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

                                     FORM 10-QSB

(MARK ONE)
         [X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE
                      SECURITIES EXCHANGE ACT OF 1934 
              FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1998

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

         FOR THE TRANSITION PERIOD FROM             TO
                                        ------------   ----------------
   
                        COMMISSION FILE NUMBER 02-69494
                                                  -----

                               GLOBAL GOLD CORPORATION
                               -----------------------
                    (NAME OF SMALL BUSINESS ISSUER IN ITS CHARTER)
    
            DELAWARE                            13-3025550 
________________________________________________________________________________
   (STATE OR OTHER JURISDICTION OF          (I.R.S. EMPLOYER 
   INCORPORATION OR ORGANIZATION)           IDENTIFICATION NO.)

  734 FRANKLIN AVENUE, SUITE 383, GARDEN CITY, NEW YORK  11530-4525
________________________________________________________________________________
    (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)     (ZIP CODE)

ISSUER'S TELEPHONE NUMBER          (212) 563-5933
                                   --------------

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

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

    As of September 30, 1998, there were 4,348,114 shares of the registrant's
common stock issued and outstanding.  

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

                                       1
<PAGE>



                                  TABLE OF CONTENTS

PART I.  Financial Information 

Item 1.  Financial Statement: 
         Balance Sheet - as of September 30, 1998 and December 31, 1997 ......5

         Statement of Income and (Loss) - for the three- and nine-month periods
         ended September 30, 1998 and for the development stage period 
         January 1, 1995 through September 30, 1998 ..........................6

         Statement of Changes in Stockholders Equity - for the period 
         January 1, 1998 through September 30, 1998 and for the development 
         stage period January 1, 1995 through September 30, 1998 .............7

         Statement of Cash Flow - for the periods January 1, 1998 through 
         September 30, 1998 and January 1, 1997 through September 30, 1997 and
         the development stage period January 1, 1995 through 
         September 30, 1998...................................................9

         Notes to Financial Statement (unaudited) ...........................10

Item 2.  Management's Discussion and Analysis
         of Financial Condition and Results
         of Operation........................................................24


                                          2
<PAGE>


                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)


                              Financial Statements
                                   (Unaudited)


                               September 30, 1998



















                                        3
<PAGE>


                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)

                              Financial Statements
                                   (Unaudited)

                               September 30, 1998


<TABLE>
<CAPTION>


Exhibit                                                                         Page
-------                                                                         ----

<S>           <C>                                                              <C>
 A            Balance Sheets - as of September 30, 1998                           1
              and December 31, 1997


 B            Statements of Income and (Loss) - For the three month periods       2
              July 1 to September 30, 1998 and 1997 and the nine- 
              month periods ended September 30, 1998 and 1997,
              and the development stage period January 1, 1995
              through September 30, 1998


 C            Statements of Changes in Stockholders' Equity - For the         3a/3b
              period January 1, 1998 through September 30, 1998, and the
              development stage period January 1, 1995 through September 30,
              1998


 D            Statements of Cash Flow - For the periods January 1,                4
              1998 through September 30, 1998 and January 1,
              1997 through September 30, 1997, and the development
              stage period January 1, 1995 through September 30, 1998


              Notes to Financial Statements                                    5-18

</TABLE>



                                       4
<PAGE>


                                                                          Page 1
                                                                       Exhibit A


                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                                 Balance Sheets


                                     ASSETS

<TABLE>
<CAPTION>

                                                                         September 30, 1998      December 31, 1997
                                                                             (unaudited)              (audited)
                                                                         ------------------      -----------------
<S>                                                                      <C>                     <C>
CURRENT ASSETS
     Cash                                                                     $   33,648.            $  13,067.
     Money Market Investment                                                       1,083.               53,277.
                                                                             ------------            ----------
                                                                                  34,731.               66,344.
     Deposit                                                                      50,000.            -  -  -  -
                                                                             ------------            ----------
                                                                                  84,731.               66,344.
OTHER ASSETS
     Notes receivable - First Dynasty Mines Ltd.                              -  -  -  -               200,000.
     Investment in Global Gold Armenia Limited                                -  -  -  -                     1.
     Special Warrants - First Dynasty Mines Ltd.                                 256,000.            -  -  -  -
                                                                                ---------            ----------
                                                                                 256,000.              200,001.
                                                                                ---------            ----------
TOTAL ASSETS                                                                    $340,731.             $266,345.
                                                                                ---------            ----------
                                                                                ---------            ----------


                      LIABILITIES AND STOCKHOLDERS' EQUITY


CURRENT LIABILITIES
     Officers' compensation payable                                            $ 162,500.            $  60,734.
     Accounts payable and accrued expenses                                        33,402.               99,755.
                                                                                ---------             ---------
                                                                                 195,902.              160,489.
STOCKHOLDERS' EQUITY - Exhibit C
     Common stock $0.001 par, 100,000,000 shares authorized
         4,348,114 shares issued and outstanding                                   4,348.                4,348.
     Paid-in capital - dormant period                                          3,236,602.            3,236,602.
     Paid-in capital - development stage                                       1,493,223.            1,493,223.
     Retained earnings - dormant period                                       (2,907,648.)          (2,907,648.)
     Retained earnings - development stage                                    (1,681,696.)          (1,720,669.)
                                                                             ------------          ------------
                                                                                 144,829.              105,856.
                                                                             ------------          ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                      $340,731.            $ 266,345.
                                                                             ------------          ------------
                                                                             ------------          ------------

</TABLE>


See Notes to the Financial Statements.

                                      5

<PAGE>


                                                                          Page 2
                                                                       Exhibit B


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


<TABLE>
<CAPTION>

                                                                                                               January 1, 1995
                                  July 1, 1998     July 1, 1997         January 1, 1998     January 1, 1997   (development stage)
                                    through          through               through             through              through
                               September 30, 1998  September 30, 1997  September 30, 1998  September 30, 1997 September 30, 1998
                               ------------------  ------------------  ------------------  ------------------ ------------------
<S>                              <C>               <C>                     <C>                 <C>              <C>
REVENUE                          $        --       $        --             $        --         $        --      $        --
                                 -----------       -----------             -----------         -----------      -----------
EXPENSES
     Officers' compensation           37,500       $    37,500                112,500.              95,834.        550,834.
     Administrative fees                  --             2,436
     Legal                            13,294            16,080                 56,474.             113,665.        524,823.
     Accounting and auditing              --             5,200                 22,500.              30,100.        123,448.
     Transfer agent and 
       securities fees                    --                71                      --               1,534.         12,446.
     Proxy costs                                                                    --                   --         26,555.
     Office expense                    6,870            10,998                 25,002.              32,492.        118,234.
     Travel                               --               171                     92.                 171.         43,234.
     Rent                                 --             9,000                      --              27,000.         72,000.
                                  ----------        ----------             -----------         ------------     -----------
OPERATING (LOSS)                     (57,664)          (81,456)              (216,568.)           (300,796.)    (1,471,574.)

OTHER INCOME (EXPENSES)
     Interest and royalty income         274               208                    633.                 208.          5,195.
     Organization costs                   --              (240)                     --                (720.)        (4,800.)
     Interest expense                   (601)               --                   (601.)             (7,090.)       (15,422.)
     Provision for bad debts                                                        --                   --       (325,000.)
     Write-off investment in 
       Georgia mining interests                                                     --                   --       (135,723.)
     Gain on sale of interest 
       in Global Gold Armenia 
       Limited                       255,999                --                255,999.                   --        268,874.
                                  -----------       -----------            -----------          -----------     -----------
INCOME/(LOSS) BEFORE INCOME TAXES    198,008           (81,488)                39,463.            (308,398.)    (1,678,450.)

     Income taxes                       (170)             (176)                  (490.)               (528.)        (3,246.)
                                  ----------        ----------             -----------          -----------    ------------
NET INCOME/(LOSS)                 $  197,838        $  (81,664)               $38,973.           $(308,926.)   $(1,681,696.)
                                  ----------        ----------             -----------          -----------    ------------
                                  ----------        ----------             -----------          -----------    ------------
NET INCOME/(LOSS) PER SHARE       $    .1375        $   (.0188)               $   .009           $    (.071)
                                  ----------        ----------             -----------          -----------
                                  ----------        ----------             -----------          -----------


</TABLE>







See Notes to the Financial statements.

                                      6
<PAGE>


                                                                         Page 3a
                                                                       Exhibit C


                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                  Statement 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.

                                      7
<PAGE>


                                                                         Page 3b
                                                                       Exhibit C


                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                  Statement 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 September 30, 1998             --         --            --             --          38,973.            --     38,973.
                                    ---------    --------   -----------   -----------     ------------    -----------  ---------
Shareholders' Equity
    September 30, 1998              4,348,114    $ 4,348.   $3,236,602.   $(2,907,648.)   $(1,681,696.)   $1,493,223.   $144,829.
                                    ---------    --------   -----------   -----------     ------------    -----------  ---------
                                    ---------    --------   -----------   -----------     ------------    -----------  ---------

</TABLE>


In 1997 Global Gold Corporation 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 Mines Ltd. financing.



See Notes to the Financial Statements.

                                      8
<PAGE>


                                                                          Page 4
                                                                       Exhibit D


                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                             Statements of Cash Flow
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                                             January 1, 1995
                                                          January 1, 1998         January 1, 1997         (development stage)
                                                                through                through                   through
                                                          September 30, 1998      September 30, 1997        September 30, 1998
                                                          ------------------      ------------------        ------------------
<S>                                                        <C>                     <C>                       <C>
CASH FLOW FROM DEVELOPMENT
STAGE ACTIVITIES:
     Net Gain/(Loss)                                       $38,973.               $(308,926.)               $(1,681,696.)
     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                                     --                      720.                     (9,601.)
         Gain on sale of Armenia mining interests         (255,999.)                     --                    (268,874.)
         Accounts payable, accrued expenses
                and miscellaneous                           35,413.              (1,022,002.)                   292,351.
                                                          ---------              -----------                  ----------
Net cash provided (used) by
      Development Stage Activities                        (181,613.)             (1,330,208.)                (1,207,097.)

CASH FLOW FROM INVESTING ACTIVITIES:
     Investment in short-term securities                        --                 (150,000.)                        --
     Deposit                                               (50,000.)                     --                     (50,000.)
     Proceeds from sale of Armenia mining
         interests (net of Note Receivable)                200,000.                      --                   1,891,155.
     Investment in certain mining interests
         - net of financing                                     --                       --                    (153,494.)
     Deferred costs - mining interests                          --               (8,758,455.)                  (878,858.)
                                                          ---------              -----------                  ----------
Net cash (used) by Investing Activities                    150,000.              (8,908,455.)                   808,803.
                                                          ---------              -----------                  ----------
CASH FLOW FROM FINANCING ACTIVITIES
     Loan from First Dynasty Mines Ltd.                         --               10,257,124.                         --
     Net proceeds from private placement offering               --                  200,000.                    421,573.
     Loans payable - officers (net)                             --                 (191,000.)                        --
     Warrants exercised                                         --                       --                         100.
                                                          ---------              -----------                  ----------
Net cash (used) provided by Financing Activities                --               10,266,124.                    421,673.
                                                          ---------              -----------                  ----------
NET INCREASE/DECREASE IN CASH
     CASH - beginning                                       66,344.                     369.                     11,352.
     CASH - end                                             34,731.                  27,830.                     34,731.
                                                          ---------              -----------                  ----------
                                                          $(31,613.)                $27,461.                    $23,379.
                                                          ---------              -----------                  ----------
                                                          ---------              -----------                  ----------
SUPPLEMENTAL CASH FLOW INFORMATION
     Income taxes paid                                    $    490.                 $   528.                    $ 1,838.
                                                          ---------              -----------                  ----------
     Interest paid                                        $    601.                 $ 7,090.                    $15,422.
                                                          ---------              -----------                  ----------

</TABLE>


NON-CASH INVESTING AND FINANCING ACTIVITIES
In 1995 Global Gold Corporation issued one million shares of common stock for
certain mining interests, with an estimated value of $850,000 (Note 5). In 1997
Global Gold Corporation 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 Mines Ltd. financing.




See Notes to the Financial Statements.

                                      9
<PAGE>


                                                                          Page 5


                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                          Notes to Financial Statements
                               September 30, 1998





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

           Global Gold Corporation (the "Company") was incorporated as Triad
           Energy Corporation in the State of Delaware on February 21, 1980 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 commencing January 1, 1996 through
           December 31, 1997 for use of the premises, office equipment,
           facilities, etc. The lease was terminated on December 31, 1997. 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.

                                     10
<PAGE>


                                                                          Page 6


                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                          Notes to Financial Statements
                               September 30, 1998


NOTE 3:    COMPANY HISTORY AND REPORTS WITH THE SECURITIES AND
           EXCHANGE COMMISSION

           The Company was incorporated as Triad Energy Corporation on February
           21, 1980, and closed a public offering of its common stock in January
           1981. Several months after the closing of such public 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 the public offering by its
           then president, Samuel McNell, in July 1981. The case has long since
           gone through the judicial system and Samuel 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,
           1993, 1994, 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 additional investor and/or lender financing.
           The Company expects to incur operating losses for the near term and,
           in any event, until such time as it derives substantial revenues from
           its investment in the Armenian Joint Venture.

                                     11
<PAGE>


                                                                          Page 7


                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                          Notes to Financial Statements
                               September 30, 1998


NOTE 5:    ACQUISITION OF ARMENIAN MINING INTEREST FROM EYRE

           Pursuant to the Asset Purchase Agreement dated June 1995, 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 Company paid Eyre for the Armenian and Georgian interests as
           follows:
<TABLE>
                <S>                                  <C>
                Cash                                 $ 153,494
                Note payable                           100,000
                Note payable                            46,506
                                                     ---------
                                                     $ 300,000
                                                     ---------
                                                     ---------

</TABLE>


           The Asset Purchase 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 Asset Purchase 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 to 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.

                                     12
<PAGE>


                                                                          Page 8


                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                          Notes to Financial Statements
                               September 30, 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 in order to
           facilitate possible future financings and to reduce the equity
           stake of certain shareholders who received shares pursuant to the
           Restructuring Agreement essentially in their capacity as finders.
           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 of 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, of counsel to PBW&T, has been designated to conduct
           the negotiations with the Republics. Mr. Krikorian 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 agreed to 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.

                                     13
<PAGE>


                                                                          Page 9


                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                          Notes to Financial Statements
                               September 30, 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 May 13, 1997, unbilled contingent project charges in excess of
           the minimum $25,000 per quarter were assumed by First Dynasty Mines
           Ltd. ("First Dynasty"), 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 September 30, 1998
           total approximately $300,000, which will be finalized with First
           Dynasty.





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 (the "Venture") entitled the
           Armenian Gold Recovery Company. The Venture was modified on May 1,
           1996. On June 29, 1996, the Republic of Armenia issued a
           parliamentary 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 Armenian government may materially and adversely affect the
           Company. Pursuant to the May 1, 1996 Venture modification, 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 Venture calls for the Armenian
           government to transfer to AGRC 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.

                                     14
<PAGE>


                                                                         Page 10


                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                          Notes to Financial Statements
                               September 30, 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 was contained in each metric tonne of ore with
           a 50% recovery, although there can be no assurance thereof.

           Pursuant to the decree issued in connection with the Venture, Global
           Gold Armenia Limited ("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.

           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 Venture. 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.

           An agreement to contribute the Zod and Meghradzor mines to the
           Venture was signed on September 30, 1997, and approved by the
           Armenian government on June 25, 1998 based on a feasibility study
           prepared by a joint venture between Kilborn-SNC Lavalin and CMPS&F,
           and submitted on June 8, 1998.

                                     15
<PAGE>


                                                                         Page 11


                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                          Notes to Financial Statements
                               September 30, 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 Foundation Agreement called for each partner to advance
           capital in a 50/50 ratio. Neither international nor any other body of
           accounting standards have been adopted in the Foundation Agreement.

           The Company thereafter learned that the Georgian government is
           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. Jet-Line owns certain valuable assets.

                                     16
<PAGE>


                                                                         Page 12


                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                          Notes to Financial Statements
                               September 30, 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 was unable to sell
           the facility. 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 has been notified by the Business Loan Center who made a
           U.S. Small Business Administration guaranteed loan to Jet-Line of
           $550,000 in 1994, that it would liquidate the Jet-Line assets, as
           to which it held a senior security interest. The Company
           thereafter unsuccessfully disputed the Business Loan Center's
           position as a senior secured creditor in late 1997. After
           determining that, among other things, the value of the assets
           held by it as collateral was negligible, the Company decided to
           write off the Jet-Line loan as worthless as of December 31, 1997.

           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 fully reserved the loan with an allowance for doubtful accounts
           of $300,000.


NOTE 10:   OFFICERS' COMPENSATION PAYABLE

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

                            September 30, 1998
                            -------------------
        <S>                                         <C>
        Drury J. Gallagher                          $162,500.
                                                    ----------
                                                    ----------

</TABLE>


        (see Note 15)

                                     17
<PAGE>


                                                                         Page 13


                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                          Notes to Financial Statements
                               September 30, 1998


NOTE 11:   ACCOUNTS PAYABLE AND ACCRUED EXPENSES


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

                                September 30, 1998
                                ------------------
            <S>                                         <C>
            Legal - General Counsel                     $ 10,449.
            Rent                                          18,000.
            Other Miscellaneous                            4,953.
                                                       ----------
                                                        $ 33,402.
                                                       ----------
                                                       ----------


</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. The officers loaned
           the Company $20,000 at an interest rate of 10% per annum due on or
           before December 31, 1998. The loans were repaid in full together with
           interest thereon.




NOTE 13:   CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM

           Pursuant to a Private Placement Offering (the "Offering") dated May
           17, 1995, as amended, the Company issued $500,000 of 10% Convertible
           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
           Convertible 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.

                                     18
<PAGE>


                                                                         Page 14


                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                          Notes to Financial Statements
                               September 30, 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 employment agreements
           called for automatic annual increases as defined. The Board of
           Directors of the Company may award bonuses up to 50% of base
           compensation. On February 1, 1997 Mr. Garrison's employment
           agreement was cancelled and replaced with a GGA consulting
           contract. Mr. Gallagher's base salary was increased to $150,000
           per year on July 1, 1997.

           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.

                                     19
<PAGE>


                                                                         Page 15


                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                          Notes to Financial Statements
                               September 30, 1998


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

           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. The consulting agreement was terminated on
           August 31, 1998 with the payment of consulting fees through that 
           date and the issuance of 500,000 special warrants of First Dynasty
           convertible into common shares on or before August 31, 1998.


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 nine-month period ended
           September 30, 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.

                                     20
<PAGE>


                                                                         Page 16


                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                          Notes to Financial Statements
                               September 30, 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.

                                     21
<PAGE>


                                                                         Page 17


                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                          Notes to Financial Statements
                               September 30, 1998


NOTE 19:   FIRST DYNASTY MINES LTD.

           The Company, GGA and 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. They loaned GGA $675,000 to pay outstanding payables, agreed to
           fund the $640,000 Tailings Dam Construction Contract and agreed to
           guarantee or co-sign up to $3,500,000 of the equipment purchase
           contract and up to $1,000,000 of the Engineering, Procurement and
           Construction Management Services Contract 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.

                                     22
<PAGE>


                                                                         Page 18


                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                          Notes to Financial Statements
                               September 30, 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 was due to be paid on June 30, 1998. This amount was paid
           $50,000 on July 28, 1998 and $150,000 on September 1, 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 as of December 31, 1997 as adjusted of $929,015 and
           organization costs of $4,800, resulting in a profit of $12,875.

           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. The
           Armenian government passed a governmental decree on June 25, 1998. On
           July 24, 1998 First Dynasty and the Company entered into an agreement
           to accelerate the issuance of 4,000,000 special warrants exchangeable
           at no cost into an equal amount of First Dynasty common shares. The 
           warrants were distributed on August 31, 1998 in exchange for the 
           Company's forgoing any increase in shares proportional to the extent
           that mineable reserves exceed five million ounces. The feasibility
           study issued on June 8, 1998 using current gold prices and production
           costs outlined an economically mineable reserve of one million five 
           hundred thousand ounces. The 4,000,000 special warrants are 
           exchangeable into 4,000,000 common shares of First Dynasty Mines Ltd.
           at no cost within one year or with the public offering of common 
           shares, whichever comes first. The common shares were valued at 13/64
           on the Toronto Stock Exchange or US$.128 on August 31, 1998. For 
           reporting purposes, the shares were discounted 50% for absence of a 
           market for the warrants, presence of Canadian securities law 
           restrictions on resale thereof, lack of trading volume and future 
           dilution. As of September 30, 1998, there was no market for the 
           special warrants. The common shares were valued at US$.15 per share
           on the Toronto Stock Exchange and the NASDAQ Bulletin Board. It is 
           anticipated that the special warrants will be exchanged for common
           shares and the common shares will have a market value, although there
           can be no assurance of such result. The Company will retain the right
           until December 31, 2009 to elect to participate at a level of up 
           to twenty percent with First Dynasty or any of its affiliates in 
           any exploration project undertaken in Armenia.

           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.

                                     23
<PAGE>


                             GLOBAL GOLD CORPORATION
                          (A Development Stage Company)
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                               September 30, 1998


(A)   GENERAL OVERVIEW

      Global Gold Corporation (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 (the "Venture") dated
           May 1, 1996. The Company thereafter assigned its rights and
           obligations thereunder to Global Gold Armenia Limited ("GGA"), its
           wholly-owned Cayman Islands subsidiary. The Venture formed the
           Armenian Gold Recovery Joint Venture Co., L.L.C. ("AGRC"), a limited
           liability company under Armenian law, 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
           Venture involves the processing of an estimated 12 million tonnes of
           tailings from the Ararat processing plant (the "Tailings Project"),
           which the Company believes average one and one tenth gram of gold per
           tonne (based on the independent metallurgical study obtained by the
           Company), 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 Joint Venture Agreement dated
           September 30, 1997 which, among other things, provides for the
           right of AGRC 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. On June
           25, 1998 the Armenian government approved the contribution of the
           Zod and Meghradzor mines into the Venture company.

      (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.

                                     24
<PAGE>


           Pursuant to the Venture, 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 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. Independent engineering
           firms prepared a feasibility report with respect to the reserves at
           the Zod and Meghradzor mines which was completed on June 8, 1998.

      (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 the NASDAQ/Bulletin Board. 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 initially entered into a
           definitive agreement (the "FDM Agreement") dated May 13, 1997
           reflecting the final agreement of the parties with respect to the
           above projects, and amended the FDM Agreement on July 24, 1998 as
           described in 9(a) below. 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 (which 
                      occurred in December 1997).

                 (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 shares
                      of common stock of GGA.

           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 
                      4,000,000shares 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.

           On July 24, 1998 First Dynasty and the Company entered into an
           agreement to accelerate the issuance of 4,000,000 special
           warrants exchangeable at no cost into an equal amount of First
           Dynasty common shares. The warrants were distributed on August 31,
           1998 in exchange for the Company's forgoing any increase in shares
           proportional to the extent that mineable reserves exceed five million
           ounces. The feasibility study 

                                     25
<PAGE>


           issued on June 8, 1998 using current gold prices and production costs
           outlines an economically mineable reserve of one million five hundred
           thousand ounces. The Company will retain the right until December 31,
           2009 to elect to participate at a level of up to 20% with First
           Dynasty or any of its affiliates in any exploration project 
           undertaken in Armenia.

                 (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. The $200,000 balance was paid
                      $50,000 on July 28, 1998, with the remaining balance
                      paid on September 1, 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.    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
                 until December 31, 2009. GGA and the Company also agreed to
                 enter into a mutually acceptable participation agreement 

                                     26
<PAGE>


                 in respect of any exploration project.

           6.    GGA agreed to retain Robert A. Garrison as a consultant for
                 a three-year period commencing February 1, 1997 pursuant to
                 the terms of the consulting agreement entered into between
                 such parties. Under such agreement, Mr. Garrison will serve
                 as a 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. The consulting
                 agreement was terminated on August 31, 1998 with the payment
                 of fees to date plus 500,000 First Dynasty special warrants
                 exchangeable at no cost into common stock.

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

                 (a)  From the inception of the Shareholders 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, Drury J. Gallagher, the Company's Chairman and
                      Chief Executive Officer, and Robert A. Garrison, the
                      Company's President and Chief Operating Officer, 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 Shareholders
                      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 

                                     27
<PAGE>


                     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 in the offer within
                     120 days after receipt of such offer and, provided
                     further that such third party signs an instrument in
                     writing agreeing to be bound by all of the terms and
                     conditions of the Shareholders Agreement.

                      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 New York 
                      State law (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 contract for Engineering, Procurement
                      and Construction Management Services 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.

           9.    The principal terms of the amended FDM Agreement are set forth
below:

                 (a)  First Dynasty agreed to pay the sum of $200,000 which
                      was due on June 30, 1998 in two installments
                      thereafter, of which $50,000 was due upon the execution
                      of the letter agreement by the parties (which has been
                      paid) and the sum of $150,000 was due upon the earlier
                      of three business days after First Dynasty receives the
                      cash proceeds of the sale of its Indonesian oil
                      properties or August 31, 1998 (the "Closing Date").

                 (b)  Subject to the prior approval of Toronto Stock Exchange
                      (which First Dynasty agreed to apply for promptly),
                      First Dynasty will acquire from the Company all of the
                      remaining outstanding shares of GGA and agreed to
                      deliver to the Company a certificate representing
                      4,000,000 First Dynasty special warrants on the same
                      date as the $150,000 payment is made under 9(a) above.
                      The special warrants will be in form and substance
                      satisfactory to all parties and each warrant will be
                      exercisable, at the Company's option, into one share of
                      common stock of First Dynasty without any payment
                      therefor. Pursuant to the existing terms of the FDM
                      Agreement, First Dynasty agreed to use its best efforts
                      for a period of one year from the Closing Date to cause
                      the shares of First Dynasty common stock subject to
                      such warrants to become issuable for freely tradable
                      shares of First Dynasty common stock.

                                     28
<PAGE>


                 (c)  Upon the delivery to the Company of the special
                      warrants, the Company's guarantee of the obligations of
                      GGA under the debenture issued to First Dynasty to
                      secure the obligations of GGA will be deemed to be
                      released in full. Also, the delivery by First Dynasty
                      to the Company of a certificate for the 4,000,000
                      special warrants of First Dynasty will be in full
                      satisfaction of First Dynasty's obligations under the
                      payment section of the FDM Agreement, subject to First
                      Dynasty's continuing best efforts obligations described
                      in 9(b) above.

                 (d)  First Dynasty or GGA will compensate Mr. Garrison under
                      his consulting agreement by (a)paying him the sum of
                      $62,500 upon the Closing Date and (b)subject to the
                      prior approval of the Toronto Stock Exchange (which
                      First Dynasty agreed to apply for promptly), delivering
                      to Mr. Garrison 500,000 special warrants to purchase
                      shares of First Dynasty common stock, which will be
                      subject to the obligations imposed on First Dynasty to
                      use its best efforts for a period of one year from the
                      Closing Date to cause the shares of First Dynasty
                      common stock subject to such warrants to become freely
                      tradable stock. Upon receipt of such compensation, Mr.
                      Garrison's consulting agreement will be deemed
                      satisfied of all the obligations of First Dynasty to
                      Mr. Garrison under the FDM Agreement, except for First
                      Dynasty's continuing best efforts obligation described
                      above.

                 (e)  The Shareholders Agreement described in 7(a)(d) hereof
                      will be deemed terminated as of the Closing Date.

                 (f)  The Company's right to elect to participate in any
                      exploration project described in 5 hereof has been
                      clarified to extend to any such project undertaken in
                      Armenia by First Dynasty or any of its affiliates,
                      including GGA, on the same terms and conditions previously
                      set forth in the FDM Agreement.

                 (g)  Except as amended as provided above, and except for
                      certain other provisions which were deemed to have
                      lapsed, the FDM Agreement will continue in full and
                      effect in accordance with its terms. 

                      The amended FDM Agreement outlined in 9 above was 
                      implemented on August 31, 1998 in accordance with 
                      its terms. Accordingly, the Company now owns 4,000,000
                      First Dynasty special warrants.

           10.   MINING PLANS

                 GGA, in conjunction with First Dynasty, negotiated with the
                 Armenian government to obtain 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 Venture, 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. The feasibility study was completed on June 8,
                 1998, and the Zod and Meghradzor mines which were contributed
                 to the Venture on September 30, 1997 were approved by the
                 Armenian government on June 25, 1998.



(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 (upon conversion) to Jet-Line of
      $100,000 at the Company's option, as provided therein. The Jet-Line Note,
      which 

                                     29
<PAGE>


      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. 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, attempted to sell assets of Jet-Line in 
      which it holds a security interest in 1997. 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. Thereafter the Company disputed the Business Loan
      Center's position that such creditor has a senior security interest in the
      assets being sold, but dropped such claim after determining, among other
      things, that the value of the assets held by it as collateral was
      negligible. Thus, the Company treated such loan as worthless as of
      December 31, 1997.

      REVENUES: During the three-month period ended September 30, 1998, the
      Company's interest and royalty income was $274, compared to $208 for the
      three-month period ended September 30, 1997.

      During the nine-month period ended September 30, 1998, the Company's
      interest and royalty income was $633, versus $208 for the same period last
      year.

      The Company received 4,000,000 First Dynasty Mines Ltd. special warrants
      on August 31, 1998 which were valued at $256,000. The investment in Global
      Gold Armenia Limited of $1 was written off.

      ADMINISTRATIVE AND OTHER EXPENSES: During the three-month period ended
      September 30, 1998, the Company's administrative and other expenses were
      $58,435, compared to $81,872 of such expenses for the three-month period
      ended September 30, 1997. Such decrease was attributable to the
      (a)reduction in legal fees attributable to the Armenian project of $2,786,
      (b)reduction in rent of $9,000, (c)reduction in accounting fees of $5,200,
      and (d)lower office expenses of $6,564.

      The Company's administrative and other expenses for the nine-month period
      ended September 30, 1998 were $217,659, which represented a decrease from
      the amount paid or accrued of $309,134 in the same period last year.
      Expense reductions were attributable to the Company's (a)reduction in rent
      of $27,000, (b)reduction of legal fees related to the Armenian Project of
      $57,191 which are now paid by First Dynasty, (c)reduction in accounting
      fees of $7,600, and (d)lower office expenses of $7,490 partially offset by
      (e)an increase in officers' compensation of $16,666.

      The Company received 4,000,000 First Dynasty Mines Ltd. special warrants
      on August 31, 1998 which were valued at $256,000. The investment in Global
      Gold Armenia Limited of $1 was written off.

      LIQUIDITY AND CAPITAL RESOURCES: As of September 30, 1998, the Company's
      total assets were $340,731, of which $34,731 consisted of cash or cash
      equivalents.

                                     30
<PAGE>


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

           (a)   To conclude favorably the legal proceedings against Eyre
                 Resources N.L., the Parry-Beaumont Trust and Kevin Parry; and

           (b)   To examine potential joint ventures to develop mining
                 properties in Armenia under terms of the FDM Agreement or other
                 projects presented to the Company by other entities.

      As of September 30, 1998, the Company had liquid assets consisting of cash
      of approximately $34,731. 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 the above financing will be
      provided 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 had previously 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
      Venture.

      The Company does not expect to hire any additional full-time employees in
      1998.

                                     31
<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) of the Form
         10-KSB filed by the Company for the year ended December 31, 1997). 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; thereafter with the Court's
         approval, the deadline to complete discovery was extended until March
         31, 1999. In discovery, each of the parties has produced documents in
         response to requests for the same. The defendant's counsel, Gibson Dunn
         & Crutcher L.L.P., filed a motion to withdraw as counsel by virtue of
         the defendant's failure to pay the legal fees and expenses due such law
         firm. Such motion is scheduled to be heard by the court on November 20,
         1998.

         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.

         In addition, the United States Attorney for the Eastern District of
         Pennsylvania commenced an investigation of various nursing homes in
         Pennsylvania managed by Penn-Med Consultants, Inc. ("Penn-Med"), a
         corporation owned by Drury J. Gallagher, the Company's Chairman, and
         John Hayman and Frank Hayman, who are also major stockholders of the
         Company, as to whether or not such nursing homes and their managers and
         affiliates engaged in potential violations of Federal health laws. In
         the course of the execution of a search warrant, all documents relating
         to Penn-Med were seized on August 6, 1997, as well as the books and
         records of other possible businesses located at such address, including
         all of the Company's books and records which were located at such
         address. At this time the Department of Justice has informed the
         Company that it is not a target of such investigation. In addition, the
         United States Attorney served a subpoena on the Company on such date to
         obtain additional information on August 29, 1997, and the Company has
         responded to the same.

         The Company is attempting to have itself removed completely from such
         proceeding. In addition, management is not aware of the basis of any
         potential liability in such proceeding. Although the Company believes
         that any claim of the nature described above will not be asserted
         against it or, if made, will not be asserted successfully, there can be
         no assurance of such result.

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<PAGE>


Item 2.  CHANGES IN SECURITIES

         Not applicable.



Item 3.  DEFAULT UPON SENIOR SECURITIES

         Not applicable.



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

         Not applicable



Item 5.  OTHER INFORMATION

         Not applicable.



Item 6.  EXHIBITS AND REPORTS ON FORM 8-K

         1.   (a) The following documents are filed as part of this report:
              Financial Statement of the Company (unaudited), including 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 September 30, 
              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: November 19, 1998        By: /s/ DRURY J. GALLAGHER
                                          ------------------------
                                          Drury J. Gallagher, Chairman
                                          and Chief Executive Officer


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