<PAGE>


                             GLOBAL GOLD CORPORATION

                          (A Development Stage Company)

                              Financial Statements
                                   (Unaudited)

                                 March 31, 1998


<PAGE>


<TABLE>
<CAPTION>



                             GLOBAL GOLD CORPORATION

                          (A Development Stage Company)

                              Financial Statements
                                   (Unaudited)

                                 March 31, 1998

Exhibit                                                                     Page

     <S>                                                                   <C> 
     A   Balance Sheet - as of March 31, 1998                                1


     B   Statement of Income and (Loss) - For the three-                     2
         month periods ended March 31, 1998 and 1997,
         and the development stage period January 1, 1995
         through March 31, 1998


     C   Statement of Changes in Stockholders' Equity - For                3a/3b 
         the period January 1, 1998 through March 31, 1998, and the
         development stage period January 1, 1995 through March 31,
         1998

     D   Statement of Cash Flow - For the periods January 1,                 4
         1998 through March 31, 1998 and January 1, 1997
         through March 31, 1997, and the development stage
         period January 1, 1995 through March 31, 1998


         Notes to Financial Statements                                     5-18

</TABLE>


<PAGE>

<TABLE>
<CAPTION>



                                                                          Page 1
                                                                       Exhibit A

                             GLOBAL GOLD CORPORATION

                          (A Development Stage Company)
                                  Balance Sheet

                                 March 31, 1998
                                   (Unaudited)


CURRENT ASSETS
<S>                                                                  <C>       
     Cash                                                            $   6,640.

     Money Market Investment                                             1,057.
     Accounts Receivable                                                 2,135.
                                                                    ----------- 
                                                                         9,832.
                                                                    ----------- 
OTHER ASSETS

     Notes receivable - First Dynasty Mines                            200,000.
     Investment in Global Gold Armenia Limited                               1.
                                                                    ----------- 
                                                                       200,001.
                                                                    ----------- 
TOTAL ASSETS                                                         $ 209,833.
                                                                    ----------- 
                                                                    ----------- 

CURRENT LIABILITIES

     Officers' compensation payable                                 $   50,000.
     Accounts payable and accrued expenses                              81,970.
                                                                    ----------- 
                                                                       131,970.
                                                                    ----------- 
STOCKHOLDERS' EQUITY - Exhibit C

     Common stock $0.001 par, 100,000,000 shares authorized
                  4,348,114 shares issued and outstanding                4,348.

     Paid-in capital - dormant period                                3,236,602.
     Paid-in capital - development stage                             1,493,223.
     Retained earnings - dormant period                             (2,907,648.)
     Retained earnings - development stage                          (1,748,662.)
                                                                    ----------- 
                                                                         77,863.
                                                                    ----------- 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                           $  209,833.
                                                                    ----------- 
                                                                    ----------- 



</TABLE>





See Notes to the Financial Statements.



<PAGE>






                                                                          Page 2
                                                                       Exhibit B





                             GLOBAL GOLD CORPORATION

                          (A Development Stage Company)
                         Statement of Income and (Loss)

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                                January 1, 1995
                                                     January 1, 1998        January 1, 1997     (development stage)
                                                         through                through             through
                                                     March 31, 1998         March 31, 1997       March 31, 1998
                                                     --------------         --------------       --------------
<S>                                                  <C>                        <C>              <C>      
REVENUE                                              $   -  -  -  -         $   -  -  -  -       $   -  -  -  -
                                                     -----------------      -----------------    --------------

EXPENSES

     Officers' compensation                               -  -  -  -            33,334.              438,334.
     Legal                                                  8,077.              32,896.              476,426.
     Accounting and auditing                                5,000.              20,000.              105,948.

     Transfer agent and securities fees                   -  -  -  -             1,111.               12,446.
     Proxy costs                                          -  -  -  -         -  -  -  -               26,555.
     Office expense                                        10,545.               9,558.               93,777.
     Travel                                               -  -  -  -         - -  -  -                43,142.
     Rent                                                   4,500.               9,000.               76,500.
                                                          ------------       ------------           ----------
OPERATING (LOSS)                                         (28,122.)           (105,899.)          (1,283,128.)

OTHER INCOME (EXPENSES)

     Interest and royalty income                              279.           -  -  -  -               4,841.
     Organization costs                                   -  -  -  -           (240.)                (4,800.)

     Interest expense                                     -  -  -  -         (4,800.)               (14,821.)

     Provision for bad debts                              -  -  -  -         -  -  -  -             (325,000.)
     Write-off investment in Georgia mining interests     -  -  -  -         -  -  -  -             (135,723.)
     Gain on sale of interest in Global Gold Armenia      -  -  -  -         -  -  -  -               12,875.

                                                          ------------       ------------           ----------

(LOSS) BEFORE INCOME TAXES                               (27,843.)         (110,939.)             (1,745,756.)

     Income taxes                                           (150.)             (176.)                 (2,906.)
                                                          ------------       ------------           ----------

NET (LOSS)                                              $(27,993.)        $(111,115.)            $(1,748,662.)
                                                          ------------       ------------           ----------
                                                          ------------       ------------           ----------
                                                       

NET (LOSS) PER SHARE                                    $(   .006)        $(    .027)
                                                          ------------       ------------           
                                                          ------------       ------------           


</TABLE>







See Notes to the Financial statements.


<PAGE>




                                                                         Page 3a

                                                                       Exhibit C

                             GLOBAL GOLD CORPORATION

                          (A Development Stage Company)
                  Statements of Changes in Stockholders' Equity
                                   (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, 1994        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                              (88,909.)     88,909.       - - - -       - - - -       - - - -        - - - -
                                                                                                                  
                                                                                                                  
Eyre acquisition           1,000,000.        1,000.                                                849,000.      850,000.
                                                                                                                  
Proceeds through private                                                                                        
    offering                 200,000.          200.      - - - -       - - - -       - - - -       421,373.      421,573.
                           ----------     ---------  -----------  ------------- -------------  ------------   -----------
Stockholders' equity                                                                                        
    December 31, 1995      2,098,074.        2,098.   3,236,602.   (2,907,648.)    (361,345.)    1,270,373.    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.     $  2,098.  $3,236,602.  $(2,907,648.) $(1,029,922.)   $1,270,473.    $ 571,603.
                           ----------     ---------  -----------  ------------- -------------  ------------   -----------
                           ----------     ---------  -----------  ------------- -------------  ------------   -----------
</TABLE>

See Notes to the Financial Statements.

<PAGE>



                                                                         Page 3b
                                                                       Exhibit C

                             GLOBAL GOLD CORPORATION

                          (A Development Stage Company)
                  Statements of Changes in Stockholders' Equity
                                   (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, 1996        2,098,114.    $ 2,098.   $3,236,602.  $(2,907,648.) $(1,029,922.)   $1,270,473.     571,603.
                                                                                                                        
Net Loss January 1 -                                                                                                     
    December 31, 1997        - - - -       - - - -       - - - -        - - - -     (690,747.)       - - - -    (690,747.)
                                                                                                                        
Issuance of Common Stock     2,250,000       2,250.      - - - -        - - - -       - - - -       222,750.     225,000.
                             ---------     --------   -----------  ------------- -------------   -----------   ----------
                                                                                                                        
                                                                                                                        
Shareholders' Equity                                                                                                    
    December 31, 1997        4,348,114.    $ 4,348.   $3,236,602.  $(2,907,648.) $(1,720,669.)   $1,493,223.    $105,856.
                             ---------     --------   -----------  ------------- -------------   -----------   ----------
                                                                                                                        
                                                                                                                        
Net Loss January 1, 1998                                                                                                
    through March 31, 1998     - - - -      - - - -      - - - -        - - - -  $  ( 27,993.)       - - - -   $( 27,993.)
                             ---------     --------   -----------  ------------- -------------   -----------   ----------
Shareholders' Equity                                                                                                    
    March 31, 1998           4,348,114     $ 4,348.   $3,236,602.  $(2,907,648.) $(1,748,662.)   $1,493,223.   $  77,863.
                             ---------     --------   -----------  ------------- -------------   -----------   ----------
                             ---------     --------   -----------  ------------- -------------   -----------   ----------
                                                                                                                        
                                                                                                                        
In 1997 the Company issued 2,000,000 common shares in exchange for $200,000 in
accrued salaries. Also, 250,000 common shares were issued as a Finders Fee in
connection with the First Dynasty financing.

</TABLE>


See Notes to the Financial Statements.


<PAGE>




                                                                          Page 4
                                                                       Exhibit D

                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                             Statement of Cash Flow
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                                                January 1, 1995
                                                     January 1, 1998        January 1, 1997     (development stage)
                                                         through                through             through
                                                     March 31, 1998         March 31, 1997       March 31, 1998
                                                     --------------         --------------       --------------
<S>                                                   <C>                   <C>                  <C>          
                                                                                                                
CASH FLOW FROM DEVELOPMENT                                                                                         
STAGE ACTIVITIES:                                                                                                
                                                                                                                
     Net loss                                           $(27,993.)             $(111,115.)        $(1,748,662.)
     Adjustments to reconcile net loss to net                                                                  
     cash provided by operating activities:                                                                      
         Increase (decrease) in:                                                                                 
                                                                                                                
         Provision for bad debt                             ----                     ----             325,000 
         Write-off of mining investment in Georgia          ----                     ----             135,723 
         Organization costs                                 ----                     240.              (9,601.)
         Gain on sale of Armenia mining interests           ----                     ----             (12,875.)
                                                                                                                
         Accounts Receivable                             (2,135.)                    ----              (2,135.)
         Accounts payable, accrued expenses                                                                        
                and miscellaneous                       (28,519.)              (355,158.)             228,419.
                                                        ---------              ---------            ------------
                                                                                                                
Net cash provided (used) by                                                                                    
      Development Stage Activities                      (58,647.)              (466,033.)          (1,084,131.)
                                                        ---------              ---------            ------------
                                                                                                                 
CASH FLOW FROM INVESTING ACTIVITIES:                                                                           
     Proceeds from sale of Armenia mining                                                                      
         interests (net of Note Receivable)                 ----                     ----           1,691,155 
     Investment in certain mining interests                                                                
         - net of financing                                 ----                     ----            (153,494.)
     Deferred costs - mining interests                      ----               (588,486.)            (878,858.)
                                                        ---------              ---------            ------------
Net cash (used) by Investing Activities                     ----               (588,486.)             658,803.
                                                        ---------              ---------            ------------
                                                                                                                
CASH FLOW FROM FINANCING ACTIVITIES                                                                           
                                                                                                                
     Loan from First Dynasty Mines Ltd.                      ----             1,071,000.                   ----
     Net proceeds from private placement offering            ----                   ----              421,573 
                                                                                                                
     Note payable - officer (net)                            ----                 1,000.                   ----
     Warrants exercised                                      ----                   ----                  100 
                                                        ---------              ---------            ------------
Net cash (used) provided by Financing Activities             ----             1,072,000.              421,673.
                                                        ---------              ---------            ------------
                                                                                                                
NET INCREASE (DECREASE) IN CASH                         (58,647.)                17,481.               (3,655.)
                                                                                                                
CASH - beginning                                         66,344.                    369.               11,352.
                                                        ---------              ---------            ------------
                                                                                                                
CASH - end                                              $ 7,697.               $ 17,850.              $ 7,697.
                                                        ---------              ---------            ------------
                                                        ---------              ---------            ------------
                                                                                                                
SUPPLEMENTAL CASH FLOW INFORMATION                                                                               
                                                                                                                
     Income taxes paid                                  $   150.          $        688.       $          1,498.
                                                        ---------            ---------               --------
                                                        ---------            ---------               --------
                                                                                                                
     Interest paid                                           ----            $      4,800.        $        14,821 
                                                        ---------            ---------               --------
                                                        ---------            ---------               --------
</TABLE>


NON-CASH INVESTING AND FINANCING ACTIVITIES

In 1995 the Company issued one million shares of common stock for certain 
mining interests, with an estimated value of $850,000 (Note 5). In 1997 the 
Company issued 2,000,000 common shares in exchange for $200,000 in accrued 
salaries and other considerations. Also, 250,000 common shares were issued as 
a Finders Fee in connection with the First Dynasty financing.

See Notes to the Financial Statements.


<PAGE>



                                                                          Page 5

                             GLOBAL GOLD CORPORATION

                          (A Development Stage Company)
                          Notes to Financial Statements

                                 March 31, 1998

NOTE 1:    ORGANIZATION (AS A DEVELOPMENT STAGE COMPANY) AND ACCOUNTING POLICIES

           Global Gold Corporation (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 had been dormant until 1995. During 1995 the
           Company changed its name from Triad Energy Corporation 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 which it leases from
           Penn-Med Consultants, Inc., which was charging rent in the amount of
           $3,000 per month to the Company through December 31, 1997 and $1,500
           per month thereafter, for use of the premises, office equipment,
           facilities, etc., commencing January 1, 1996. The Company has three
           employees.

           During 1995 the Company formed certain wholly-owned foreign
           subsidiaries. Any reference in these statements to 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 - see Note 16.)

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.

<PAGE>

                                                                          Page 6

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

                                 March 31, 1998

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 its 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, Samual McNell,
           in July 1981. The case has long since gone through the judicial
           system and Mr. McNell is no longer an officer, director, employee 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, 1995,
           1996 and 1997, 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, 1996 and 1997. 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.

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 silver. 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.

<PAGE>

                                                                          Page 7

                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                          Notes to Financial Statements
                                 March 31, 1998









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:
<TABLE>
<CAPTION>

                <S>                                  <C>      
                Cash                                 $ 153,494
                Note payable                           100,000
                Note payable                            46,506
                                                     ---------
                                                     $ 300,000
                                                     ---------
                                                     ---------
</TABLE>

           The Agreement also provided for the Company to cause the delivery to
           Eyre and the Parry Beaumont Trust, a Singapore Trust, two million
           shares of stock, with an estimated value of $850,000, and warrants to
           acquire an additional one million shares. The Agreement left Eyre and
           the Parry Beaumont Trust with two out of five seats on the Board of
           Directors.

           As of December 1, 1995, the Company and Eyre and the Parry Beaumont
           Trust entered into a Restructuring Agreement pursuant to which Eyre
           surrendered 600,000 shares of common stock and acquisition warrants
           to purchase 360,000 shares of common stock, the Parry Beaumont Trust
           surrendered 400,000 shares of common stock and warrants to purchase
           240,000 shares of common stock, and Eyre acquired a 2% overriding
           production royalty subject to adjustment in the event the ownership
           of the Company were to become less than 50% owned by 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 totalling another 1%. The initial Armenian
           tailing project (Note 7) is excluded from the royalty arrangement. In
           the event the Company did undertake any additional mineral extraction
           projects in the Republics of Armenia or Georgia, Eyre would have
           received 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 was to have paid 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 in the
           Republic of 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.


<PAGE>

                                                                          Page 8

                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                          Notes to Financial Statements
                                 March 31, 1998






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

           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 (Note 18) 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,
           respectively, of the Company's common stock (a total of 400,000
           shares), and surrendered their right to designate two members of the
           Board of Directors of the Company. 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 a
           2% overriding royalty on the Armenian mining projects (other than the
           Tailings Project), the Second Restructuring Agreement referred to the
           waiver of an 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.

NOTE 6:    PATTERSON, BELKNAP, WEBB & TYLER, L.L.P.

           The Company retained the law firm of Patterson, Belknap, Webb &
           Tyler, L.L.P. (PBW&T) to represent the Company in its dealings with
           the Armenian and Georgian Republics. PBW&T has an international law
           practice involving commerical, nonprofit and humanitarian issues, and
           has offices in Moscow. Mr. Van Z. Krikorian (VZK), of counsel to
           PBW&T, 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, PBW&T 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 $93 million
           (1%), and is subject to adjustment if it falls short or exceeds that
           goal. In the event the contemplated financing is not consummated,
           PBW&T will reduce its hourly charges by 50%. The PBW&T arrangement
           was terminated on March 1, 1998 when Mr. Krikorian left to join the
           law firm of Vedder, Price, Kaufman & Kammholz.

<PAGE>


                                                                          Page 9

                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                          Notes to Financial Statements
                                 March 31, 1998






NOTE 6:    PATTERSON, BELKNAP, WEBB & TYLER (continued)

           PBW&T also represented 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 was $180,000 for the period July 1, 1995 to July 1, 1999, and the
           minimum quarterly payment was $10,000. The quarterly billing was
           discontinued as of June 30, 1997, and the accumulated investment
           written-off as of December 1997.

           As of December 31, 1997, unbilled contingent project charges in
           excess of the minimum $25,000 per quarter were assumed by First
           Dynasty Mines Ltd., payable upon receipt of an executed agreement
           assigning the rights to the Zod Mine to the Armenian Gold Recovery
           Company ("AGRC"). Global Gold reversed fees accrued of $76,000 as of
           that date. Unbilled fees and expenses through March 31, 1998 total
           approximately $300,000, which will be finalized with First Dynasty
           Mines Ltd.

           In addition, PBW&T performs additional legal service for the Company
           as requested. Current payables and accruals are approximately
           $30,000.

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.

           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 gold mining operations at the Zod and
           Meghradzor sites. Management believes capacities at Zod will be
           significant. 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 wil be required to provide administration,
           training, management, feasibility studies, technology and business
           plans, as appropriate.


<PAGE>

           

                                                                         Page 10

                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                          Notes to Financial Statements
                                 March 31, 1998

NOTE 7:    THE ARMENIAN JOINT VENTURE AGREEMENT (continued)

           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 the 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, with a 50% recovery 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.

           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. 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 tonne 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.

           The Tailings Project began operations at an official dedication
           ceremony on February 25, 1998.


<PAGE>


                                                                         Page 11

                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                          Notes to Financial Statements
                                 March 31, 1998

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 was subsequently 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 original Agreement called 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.

           The Company recently learned that the Georgian Government was 
           planning to privatize the development of the Madneuli mine through 
           a public bidding process which was 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. As of December 31, 
           1997, the Company wrote-off its investment in the Georgian mining 
           property resulting in a loss of $135,723.

NOTE 9:    NOTES RECEIVABLE

           The Company holds a Note receivable as follows:
<TABLE>
<CAPTION>

                  Amount            Interest Rate      Debtor
                  ------            -------------      ------
                  <S>               <C>                <C>  
                  $ 300,000         Prime + 2%         Jet-Line Environmental Services, Inc. (Jet-Line)
                  ( 300,000)                           Allowance for doubtful accounts
                  ----------
                       - 0 -
                  ----------
</TABLE>

           The Jet-Line Note, as more fully described in the documents, is
           convertible into at least 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 was understood to be
           secured by U.C.C.'s on certain equipment, however, there were no
           filings located after an SBA-guaranteed loan was made to Jet-Line. 
           Jet-Line owns certain valuable assets.

<PAGE>

                                                                         Page 12

                             GLOBAL GOLD CORPORATION

                          (A Development Stage Company)
                          Notes to Financial Statements

                                 March 31, 1998

NOTE 9:    NOTES RECEIVABLE (continued)

           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 further demand letters on April 2, 1997 and November 10, 1997.
           The Company believes that the value of the assets held as collateral
           is negligible. 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, the Company has been
           notified by the Business Loan Center who made a U.S. Small Business
           Administration Guaranteed Loan of $550,000 in 1994, that it would
           liquidate the Jet-Line assets.

           Thus, there can be no assurance that the Company will ultimately be
           paid any of the full principal amount and accrued interest on the
           Jet-Line Note. Management has not accrued interest on the Note and
           has revised its allowance for doubtful accounts to $300,000.

NOTE 10:   OFFICERS' COMPENSATION PAYABLE

           Officers' compensation payable consists of the following:
<TABLE>
<CAPTION>

                                                       March 31, 1998
                                                       --------------
<S>                                                       <C>      
              Drury J. Gallagher                          $ 50,000.
                                                       --------------
                                                       --------------

</TABLE>

              (see Note 15)

<PAGE>


                                                                         Page 13


                             GLOBAL GOLD CORPORATION

                          (A Development Stage Company)
                          Notes to Financial Statements

                                 March 31, 1998

NOTE 11:   ACCOUNTS PAYABLE AND ACCRUED EXPENSES

           Accounts payable and accrued expenses include the following:
<TABLE>
<CAPTION>

                                                         March 31, 1998
                                                         --------------
<S>                                                        <C>      
                Legal - General Counsel                    $ 12,596.
                Legal - PBW&T (see Note 6)                   29,797.

                Rent                                          22,500.
                Other Miscellaneous                           17,077.
                                                         --------------
                                                            $ 81,970.
                                                         --------------
                                                         --------------
</TABLE>

NOTE 12:   NOTES PAYABLE

           Drury Gallagher loaned the Company $192,000. The Note evidencing the
           loan bears interest at 10% per annum and was due on or before June
           30, 1997, together with accrued and unpaid interest. The Note was
           repaid in full together with interest thereon.

NOTE 13:   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 adjusted exercise price of $.50 per share at any time before
           December 31, 1998. The exercise price was subsequently reduced to
           $.125 per share to reflect the current market valuation as determined
           by management.

           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.


<PAGE>

                                                                         Page 14

                             GLOBAL GOLD CORPORATION

                          (A Development Stage Company)
                          Notes to Financial Statements

                                 March 31, 1998

NOTE 14:   WARRANTS OUTSTANDING

           The Company had warrants outstanding as follows:
<TABLE>
<CAPTION>

                                               # Shares Right   Price/Share       Expiration
           Warrant Holder(s)                   to Purchase      Exercisable at    Date
           ---------------------------         --------------   --------------    ----------
<S>                                             <C>                  <C>          <C> 
           Stockholders through Note
           Conversion (Note 5)                   400,000              $ .125       12/31/98

           Other                                   4,000               $5.00       11/30/98
                                               ---------
                                                 404,000
                                               ---------
                                               ---------
</TABLE>

NOTE 15:   OFFICERS' COMPENSATION, INCENTIVE STOCK OPTIONS AND STOCK 
APPRECIATION RIGHTS

           Management presently consists of Mr. Drury J. Gallagher and Mr.
           Robert A. Garrison. Mr. Gallagher had been President of the Company
           and a stockholder since 1981; he is currently Chairman of the
           Company. Mr. Garrison was subsequently hired to oversee mining and
           related financing activities, and is currently President. Messrs.
           Gallagher and Garrison entered into employment agreements with the
           Company effective July 1, 1995. Each was entitled to receive a base
           salary of $100,000 per year for 50% of their time for a three-year
           term. The agreements called for automatic annual increases as
           defined. The Board may award bonuses up to 50% of base compensation.
           On February 1, 1997 Mr. Garrison's employment agreement was cancelled
           and replaced with the Global Gold Armenia Limited consulting
           contract. Mr. Gallagher's base salary was increased to $150,000per
           year on July 1, 1997. As of January 1, 1998 Mr. Gallagher agreed to
           suspend his salary.

           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, 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 through
           personal guarantees up to $500,000, and to increase their proprietary
           stake in 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.

<PAGE>


                                                                         Page 15

                             GLOBAL GOLD CORPORATION

                          (A Development Stage Company)
                          Notes to Financial Statements

                                 March 31, 1998

NOTE 15:   OFFICERS' COMPENSATION, INCENTIVE STOCK OPTIONS AND STOCK 
APPRECIATION RIGHTS (continued)

           Global Gold Armenia Limited ("GGA") 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 and
           Director 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.

NOTE 16:   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.

           The Company experienced net operating losses for each of the years
           ended December 31, 1996 and 1997, and the period ended March 31,
           1998. 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 offshore 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.


<PAGE>

                                                                         Page 16

                             GLOBAL GOLD CORPORATION

                          (A Development Stage Company)
                          Notes to Financial Statements

                                 March 31, 1998

NOTE 16:   NON-UNITED STATES WHOLLY-OWNED SUBSIDIARIES / INCOME TAX 
MATTERS (continued)

           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 deterrant from obtaining
           future financing or political risk insurance. Management will
           consider future structural changes, if necessary.


NOTE 17:   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 18:   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 one-tenth
           of the number previously held. The Company filed its Certificate of
           Amendment to the Certificate of Incorporation 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.

<PAGE>


                                                                         Page 17

                             GLOBAL GOLD CORPORATION

                          (A Development Stage Company)
                          Notes to Financial Statements

                                 March 31, 1998

NOTE 19:   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:

           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 $10,010,000 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 capital stock of GGA
           within 18 months after making such total advances, by issuance of
           4,000,000 shares of its common stock, except that such number of
           shares would 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 carried out certain initial commitments in February
           1997. It 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 oustanding payables.

<PAGE>


                                                                         Page 18

                             GLOBAL GOLD CORPORATION

                          (A Development Stage Company)
                          Notes to Financial Statements

                                 March 31, 1998

NOTE 19:   FIRST DYNASTY MINES LTD. (continued)

           In addition, First Dynasty agreed to pay the Company $400,000 to
           defray its expenses in participating in the negotiation of the second
           Armenian Joint Venture Agreement, 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. This amount is recorded as a
           Note Receivable as of March 31, 1998. Although not reflected in the
           FDM Agreement, First Dynasty also paid the Company $141,155 on May
           15, 1997 to defray the expenses incurred by GGA during the
           three-month period ending March 31, 1997. The total cash and notes
           received of $1,891,155 from First Dynasty was offset against the
           investment in Armenia mining interests of $944,465, deferred costs of
           December 31, 1997 as adjusted of $929,015 and organization costs of
           $4,800, resulting in a profit of $12,875.

           As of December 31, 1997, First Dynasty had advanced $18,270,874, of
           which $17,510,000 of the loans were converted into 66% of the capital
           per the Agreement. All such funds were paid into the AGRC Joint
           Venture (Note 7). Financial information for the three months ended
           March 31, 1998 was not available at the filing date of this report.
           Financial information for the 34% owned unconsolidated affiliate
           accounted for by the equity method as of December 31, 1997 is as
           follows:
<TABLE>

<S>                                                  <C>         
           Balance Sheet

                Deferred mine costs                  $16,840,758.
                Other assets                           3,265,202.
                                                     ------------
                                                     $20,105,960.
                                                     ------------
                                                     ------------

                Liabilities                          $ 2,595,960.
                Equity                                17,510,000.
                                                     ------------

                                                     $20,105,960.
                                                     ------------
                                                     ------------
</TABLE>

           The Company is a development stage company and, as such, has no
           revenues or expenses.

           At present, the Company and GGA, in conjunction with First Dynasty,
           negotiated for AGRC to develop the Zod and Meghradzor mines and
           concluded the Amended Armenian Joint Venture Agreement on September
           30, 1997, subject to the passage of a parliamentary decree approving
           it. However, the Armenian government has not passed the parliamentary
           decree as of this date. There can be no assurance that any Armenian
           parliamentary decree approving the Amended Armenian Joint Venture
           Agreement will be passed or, if so, when such decree will be passed.
           While the Company is hopeful of achieving such result, there can be
           no assurance of such result.

           In connection with the First Dynasty financing, the Company paid a
           Finders Fee of 125,000 shares of its common stock to each of Walker
           Investments Ltd. and Alpine Holdings Ltd. at $.10 per share which
           approximated fair market value as determined by management.




<PAGE>



                             GLOBAL GOLD CORPORATION

                          (A Development Stage Company)

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

                                 March 31, 1998

(A)   GENERAL OVERVIEW

      The Company is presently engaged in the development of a gold mining
      project in Armenia, a member of the 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
      Section 1 (D) entitled "Prior History of the Company" reflected in Form
      10-KSB filed by the Company for the period ended December 31, 1997.

(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 ("Armgold"), executed and
           delivered the Armenian Joint Venture Agreement dated 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 formed the
           Armenian Gold Recovery Joint Venture Co., LLC, 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 one 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 at the Zod and
           Meghradzor mines, and engineering and building a gold processing
           plant at the Zod mine. Stage 3 calls for increased production at the
           Zod mine, a feasibility study for a gold refinery, and exploration
           activity.

           The Company, the Ministry of Armenia and Armgold executed and
           delivered the Second Armenian Gold Recovery Company Joint Venture
           Agreement dated September 30, 1997 which, among other things,
           provides for the right of new joint venture companies to mine and
           process gold at Zod and Meghradzor mines and also eliminated certain
           specific exploration sites from the original agreement, while still
           recognizing AGRC's right to participate in exploration activity at a
           future date. However, such amendatory agreement does not become
           operative until passage of an Armenian government decree approving
           such agreement. The parties anticipate that such decree will be
           issued within the next several months, although there can be no
           assurance of such result.

      (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.

<PAGE>


           Pursuant to the Armenian Joint Venture Agreement, AGRC engaged in the
           construction of 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, which was later increased to up to $10,000,000.
           Operation of the tailings processing plant began on February 25,
           1998. In addition, independent engineering firms are now engaged in
           preparing a feasibility report with respect to the reserves at the
           Zod and Meghradzor mines which the Company anticipates will be
           completed within the next three months, although there can be no
           assurance of such result.

           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 making advances of $6,490,000, such
                      amount will then be automatically converted into 25% of
                      the capital stock of GGA (which occurred in October 1997).

                 (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. As of
                      December 31, 1997, First Dynasty had advanced $17,510,000
                      for 66% of the common shares.

           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 shares of 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 wil 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.

<PAGE>


                 (b)  First Dynasty further agreed to use its best efforts to
                      issue freely tradeable First Dynasty shares to GGA if it
                      is feasible to do so in connection with a contemporaneous
                      public offering of shares of First Dynasty 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 of
                                 GGA were true as of the date of the execution
                                 and delivery of the FDM Agreement;

                      (ii)       neither the Company nor GGA (prior to the
                                 actual implementation of the appointment of
                                 First Dynasty's designees as three directors of
                                 GGA) will have breached in any material
                                 respects any of its 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's rights 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 First Dynasty'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 delivery of the FDM Agreement,
                      and the balance of $200,000 to be paid on June 30, 1998.

                 (b)  Although not reflected in the FDM Agreement, First Dynasty
                      also agreed to pay up to $150,000 to defray the expenses
                      incurred by GGA during the three-month period ending March
                      31, 1997. Such reimbursement in the amount of $141,155
                      occurred in June 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 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 


<PAGE>

                 such agreement, Mr. Garrison will serve as a Director and
                 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.

           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 of 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 First
                                 Dynasty.

                 (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 the 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 which is wholly owned by the
                      transferring party. During the period that First Dynasty
                      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 stockholder
                      receives a bona fide offer to sell its GGA 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, then the seller may sell its
                      shares of GGA to the offeror on the terms described 

<PAGE>

                      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 stockholders agreement.

                      The Company, GGA and First Dynasty amended the
                      shareholders agreement as of May 13, 1997 to provide,
                      among other things, that it will be governed by the New
                      York (instead of Cayman Islands) law.

           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 FDM Agreement, the 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.

                 (b)  Upon the signing of the $640,000 Tailings Dam
                      Construction Contract with Armhydro, First Dynasty
                      funded $96,000 and, thereafter, First Dynasty funded
                      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)   First Dynasty created a credit facility of up to
                      $1,000,000 for Armgold.

                      As of December 31, 1997, First Dynasty claims it had
                      advanced $20,105,960 in total project costs. Comparable
                      financing information for March 31, 1998 was not available
                      at the filing date of this report.

           9.    MINING PLANS

                 GGA, in conjunction with First Dynasty, negotiated with the
                 Armenian government to obtain for new joint venture companies
                 the 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, subject to the prior approval
                 thereof by an Armenian parliamentary decree. In addition, GGA
                 engaged independent engineering firms to conduct a feasibility
                 report with respect to the reserves at such mines.

(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.

      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, 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 

<PAGE>


      (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, 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 experienced operating losses and lacked adequate liquid
      resources, Jet-Line 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. Jet-Line contested such
      revocation and fine in the Massachusetts state courts unsuccessfully.
      Jet-Line then attempted to sell its facility in Massachusetts, but could
      not do so. As a result, the Massachusetts environmental authorities
      ordered the waste treatment facility in Stoughton, Massachusetts to be
      closed and assumed the environmental clean-up responsibility at the plant.

      In addition, the Company also learned that the Business Loan Center,
      another creditor of Jet-Line, is also attempting to sell assets of
      Jet-Line in which it holds a security interest. The Business Loan Center
      made a U. S. Small Business Administration guaranteed loan of
      approximately $550,000 to Jet-Line in 1994 and obtained a first lien on
      certain enumerated assets of Jet-Line. The Company at such time
      subordinated its loan thereto, except with respect to certain automotive
      and truck assets and other equipment as to which the Company retained its
      first security interest. The Company is currently disputing the Business
      Loan Center's position that such creditor has a senior security interest
      in the assets being sold. But, there can be no asurance as to the outcome
      thereof. Moreover, the Company believes that the value of the assets held
      by it as collateral is negligible. 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. Consequently, the Company treated
      such loan as worthless

      REVENUES: During the three-month period ended March 31, 1998, the
      Company's interest and royalty income was $279, which was approximately
      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, 1998 were $28,272,
      which represented a decrease from the amount paid or accrued of $111,115
      in the same period last year. Expense reductions were attributable to the
      Company's (a)decision not to accrue officers' compensation of $33,334,
      (b)reduction in legal fees related to the Armenian project of $24,819
      which are now paid by First Dynasty, (c)reduction in accounting costs of
      $15,000, and (d)reduction in rent by 50% per month to $1,500 per month.

      LIQUIDITY AND CAPITAL RESOURCES: As of March 31, 1998, the Company's total
      assets were $209,833, of which $7,697 consisted of cash or cash
      equivalents.

      The Company's plan of operation for calendar year 1998 is:

           (a)        To oversee the implementation of its definitive agreement
                      with First Dynasty with respect to all of the Armenian
                      mining projects contemplated under the Armenian Joint
                      Venture Agreement;

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

           (c)        To earn the right to mine production and gold processing
                      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;
                      and


<PAGE>


           (d)        To collect payments of accrued interest and principal, if
                      any, on the $300,000 convertible note issued by Jet-Line
                      to the Company.

      As of March 31, 1998, the Company had liquid assets consisting of cash of
      approximately $7,697. 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 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 during 1998 which average
      approximately $5,000 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 all of such
      funds for such purpose. However, the Company may receive further
      additional financing in 1998 to cover the latter types of costs (and for
      general corporate purposes), and its contemplated financing source is as
      follows:

      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 ten 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. On December 12, 1997, the
      Company again amended the warrants to reduce the exercise price to $0.125
      per share and to extend the expiration date until December 31, 1998. If
      the warrants were exercised in full, the Company would receive $50,000 in
      gross proceeds. The Company does not know whether any of the warrants will
      be exercised and, accordingly, 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 December 31, 1998.

      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
      discharged its loan of $192,000 from Mr. Gallagher in full on May 19, 1997
      by paying him such sum plus interest thereon of $14,058.49 on such date.
      The Company has no existing agreement with Mr. Gallagher with respect to
      any financing of the Company's future operations.

      The Company does not intend to engage in any project research and
      development during 1998 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
      1998.

<PAGE>


                                     PART II

Item 1.  LEGAL PROCEEDINGS

         Except as noted below, there is no material pending legal proceeding to
         which the Company is a party or to which any of its properties is
         subject.

         In December 1997 the Company brought an action against Eyre, the
         Parry-Beaumont Trust and Kevin Parry, individually, in the United
         States District Court for the Southern District of New York, bearing
         Docket No. 98 Civ. 0009, seeking damages in excess of $81,000,000
         arising out of the alleged fraud committed by the defendants.

         The defendants denied such claims and asserted counterclaims against
         the Company seeking damages in an undetermined amount against the
         Company and seeking a declaratory judgment voiding the Second
         Restructuring Agreement (as defined herein in Section 12(A)). In
         addition, Eyre and the Parry- Beaumont Trust brought a third-party
         complaint against Drury J. Gallagher and Robert A. Garrison,
         individually, seeking, among other things, damages in excess of $75,000
         and directing Messrs. Gallagher and Garrison to return the 2,000,000
         shares of the Company's common stock issued to them by the Company in
         January 1997.

         The respective parties have served notice to take the deposition of the
         other parties in the action and made requests for the production of
         documents. At a meeting held with the Court on April 1, 1998, the
         parties agreed to a scheduling order in part.

         The Company intends to prosecute the litigation to completion and
         believes that the defendants' claims asserted against the Company and
         Messrs. Gallagher and Garrison are without merit, although there can be
         no assurance as to the outcome thereof.

         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.

<PAGE>


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 Balance
              Sheet, Statement of Income and Loss, Statement of Changes in
              Stockholders' Equity, Statement of Cash Flow and Notes to
              Financial Statement as at and for the period ended March 31, 1998.

              (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 11, 1998                By:  /S/   DRURY J. GALLAGHER
                                               ------------------------
                                          Drury J. Gallagher, Chairman
                                          and Chief Executive Officer