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ZNext Mining Corporation Inc. Reviews 2007, Provides Updates on Gango, Binasan and XYZ Gold Projects

Posted on: Monday, 31 December 2007, 12:00 CST

ZNext Mining Corporation, Inc., Stock Symbols: USA (OTC Common Shares: ZNXT)(OTC Preferred Shares: ZNXTP); Germany (Xetra: R1z.De) and (Frankfurt: R1z.F) reports the 2007 Highlights of Accomplishments and other current updates on Gango, Binasan and XYZ Gold Projects.

BINASAN GOLD PROJECT (Cagayan De Oro):

Gold recovery for December 2007 (three weeks only of production due to the Christmas holiday) was 228.60 grams of gold, expected to result in revenue of US $4,882.66 based on the spot price of gold at Philippine pesos (Php) 854.36 per gram.

During December, the Higaonon Tribes worked diligently to build a helicopter pad in preparation for future use of visitors, including the company's investor relations and legal counsel and its auditing team, who are expected to visit during the first quarter as necessary for preparation of the company's year-end report to shareholders. Additionally, following heavy rains, the access road required clearing and repair, and this work has been completed.

Approximately 2 hectares of land were prepared to plant jatropa and sweet sorghum on behalf of Philippines Royal Oil (Symbol: PROL), which will be used as a feedstock for biodiesel oil and will serve as a source of additional income for the natives. The Higaonon also fixed the roofs of the healing center, housing facilities and the schoolhouse, which had been damaged during recent heavy rains.

GANGO GOLD RUSH PROJECT (Bukidnon):

The gold processing plant began processing ore from Tunnel #3 (Alpha/Omega Tunnel), running 24/7 from December 7 through December 28, 2007. The plant's supervising engineer, Gil Salutin, reported the recovery and processing of 277 grams of gold with impurities during the three-week ramp-up period, due to subsequent periods of uninterrupted rains and holidays were expected to result in lesser a gold recovery.

XYZ GOLD PROJECT (Masbate):

All necessary documentation, including environmental certifications, have been provided to the regulatory authorities, and President Randolf Villanueva expects final approval and issuance of the company's Large Scale Mining Permit necessary for operation of the mine will be issued within the next several weeks. In the meantime, the mechanical design of 250 MT of gold processing plant has been finalized and the zone area has been identified. Construction of the 3 km access road is expected to commence during the Q1 2008.

CANADA MINING CLAIMS (Vancouver Island, BC, CANADA)

ZNext Mining Company's 100%-owned Canadian claims are located on 300 hectares (741 acres) on what is known as the Wolf Lake Property, near the town of Courtenay on Vancouver Island, BC. The area hosts several high-grade gold deposits, with significant base metal values. Past work on the Lake Zone has exposed a shallow-dipping sheet of quartz and sulfides up to 2 meters thick grading 40 grams per ton (g/t), approx. 1.3 oz. per ton, of gold in milling tests. The Road Zone is also a shallow-dipping sheet of quartz and sulfides, with limited sampling showing up to 21 g/t gold. Several other high-grade gold and copper showings occur on the property, which also contains a newly discovered deposit of coal.

Exploration work scheduled to begin in spring 2008 will include diamond drilling, geological mapping, prospecting, grid construction, soil sampling and geophysics at an estimated cost of US $500,000. The work program is designed to bring the mineralized zones into the Inferred and Indicated Resource categories as defined by National Instrument 43-101 standards. Management and exploration services for the Wolf Property will be provided by Laird Exploration Ltd. of Lions Bay, BC, with Dr. K. W. Geiger, PhD., P.Eng. P.Geol. as the Qualified Person, as defined by in the aforementioned code.

PARACALE GOLD PROJECT (Camarines Norte)

In 2004 the Pearl Asian Mining Company (PAIM) entered into an agreement to purchase the 650 MT gold processing plant with Filminera-in Jose Panganiban rich gold area, Bicol Region. Following six months of complex negotiations, money already having been deposited, the legal counsel of PAIM advised the company that the purchase was likely not in the company's best interests because of various legal issues and complexities that had arisen. The company exercised its right to cancel the transaction, recovering 85% of its original deposit. The recovered funds were used to explore and open up the XYZ Gold Project in Masbate Island and the Binasan Gold project in Mindanao Island.

2007 HIGHLIGHTS

First Quarter ~ (January-March)

Recovery of 380 grams (12 troy ounces) of gold at Binasan Mine Site, with a market value of approximately $7,770.00. The company successfully developed the rich placer free-gold site at Binasan where the Higaonon Indigenous Tribes are now working harmoniously together for further development of the site under the guidance of PAIM, which receives a 4% share of the gold harvest.

As reported by Chief Mining Officer Cesar Rosales, "The mine has now expanded its capacity to two hydraulicking channels, passing through three rich veins -- Grace, Lalaine, and Colleen. Water from the 2,000-gallon capacity dam constructed near the mountaintop flows through the channels during the flushing operation; gold particles are captured in the nine (9) sluice boxes strategically placed in the channels. Once sufficient gold is visible in the sluice boxes, the water flushing is halted and the process of harvesting the gold from the sluice boxes begins."

The Binasan community grows methodically and rapidly, with plans to add another shorter distance of access road as early as the 1st Quarter of 2008. The Higaonon Tribe continues to work toward its goal of recovering 1 kilo or more of placer gold per week

Second Quarter ~ (April-June)

PAIM entered into a Memorandum of Understanding (MOU) to formalize the proposed role of Austin and Clare Aslan from the United States as environmental consultants in furtherance of ZNext's mission to engage in environmentally sound practices while contributing to a sustainable local economy, key elements of ethical and responsible gold mining at the Binasan and all other future gold projects. According to Clare Aslan, "Sound environmental practices geared toward long-term conservation of habitat and natural resources in the mine sites must include the following six areas: water quality monitoring and maintenance; erosion control; mine site restoration; sustainable forest harvesting; ecotourism development; and sustained wildlife monitoring." The Aslan team will develop a Site-Based Environmental Plan (SBEP) to help maintain the environmental health of the region.

The company developed the community's first schoolhouse, opened June 2007 with about 78 primary-grade pupils. A full-time physician is housed in the Whispering Healing Center to service local health needs.

The company had a joint venture with the small scale owner at the Aroroy Gold Project, which resulted in low, non-economic yield. Based on these initial results and further evaluation of the site, PAIM has terminated this venture.

The 21.0 acres of unencumbered property on the Big Island of Hawaii was listed for sale unimproved for US $150,000.00 with a local Hawaii real estate broker.

ZNext is working with Operation Reach Out-USA (a private, unaffiliated nonprofit 501(c)(3) corporation) to build local infrastructure in host communities. We have been able to help thousands of people in the Philippines, winning their friendship and solidifying our position as a major force in the Philippines mining sector. Please note that Operation Reach Out-USA and ZNext Mining have no business or financial relationship, though they do cooperate in the relief programs in both the Philippines and the United States. These programs are vital toward ensuring local acceptance of ZNext's business presence.

Third Quarter ~ (July-September)

The company, then "PAIM," issued its first cash dividend, paid on August 31, 2007 to shareholders of record as of June 30, 2007.

The second Gold project at Gango Gold Rush was opened, and a joint venture with the OROGAPCO in Bukidon, Mindanao Island initiated. The Gango Gold Rush Gold ore reserves, estimated at approximately 1,026,000 MT, estimated average 10 to 15 grams of gold per MT, covers a total land area of 59 hectares (146 Acres) with 21 existing tunnels and an estimated life span of 56 years.

A new shareholder invested directly in the Gango Gold Rush to recondition the 50-MT gold processing plant.

Of six companies having previously attempted to operate in the Gango Gold Rush, only Pearl Asian Mining succeeded; we attribute this success to our unique outreach and community development programs. Peter Francisco, Chairman of OROGAPCO, is vocal in his support of our efforts, and his cooperation has helped smooth the way.

An agreement to develop and mine high-grade manganese ore was signed with landowners in Southern Philippines, as ZNext's/PAIM's first joint venture for mining other than gold, the result of PAIM's continuing efforts to identify and pursue other potentially lucrative mining opportunities in the Philippines. "Project Calatrava Manganese" high-grade manganese ore (minimum 44% manganese metal) used primarily in the production of steel, with no known substitute, is in high demand, particularly in China and Japan, the world's major manufacturers of steel. More importantly, the study confirmed the presence of high-grade manganese ore within and in the vicinity of the subject property, with probable ore reserves estimated at approximately 583,200 MT. The contemplated joint venture agreement has an initial term of 2 years, with estimated gross revenue of $2 million and approximately $600,000 in annual net revenue to ZNext. ZNext expects that mining, extraction,and drilling at "Project Calatrava Manganese" will commence during Q1 2008.

As the first phase of reorganization in preparation for application to become fully reporting and qualified for a higher trading venue, on July 20, the company staged a mandatory buyback to reduce a massive public float.

A loyal and long-term shareholder made a lump-sum investment to jump-start the XYZ with the construction of the 250 MT gold processing plant.

The company undertook the second phase of reorganization, a mandatory recall of all issued Convertible Debentures in exchange for Common Shares of PAIM and a 7,000,000 to 1 Reverse Split on Preferred Shares (Symbol: PAIMP), thereby reducing to 6,000,000 the public float of the Preferred.

The company formed the new "Golden Dream Team," new board members and technical engineering experts in the field. Management hired a new transfer agent and independent investor relations representative.

Fourth Quarter ~ (October-December)

The company announced the first gold recovery from the Binasan Gold Project at 625.15 grams of gold for a two-week period in November, representing gross revenue of US $13,488.33.

The first 50 MT capacity per day C-I-L (Carbon-In-Leach) gold processing plant was built and 15 tunnels were reopened and reconditioned.

Three long-term shareholders invested directly in the company to support rehabilitation of the gold tunnels.

A 30-day test run and trouble-shooting period was initiated, and equipment was adjusted and fine-tuned. In late November, the gold processing plant commenced 24/7 operation.

Continuing its capital restructuring/reorganization, Pearl Asian Mining Industries, Inc. (a Wyoming corporation), through name change and change of domicile, became ZNext Mining Corporation (a Delaware corporation). Management engaged specialized securities legal counsel and interviewed to hire the services of a CPA fully familiar with the mining industry to prepare the company's year-end report following a visit to the mine sites scheduled in early 2008.

Concurrent with its name change and change of domicile, the company executed a 500 to 1 reverse split of its Common Shares (PAIM) to reduce its public float to under 10 million shares of Common and reduced its authorized Common Shares to 20 Million. A 75 to 1 reverse split of the Preferred Shares reduced the public float of the Preferred to 40,000, while the authorized Preferred shares were reduced to 80,000. The company has requested that all certificates of PAIM (Wyoming) be surrendered to its transfer agent on or before December 31, 2007 in exchange for the new ZNext (symbol ZNXT) Stock Certificates.

WIET, LLC and CHINA NATIONAL GOLD CORP.

Wiet, LLC deal is still in place. The buyers' group awaits the company's production of an initial ton of gold ore to be sent to China National Gold for final refining and hallmarking, under authority to be granted under PAIM's Mineral Production Sharing Agreement, approval of which is anticipated during Q1 2008.

In the meantime, poised for diversified revenue-generation in 2008, the Gold Team continues to stockpile ores for initial processing and export, work the GANGO Gold Rush and BINASAN Gold Projects, and prepare for the 2008 reopening of the XYZ Mine Site.

ZNext Mining Corporation & OPERATION REACH OUT-USA

ZNext Mining is a proud sponsor and contributor to the efforts of Operation Reach Out-USA to build communities while positioning itself as the leader in the Philippines mining industry. The company supports community development by building access roads, schools, health care centers, multipurpose centers, and housing, and by introducing and teaching livelihood skills including various types of craftsmanship that represent means of earning a living for local men and women, besides mining. In this way PAIM/ZNXT is assisting in the social, moral, mental, spiritual and economic development of its host communities.

AVAILABILITY OF TRIP DIARY:

ZNext investor relations representative Madeleine Franco has prepared a diary trip report available on the company's web site at www.znextmining.com.

"We continue to put all the pieces in place, as we begin 2008 in anticipation of increased gold production, diversification within our core competencies, and a long-awaited return on the considerable investments we have made -- of time, capital, energy and talent," said ZNext CEO Jason Piamonte. "We don't expect success to slow us down, however, but to inspire us to accomplish more," he added.

ABOUT THE COMPANY

ZNext Mining Corporation, Inc. is an international mining company engaged in the exploration and commercialization of new and underdeveloped mine sites, primarily gold and other precious and strategic metals. The company currently owns 12 mining claims in British Columbia, Canada. Additionally, under a Philippines Mineral Production Sharing Agreement (MPS) with the government of the Republic of the Philippines, ZNext Mining owns up to a maximum of 40% of the Pearl Asian Mining Industries, Inc, a Philippines Domestic Private Corporation, through aggregation of manpower and production among small-scale miners and indigenous peoples, and intends to capitalize on economies of scale in gold and silver extraction, processing and commodities selling and trading. ZNext Mining Corporation, Inc. is committed to the implementation of sustainable green technologies to achieve fiscal strength based on the principle of Profit-People-Planet. Management continues to focus on achieving profit, while conducting business with utmost consideration and compassion for people and protection of our planet and the environment.

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.

Source: Business Wire

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