.

Business Editors

MANILA, Philippines--(BUSINESS WIRE)--Feb. 4, 2004

The Philippines Gold Mining Corp. (Pink Sheets:PGMC) announces the acquisition of a 675 ton per day CIL Ball Mill Plant, Gold Refinery and other gold production equipment, through a joint-venture agreement with Pearl Asian Mining Industries Inc. This equipment will be moved to the company's Paracale Gold Mining Site, located in the Southern Luzon Islands of the Philippines, at Santa Rosa, Jose Panganiban in the Province of Camarines Norte.

The Paracale Gold Mining Site, first discovered in 1939, is one of the richest mining regions in the Philippines. Previous production exceeded 650,000 tons of ore in the five years of operation prior to 1995. The Paracle Gold Project consists of eight open pit mines and two underground mines. There is currently more than 41,000 tons of excavated ore available for processing. The refurbishing and uplifting of the Ball Mill Plant and machinery will commence shortly, with the first "Gold Bullion" delivery estimated to begin on or before July 2004.

Based on historical data, and operating at only 50% of potential capacity, the company expects to initially produce the following estimated gross income on an annual basis.

114,600 ounces of Gold    @ US$345      $39,537,000
305,600 ounces of Silver  @ US$4.75      $1,450,000

The company expects to generate a net income of approximately 30% or $12,296,295 based on the gross annual income of $40,987,650 derived from gold and silver production, less operational expenses of 70% or $28,691,355. The above gold and silver prices are based on 2003 prices and do not reflect the recent increase in commodity values.

The above figures are conservatively based on production of only 360 tons of ore per day, which could be doubled to reflect the approximate production and income levels obtained once the CIL Ball Mill Plant is fully operational. This Ball Mill Plant should crush a minimum of 675 tons of ore per day, with the potential to reach up to 1,000 tons of ore per day. This gold refinery facility will also serve as the refinery center to serve all other small-scale mining operations within the vicinity of the Paracale mining site.

The upgrades to the current equipment along with the re-building of the Gold Refinery and Laboratory will further increase the company's revenue through the recovery of other minerals such as Platinum, Palladium and Iridium. There is the potential for production to exceed 500,000 ounces of gold, 1,500,000 ounces of silver, as well as additional minerals over the next five years.

On December 3, 2003, Philippine President Macapagal Arroyo signed a new mining memorandum effectively putting an end to the 1995 Government Nationalization regulations that paralyzed the Philippines Mining Industry. The new regulations are designed to encourage foreign investments into mining projects. The Government is now supporting the re-entry of mining operations to boost the economy. Due to the abundance of rich and easily accessible gold and other precious metal deposits, mining in the Philippines has been around for centuries, accounting for over 30% of the Philippines Islands' GDP in late 1990.

The Paracale Gold Mining Project will be led by Peter Caleon, Senior Vice President and Chief Operating Officer. Mr. Caleon, a renowned Philippines Geologist and Mining Engineer, is also a retired Under Secretary of the Department of Environmental and Natural Resources (DENR), which functions much like the Bureau of Land Mines in the USA. He is joined by President Eng. Emilio S. Miel, who formerly served as the Safety & Health Environmental Director at Atlas Consolidated Mining Industries.

This was, is and will be "The Philippines Mining Project of this Millenium," said E. Pearl Asian, CEO of the Philippines Gold Mining Corp.

Forward-Looking Statements:

With the exception of historical information, this news release and accompanying information may include forward-looking statements that involve a number of risks and uncertainties. Actual results could differ materially from those anticipated as a result of various risks. There are numerous factors that could contribute to such differences, therefore such projected events and anticipated results are not warranties or guaranties that such events will occur or that the Company will achieve such results. For more information about this corporation, please see these companies' websites: