<PAGE>

                       U.S. SECURITIES AND EXCHANGE COMMISSION
                                WASHINGTON, D.C. 20549

                                     FORM 10-QSB

(Mark One)
         [X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
                   SECURITIES EXCHANGE ACT OF 1934 
         For the quarterly period ended March 31, 1997

         [   ]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF 
                   THE EXCHANGE ACT 

         For the transition period from ________________ to _________________

                           Commission file number 02-69494

                               GLOBAL GOLD CORPORATION
                    (Name of small business issuer in its charter)
    
            Delaware                                           13-3025550
-------------------------------------------------------------------------------
       (State or other jurisdiction of                     (I.R.S. Employer 
         incorporation or organization)                    Identification No.)

            438 West 37th Street, Suite 5-G, New York, New York 10018
-------------------------------------------------------------------------------
    (Address of principal executive offices)                    (Zip Code) 

Issuer's telephone number                 (212) 563-5933
                          -------------------------------------

    Check whether the issuer (1) filed all reports required to be filed by 
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for 
such shorter period that the registrant was required to file such reports), 
and (2) has been subject to such filing requirements for the past 90 days.  
Yes   X   No     .                                                     
    ----    ----

    Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by court.  Yes      No      .  Not Applicable
                                                -----   -----

    As of March 31, 1997, there were 4,098,114 shares of the registrant's Common
Stock outstanding.  

    Transitional Small Business Disclosure Format (check one): Yes      No   X .
                                                                  -----   -----

<PAGE>
 
                                  TABLE OF CONTENTS

PART I.  Financial Information 

Item 1.  Financial Statement: 
         Report of Independent Certified Public Accountants (unaudited).......3

         Balance Sheet - As of March 31, 1997 ................................4

         Statements of Income and (Loss) - For the periods January 1, 1997
         through March 31, 1997 and January 1, 1996 through March 31, 1996 and
         for the development stage period January 1, 1995 through 
         March 31, 1997.......................................................5

         Statements of Changes in Stockholders' Equity For the period January
         1, 1997 through March 31, 1997 and for the development stage period
         January 1, 1995 through March 31, 1997...............................6

         Statements of Cash Flows - For the periods January 1, 1997 through
         March 31, 1997 and January 1, 1996 through March 31, 1996 and 
         for  the development stage period January 1, 1995 through 
         March 31, 1997 ......................................................8

         Notes to Financial Statement ........................................9

Item 2.  Management's Discussion and Analysis of Financial Condition 
         and Results of Operation ............................................26


PART II. Other Data ..........................................................35

                                     2
<PAGE>









                           ACCOUNTANTS' COMPILATION REPORT
                                           

To the Board of Directors and Stockholders
of Global Gold Corporation

We have compiled the accompanying balance sheet of Global Gold Corporation (a
development stage company) as of March 31, 1997, and the related statements of
operations, stockholders' equity, and cash flows for the quarters ended March
31, 1997 and 1996 and the development stage period January 1, 1995 through March
31, 1997, in accordance with Statements on Standards for Accounting and Review
Services issued by the American Institute of Certified Public Accountants.

A compilation is limited to presenting in the form of financial statements
information that is the representation of management.  We have not audited or
reviewed the accompanying financial statements and, accordingly, do not express
an opinion or any other form of assurance on them.

A development stage entity reports profit and loss information cumulatively,
from the inception of development stage activities, which is January 1, 1995. 
We audited the 1996 and 1995 statements and a going concern opinion was rendered
(as below).

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern.  As discussed in Note 4 to the
financial statements, management must continue to raise significant amounts of
capital in accordance with its requirements as a joint venture partner and
ultimately must commence profitable operations.  These matters raise substantial
doubt about the Company's ability to continue as a going concern.  The financial
statements do not include any adjustments that might result from the outcome of
these uncertainties.



                                                                           
                                                                           
                                        Marks Shron & Company, LLP


May 13, 1997

                                       3
<PAGE>


                                                                          
                                                                       Exhibit A
                               GLOBAL GOLD CORPORATION
                            (A Development Stage Company)
                                           
                          Consolidated Financial Statements
                                           
                                    Balance Sheet
                                           
                                    March 31, 1997
                                           
                                     (Unaudited)
                                           
                                        ASSETS
                                           
                                                                            
CURRENT ASSETS                                                              
    
    Cash                                                           $  17,850
                                                                   ---------

NONCURRENT ASSET                                                            
    
    Notes receivable, net of allowance for bad
      debts of $150,000 - Note 9                                     150,000
                                                                            
OTHER ASSETS                                                                
    
    Organization costs                                                 9,361
    Investment in certain mining interests - Notes 6 and 8         1,003,494
    Deferred costs - Note 12                                       1,467,344
                                                                   ---------
                                                                   2,480,199
                                                                   ---------
                                                                            
TOTAL ASSETS                                                      $2,648,049
                                                                  ----------
                                                                  ----------
                                                                            
CURRENT LIABILITIES                                                         
    
                                                                            
    Note payable - First Dynasty Mines, Ltd. - Note 20            $1,071,000
    Officers' compensation payable - Notes 10 and 16                 158,334
    Accounts payable and accrued expenses - Note 11                  566,227
    Notes payable - Note 13                                          192,000
                                                                  ----------
                                                                   1,987,561
                                                                  ----------
                                                                            
STOCKHOLDERS' EQUITY - Exhibit C                                            
    
    Common stock $.001 par, 100,000,000 shares authorized
      4,098,114 issued and outstanding                                22,981
    Paid-in capital - Dormant period                               3,228,519
    Paid-in capital - Development stage                            1,457,673
    Retained earnings - Dormant period                            (2,907,648)
    Retained earnings - Development stage                         (1,141,037)
                                                                  ----------
                                                                     660,488
                                                                  ----------
                                                                            
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                        $2,648,049
                                                                  ----------
                                                                  ----------
See the accompanying notes and Accountants' Compilation Report.

                                       4
<PAGE>

                                                                       Exhibit B

                               GLOBAL GOLD CORPORATION
                            (A Development Stage Company)
                                           
                          Consolidated Financial Statements
                                           
                           Statements of Income and (Loss)
                                     (Unaudited)


<TABLE>
<CAPTION>
                                                                              January 1, 1995
                                    January 1, 1997       January 1, 1996  (development stage)
                                          through            through              through
                                     March 31, 1997       March 31, 1996     March 31, 1997
                                    ---------------      ----------------  -------------------
<S>                                 <C>                  <C>               <C>          
REVENUE                                    $  -                $  -              $  -    

                                           ---------         ---------          ----------
EXPENSES
    Officers compensation /=/ Note 16         33,334           50,000             333,334
    Administrative fees                        3,000            2,400              24,158
    Legal                                     32,896           14,204             356,225
    Accounting and auditing                   20,000           11,423              90,848
    Transfer agent and securities fees         1,111            2,337              12,023
    Proxy costs                                  -                111              26,555
    Office expense                             6,558              210              16,011
    Travel                                      -              11,594              42,949
    Rent - Note 1                              9,000            9,000              45,000
                                          ----------       ----------          ----------
                                             105,899          101,279             947,103
                                          ----------       ----------          ----------

OPERATING (LOSS)                             105,899          101,279             947,103
                                          ----------       ----------          ----------
OTHER INCOME (EXPENSES)

    Interest and royalty income                   -                 4                 869
    Organization costs                          (240)          (3,200)             (5,040)
    Interest expense                          (4,800)          (2,290)            (12,531)
    Provision for bad debts - Note 9             -                -              (175,000)
                                           ----------       ----------        ------------
                                              (5,040)          (5,486)           (191,702)
                                           ----------       ----------        ------------

(LOSS) BEFORE INCOME TAXES                  (110,939)        (106,765)         (1,138,805)

    Income taxes                                 176              176               2,232
                                           ----------       ----------        ------------

NET (LOSS)                                $ (111,115)      $ (106,941)       $ (1,141,037)
                                          ----------       ----------        ------------
                                          ----------       ----------        ------------

NET (LOSS) PER SHARE (Note 18)            $    (.027)      $    (.051)
                                          ----------       ----------                    
                                          ----------       ----------                    

</TABLE>
See the accompanying notes and Accountants' Compilation Report.

                                       5
<PAGE>
 
                                                                      Exhibit C

                               GLOBAL GOLD CORPORATION
                            (A Development Stage Company)
                          Consolidated Financial Statements
                Statements of Changes in Stockholders' Equity - Note 19
                                     (Unaudited)


 
<TABLE>
<CAPTION>

                                                             Paid-in       Retained      Retained       Paid-in             
                               Issued and                    Capital       Earnings      Earnings       Capital
                              Outstanding      Common       (Dormant       (Dormant    (Development   (Development         
                                 Shares         Stock        Period)        Period)       Stage)         Stage)           Total
                              -----------     --------     ----------      --------    ------------   ------------       -------

<S>                           <C>             <C>           <C>          <C>           <C>            <C>            <C>
Stockholders' Equity
  January 1, 1995                 898,074     $ 89,807     $3,147,693   $(2,907,648)    $   -          $   -           $  329,852

Net Loss - January 1,-
  December 31, 1995               -               -             -             -           (361,345)        -             (361,345)

Adjustment re: restatement 
  of par value - Note 1           -            (80,826)        80,826         -             -              -              - 
                                       
Eyre acquisition - Note 5       1,000,000       10,000          -             -             -             840,000         850,000
  
                                                                                                                
Proceeds through private 
  offering - Note 14              200,000        2,000          -             -             -             419,573         421,573
                              -----------     --------     ----------   ------------    ------------   ----------      ---------- 

Stockholders' equity
  December 31,1995              2,098,074     $ 20,981     $3,228,519   $(2,907,648)    $ (361,345)    $1,259,573      $1,240,080
                              -----------     --------     ----------   ------------    -----------    ----------      ---------- 
                              -----------     --------     ----------   ------------    -----------    ----------      ---------- 

</TABLE>



See the accompanying notes and Accountants' Compilation Report.


                                       6

<PAGE>

                                                                         
                                                                       Exhibit C
                                                                     (Concluded)
                               GLOBAL GOLD CORPORATION
                            (A Development Stage Company)
                          Consolidated Financial Statements
                Statements of Changes in Stockholders' Equity - Note 19
                                     (Unaudited)

 
<TABLE>
<CAPTION>

                                                            Paid-in        Retained      Retained      Paid-in             
                               Issued and                    Capital       Earnings      Earnings       Capital
                              Outstanding      Common        (Dormant      (Dormant    (Development   (Development         
                                 Shares         Stock        Period)        Period)       Stage)        Stage)           Total
                             ------------     --------      ----------     ---------   ------------   -------------      ----- 

<S>                           <C>             <C>          <C>         <C>           <C>              <C>           <C>
Stockholders' Equity
  December 31, 1995           2,098,074      $  20,981    $3,228,519  $(2,907,648)   $  (361,345)     $1,259,573    $1,240,080 

Net Loss - January 1, -
  December 31, 1996               -               -            -             -          (668,577)          -          (668,577)

Warrants exercised                   40           -            -                           -                 100           100 
                            ------------     ---------    -----------  -----------   ------------    -------------   --------------
Stockholders' Equity -
  December 31, 1996           2,098,114         20,981     3,228,519   (2,907,648)    (1,029,922)      1,259,673       571,603 

Net Loss - January 1 -
  March 31, 1997                                                                        (111,115)                     (111,115)

Issuance of common stock -
  Note 16                     2,000,000          2,000         -             -             -             198,000       200,000 
                            ------------     ---------    -----------  -----------   ------------    -------------   --------------

Stockholders' Equity -
  March 31, 1997              4,098,114      $  22,981    $3,228,519  $(2,907,648)   $(1,141,037)     $1,457,673    $  660,488
                            ------------     ---------    -----------  -----------   ------------    -------------   --------------
                            ------------     ---------    -----------  -----------   ------------    -------------   --------------

</TABLE>

In 1996, 200,000 shares were issued to collateralize two guarantees by London
and International Merchantile Ltd.

The guarantees were rescinded and therefore, such shares were returned in 1997
and have not been reflected on this statement.   

See the accompanying notes and Accountants' Compilation Report.

                                       7
<PAGE>


                                                                       Exhibit D
                               GLOBAL GOLD CORPORATION
                            (A Development Stage Company)
                                           
                          Consolidated Financial Statements
                                           
                               Statements of Cash Flows
                                     (Unaudited)
                                           
 
<TABLE>
<CAPTION>
                                                                                        January 1, 1995
                                              January 1, 1997       January 1, 1996  (development stage)
                                                    through            through              through
                                               March 31, 1997       March 31, 1996     March 31, 1997
                                              ---------------      ----------------   -------------------

<S>                                            <C>                 <C>                <C>            

CASH FLOWS FROM DEVELOPMENT
  STAGE ACTIVITIES:
  Net loss - Exhibit B                              $ (111,115)     $  (106,941)        $(1,141,037)
  Adjustments to reconcile net loss to net
    cash provided by operating activities:
    Non-cash items included in loss
       Amortization                                        240                -                 240
       Provision for bad debt                                -                -             175,000
    Change in assets and liabilities:
       Organization costs                                    -           (6,401)             (9,601)
       Accounts payable and accrued expenses          (355,158)         163,600             842,061
                                                    ----------       ----------          ----------
Net Cash Provided (Used) by Development Stage 
   Activities                                         (466,033)          50,258            (133,337)
                                                    ----------       ----------          ----------
                                                                                                   
CASH FLOWS FROM INVESTING ACTIVITIES:                                                              
       
  Investment in certain mining interests -
    net of financing                                         -                -            (153,494)
  Deferred costs - mining interests                   (588,486)        (102,586)         (1,391,344)
                                                    ----------       ----------          ----------
Net Cash (Used) by Investing Activities               (588,486)        (102,586)         (1,544,838)
                                                    ----------       ----------          ----------

CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from First Dynasty Mines, Ltd.            1,071,000                -           1,071,000
  Net proceeds from private placement offering               -                -             421,573
  Note payable - officer                                 1,000                -             192,000
  Warrants exercised                                         -                -                 100
                                                    ----------       ----------          ----------
Net Cash Provided by Financing Activities            1,072,000                -           1,684,673
                                                    ----------       ----------          ----------

NET INCREASE (DECREASE) IN CASH                         17,481          (52,328)              6,498
CASH - beginning                                           369           63,299              11,352
                                                    ----------       ----------          ----------
CASH - end                                        $     17,850       $   10,971        $     17,850
                                                    ----------       ----------          ----------
                                                    ----------       ----------          ----------
SUPPLEMENTAL CASH FLOW INFORMATION
  Income taxes paid                               $        688       $      990        $      1,336
                                                    ----------       ----------          ----------
                                                    ----------       ----------          ----------
</TABLE>

NON-CASH INVESTING AND FINANCING ACTIVITIES:

    In January 1997 the Board of Directors of the Company approved the 
issuance of 2,000,000 shares of its common stock in exchange for cancellation 
of $200,000 of officers' compensation payable (Note 16).

See the accompanying notes and Accountants' Compilation Report.

                                       8
<PAGE>

                                                                          
                                           
                               GLOBAL GOLD CORPORATION
                            (A Development Stage Company)
                                           
                          Consolidated Financial Statements
                                           
                            Notes to Financial Statements
                                           
                                    March 31, 1997
                                           



NOTE 1:  ORGANIZATION (AS A DEVELOPMENT STAGE COMPANY) AND
         ACCOUNTING POLICIES
         The Company was incorporated in the State of Delaware and as further
         described hereafter, had no operating or development stage history
         from its inception until January 1, 1995.  Accordingly, the Company
         has been dormant until 1995.  During 1995, the Company changed its
         name from Triad Energy Corp. to Global Gold Corporation.  An
         Australian corporation, Eyre Resources N.L. and an affiliate
         (hereafter Eyre) presented to management an opportunity to develop
         certain gold and copper mining rights in the former Soviet Republics
         of Armenia and Georgia.  As part of the plan to acquire the mining
         interests and raise venture capital, the Company increased the number
         of shares authorized to be issued from ten million to one hundred
         million.  These Republics, which recently won their independence, may
         be prone to political and economic turmoil which may result in various
         adverse ramifications.

         The Company has offices in New York City in premises operated by the
         Company's President, Mr. Drury Gallagher who is charging rent in the
         amount of $3,000 per month to the Company for use of the premises,
         office equipment, facilities, etc. commencing January 1, 1996.  The
         Company has not paid any employees for services, except Mr. Gallagher
         and Mr. Garrison, as hereafter discussed.

         During 1995, the Company formed certain-wholly owned foreign
         subsidiaries.  Any reference in these statements to Global (the
         Company) may also include one, some, or all of the subsidiaries.  All
         intercompany transactions were eliminated.

         As a result of ownership changes, the Company will not be able to
         benefit from all of its net operating loss carryforwards.  (Income tax
         matters - Note 17).

         Management has made any necessary interim period accounting
         adjustments in order for the statements not to be misleading.

                                        9 

<PAGE>

                                                                          

                               GLOBAL GOLD CORPORATION
                            (A Development Stage Company)
                                           
                          Consolidated Financial Statements
                                           
                            Notes to Financial Statements
                                           
                                    March 31, 1997




NOTE 2:  USE OF ESTIMATES

         The preparation of financial statements in conformity with generally
         accepted accounting principles requires management to make estimates
         and assumptions that affect the reported amounts of assets and
         liabilities and disclosure of contingent assets and liabilities at the
         balance sheet date, and also the reported amounts of revenues and
         expenses during the reporting period.  Actual results could differ
         from those estimates.
                                                 
                                                 
NOTE 3:  COMPANY HISTORY AND REPORTS WITH THE SECURITIES AND
         EXCHANGE COMMISSION
                                                 
         The Company was incorporated on February 21, 1980, and closed a public
         offering of the common stock in January 1981.  Several months after
         the closing of such offering, the Company withdrew the listing of the
         Common Stock for trading on Nasdaq because of the theft of
         substantially all of the cash funds of the Company derived from the
         proceeds of a public offering by its then president, Samuel McNell in
         July, 1981.  The case has long since gone through the judicial system
         and the McNells are no longer, officers, directors, employees or in
         any other fashion doing business with the company.  After the
         consummation of the public offering, the Company failed to file any
         further annual or periodic reports required under the Exchange Act. 
         The Company filed its Form 10-KSB for the calendar years 1994 and
         1995, its Form 10-Q for all quarters in 1995 and thereafter, and also
         filed audited financial statements covering the calendar years 1987,
         1988, 1989, 1990, 1992 -1995.  There can be no assurance that the SEC
         might not assert claims against the Company and its present and former
         directors and officers, which actions might adversely affect the
         future conduct of the Company's business or be detrimental to future
         trading of the Company's stock in the public markets.
                                        
                                        10

<PAGE>


                                                                          
                               GLOBAL GOLD CORPORATION
                            (A Development Stage Company)
                                           
                          Consolidated Financial Statements
                                           
                            Notes to Financial Statements
                                           
                                    March 31, 1997
                                           



NOTE 4:  DEVELOPMENT STAGE COMPANY
                                                 
         The Company may encounter problems, delays, expenses and difficulties
         typically encountered in the development stage, many of which may be
         outside of the Company's control.  These include, without limitation,
         unanticipated problems and additional costs relating to development,
         production, marketing, and competition.  Management must also be
         successful in securing significant additional investor and/or lender
         financing and political risk insurance.  The Company expects to incur
         operating losses for the near term and, in any event, until such time
         as it derives substantial revenues from the sale of concentrates
         containing gold and copper.  Pursuant to the documents as hereafter
         summarized, different mining, processing, purifying, reprocessing and
         exploration endeavors are contemplated.  Where appropriate, an
         endeavor will commence only after successful results of a feasibility
         study are rendered.
                                                 
                                                 
NOTE 5:  ACQUISITION OF ARMENIAN MINING INTEREST FROM EYRE 
                                                 
         Pursuant to the Asset Purchase Agreement dated June, 1995, (the
         "Agreement"), the Company acquired from Eyre, an Australian
         corporation, all of its potential interest in its Armenian gold mining
         project and all of Eyre's potential interest in its Georgia gold and
         copper mining project (Note 8).  The Agreement closed April, 1996.
                                                 
         The Company paid Eyre for the Armenian and Georgian interests as
         follows:

              Cash                          $   153,494
              Note payable (Note 13)            100,000
              Note payable (Note 13)             46,506
                                            -----------    
                                            $   300,000
                                            -----------
                                            -----------

         The Agreement also provided for the Company to cause the delivery to
         Eyre of one million shares of stock, with an estimated value of
         $850,000, and warrants to acquire an additional four hundred thousand
         shares (Note 15).  The Agreement left Eyre with two out of five seats
         on the Board of Directors.
                                                 
                                          11
 
<PAGE>

                                                                         
                               GLOBAL GOLD CORPORATION
                            (A Development Stage Company)
                          Consolidated Financial Statements
                                           
                            Notes to Financial Statements
                                           
                                    March 31, 1997

                                                 
NOTE 5:  ACQUISITION OF ARMENIAN MINING INTEREST FROM EYRE (continued)

         As of December 1, 1995, the Company and Eyre entered into a
         Restructuring Agreement pursuant to which Eyre surrendered 1,000,000
         shares of common stock and acquisition warrants to purchase 600,000
         shares of common stock and acquired a 2% overriding production royalty
         subject to adjustment in the event the ownership of the Company were
         to become owned by less than 50% United States residents.  If such
         were about to occur, Eyre would have the right to sell warrants to
         purchase the Company's common stock by U.S. residents, and, if that
         did not occur as prescribed, Eyre would surrender certain of their
         warrants in return for an increased royalty potentially totaling
         another 1%.  The initial Armenian tailings project (Note 7) is
         excluded from the royalty arrangement.  In the event the Company
         undertakes any additional mineral extraction projects in the Republics
         of Armenia or Georgia, Eyre will receive a 1% overriding production
         royalty from the Company's revenues, also subject to a similar
         adjustment which may total up to another 1/2%.  The Company shall pay
         to Eyre $8,333 per month to be applied against the royalty arrangement
         commencing with the closing of the funding of the tailings project at
         Ararat, Armenia (Note 7).
                                                 
         The Restructuring Agreement provided that Eyre may submit to the
         Company additional projects, and that the Company shall in good faith
         consider acquiring such projects by issuing additional shares of
         common stock; provided in no event shall Eyre own or control 50% or
         more of the outstanding common stock of the Company.
                                                 
         Various prospective investment banking firms and potential investors
         who expressed an  interest in providing funding for the Company's
         projects in the fall of 1996 requested that the Company undertake a
         reverse split of its Common Stock (see Note 19) to decrease the number
         of shares outstanding and to reduce the equity stake of certain
         shareholders who received shares pursuant to the Agreement essentially
         in their capacity as finders in order to facilitate possible future
         financings.  In response thereto, by letter dated December 4, 1996,
         Eyre and the Parry-Beaumont Trust surrendered their Acquisition
         Warrants to purchase 240,000 and 160,000 shares of the Company's
         Common Stock (a total of 400,000 shares), surrendered their right to
         designate two members of the Board of Directors of the Company and in
         addition, Eyre agreed to waive its overriding royalties in the
         Armenian projects and to waive the approximately $146,000 due it under
         the promissory notes received at the closing (the "Second
         Restructuring Agreement"). While Eyre had 2% overriding royalty on the
         Armenian mining projects (other than the Tailings Project), the Second
         Restructuring Agreement referred to the waiver of a overriding royalty
         of 1.5% on the Armenian projects in reliance on Eyre's earlier
         agreement to reduce such royalty to 1.5% by virtue of its failure to
         secure financing from a designated mining company in November, 1996. 
         Accordingly, the Company believes that all overriding royalties on the
         Armenian mining projects have been validly waived.

                                          12

<PAGE>

                                                                         
                               GLOBAL GOLD CORPORATION
                            (A Development Stage Company)
                                           
                          Consolidated Financial Statements
                                           
                            Notes to Financial Statements
                                           
                                    March 31, 1997
                                           
                                           
                                           
NOTE 6:  PATTERSON, BELKNAP, WEBB & TYLER LLP

         Global has retained the law firm of Patterson, Belknap, Webb & Tyler
         LLP (PBWT) to represent the Company in its dealings with the Armenian
         and Georgian Republics.  PBWT has an international law practice
         involving commercial, non-profit and humanitarian issues and has
         offices in Moscow.  Mr. Van Z. Krickorian (VZK), of counsel to PBWT,
         has been designated to conduct the negotiations with the Republics. 
         VZK was formerly Armenia's Deputy Permanent Representative to the
         United Nations.
                                                 
         In connection with preparation and negotiation of the Armenian Joint
         Venture Agreement and associated documents, as well as corporate, tax,
         strategic, regulatory, financing, political risk insurance and other
         miscellaneous matters, PBWT shall be compensated $930,000 plus
         expenses ratably over the period May 1, 1995 through May 1, 1999, with
         minimum quarterly payments of $25,000.  The retainer arrangement is
         predicated on the total value of the deal reaching $100,000,000 (1%),
         and is subject to adjustment if it falls short or exceeds that goal. 
         In the event the contemplated financing is not consummated, PBWT will
         reduce its hourly charges by 50%.
                                                 
         PBWT will also represent the Company in preparation and negotiation
         with the Georgian Government of a revised Joint Venture Agreement and
         associated documents, and other related matters similar to the
         aforementioned Armenian retainer agreement.  The contemplated Georgian
         fee is $600,000 for the period July 1, 1995 to July 1, 1999, and the
         minimum quarterly payment is $10,000.
                                                 
         In addition, PBWT performs additional legal services for the Company
         as requested and as of March 31, 1997, there were approximately
         $300,000 of unbilled fees and contingent fees.


NOTE 7:  THE ARMENIAN JOINT VENTURE AGREEMENT
                                                 
         On February 2, 1996, the Company and Armgold, a division of the
         Ministry of Industry of the Government of the Republic of Armenia,
         initialed a Joint Venture Agreement entitled the Armenian Gold
         Recovery Company (the "Venture").  The Agreement was modified May 1,
         1996.  On June 29, 1996, the Republic of Armenia issued a decree
         authorizing Armgold's joint venture with the Company.
                                                 
                                            13

<PAGE>


                                                                         
                               GLOBAL GOLD CORPORATION
                            (A Development Stage Company)
                                           
                          Consolidated Financial Statements
                                           
                            Notes to Financial Statements
                                           
                                    March 31, 1997

                                                 
                                                 
                                                 
NOTE 7:  THE ARMENIAN JOINT VENTURE AGREEMENT (continued)
                                                 
         The Venture may at times be required to obtain various approvals,
         licenses, permits, etc., on a timely basis.  Failure to obtain such
         from the Government, may materially and adversely affect the Company. 
         Pursuant to the May 1, 1996 Agreement, Armenia, in general, has agreed
         to have the cost of the approval process be borne against its share of
         joint venture profits.
                                                 
         The initial stage calls for processing tailings at the Ararat site and
         for various studies for a gold mining operations at the Zod site. 
         Management believes capacities at Zod will be significant.  Mining at
         a third site, Meghradzor, will commence once Zod is operational. At
         each site, the Agreement calls for the Armenian Government to transfer
         to the Venture free and clear title in the mining rights. The Company
         will be required to provide administration, training, management,
         feasibility studies, technology and business plans, as appropriate.
                                                 
         Pursuant to the Joint Venture Agreement, the Company has the following
         obligations:


                                                 Investment    
         Endeavor                                Requirement
         -----------------------------           -----------    
         Delivery of tailings processing         
         Operation equipment to Ararat           $5,000,000     
         
         Zod Complex prefeasibility study        
         and commencement of full                
         feasibility study on Zod Complex        $  500,000     
                   
         Operation of Tailings processing        $2,250,000     
         
         Complete full feasibility study
         and business plan on Zod Complex        $  500,000     
         
         Tailings processing operations
         at Ararat                               $2,250,000     

                                         14 

<PAGE>

                                                                         

                               GLOBAL GOLD CORPORATION
                            (A Development Stage Company)
                                           
                          Consolidated Financial Statements
                                           
                            Notes to Financial Statements
                                           
                                    March 31, 1997

                                                 
                                                 
                                                 
NOTE 7:  THE ARMENIAN JOINT VENTURE AGREEMENT (continued)

         The parties have begun to implement the Tailings Project.  On October
         7, 1996, the Armenian Government issued a license for a five-year
         period of implementation of the development plan at Ararat, effective
         after the registration of the Venture with the appropriate Armenian
         governmental authorities, in accordance with applicable Armenian law. 
         The registration of the Venture occurred on November 8, 1996.  In
         addition, the mining engineering firm retained in connection with the
         Armenian Project obtained bulk ore samples from the tailings site for
         testing in Canada.  An independent laboratory, which analyzed such
         samples, advised the Company, in its written report in February, 1997,
         that the test results showed that approximately one and one tenth gram
         of gold could be obtained from each metric tonne of ore at the site
         covered by the Tailings Project, although there can be no assurance
         thereof.  
                                                 
         Pursuant to the decree issued in connection with the Armenian Joint
         Venture Agreement, GGA was required to invest $5,000,000 in the
         Tailings Project on or before February 1, 1997.  Such requirement was
         deemed satisfied by the parties.
                   
         Pursuant to the Armenian Joint Venture Agreement, the Venture now
         engaged in the final engineering and initial construction for the
         Tailings Project.  The Venture entered into a Tailings Dam
         Construction Contract with Armhydro for $640,000 on January 31, 1997. 
         AGRC also retained a Canadian engineering firm, under a contract for
         Engineering, Procurement and Construction Management Services dated
         January 31, 1997, under which the compensation payable to the
         contractor under Phase I of the project is $4,500,000.
                                                 
         While the Company has been advised that proven reserves exist in the
         Tailings Project and that the mining thereof can be done on a
         profitable basis, there can be no assurance of such result.
                                                 
                                           15

<PAGE>

                                                                         
                               GLOBAL GOLD CORPORATION
                            (A Development Stage Company)
                                           
                          Consolidated Financial Statements
                                           
                            Notes to Financial Statements
                                           
                                    March 31, 1997

                                                 
                                                 
                                                 
NOTE 7:  THE ARMENIAN JOINT VENTURE AGREEMENT (continued)
                                                 
         Presently, it is not contemplated that the Armenian Government will be
         assigned a value for their contribution of the mine properties and
         rights to the venture.  VZK has advised that profit computations are
         still to be resolved.  International or other accounting standards
         have not been adopted in the Agreement.  For the Ararat tailings
         project, once profits are determined, they shall be split 50/50 so
         long as the Percentage of Recovery of Metals Per Gram Per Ton is 70%
         or more.  Based upon a sliding scale, Global's profit share will
         increase to 66.67% if the recovery rate declines to 50% or less. 
                                                 
         Armenia has permitted a tax holiday for the contemplated venture as
         follows: for the first two years there shall be a complete exemption
         from profits tax.  For the third through the tenth year, only 50% of
         the taxable income shall be taxable.
                                                 

NOTE 8:  THE GEORGIAN AGREEMENT
                                                 
         The Company also acquired from Eyre rights under a Foundation
         Agreement dated April 22, 1995 (including a Charter for a Joint
         Venture Company) with R.C.P.A. "Madneuli", a Georgian state
         enterprise, in connection with carrying out certain mining of the
         Madneuli deposit.  The Company has been advised that the application
         for the license required to be filed with the Georgian government has
         not been filed, and it has no definitive agreement granting it fixed
         rights to mining production or processing in Georgia.  The Company
         intends to commence discussions with the Government after it raises
         capital.
                                                 
         The current Agreement calls for each partner to advance capital in a
         50/50 ratio.  Neither international nor any other body of accounting
         standards have been adapted in the joint venture agreement.  Cash flow
         initially is to be distributed as follows:

              RCPA Madneuli            9.75%
              Eyre (now the Company)   9.75%
              Panquest                  .25%   (Georgian resource broker)
              Sinking Fund              .25%   (Georgia)
              Capital Repayments      80.00%

                                           16

<PAGE>

                                                                          

                               GLOBAL GOLD CORPORATION
                            (A Development Stage Company)
                                           
                          Consolidated Financial Statements
                                           
                            Notes to Financial Statements

                                    March 31, 1997
                                                 
                                                 

NOTE 8:  THE GEORGIAN AGREEMENT (continued)
                                                 
         After recovery of capital, the net profit were to be distributed as
         follows:
                                                 
         a)   RCPA - according to shareholdings (i.e. share of the Foundation
              Fund, which shares could be changed only by unanimous vote of the
              participants), less 2.5% to the Sinking Fund, and 
    
         b)   The Company (or its wholly-owned subsidiary) - according to
              shareholdings less 2.5% to Panquest.
                                                 
         The Agreement calls for the Board of the Joint Venture Company to
         annually decide upon the amount of profit distributions.
                                                 
         The Joint Venture Company will not be required to pay Georgian income
         tax on the profits obtained within the Company for the first two years
         after all capital and capital costs have been repaid.  In the
         following two years, taxation shall be at 50% of the normal rate. 
         Thereafter, the Joint Venture Company may apply to the Ministry of
         Finance for additional taxation privileges.  Reinvested capital will
         be exempt from taxation.
                                                 
         The Joint Venture Company may at times be required to obtain various
         approvals, licenses, permits, etc., on a timely basis.  Failure to
         obtain such from the Government could materially and adversely affect
         the Company.
                                                 
         The Company recently learned that the Georgian Government is planning
         to privatize the development of the Madneuli mine through a public
         bidding process which is slated to end on April 15, 1997.  Since the
         structure of the Madneuli mining project under the public tender
         differs markedly from that contemplated under the Asset Purchase
         Agreement between the Company and Eyre dated as of June 30, 1995, the
         Company has decided not to submit a bid for the development of the
         Madneuli mining project.  However, there can be no assurance that the
         Company will be successful in acquiring any rights or concluding any
         definitive agreements with respect to the Madneuli mining project, or,
         if so, on terms acceptable to it.  Furthermore, if the Company does
         acquire any rights to the Madneuli mining project, there can be no
         assurance that it will be able to obtain financing for the acquisition
         or development thereof, or, if so, on terms acceptable to the Company.

                                           17

<PAGE>

                                                                          
                               GLOBAL GOLD CORPORATION
                            (A Development Stage Company)
                                           
                          Consolidated Financial Statements
                                           
                            Notes to Financial Statements
                                           
                                    March 31, 1997



NOTE 9:  NOTES RECEIVABLE

         The Company holds a note receivable as follows:


              Amount         Interest Rate              Debtor
            ----------       -------------    ------------------------------

            $  300,000       Prime + 2%     Jet-Line Environmental Services, 
                                            Inc. (Jet-Line)
                      
                      
              (150,000)                     Allowance for doubtful accounts
            ----------
             $ 150,000
            ----------
            ----------

         The Jet-Line note as more fully described in the documents, is
         convertible into 20% of Jet-Line's common stock.  Jet-Line has
         defaulted on prior balloon payment obligations and is in default of
         its current interest requirements. The note is secured by U.C.C.'s on
         certain equipment.  Jet-Line owns certain valuable assets.  The
         Company pledged the Jet-Line notes as collateral for loans to the
         Company from Drury Gallagher. 
                                                 
    
         Jet-Line advised the Company in early March, 1997 that it received a
         notice of the revocation of its license to do business in
         Massachusetts and a fine of $100,000 from the Massachusetts
         environmental authorities.  Jet-Line contested such revocation and
         fine in the Massachusetts state courts unsuccessfully.  As a result,
         Jet-Line has been requested by such authorities to sell its facility
         in Massachusetts, and Jet-Line is now engaged in negotiations with a
         potential buyer with respect to such sale.  The Company sent Jet-Line
         a written notice of default and demand for payment on March 14, 1997,
         and a further demand letter on April 2, 1997, and is considering
         whether to sell the assets in which it holds a first security
         interest.  The Company has also requested Jet-Line to seek additional
         financing and to use part of the proceeds therefrom to satisfy the
         Jet-Line Note in full.  However, there can be no assurance that
         Jet-Line will be able to consummate such sale or obtain such
         financing.  Thus, there can be no assurance that the Company will
         ultimately be paid the full principal amount of, and accrued interest
         on, the Jet-Line note.  Management has not accrued interest on the
         note and revised its allowance for doubtful accounts to $150,000.

                                           18

<PAGE>

                                                                          

                               GLOBAL GOLD CORPORATION
                            (A Development Stage Company)
                                           
                          Consolidated Financial Statements
                                           
                            Notes to Financial Statements
                                           
                                    March 31, 1997

                                                 
NOTE 10: OFFICERS' COMPENSATION PAYABLE

         Officers' compensation payable consists of the following:


                                March 31, 1997
                                --------------
                                            
         Drury Gallagher           $  75,000
         
         Robert Garrison              83,334
                                   ---------
                                   $ 158,334
                                   ---------
                                   ---------

(See Note 16)
                                                 
NOTE 11: ACCOUNTS PAYABLE AND ACCRUED EXPENSES
                                                 
         Accounts payable and accrued expenses include the following:


                                          March 31, 1997
                                          --------------

         Legal - General Counsel             $  91,789
         Legal - Patterson, Belkap, Webb
            & Tyler LLP (Note 6)               325,844
         Drury Gallagher, Robert Garrison 
            and Affiliates                      72,651
         Other Miscellaneous                    75,943
                                             ---------
                                             $ 566,227
                                             ---------
                                             ---------        
         
NOTE 12: DEFERRED COSTS

         Deferred costs include the following:

                                          March 31, 1997
                                          --------------
         Legal - Patterson, Belknap, Webb                     
           & Tyler LLP(Note 6)             $   459,542
         Legal - General Counsel                81,747        
         Engineering                           608,404        
         Research and Analysis                  82,042
         Overseas travel                        71,656        
         Equipment                              14,713
         Other                                  73,241        
                                            ----------
                                            $1,467,344
                                            ----------
    
NOTE 13: NOTES PAYABLE

         On December 1, 1995, the Company closed the Eyre agreement to purchase
         certain mining rights (Note 5).  Pursuant to the agreement, the
         Company issued two $100,000 promissory notes.

                                           19

<PAGE>

                                                                          
                               GLOBAL GOLD CORPORATION
                            (A Development Stage Company)
                                           
                          Consolidated Financial Statements
                                           
                            Notes to Financial Statements
                                           
                                    March 31, 1997
                                           
                                           
NOTE 13: NOTES PAYABLE (continued)
                                                 
         The first note bears interest at 6.36% per annum, and is payable
         contingent upon the Company obtaining financing of at least
         $2,000,000, whether from equity, debt or a combination of both.  After
         this condition is met, the note is due within 10 business days.
                                                 
         The second, with interest at 5.65% per annum, is payable in full no
         later than December 31, 1996.  Pursuant to the Second Restructuring
         Agreement (Note 5) dated December 4, 1996 both promissory notes were
         cancelled.
                                                 
         Drury Gallagher loaned the Company $192,000.  The note evidencing the
         loan bears interest at 10% per annum and is due on or before June 30,
         1997 together with accrued and unpaid interest.
                                                 
NOTE 14: CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM

         Pursuant to a Private Placement Offering dated May 17, 1995, as
         amended, the Company issued $500,000 of 10% convertible senior notes
         due December 31, 1996.  Expenses in connection with the offering were
         $78,427.
                                                 
         Each $1,000 convertible note entitled the holder to 400 shares of
         common stock, and warrants to purchase 800 shares of common stock at
         an exercise price of $.50 per share at any time before December 31,
         1996.  The expiration date was subsequently extended to December 31,
         1997.
                                                 
         In accordance with the Offering, interest was not payable on the notes
         so long as they were converted to equity within a specified time
         frame.  After the December 1, 1995 Eyre closing, the entire $500,000
         of convertible notes were exchanged for 200,000 shares of common
         stock.
                                                 
NOTE 15: WARRANTS OUTSTANDING
                                            
         The Company had warrants outstanding as follows:


                                   # Shares Right    Price/Share   Expiration
            Warrant Holder(s)        to Purchase  Exercisable at      Date
           -------------------       -------------  -------------   ----------
         Stockholders through                              
           Note Conversion - 
           Note 5                       400,000       $1.00          12/31/97
         Other                            4,000       $5.00          11/30/98
                                        -------
                                        404,000
                                        -------
                                        -------

                                            20

<PAGE>


                                                                         
                               GLOBAL GOLD CORPORATION
                            (A Development Stage Company)
                                           
                          Consolidated Financial Statements
                                           
                            Notes to Financial Statements
                                           
                                    March 31, 1997

                                            
                                            
NOTE 16: OFFICERS' COMPENSATION, INCENTIVE STOCK OPTIONS AND STOCK
         APPRECIATION RIGHTS
                                            
         Management presently consists of Mr. Drury Gallagher and Mr. Robert
         Garrison.  Mr. Gallagher has been President of the Company and a
         stockholder since 1981. Mr. Garrison was subsequently hired to oversee
         mining and related financing activities.  Mr. Gallagher and Mr.
         Garrison entered into employment agreements with the Company effective
         July 1, 1995.  Each is entitled to receive a base salary of $100,000
         per year, for 50% of their time, for a three year term.  The
         agreements call for automatic annual increases as defined.  The Board
         may award bonuses up to 50% of base compensation.
                                            
         On January 3, 1997, the Board of Directors of the Company approved the
         issuance of 1,000,000 shares of its Common Stock to each of Messrs.
         Gallagher and Garrison in exchange for, (a) in Mr. Gallagher's case,
         the cancellation of $100,000 of accrued salary, and the cancellations
         of his options to acquire 175,000 shares of the Common Stock of the
         company and the cancellation of his stock appreciation rights (the
         "SARs") which, under certain circumstances, could have resulted in the
         issuance to him of up to 37,500 shares of the Company's Common Stock
         and (b) in Mr. Garrison's case, the cancellation of $100,000 of
         accrued salary, the cancellation of his options to buy 75,000 shares
         of the Company's Common Stock and the cancellation of his SARs.  The
         Company made such transfer to reward each of them for their efforts to
         secure financing for the Company and/or the Armenian mining project,
         for maintaining the Company's existence in the face of the Company's
         potential insolvency, and to increase their proprietary stake of the
         day-to-day management of the Company.  In 1997, Eyre questioned the
         validity of the issuance by the Company of 1,000,000 shares of its
         common stock to each of Messrs. Gallagher and Garrison.
                                            
         Global Gold Armenia Limited ("GGA") (Note 17) agreed to retain Robert
         A. Garrison as a consultant for a three-year period commencing
         February 1, 1997 for $150,000 per annum pursuant to the terms of the
         consulting agreement entered into between such parties.  Under such
         agreement, Mr. Garrison will serve as a Senior Vice President of GGA,
         will assist it in furtherance of its business interests under the
         supervision of the board of directors of GGA and provide ongoing
         management as the board of directors of GGA reasonably requests of him
         from time to time.  Mr. Garrison agreed to devote 50% of his time and
         attention to the performance of his services under such agreement, in
         his capacity as an independent contractor.  Such agreement is
         terminable by the consultant upon 90 days prior written notice to GGA
         (or lesser notice if GGA agrees to such shorter period) or for cause
         (as defined therein) or without cause, which, in such latter case,
         would require GGA to pay Mr. Garrison the amount of his consulting
         fees remaining unpaid under such agreement.  Such agreement is in lieu
         of the above mentioned salary.

                                             21

<PAGE>


                                                                         

                               GLOBAL GOLD CORPORATION
                            (A Development Stage Company)
                                           
                          Consolidated Financial Statements
                                           
                            Notes to Financial Statements
                                           
                                    March 31, 1997

                                            
                                            
                                            
                                            
                                            
NOTE 17: NON-UNITED STATES WHOLLY OWNED SUBSIDIARIES/INCOME TAX MATTERS
                                            
         On November 29, 1995, the Company formed Global Gold Armenia Limited
         and Global Gold Georgia Limited, which were respectively assigned the
         Armenian and Georgian mining rights from Eyre at the closing on
         December 1, 1995 (Note 5).  The two subsidiaries are Cayman Island
         entities which were granted a twenty year tax exemption from any law
         of that jurisdiction which hereafter imposes any tax to be levied on
         profits, income, gains or appreciation, commencing December 19, 1995.
                                            
         Company experienced net operating losses for each of the two years
         ended December 31, 1996.  The Company has elected to carryforward such
         losses for Federal income tax purposes and offset future taxable
         earnings.  However, since the Company is a development stage company
         and its ability to obtain future earnings is uncertain, no deferred
         tax asset has been recorded.
                                            
         The off shore companies were formed in part, as a result of the
         concerns of Eyre, the previous Australian owner of the mining rights,
         and presently a substantial non-controlling stockholder group of the
         Company, that they not be exposed to two layers of corporate taxation,
         United States and Australia.  The Company will obtain a tax opinion on
         the transaction, which will also seek to give greater comfort to
         current and future U.S. and non-U.S. shareholders, that the structure
         will in fact satisfy realistic income tax goals of all concerned
         parties.  Inasmuch as management valued the shares of stock
         distributed to Eyre in exchange for acquiring the aforementioned
         mining interests at $.085 per share (such interests, described herein,
         were not substantially perfected at the time of the transaction), it
         is management's position that even if the Internal Revenue Service
         deemed the transaction to be a taxable event, there would nevertheless
         be insignificant income tax consequences.  However, there can be no
         such assurance.  Furthermore, the Company will determine that the
         structure will not in any way be a deterrent from obtaining future
         financing or political risk insurance.  Management will consider
         future structural changes, if necessary.

                                           22

<PAGE>


                                                                         

                               GLOBAL GOLD CORPORATION
                            (A Development Stage Company)
                                           
                          Consolidated Financial Statements
                                           
                            Notes to Financial Statements
                                           
                                    March 31, 1997

                                            
                                            
                                            
NOTE 18: NET LOSS PER SHARE
                                                 
         Net loss per share is computed using the weighted average number of
         shares outstanding during the period.  Common stock equivalents have
         not been included since the effect would be antidilutive.
                                            
                                            
NOTE 19: REVERSE STOCK SPLIT
                                            
         Various prospective investment banking firms and potential investors
         who expressed an interest in providing funding for the Company's
         projects in 1996 requested that the Company undertake a reverse split
         of its Common Stock to decrease the number of shares outstanding and
         thereby facilitate possible future financings.  Accordingly, the
         Company effected a 1 for 10 reverse split of its common stock
         effective as of December 31, 1996.  Such step was taken by the written
         consent of the holders of a majority of the Company's issued and
         outstanding shares of Common Stock.  By virtue of the reverse split,
         each stockholder's number of shares of Common Stock became 1/10th of
         the number previously held.  The Company filed its Certificate of
         Amendment to the Certificate of Corporation with respect to the
         reverse split with the Delaware Secretary of State on December 31,
         1996.
                                            
         All share and per share data in this report have been restated to
         reflect the reverse stock split, unless otherwise noted.


NOTE 20: FIRST DYNASTY MINES LTD. 
                                            
         The Company, GGA and First Dynasty Mines Ltd. ("First Dynasty"), a
         Canadian public company, entered into a preliminary agreement dated
         January 27, 1997 whereby First Dynasty agreed to advance funds in
         stages necessary for the development of the Armenian mining projects.
                                            
         The Company and First Dynasty entered into a definitive agreement
         dated May 13, 1997 reflecting the final agreement of the parties with
         respect to the Armenian mining projects (the "FDM Agreement").  The
         principal terms of the FDM Agreement are outlined as follows:

                                            23

<PAGE>

                                                                          
                               GLOBAL GOLD CORPORATION
                            (A Development Stage Company)
                                           
                          Consolidated Financial Statements
                                           
                            Notes to Financial Statements
                                           
                                    March 31, 1997

                                            
                                            
                                            
NOTE 20: FIRST DYNASTY MINES LTD. (continued)
                                            
         First Dynasty agreed to advance a maximum of $24,510,000 under the FDM
         agreement.  All funds advanced by First Dynasty will be advanced to
         GGA as debt, which is convertible into stock of GGA at First Dynasty's
         option or is automatically converted into such stock under certain
         circumstances, as follows:
                                            
         A.   The first $6,490,000 of debt is convertible into 25% of the
              capital stock of GGA.
         B.   The next $3,520,000 of debt together with the advance described
              above is convertible into 51% of the capital stock of GGA.
         C.   For every additional $.5 million advanced in respect of the
              development of the Zod and Meghradzor mines (excluding the $10
              million Tailings Project expenditure) as a loan to GGA, such debt
              is convertible into an additional 1% of the capital stock of GGA,
              up to a maximum of 80% of the issued and outstanding shares of
              capital stock of GGA.
                                            
         Upon obtaining 80% of the capital stock of GGA, or upon making
         aggregate advances of $24,510,000, First Dynasty would be entitled to
         acquire the remaining 20% of the outstanding of capital stock of GGA,
         within 18 months after making such total advances, by issuance of
         4,000,000 of its common stock, except that such number of shares will
         be increased proportionately to the extent that the mineable reserves
         at the Zod and Meghradzor mines (which are established at the end of
         such 18 month period), exceed five million ounces.
                                            
         First Dynasty will be entitled to appoint three of the five directors
         of GGA until First Dynasty shall acquire 80% of the issued and
         outstanding common stock of GGA.
                                            
         First Dynasty carried out certain initial commitments in February,
         1997.  They loaned GGA $675,000 to pay outstanding payables, agreed to
         fund the $640,000 Tailings Dam Construction contract and agreed to
         guarantee or co-sign up to $3,500,000 of the equipment purchase
         contract and up to $1,000,000 of the engineering, procurement,
         construction management agreement between the Venture and a Canadian
         engineering firm.  First Dynasty further agreed to loan the Company an
         additional $675,000 to cover the balance of the outstanding payables. 
         First Dynasty made direct payments of $396,000 on the Tailings contact
         and engineering agreement in the first quarter of 1997.

                                           24

<PAGE>

                                                                         

                               GLOBAL GOLD CORPORATION
                            (A Development Stage Company)
                                           
                          Consolidated Financial Statements
                                           
                            Notes to Financial Statements
                                           
                                    March 31, 1997

                                            
                                            
                                            
NOTE 20: FIRST DYNASTY MINES LTD. (continued)
                                            
         In addition, First Dynasty agreed to pay the Company $400,000 for use,
         at its option, to defray its expenses in participating in the
         negotiation of the second Armenian joint venture agreement, which is
         now occurring, of which $200,000 was paid upon the execution and the
         delivery of the FDM Agreement and the balance of $200,000 will be paid
         on June 30, 1998.  Although not reflected in the FDM Agreement, First
         Dynasty also agreed to pay the Company $150,000 to defray the expenses
         incurred by GGA during the three-month period ending March 31, 1997.

                                           25
<PAGE>

                               GLOBAL GOLD CORPORATION 
             MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                              AND RESULTS OF OPERATIONS



(A) GENERAL OVERVIEW 

    The Company is presently engaged in the development of a gold mining 
project in Armenia, and is currently considering pursuing a gold and copper 
mining project in Georgia (both of which countries are members of 
Commonwealth of Independent States). The Company is currently in the 
pre-development stage and has not received any revenues from mining 
activities.  Prior thereto, the Company did not engage in any substantial 
business activities, except as described in the section 1(D) entitled "Prior 
History of the Company" reflected in the Form 10-KSB filed by the Company for 
the period ended December 31, 1996.

(B) ARMENIAN MINING PROJECT

    (a)  ARMENIAN JOINT VENTURE AGREEMENT  

    The Company, the Ministry of Industry of Armenia and Armgold, S.E., the 
Armenian state gold enterprise, executed and delivered the Armenian Joint 
Venture Agreement, dated as of May 1, 1996.  The Company thereafter assigned 
its rights and obligations thereunder to Global Gold Armenia Limited, its 
wholly-owned Cayman Islands subsidiary ("GGA").  The Armenian Joint Venture 
Agreement contemplates the formation of the Armenian Gold Recovery Joint 
Venture Co. Ltd., a limited liability company under Armenian law ("AGRC"), 
which will construct, operate and market the gold production and provide 
capital and financing in a multistage development of the Armenian gold 
industry.  Stage 1 of the Armenian Joint Venture Agreement involves the 
processing of an estimated 12 million tonnes of tailings from the Ararat 
processing plant, which the Company believes  average 1 gram of gold per 
tonne (based on the independent metallurgical study obtained by the Company) 
(the "Tailings Project") and the completion of a comprehensive feasibility 
study and business plans for the development of the Zod mine.  Based on the 
business plans to be approved by all parties, Stage 2 calls for the 
rehabilitation of the Ararat Gold Processing Plant and for mine development 
and operation as well as engineering and building a gold processing plant at 
the Zod mine, and Stage 3 calls for mine development and operation as well as 
engineering and building a gold processing plant at the Meghradzor mine, a 
feasibility study for a gold refinery, and exploration activity. GGA is 
currently negotiating a new agreement with the Armenian authorities to 
expedite and modify stages 2 and 3.

                                     26

<PAGE>
 
    (b)  TAILINGS PROJECT

    The parties have begun to implement the Tailings Project.  As of February 
1, 1997, GGA had a definitive agreement authorized by an Armenian government 
decree granting it fixed rights to process tailings from the Ararat site as 
well as a license and environmental approval for construction.  

    Pursuant to the Armenian Joint Venture Agreement, AGRC is now engaged in 
the final engineering and initial construction for the Tailings Project.  
AGRC entered into a Tailings Dam Construction Contract with Armhydro for 
$640,000 on January 31, 1997.  AGRC also retained a Canadian engineering 
firm, under a contract for Engineering, Procurement and Construction 
Management Services Agreement dated January 31, 1997, under which the 
compensation payable to the contractor under Phase I of the project is 
$4,500,000.  Operation of the tailings processing plant is planned for 
September, 1997, although construction and other contingencies exist which  
may delay meeting such target date.

    While the Company has been advised that proven reserves exist in the 
Tailings Project and that the mining thereof can be done on a profitable 
basis, there can be no assurance of such result.

    (c)  FINANCING OF THE ARMENIAN MINING PROJECT  -  FIRST DYNASTY MINES LTD.

    Throughout 1996 and into January, 1997, the Company had discussions with 
many unrelated parties in connection with arranging for the financing of the 
Tailings Project.  As of January 31, 1997, the Company and GGA reached an 
agreement with First Dynasty Mines Ltd. ("First Dynasty"), a Canadian public 
company whose shares are traded on the Toronto Stock Exchange and on NASDAQ.  
Under such preliminary agreement, First Dynasty acquired the right, subject 
to certain conditions, to advance funds in stages necessary for the 
implementation of the Tailings Project and the preparation of engineering and 
business plan materials for the remaining Armenian mining projects.  

    The Company, GGA and First Dynasty entered into a definitive agreement 
dated May 13, 1997 reflecting the final agreement of the parties with respect 
to the above projects  (the FDM Agreement").  The principal terms of the FDM 
Agreement are set forth below:

    1.   First Dynasty agreed to advance a maximum of $24,510,000 to GGA 
under the FDM Agreement, which amounts will be advanced as debt, which is 
convertible into stock of GGA, at First Dynasty's option, or is automatically 
converted into such stock under certain circumstances, as described below:  

         (a)  Upon First Dynasty's making advances of $6,490,000, such amount
    will then be automatically converted into 25% of the capital stock of GGA.

                                     27

<PAGE>

         (b)  The next $3,520,000 of debt, together with the advance described 
    in 1(a) above, is convertible into 51% of the capital stock of GGA, at First
    Dynasty's option.  

         (c)  For every additional $.5 million invested for expenditures 
    advanced in respect of the development of the Zod and Meghradzor mines 
    (excluding the $10 million Tailings Project  expenditure) as a loan to GGA,
    such debt is convertible, at First Dynasty's option, into an additional 1% 
    of the capital stock of GGA, up to a maximum of 80% of the issued and 
    outstanding shares of capital stock of GGA.  Thus, upon advancing a total of
    $24,510,000 in the Armenian mining projects, First Dynasty would be entitled
    to acquire 80% of the shares of GGA, if First Dynasty elects to convert all
    of its debt into equity.

    2.   (a)  Upon obtaining 80% of the capital stock of GGA or upon making 
aggregate advances of $24,510,000, First Dynasty would be required to acquire 
the remaining 20% of the outstanding capital stock of GGA, within 18 months 
after making such total of advances,  by issuance of 4,000,000 shares of its 
common stock except that such number of shares will be increased 
proportionately to the extent that the mineable reserves at the Zod and 
Meghradzor mines (which are established at the end of such 18-month period) 
exceed five million ounces.  

         (b)  First Dynasty further agreed to use its best efforts to issue 
freely tradeable FDM shares to GGA if is feasible to do so in connection with 
a contemporaneous public offering of shares of FDM stock or, alternatively, 
special warrants to acquire shares of common stock of First Dynasty without 
payment therefor (each of which would be exercisable into one share of First 
Dynasty common stock) in a form and substance satisfactory to all parties, 
pursuant to a prospectus filed with the applicable Canadian securities 
regulatory authorities.  

         (c)  In the event of a violation of First Dynasty's obligations to 
pay the Company 4,000,000 shares of its common stock or greater amount or to 
arrange for the issuance of freely tradeable shares pursuant to the 
mechanisms contemplated in the FDM Agreement, the Company would be able to 
require First Dynasty to specifically perform its obligations pursuant to the 
grant of an injunction or other appropriate decree of specific performance by 
any court having equity jurisdiction over the parties.  

    3.   (a)  First Dynasty's agreement to continue funding under the FDM 
Agreement is subject to the following conditions:  

              (i)  all of the representations and warranties in GGA were true as
         of the date of the execution and the delivery of the FDM Agreement; 

              (ii) neither the Company nor (prior to the actual implementation
         of the appointment of First Dynasty's  designees as three directors of
         GGA) GGA will have breached in any  material respects any of its 

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<PAGE>

         covenants under the FDM Agreement, and 

              (iii) with respect to any advances in excess of $10,000,000 or the
         issuance of any shares of First Dynasty stock, First Dynasty will have
         obtained the approval of The Toronto Stock Exchange. 

         (b)  First Dynasty right's under the FDM Agreement remain exclusive 
for so long as First Dynasty continues to fulfill its obligations under the 
FDM Agreement and GGA continues to fulfill its obligations under any joint 
venture agreement in Armenia, except that FDM's rights will cease to be 
exclusive if (i) the Company notifies First Dynasty in writing that First 
Dynasty is in default under the FDM Agreement or that GGA is in default under 
any Armenian joint venture agreement and (ii) First Dynasty fails to cure 
such default within 45 days thereafter, but, in any event, prior to the 
expiration of any cure period to which GGA is subject if First Dynasty's 
default results in a default by GGA under any joint venture agreement.  

    4.   (a)  First Dynasty agreed to pay the Company $400,000 for use, at 
its option, to defray its expenses in participating in the negotiation of the 
second Armenian joint venture agreement, which is now occurring, of which 
$200,000 was paid upon the execution and the delivery of the FDM Agreement 
and the balance of $200,000 will be paid on June 30, 1998.  

         (b)  Although not reflected in the FDM Agreement, First Dynasty also 
agreed to pay $150,000 to defray the expenses incurred by GGA during the 
three-month period ending March 31, 1997.  

    5.   Upon the formation of AGRC Exploration, a limited liability company 
to be formed under the laws of Armenia, and ending on December 31, 2009, the 
Company will be entitled to elect to participate with GGA in any exploration 
projects undertaken by AGRC Exploration up to a level of up to 20% of GGA's 
rights in any exploration project.  GGA and the Company also agreed to enter 
into a mutually acceptable participation agreement in respect of any 
exploration project. 

    6.   GGA agreed to retain Robert A. Garrison as a consultant for a 
three-year period commencing February 1, 1997 pursuant to the terms of the 
consulting agreement entered into between such parties.  Under such 
agreement, Mr. Garrison will serve as a Senior Vice President of GGA, will 
assist it in furtherance of its business interests under the supervision of 
the board of directors of GGA and provide ongoing management as the board of 
directors of GGA reasonably requests of him from time to time.  Mr. Garrison 
agreed to devote 50% of his time and attention to the performance of his 
services under such agreement, in his capacity as an independent contractor. 
Such agreement is terminable by the consultant upon 90 days prior written 
notice to GGA (or lesser notice if GGA agrees to such shorter period) or for 
cause (as defined therein) or without cause, which, in such latter case, 
would require GGA to pay Mr. Garrison the amount of his consulting fees 
remaining unpaid under such agreement. 

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<PAGE>

    7.   The parties also entered into a shareholders agreement, providing for,
among other things, the following: 

         (a)  From the inception of the agreement and until First Dynasty shall
    acquire 80% of the issued and outstanding common stock of GGA, First 
    Dynasty's designees serve as three of the five directors of GGA, including 
    Marcus Randolph, the President of First Dynasty, and Drury J. Gallagher and 
    Robert A. Garrison, the Company's Chairman and Chief Executive Officer and 
    the President and Chief Operating Officer, respectively, serve as the 
    Company's designees.  If the size of the board is increased thereafter, each
    party will have the right to designate such number of its designees as 
    members as the board of directors as shall be proportionate to the number
    of designees established under such agreement.  As a result of this 
    provision, First Dynasty now controls the board of directors of GGA.  

         (b)  The board of directors of GGA will act by the vote of majority of
    its members, except that the unanimous vote of the board is required to take
    action on the following matters: 

              (i)   the sale, lease or any disposition of substantially all of 
         the assets of GGA; 

              (ii)  the sale or assignment of any interest of GGA in any joint
         venture company in which GGA is a shareholder or equity participant or 
         has provided financing in excess of $250,000; or 

              (iii) the financing of any of the projects contemplated under the
         FDM Agreement other than when such financing is provided solely by FDM.

         (c)  In the event that the FDM Agreement becomes non-exclusive pursuant
    to the provisions thereof, then First Dynasty shall have the right to 
    designate only one director of GGA, the Company shall have right to 
    designate one director of GGA and the party or parties who provide financing
    required under the then applicable provisions of the contemplated second 
    Armenian joint venture agreement will have the right to appoint three 
    designees to the board of directors of GGA, simultaneously with the 
    execution and delivery of any financing agreement relating thereto or upon
    the payment of the first funding thereunder (and the Company will have the
    right to participate in the financing described in such provision).

         (d)  Each party cannot sell, transfer or pledge its shares of ordinary
    shares of GGA, except that each party may transfer its interest to a
    corporation, partnership or limited liability company which is wholly owned
    by the transferring party. During the period that First Dynasty's rights 
    under the FDM Agreement remain exclusive, neither shareholder has any right
    to sell or transfer the shares of GGA stock owned by it. Furthermore, if a 

                                     30

<PAGE>

    stockholder receives a bona fide offer to sell its GGA's shares, GGA and 
    thereafter the non-selling stockholder has the right to purchase the stock 
    in question at the offered price, each for successive 30-day periods.  If 
    such right of first refusal is exercised, the purchaser is required to pay
    the full purchase price in immediately available funds or by wire transfer.
    Alternatively, the non-selling shareholder may exercise so-called tag along
    rights and participate on a pro rata basis in the sale of shares of GGA of 
    both the recipient of the offer and the non-selling shareholder to the 
    offeror.  If such right of first refusal or tag along right is not 
    exercised, than the seller may sell its shares of GGA to the offeror on the
    terms described in the offer within 120 days after receipt of such offer and
    provided further that such third party signs an instrument in writing 
    agreeing to be bound by all of the terms and conditions of the shareholders
    agreement.  

    8.   Each party is entitled to engage in any other activities or business 
or mining or other investments outside of Armenia and will not be required to 
account to any other party for any profits derived from such permitted 
activities, businesses or investments.  

    Pursuant to the First Dynasty Agreement, First Dynasty carried out 
certain initial commitments described below:

         a.   First Dynasty loaned $1,350,000 to GGA in two installments of 
    $675,000 each to repay such amount of payables attributable to GGA and such
    amounts were disbursed according to the agreement (or are being disbursed 
    in the case of the second installment).  

         b.   Upon the signing of the $640,000 Tailings Dams construction 
    contract with Armhydro, First Dynasty funded $5,000, and on or before 
    February 10, 1997, advanced an additional $91,000, and, thereafter, First
    Dynasty has agreed to fund the balance.

         c.   First Dynasty agreed to guarantee or co-sign for up to $3,500,000
    of the equipment purchase contract and up to $1,000,000 of the engineering,
    procurement, construction management agreement between AGRC and a Canadian
    engineering firm.  Also, First Dynasty agreed to advance funding for
    expenditures thereunder as jointly  agreed by the Company and First Dynasty
    from time to time, subject to certain cancellation provisions agreed to by 
    First Dynasty.

    (d)  MINING PLANS 

    GGA, in conjunction with First Dynasty, is currently negotiating with the 
Armenian Government to obtain for AGRC, or separate, similar joint venture 
companies, rights to mine and process gold at the Zod and Meghradzor mines on 
a schedule which is faster than anticipated by the May 1, 1996 Joint Venture 
Agreement, although there can be no assurance of the outcome thereof.  

                                     31

<PAGE>

    (C)  JET-LINE ENVIRONMENTAL SERVICES, INC.

    Jet-Line Environmental Services, Inc. ("Jet-Line") is a privately-held 
Delaware corporation organized in 1970, and is engaged in providing various 
environmental clean-up services for a variety of customers, including fuel 
service, laboratory services, disposable services, transportation and safety 
and compliance services.   A copy of Jet-Line's compiled and unaudited 
financial statement for the calendar year ended December 31, 1996 showed a 
loss of approximately $377,000 for such year.

    On April 21, 1993, the Company loaned $300,000 to Jet-Line, which is 
evidenced by Jet-Line's promissory note that is convertible into 20% of 
Jet-Line's common stock, and 25% of its common stock upon the payment (upon 
conversion) to Jet-Line of $37,500, at the option of the Company, and 30% of 
its common stock upon the payment (upon conversion) to Jet-Line of $100,000, 
at the Company's option, as provided therein (the "Jet-Line Note").  The 
Jet-Line Note, which matured on April 21, 1996 and which was restructured on 
May 13, 1996, is secured by a pledge of transportation equipment  and 
machinery and equipment used in Jet-Line's business and a Jet-Line owned 
warehouse and office laboratory building totalling 22,500 square feet located 
on one acre of land.  The total appraisal value of the assets when made in 
part in December, 1992 and in part in early 1993 was in excess of a total of 
$1,500,000, but the Company does not know the appraised value of such 
collateral at present since no updated appraisal of such assets has been 
made.   Prior to such transaction, Jet-Line had no affiliation of any kind 
with the Company or its stockholders.

    Since Jet-Line has been experiencing operating losses, and lacks adequate 
liquid resources, it is highly unlikely that Jet-Line will be able to pay the 
full amount of the principal and accrued interest on the Jet-Line Note, and it
defaulted under the May 13, 1996 loan extension agreement between the 
parties.  In addition, Jet-Line advised the Company in early March, 1997 that 
it received a notice of the revocation of its license to operate its business 
in Massachusetts, and of a $100,000 fine, from the Massachusetts 
environmental authorities, and Jet-Line contested such revocation and fine in 
the Massachusetts state courts unsuccessfully.  As a result, Jet-Line has 
been requested by such authorities to sell its facility in Massachusetts, and 
Jet-Line is now engaged in negotiations with a potential buyer with respect 
to such sale.  The Company sent Jet-Line a written notice of default and 
demand for payment on March 14, 1997, and a further demand letter on April 2, 
1997, and is considering whether to sell the assets in which it holds a first 
security interest.  The Company has also requested Jet-Line to seek an 
additional financing and to use part of the proceeds therefrom to satisfy the 
Jet-Line Note in full.  However, there can be no assurance that Jet-Line will 
be able to consummate such sale or obtain such a financing.   Thus, there can 
be no assurance that the Company will ultimately be paid the full principal 
amount of, and accrued interest on, the Jet-Line Note. 

                                      32

<PAGE>
 
THREE MONTHS ENDED MARCH 31, 1997 COMPARED TO THREE MONTHS ENDED MARCH 31, 1996

    REVENUES: During the three month period ended March 31, 1997, the 
Company's interest and royalty income was zero, which was the same amount for 
the same period last year.  

    ADMINISTRATIVE AND OTHER EXPENSES:  The Company's administrative and 
other expenses for the three-month period ended March 31, 1997 were $111,115,
which represent an increase from the amount paid or accrued of $106,941 in  
the same period last year.  Such increase was attributable to the Company's 
(a) accrual of officers' compensation and (b) the accrual and/or payment of 
legal and accounting fees and expenses in connection with its retention of 
counsel to implement the Company's transaction with First Dynasty pursuant to 
the agreement between such parties dated January 27, 1997 in connection with 
the financing of the Tailings Project and the additional projects 
contemplated in Armenia (subject to miscellaneous contingencies), to file the 
Company's 10-KSB for the period ended December 31, 1996 and to negotiate 
additional joint venture agreements for projects in Armenia. 

LIQUIDITY AND CAPITAL RESOURCES

    As of March 31, 1997, the Company's total assets were $2,648,049, of which 
$17,850 consisted of cash or cash equivalents.  

    The Company's plan of operation for calendar year 1997 is: 

         (a)  To enter into a definitive agreement with First Dynasty with 
    respect to all of the Armenian mining projects contemplated under the 
    Armenian Joint Venture Agreement, including, without limitation, completing
    any financing needed for the Tailings Project (which agreement has been 
    concluded);  

         (b)  To commence the mining of gold pursuant to the Tailings Project;  

         (c)  To earn the right to mine production and process gold at the Zod 
    mine in Armenia in accordance with the terms of the Armenian Joint Venture 
    Agreement or to negotiate obtaining such rights and, in preparation 
    therefor, conclude an engineering feasibility study on the Zod mine; 

         (d)  To collect payments of accrued interest and principal on and/or
    restructure the $300,000 convertible note issued by Jet-Line to the Company;
    and 

         (e)  To commence the public trading of the Company's Common Stock. 

    As of March 31, 1997, the Company had liquid assets consisting of cash of 
$17,850. It is anticipated that First Dynasty will provide or arrange for all 
of the financing needed in connection with the Tailings Project and such 
initial financing as is needed in 

                                     33

<PAGE>

connection with the development of the Zod and Meghradzor mines, although 
there can be no assurance of such result.  In addition, if the Company 
earmarks a portion of the $200,000 payment from First Dynasty under the FDM 
Agreement to cover administrative and professional costs, the Company should 
be able to meet its monthly administrative expenses which average 
approximately $10,000 per month (exclusive of accrued officers' 
compensation), plus additional amounts for legal and accounting costs, 
although there can be no assurance that the Company will use such funds for 
such purpose.  However, the Company expects to receive further additional 
financing in 1997 from several sources to cover the latter types of costs 
(and for general corporate purposes) and its contemplated financing sources 
are as follows: 

         (i)  Pursuant to the Offering of $500,000 principal amount of the
    Convertible Notes of the Company, the Company issued Warrants to purchase
    4,000,000 shares of its Common Stock at an exercise price of $0.50 per 
    share.  By virtue of the one for 10 reverse split of the Company's Common 
    Stock effective as of December 31, 1996,  the Warrants were converted into
    Warrants to purchase 400,000 shares of the Company's Common Stock at an 
    exercise price of $5 per share.  On January 23, 1997, the Company amended 
    the Warrants to reduce the exercise price to $1 per share and to extend the 
    expiration date until December 31, 1997.   If the Warrants were exercised in
    full, the Company would receive $400,000 in gross proceeds.   While the 
    Company does not know with certainty whether the Warrants will be exercised,
    it does anticipate that a substantial amount thereof will be exercised, 
    although there can be no assurance of such result. 

         (ii) The Company anticipates that it will receive some payments of
    principal and interest on the Jet-Line Note, although there can be no 
    assurance of such result.  

    Nevertheless, there can be no assurance that any one or more of the above 
financings will be provided, or, if so, on terms acceptable to the Company.  
In the event that no contemplated financing is consummated, the Company 
believes that it has sufficient financial resources to meet its obligations 
through September 30, 1997.  

    Based on the Company's needs for additional financing of its operations, 
Mr. Gallagher agreed to continue to advance funds to the Company for such 
purpose through June 30, 1997 if he was paid in full by such date or earlier 
out of the proceeds of any financing received by the Company in excess of 
$500,000 and provided that the Company also secured his loan with the 
Jet-Line Note, which the Company agreed to do. 
 

    The Company does not intend to engage in any project research and 
development during 1997 and does not expect to purchase or sell any plant or 
significant equipment, except as contemplated in connection with the Tailings 
Project and as additionally provided in the Armenian Joint Venture Agreement. 
 

    The Company does not expect to hire any additional full-time employees in 
1997.  

                                     34

<PAGE>

                                       PART II

    Item 1.   LEGAL PROCEEDINGS 

    There are no material pending legal proceedings to which the Company is a 
party or to which any of its property is subject.  However, Eyre and the 
Parry-Beaumont Trust have questioned, in writing in February, March and 
April, 1997,  the validity of the Second Restructuring Agreement (as defined 
in Item 12(B) of the Form 10-KSB filed by the Company for the year ended 
December 31, 1996) and the validity of the issuance by the Company of 
1,000,000 shares of its Common Stock to each of Messrs. Gallagher and 
Garrison.  The Company believes that the Second Restructuring Agreement is 
valid and that Eyre and the Parry-Beaumont have waived the rights covered 
thereby. The Company further believes that the Company properly issued the 
shares of its Common Stock to Messrs. Gallagher and Garrison in exchange for 
valuable consideration and that the claim of invalidity of such action has no 
merit.  For a further description of the Second Restructuring Agreement and 
such transfers, see Item 12 as described above. 

    The Company has also received requests from Panquest Lte. and from Eyre 
relating to amounts alleged to be due to Panquest Lte. relating to the 
Company's acquisition of rights from Eyre relating to the Armenian and 
Georgian projects.  No evidence has yet been supplied to the Company in this 
regard.

    Item 2.   CHANGES IN SECURITIES

    Not applicable. 

    Item 3.   DEFAULT UPON SENIOR SECURITIES

    Not applicable. 

    Item 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

    Not applicable.  

    Item 5.   OTHER INFORMATION

    Not applicable. 

    Item 6.   EXHIBITS AND REPORTS ON FORM 8-K

    1.   (a)  The following documents are filed as part of this report:  
Financial Statement of the Company (unaudited), including report of 
independent certified public accountants, Balance Sheet, Statement of Income 
and Loss, Statement of Changes in 

                                     35

<PAGE>

Stockholders Equity, Statement of Cash Flow and Notes to Financial Statement 
as at and for the period ended March 31, 1997.

         (b)  The Exhibits which are listed on the Exhibit Index attached 
hereto: Not applicable.  

    2.   No reports on Form 8-K were filed by the registrant during the period
covered by this report.  

                                      SIGNATURES


    Pursuant to the requirements of the Securities and Exchange Act of 1934, 
the registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.  

                                  GLOBAL GOLD CORPORATION 


Dated:   May 16, 1996             By:   /s/   Drury J. Gallagher
                                       ----------------------------
                                       Drury J. Gallagher, Chairman
                                       and Chief Executive Officer
                                       (Principal Executive and 
                                       Financial Officer)



                                     36