Clarifications On Calculations Of The 95% Mandatory Buyback of Its Common Shares; Logical & Legal Reasoning For Corporate Action, Pearl Asian Mining Industries Announces

Pearl Asian Mining Industries, Inc. with Stock SYMBOLS: U.S.A. (OTC common shares: PAIM)(OTC preferred shares: PAIMP) clarifies the calculations of the 95% Mandatory Buy Back of PAIM Common Shares effective July 20, 2007. "Attached is the new excel conversion calculation sheet for use with investors / shareholders which is 2003 excel compatible. Below is an example of the 95% Buyback. The sheet has all the calculations for our conversions 90% & 95% BBs as well as the PFD, CD balance and the CD conversion to common. I hope to find this sheet helpful for all shareholders concern,” reports Alice Navas, President of AGN Associates & Stock Transfer Services, LLC. 95% BUY BACK OF COMMON-Stocks Issued as of July 20, 2007 Old Common Buy Back Factor 95% Total 25,000,000 0.95 23,750,000   Old Common Shares Less the 95% buy back of Common New Common Share After BuyBack 5% New Cert # 25,000,000 23,750,000 1,250,000                   95% COMMON PAYMENT AMOUNT AT .00002 FACTOR PER SHARE 95% of Common Payment Factor Dollar Amount Check # 23,750,000 0.00002 $ 475.00 The Transfer Agent must receive all the old PAIM common shares on the estimated 8,611,655,441 common shares subject to buyback on or before the pay date to start on October 10, 2007. Moreover, DTCC should now be in the process of sending to PAIM’s Transfer Agent the 95% of the common and outstanding shares. Although PAIM has set the buyback/exchange date for July 20, 2007, any shares bought and sold beginning July 23, 2007 should only be the remaining 5%. Pearl Asian advises shareholders who may have unintentionally sold short on PAIM shares to immediately contact their brokers to work out a way. The remaining 5% of common shares in shareholders' accounts should be available for trading at any time thereafter. Furthermore, all of the shareholders are affected equally, meaning that each shareholder will own the same percentage of the common shares immediately after the buy back, just like a reverse split. Therefore, there are not 5% of the shareholders gaining unjustifiably. In other words, a shareholder will keep 5% of its shares just like all of the other shareholders, and the 95% will go into the company’s treasury, which our shareholders will all own indirectly based on their individual percentages of ownership. The reason for the buy-back instead of a reverse split is that reverse splits usually bring the stock price higher, but immediately start moving down, whereas with a buy-back the stock price marches upwards on the charts from where it was before the buy-back. As with the last buy-back it worked to bring our price per share greater than the 90% buyback more than a 10 for 1 reverse split would have accomplished as the stock price moved up above .001 and held there for quite some time. It wasn't until Pearl Asian Mining ran into a problem with shares being sold into the market by this Buyer/Investor who did not have the stocks totally cleared through DTCC, wherein the company put a stop transfer in place on the 1,074,000,000 Common Shares, then the stock dropped below .001. Therefore, we are hopeful that PAIM stock this time could rise above .01 and remain above this price. Of course, Pearl Asian cannot guarantee this result, but we are moving forward in good faith. Pearl Asian Mining is listed on the Frankfurt Stock Exchange, but can't trade there for less than .001 so this action is necessary not only to allow our shares to immediately trade on an actual stock exchange but it also makes it more realistic for us to list on other exchanges throughout the world. Lastly, "Pearl Asian hopes this helps you to understand the logical and legal reasoning for this corporate action that affects all common shareholders equally,” explained CEO Piamonte. 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.