**PACIFIC
      GOLD ENTERTAINMENT INC** **.**






**AUDIT
      COMMITTEE CHARTER**






**Committee
      Role**






The
      committee’s role is to act on behalf of the Board of Directors and oversee all
      material aspects of PGE Inc.’s reporting, control, and audit functions, except
      those specifically related to the responsibilities of another standing committee
      of the Board of Directors. The audit committee’s role includes a particular
      focus on the qualitative aspects of financial reporting to shareholders and
      on
      PGE Inc.’s processes for the management of business/financial risk and for
      compliance with significant applicable legal, ethical, and regulatory
      requirements.






In
      addition, the committee responsible for: (1) selection and oversight of PGE
      Inc.’s independent accountant; (2) establishing procedures for the receipt,
      retention and treatment of complaints regarding accounting, internal controls
      and auditing matters; (3) establishing procedures for the confidential,
      anonymous submission by PGE Inc.’s employees of concerns regarding accounting
      and auditing matters; (4) establishing internal financial controls; (5) engaging
      outside advisors; and, (6) funding for the outside auditor and any outside
      advisors engagement by the audit committee.




The
      role
      also includes coordination with other board committees and maintenance of
      strong, positive working relationships with management, external and internal
      auditors, counsel, and other committee advisors.








**Committee
      Membership**





The
      committee will consist of the entire Board of Directors. The committee will
      have
      access to its own counsel and other advisors at the committee’s sole
      discretion.








**Committee
      Operating Principles**





The
      committee will fulfill its responsibilities within the context of the following
      overriding principles:





|**1.** | **Communications**-
              The chairperson and others on the committee will, to the extent
              appropriate, have contact throughout the year with senior management,
              other committee chairpersons, and other key committee advisors, external
              and internal auditors, etc., as applicable, to strengthen the committee’s
              knowledge of relevant current and prospective business
              issues.
|------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|**2.** | **Committee
              Education/Orientation**-
              The committee, with management, will develop and participate in a process
              for review of important financial and operating topics that present
              potential significant risk to PGE Inc. Additionally, individual committee
              members are encouraged to participate in relevant and appropriate
              self-study education to assure understanding of the business and
              environment in which PGE Inc. operates.
|------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




**Ex
          15.1 - 1**














|**3.** | **Annual
              Plan**-
              The committee, with input from management and other key committee
              advisors, will develop an annual plan responsive to the “primary committee
              responsibilities” detailed herein. The annual plan will be reviewed and
              approved by the Board of Directors.
|------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|**4.** | **Meeting
              Agenda**-
              Committee meeting agendas will be the responsibility of the committee
              chairperson, with input from committee members. It is expected that
              the
              chairperson would also ask for management and key committee advisors,
              and
              perhaps others, to participate in this
              process.
|------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|**5.** | **Committee
              Expectations and Information Needs**-
              The committee will communicate committee expectations and the nature,
              timing, and extent of committee information needs to management, internal
              audit, and external parties, including external auditors. Written
              materials, including key performance indicators and measures related
              to
              key business and financial risks will be received from management,
              auditors, and others at least one week in advance of meeting dates.
              Meeting conduct will assume members of the Board of Directors have
              reviewed written materials in sufficient depth to participate in
              committee/board dialogue.
|------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|**6.** | **External
              Resources**-The committee will be authorized to access internal and external
              resources, as the committee requires, to carry out its
              responsibilities.
|------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|**7.** | **Committee
              Meeting Attendees**-
              The committee will request members of management, counsel, internal
              audit,
              and external auditors, as applicable, to participate in committee
              meetings, as necessary, to carry out the committee responsibilities.
              Periodically and at least annually, the committee will meet in private
              session with only the committee members. It will be understood that
              either
              internal or external auditors, or counsel, may, at any time, request
              a
              meeting with the audit committee or committee chairperson with or without
              management attendance. In any case, the committee will meet in executive
              session separately with internal and external auditors, at least
              annually.
|------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|**8.** | **Reporting
              to the Board of Directors**-
              The committee, through the committee chairperson, will report
              periodically, as deemed necessary, but at least semi-annually, to the
              Board of Directors. In addition, summarized minutes from committee
              meetings, separately identifying monitoring activities from approvals,
              will be available to each board member at least one week prior to the
              subsequent Board of Directors’ meeting.
|------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|**9.** | **Committee
              Self Assessment**-
              The committee will review, discuss, and assess its own performance
              as well
              as the committee role and responsibilities, seeking input from senior
              management, the Board of Directors, and others. Changes in role and/or
              responsibilities, if any, will be recommended to the Board of Directors
              for approval.
|------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------







**Meeting
      Frequency**





The
      committee will meet at least three times quarterly. Additional meetings will
      be
      scheduled as considered necessary by the committee or chairperson.








**Reporting
      to Shareholders**





The
      committee will make available to shareholders a summary report on the scope
      of
      its activities. This may be identical to the report that appears in PGE Inc.’s
      annual report.


**Ex
          15.1 - 2**





**Committee’s
      Relationship with External and Internal Auditors**





|1. | The
              external auditors, in their capacity as independent public accountants,
              will be responsible to the Board of Directors and the audit committee
              as
              representatives of the shareholders.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|2. | As
              the external auditors review financial reports, they will be reporting
              to
              the audit committee. They will report all relevant issues to the committee
              responsive to agreed-on committee expectations. In executing its oversight
              role, the Board of Directors or committee should review the work of
              external auditors.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|3. | The
              committee will annually review the performance (effectiveness,
              objectivity, and independence) of the external and internal auditors.
              The
              committee will ensure receipt of a formal written statement from the
              external auditors consistent with standards set by the Independent
              Standards Board and the Securities and Exchange Commission. Additionally,
              the committee will discuss with the auditor relationships or services
              that
              may affect auditor objectivity or independence. If the committee is
              not
              satisfied with the auditors’ assurances of independence, it will take or
              recommend to the Board of Directors appropriate action to ensure the
              independence of the external auditor.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|4. | The
              internal audit function will be responsible to the Board of Directors
              through the committee.
|-- | ----------------------------------------------------------------------------------------------------------------------------




|5. | If
              either the internal or the external auditors identify significant issues
              relative to the overall board responsibility that have been communicated
              to management but, in their judgment, have not been adequately addressed,
              they should communicate these issues to the committee
              chairperson.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|**6.** | Changes
              in the directors of internal audit or corporate compliance will be
              subject
              to committee approval*.*
|------ | -----------------------------------------------------------------------------------------------------------------------------------------------------







**Primary
      Committee Responsibilities**


**Monitor
      Financial Reporting and Risk Control Related Matters**





The
      committee should review and assess:





|**1.** | **Risk
              Management**-
              PGE Inc.’s business risk management process, including the adequacy of PGE
              Inc.’s overall control environment and controls in selected areas
              representing significant financial and business
              risk.
|------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|**2.** | **Annual
              Reports and Other Major Regulatory Filings**-
              All major financial reports in advance of filings or
              distribution.
|------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------




|**3.** | **Internal
              Controls and Regulatory Compliance**-
              PGE Inc.’s system of internal controls for detecting accounting and
              reporting financial errors, fraud and defalcations, legal violations,
              and
              noncompliance with the corporate code of
              conduct.
|------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|**4.** | **Internal
              Audit Responsibilities**-
              The annual audit plan and the process used to develop the plan. Status
              of
              activities, significant findings, recommendations, and management’s
              response.
|------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------







**Ex
          15.1 - 3**











|**5.** | **Regulatory
              Examinations**-
              Securities and Exchange Commission inquiries and the results of
              examinations by other regulatory authorities in terms of important
              findings, recommendations, and management’s
              response.
|------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|**6.** | **External
              Audit Responsibilities**-
              Auditor independence and the overall scope and focus of the annual/interim
              audit, including the scope and level of involvement with unaudited
              quarterly or other interim-period
              information.
|------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|**7.** | **Financial
              Reporting and Controls**-
              Key financial statement issues and risks, their impact or potential
              effect
              on reported financial information, the processes used by management
              to
              address such matters, related auditor views, and the basis for audit
              conclusions. Important conclusions on interim and/or year-end audit
              work
              in advance of the public release of
              financials.
|------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|**8.** | **Auditor
              Recommendations**-
              Important internal and external auditor recommendations on financial
              reporting, controls, other matters, and management’s response. The views
              of management and auditors on the overall quality of annual and interim
              financial reporting.
|------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------







The
      committee should review, assess, and approve:




|1. | the
              code of ethical conduct,
|-- | ------------------------------------------



|2. | changes
              in important accounting principles and the application thereof in both
              interim and annual financial reports,
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------



|3. | significant
              conflicts of interest and related-party
              transactions,
|-- | ---------------------------------------------------------------------------------------------



|4. | external
              auditor performance and changes in external audit firm (subject to
              ratification by the Board of Directors),
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------



|5. | internal
              auditor performance and changes in internal audit leadership and/or
              key
              financial management,
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------



|6. | procedures
              for whistle blowers,
|-- | ---------------------------------------------



|7. | pre-approve
              allowable services to be provided by the auditor,
              and
|-- | ---------------------------------------------------------------------------------------------



|8. | retention
              of complaints.
|-- | --------------------------------------





**Ex
          15.1 - 4**