AGREEMENT 2

This Agreement made the 18 day of July 1996.

Between

      Global Gold Corporation

and

      London & International Mercantile Ltd.

and

      HCL Communications Ltd.


Whereas:

Global Gold Corporation (GGC) is a Delaware Corporation with mining interests in
the Republic of Armenia comprising the Armenian Gold Recovery Company (AGR) as
set out in a Joint Venture Agreement between GGC and the Armenian Government
dated 1st May 1996 (JV) (as exhibited in the First Schedule hereto). To
facilitate the development of the AGR, GGC requires the delivery of a Guarantee
in the amount of US$250,000.00 (a draft of which is set out in the Second
Schedule hereto) (the "Guarantee") to be delivered to Kilborn Inc. of 2200 Lake
Shore Blvd. W. Toronto, Ontario M8V 1A4 and is willing to secure the delivery of
same by issuing 1,000,000 shares of its common stock (the "Shares") together
with warrants to purchase 2,000,000 Shares of GGC (the "Warrants") (as set out
in the Seventh Schedule hereto) to the provider of the Guarantee and other
security set out herebelow.

London & International Mercantile Ltd. (LIM) is a financial company which is
internationally recognised and is of good reputation. LIM is ready, willing and
able to issue the Guarantee to Kilborn Inc. subject to the terms and conditions
herein.

HCL Communications Ltd. (HCL) is the holder of an Option (the "Option") to
purchase the Shares and Warrants. HCL has introduced the other parties to each
other, has negotiated this Agreement and is prepared to allow the Shares and
Warrants held by HCL under the Option to be used as collateral to secure the
issue and delivery of the Guarantee.

Now Therefore:

As collateral security to cover any payment made to Kilborn pursuant to the
Guarantee after a default in payment by GGC, GGC hereby issues as a pledge to
LIM or to its order or to its
assigns 1,000,000 shares of common stock of GGC (the "Shares") which the parties
agree is of value equivalent to US$1,500,000.00 valued at US$1.50 per share and
the Warrants (as set out in the Sixth Schedule hereto) ( the "Warrants") against
delivery of a Guarantee from LIM to 


                                                                               1
<PAGE>

the value of US$250,000.00 which shall be made payable to Kilborn Inc. in
substantially the form attached hereto in the Second Schedule.

The Guarantee is payable in the event that GGC fails to pay the sum of
US$250,000.00 within 120 days of the delivery to Kilborn Inc. of the Guarantee.
Further in any event the Guarantee shall be valid for up to six (6) months only.

A.    In Consideration of the delivery of the Guarantee GGC shall simultaneously
      deliver the following documentation to LIM.

1.    (a)   A certificate for 1,000,000 Shares of GGC with the Warrants attached
            free of any charge, encumbrance or lien subject only to the option
            in favour of HCL as set out in the Fourth Schedule hereto, pledged
            as collateral security to cover any payment made to Kilborn pursuant
            to the Guarantee after a default in payment to Kilborn by GGC.

      (c)   The Personal Pledges of Drury J. Gallagher and Robert A. Garrison
            the Directors of GGC as set out in the Seventh Schedule.

2.    A letter signed by Patterson Belknap, Webb & Tyler Attorneys ("PBW&T") or
      the Law Offices of Stephen R. Field, general counsel to GGC, confirming
      that:

      (a)   GGC has the lawful authority to issue the Shares and Warrants to
            LIM.

      (b)   GGC will promptly arrange the issue of the Shares and Warrants to
            LIM pledged as security for the Guarantee.

      (c)   The Guarantee is required by Kilborn Inc. and the draft set out in
            the Second Schedule is in a form and manner acceptable to Kilborn
            Inc.

      (d)   To the best of attorney's knowledge attorneys do not know of any
            condition or restriction which would prevent the granting of a
            NASDAQ Electronic Bulletin Board listing of the common stock of GGC
            within a reasonable period of time after the issue and delivery of
            the Guarantee although attorneys cannot predict the actual date
            thereof because the processing, of the appropriate documentation to
            be filed, by NASDAQ in connection therewith varies from case to
            case. A letter signed by Stephen R. Field General Counsel to GGC
            dated July 1996, setting out the options open to GGC is attached
            hereto in the Eight Schedule.

      (e)   In the event of a default by GGC either before or after NASDAQ
            quotation there are no restrictions on the sale by LIM or other
            holder who is resident outside the USA of shares of common stock of
            GGC for the full market value thereof without being subject to US
            income tax, provided that LIM or such other holder is not engaged in
            a trade or business in the USA and the income 


                                                                               2
<PAGE>

            from such sale is not effectively connected with the conduct of any
            such business for US income tax purposes.

      (f)   GGC is lawfully able to made the warranties and undertakings given
            by it in Clause 3. herein.

3.    GGC hereby undertakes, warrants and agrees as follows:

      (a)   GGC will issue 1,000,000 shares of common stock (the Shares)
            together with the Warrants in GGC to LIM as security for the issue
            by LIM of the Guarantee subject to the terms and conditions of this
            Agreement which Shares and Warrants will be delivered upon the
            execution and delivery hereof.

      (b)   GGC expects to have a NASDAQ Bulletin Board quotation within sixty
            (60) days of the date of issue of the Guarantee and in any event
            will seek a Full NASDAQ Small Cap Listing within ninety (90) days
            provided GGC meets the NASDAQ equity test.

      (c)   That in the event that LIM, after sale of the shares and other
            recovery as set out herein, is not fully refunded its outlay and
            fees from HCL as set out in Subsidiary Agreement in the Fourth
            Schedule herein, LIM shall be paid any shortfall by the two above
            named directors of GGC.

      (d)   GGC represents that it expects to receive an offer to purchase its
            shares from Mr. Franco Boule or his assigns within thirty days which
            if accepted by GGC would raise a sum in excess of US$5,000,000 for
            the use of GGC.

      (e)   All legal fees, charges, and validity fees charged by LIM as are set
            out in the Tenth Schedule hereto will be paid for by GGC as and when
            set out in said Tenth Schedule.

      (f)   GGC has no knowledge of any condition or restriction which would
            prevent the granting of a NASDAQ Electronic Bulletin Board listing
            for its common stock within a period of sixty (60) days of the date
            of issue and delivery of the Guarantee.

4.    GGC exhibits herewith:

      (a)   A copy of the JV in the First Schedule hereto.

      (b)   A copy of the GGC 10-KSB for the year ended December 31, 1995 in the
            Third Schedule hereto.

5.    GGC will honour the Option in favour of HCL after release by LIM of the
      Shares and Warrants from the pledge in consideration for HCL hereby
      agreeing to allow the Optioned Shares to be so pledged.


                                                                               3
<PAGE>

B.    In consideration of which LIM shall:

      (a)   Issue the Guarantee within one (1) business day and deliver the
            Guarantee to Kilborn Inc. within three (3) business days after the
            execution and delivery of this Agreement.

      (b)   enter into a Subsidiary Agreement with HCL as set out in the Fourth
            Schedule hereto.

      (c)   Return the certificate for 1,000,000 shares of common stock (the
            Shares) and the Warrants of GGC to GGC within ten (10) business days
            after the expiration of the Guarantee if no payment has been made to
            or claimed by the Armenian Government and if HCL has not exercised
            the Option, or return such remaining unsold Shares if HCL has
            exercised its Option in part. Upon expiration of the Guarantee
            without any payment made thereunder by LIM, all of LIM's rights with
            respect to the Shares and the Warrants as collateral security shall
            terminate without any further action on the part of LIM.

C.    Miscellaneous

      (a)   It is agreed that the terms and conditions, warrants and
            undertakings given herein are separate, distinct and independent
            from terms and conditions, warrants and undertakings given in the
            Agreement 1 dated 18th July 1996 (Armenian Government Agreement).

      (b)   No Party shall, without the prior consent in writing of the other
            Parties, assign, transfer or otherwise part with control of its
            benefits or burdens hereunder.

      (c)   This Agreement shall be binding on the successors and assigns of the
            Parties hereto.

      (d)   The Parties and arbitrators are charged to apply this Agreement in
            good faith as it is written taking into account the fair and
            reasonable expectations of the Parties as expressed herein.

      (e)   The Parties agree to refer all unsettled disputes arising out of
            this Agreement to the International Chamber of Commerce, under the
            Rules of Conciliation and Arbitration, for arbitration by a panel of
            three arbitrators. LIM may appoint one Arbitrator and GGC shall
            appoint another, HCL shall appoint a third arbitrator; provided that
            if all three arbitrators have not been appointed within thirty days
            after the party submitting the matter in dispute has notified the
            other Parties of such submission, any Party may apply to the
            International Chamber of Commerce, London England to appoint the
            remaining arbitrators. This Agreement shall be interpreted in
            accordance with and governed by English 


                                                                               4
<PAGE>

            Law. The place of arbitration of any matter to be settled shall be
            London, England.

      (f)   No Party shall be in breach of this Agreement if there is any total
            or partial failure of performance by it of its duties and
            obligations under this Agreement occasioned by any act of God, fire,
            act of Government, or State, war, civil commotion, insurrection,
            embargo, prevention from, or hindrance in, obtaining raw materials,
            energy or other supplies, labour disputes or whatever nature and any
            other reason beyond the control of either Party. If a Party is
            unable to perform its duties and obligations under this Agreement as
            a direct result of the effect of one of those reasons that Party
            shall give written notice to the others of the inability stating the
            reason in question. The operation of this Agreement shall be
            suspended during the period in which the reason continues. Forthwith
            upon the reason ceasing to exist the Party relying upon it shall
            give written advice to the others of this fact. If the reason
            continues for more than one year and substantially affects the
            commercial basis of this Agreement the Party not claiming relief
            under this clause shall have the right to terminate this Agreement
            upon giving twenty days written notice of such termination to the
            non-performing Party.

      (g)   If any provision or term of this Agreement or any part thereof shall
            become or be declared illegal, invalid or unenforceable for any
            reason in one or more jurisdictions it shall be deemed to be deleted
            from this Agreement in the jurisdiction or jurisdictions in question
            provided always that if any such deletion substantially affects or
            alters the commercial basis of this Agreement the Parties shall
            negotiate in good faith to amend and modify the provisions and terms
            of this Agreement as may be necessary to give effect to the true
            desire of the Parties herein or otherwise may be desirable in the
            circumstances.

      (h)   Each Party shall be responsible for its own taxes, duties and other
            government charges.

      (i)   This Agreement together with the Schedules embodies the entire
            agreement and understanding of the Parties with respect to the
            subject matter hereof and supersedes all prior oral or written
            agreements understandings or arrangements with respect to the
            subject matter hereof.

      (j)   This Agreement may be amended, modified, varied or supplanted by the
            Parties mutually agreeing to do so in writing.

      (k)   No failure or delay by any Party to exercise any right of remedy
            under this Agreement shall be constured as a waiver thereof nor
            shall any single or partial exercise of any right or remedy be
            construed as a waiver as the case may be. The rights and remedies
            provided in this Agreement are cumulative and are not exclusive of
            any rights or remedies provided by law.


                                                                               5
<PAGE>

      (l)   Each of the Parties hereto shall be responsible for its own legal
            and other advisory costs incurred in the preparation of this
            Agreement. This Clause is without prejudice to and does not affect
            LIM's right to collect all fees set out in the Tenth Schedule.

      (m)   Any notice or other document to be given under this Agreement shall
            be in writing and shall be deemed to have been duly given if
            delivered or sent to the principal place of business of the
            recipient by hand (and receipt acknowledged), by facsimile (where
            receipt is acknowledged) or by an internationally recognized
            overnight delivery service (such as Federal Express).

      (n)   The Parties may expressly agree to accept notice or other document
            by telex, facsimile, computer transmission or other electronic media
            at the principal place of business or other stated address of the
            receiving Party.

      (o)   In the event that HCL executes the purchase of 2,000,000 shares of
            GGC common stock together with the warrants (to purchase 4,000,000
            shares of GGC common stock attached) pursuant to the Stock Purchase
            Agreement hereto attached and set out in the Seventh Schedule the
            Shares and Warrants (issued hereunder) as collateral security, but
            which are returned to GGC hereunder, shall be part of the total
            package of shares and warrants that are made available to HCL by GGC
            (by Stock Purchase Agreement dated 1996) in accordance with said
            Stock Purchase Agreement.


                                                                               6
<PAGE>

IN WITNESS WHEREOF the undersigned duly authorized representatives of the
Parties hereto have hereunto executed and sealed the Agreement on the day and
year first above written.


Global Gold Corporation


By        /s/ Drury J. Gallagher
          ---------------------
Name:     Drury J. Gallagher
Title:    President


Witness:  /s/ Robert Garrison
          ---------------------


London & International Mercantile Ltd.


By        /s/ Roy A. Woodward
          ---------------------
Name:     Roy A. Woodward
Title:    Director


Witness:  /s/ Niall Taylor
          ---------------------


HCL Communications Ltd.

By        /s/ Alec Trustram Eve
          ---------------------
Name:     Alec Trustram Eve
Title:    Executive


Witness:  /s/ Niall Taylor
          ---------------------


                                                                               7
<PAGE>

                                 FOURTH SCHEDULE

Subsidiary Agreement dated 18 July 1996

London & International Mercantile Ltd. (LIM)

HCL Communciations Ltd. (HCL)

and

Global Gold Corporation (GGC)

Whereas in Agreement 2 (the "Agreement") between LIM, GGC and HCL, LIM has
agreed to deliver a Guarantee to the Armenian Government and GGC has agreed to
issue as a pledge 1,000,000 shares of common stock (the "Shares") and 2,000,000
warrants (the "Warrants"), in GGC held by HCL under an option agreement (the
"Option") to LIM.

HCL under the Option may at any time up to sixty one (61) days after the date of
execution and delivery hereof offer to buy all or part of the Shares and
Warrants pursuant to the Stock Purchase Agreement set out in the Sixth Schedule
and LIM agrees to allow HCL to exercise the Option by making payment for the
Shares for the sum of US$1.50 per Share and the Warrants at the price set forth
in the Stock Purchase Agreement, to LIM during the continuance of the Guarantee
and thereafter, if there is no payment made by LIM under the Guarantee, to GGC.

LIM and GGC agree to honour the Option and GGC agrees that HCL may purchase all
or part of the Shares and Warrants for the said sum of US$1.50 per Share and the
Warrants at the price set out in the Stock Purchase Agreement in the Sixth
Schedule.

Now therefore

In consideration of the Option granted by LIM and GGC to HCL to buy all or part
of the Shares and Warrants to HCL by GGC, HCL agrees to do as follows:

(a)   If HCL offers to buy all or part of the Shares HCL shall promptly pay
      US$1.50 per share for the Shares and the Warrants. Any payment thus made
      during the continuance of the Guarantee will be received by LIM as
      replacement security for the issue of the Guarantee and LIM's fees as set
      out in the Tenth Schedule hereto and held in escrow by LIM until release
      of the Guarantee, in the same manner as the Shares and Warrants were held
      until purchase by HCL.

(b)   If HCL fails to offer to purchase all or part of the Shares within a
      period of sixty one (61) days from the date of execution and delivery
      hereof then HCL shall forfied its Option.

(c)   The Miscellaneous provisions in Clause C. of the Principal Agreement apply
      to this Subsidiary Agreement where appropriate.


                                                                               8
<PAGE>

IN WITNESS WHEREOF the undersigned duly authorised representatives of the
Parties hereto have hereunto executed and sealed this Subsidiary Agreement on
the day and year first above written.


London & International Mercantile Ltd.


By        /s/  Roy A. Woodward
          ---------------------
Name:     Roy A. Woodward
Title:    Director


Witness:  /s/  Niall Taylor
          ---------------------


HCL Communcations Ltd.


By        /s/  Alec Trustram Eve
          -----------------------
Name:     Alec Trustram Eve
Title:    Executive


Witness:  /s/  Niall Taylor
          -----------------------


Global Gold Corporation


By        /s/  Drury J. Gallagher
          -----------------------
Name:     Drury J. Gallagher
Title:    President


Witness:  /s/  Robert Garrison
          -----------------------


                                                                               9
<PAGE>

                                 FIFTH SCHEDULE

Personal undertaking of Alec Trustram Eve

I Alec Trustram Eve hereby undertake as follows

That in consideration of the signing by all parties of the Principal Agreement
and the Subsidiary Agreement in the Fifth Schedule I will

(a)   Establish and register HCL Communications Ltd. as a Private Limited
      Company registered in England.

(b)   Transfer to and bind HCL to honour the Agreement as set out in the Fourth
      Schedule to the Principal Agreement.


Signed:      /s/  Alec Trustram Eve
             -----------------------


Witnessed:   /s/  Niall Taylor
             -----------------------

Dated:       18 July 1996
             -----------------------


                                                                              10
<PAGE>

                                SEVENTH SCHEDULE

Personal Pledge by Directors of GGC

We being two of the directors of GGC as part of the security given to LIM under
the Principal Agreement herewith, hereby personally, jointly and severally
pledge, commit, promise and undertake that:

      In the event that the Guarantee issued by LIM in accordance with the terms
      of the Agreement is called upon by Kilborn Inc. and LIM makes payment of
      the sum of US$250,000 to Kilborn Inc;

      should LIM after sale of the Shares and Warrants (held as pledge) not have
      realised, from the proceeds of said sale, sufficient funds to recover the
      principal sum of US$250,000 paid under the Guarantee together with the
      costs, charges and fees set out in the Tenth Schedule hereto and all other
      reasonable fees and costs incurred by LIM in issuing the Guarantee and
      perfecting the Shares and Warrants as security and the recovery,
      safekeeping, offer and sale of the Shares and Warrants.

we will jointly and severally without protest or deduction pay to LIM an amount
to cover the difference between all moneys due to LIM and the actual moneys
recovery by LIM from the sale as herein set out.


Signed:     /s/  Drury J. Gallagher
            -----------------------
                Drury J. Gallagher


Signed:     /s/  Robert Garrison
            -----------------------
               Robert A. Garriosn

Dated:  July 18, 1996


                                                                              11
<PAGE>

                                 TENTH SCHEDULE

      Payable by GGC as and when set out herein

(a)   1.75% per US$250,000 ($4,375) payable upon confirmation by LIM that it is
      about to deliver the Guarante to Kilborn Inc.

(b)   Validity cost 0.5% per month (minimum period of six months) therefore cost
      is $7,500 for the Guarantee payalbe upon the signing hereof.

(c)   Reasonable legal fees (not to exceed US$3,000) in reviewing this Agreement
      invoiced by LIM payable as and when invoiced.