UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C. 20549





FORM
10-Q





(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, 2010





o    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


(Exact
name of small business issuer in its charter)





DELAWARE
            
            13-3025550(State
      or other jurisdiction of
            
            (IRS
      Employerincorporation
      or organization)
            
            Identification
      No.)





45 East Putnam Avenue,
Greenwich, CT 06830


(Address
of principal executive offices)





(203)
422-2300


(Issuer's
telephone number)





Not
applicable


(Former
name, former address and former fiscal year, if changed


since
last report)





Indicate
by check mark whether the registrant (1) filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 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 o





Indicate
by check mark whether the registrant has submitted electronically and posted on
its corporate Web site, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this
chapter) during the preceding 12 months (or for such shorter period that the
registrant was required to submit and post such
files).       Yes  o
     No o





Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting
company.   See definitions of “large accelerated filer,”
“accelerated filer” and “smaller reporting company” in Rule 12b-2 of the
Exchange Act.





Large
      accelerated filer
            o
            Accelerated
      filer
            oNon-accelerated
      filer
            o (Do not check if
      smaller reporting company)
            Smaller
      reporting company
            x





Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange
Act).          Yes  o
     No x





APPLICABLE
ONLY TO ISSUERS INVOLVED IN BANKRUPTCY


PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:





Indicate
by check mark whether the registrant filed all documents and reports required to
be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934
subsequent to the distribution of securities under a plan confirmed by a court.
Yes  o
     No o .  Not
applicable.





As of
November 19, 2010 there were 79,190,475 shares of the issuer's Common Stock
outstanding.











TABLE
OF CONTENTS





PART
I FINANCIAL INFORMATION





Item
      1.
            Consolidated
      Financial Statements (Unaudited)Consolidated
      Balance Sheets as of September 30, 2010 andas
      of December 31, 2009 (Audited)
            3Consolidated
      Statements of Operations for the three months and nine months
      endedSeptember
      30, 2010 and September 30, 2009 and for the exploration
    stageperiod
      from January 1, 1995 (inception) through September 30,
2010
            4Consolidated
      Statements of Cash Flows for the three months and nine months
      endedSeptember
      30, 2010 and September 30, 2009 and for the exploration
    stageperiod
      from January 1, 1995 (inception) through September 30,
2010
            5Notes
      to Consolidated Financial Statements (Unaudited)
            6Item
      2.
            Management's
      Discussion and Analysis or Plan of Operation
            23Item
      3.
            Quantitative
      and Qualitative Disclosures About Market Risk
            25Item
      4.
            Controls
      and Procedures
            25





PART
II OTHER INFORMATION





Item
      1.
            Legal
      Proceedings
            26Item
      2.
            Unregistered
      Sale of Equity Securities and Use of Proceeds
            26Item
      3.
            Defaults
      Upon Senior Securities
            26Item
      4.
            Submission
      of Matters to a Vote of Security Holders
            26Item
      5.
            Other
      Information
            26Item
      6.
            Exhibits
            27SIGNATURES
            29CERTIFICATIONS





2


PART I - FINANCIAL
INFORMATION





Item
1. Financial Statements.





GLOBAL
      GOLD CORPORATION AND SUBSIDIARIES(An
      Exploration Stage Company)CONSOLIDATED
      BALANCE SHEETSASSETSSeptember
      30,
              
              
              December
      31,2010
              
              
              2009(Unaudited)
              
              
              (Audited)CURRENT
      ASSETS:Cash
              
              $
              24,905
              
              
              $
              29,551Restricted
      cash
              
              
              404,008
              
              
              
              -Inventories
              
              
              1,158,205
              
              
              
              946,369Tax
      refunds receivable
              
              
              196,993
              
              
              
              147,919Prepaid
      expenses
              
              
              3,003
              
              
              
              2,986Other
      current assets
              
              
              130,042
              
              
              
              10,173TOTAL
      CURRENT ASSETS
              
              
              1,917,156
              
              
              
              1,136,998LICENSES,
      net of accumulated amortization of $2,225,436 and $1,876,971,
      respectively
              
              
              2,647,665
              
              
              
              2,996,130DEPOSITS
      ON CONTRACTS AND EQUIPMENT
              
              
              1,485,343
              
              
              
              369,425PROPERTY,
      PLANT AND EQUIPMENT, net of accumulated depreciation of $2,314,352 and
      $1,982,761, respectively
              
              
              1,377,485
              
              
              
              1,753,840$
              7,427,649
              
              
              $
              6,256,393LIABILITIES AND STOCKHOLDERS'
      DEFICITCURRENT
      LIABILITIES:Accounts
      payable and accrued expenses
              
              $
              2,544,573
              
              
              $
              2,085,172Wages
      payable
              
              
              1,564,029
              
              
              
              1,174,547Advance
      from customer
              
              
              432,246
              
              
              
              -Secured
      line of credit - short term portion
              
              
              550,156
              
              
              
              486,800Current
      portion of note payable to Directors
              
              
              5,257,180
              
              
              
              4,183,239TOTAL
      CURRENT LIABILITIES
              
              
              10,348,183
              
              
              
              7,929,758SECURED
      LINE OF CREDIT - LONG TERM PORTION
              
              
              2,352,550
              
              
              
              57,111NOTE
      PAYABLE TO DIRECTORS
              
              
              -
              
              
              
              729,167TOTAL
      LIABILITIES
              
              
              12,700,733
              
              
              
              8,716,036STOCKHOLDERS'
      DEFICIT:Common
      stock $0.001 par, 100,000,000 shares authorized; 41,272,856 and
      41,152,856at
      September 30, 2010 and December 31, 2009, respectively, shares issued and
      outstanding
              
              
              41,273
              
              
              
              41,153Additional
      paid-in-capital
              
              
              31,515,867
              
              
              
              31,399,576Accumulated
      deficit prior to development stage
              
              
              (2,907,648
              )
              
              
              (2,907,648
              )Deficit
      accumulated during the development stage
              
              
              (36,541,626
              )
              
              
              (33,800,807
              )Accumulated
      other comprehensive income
              
              
              2,619,050
              
              
              
              2,808,083TOTAL
      STOCKHOLDERS' DEFICIT
              
              
              (5,273,084
              )
              
              
              (2,459,643
              )$
              7,427,649
              
              
              $
              6,256,393
  The
accompanying notes are an integral part of these unaudited consolidated
financial statements





3


GLOBAL
      GOLD CORPORATION AND SUBSIDIARIES(An
      Exploration Stage Company)CONSOLIDATED
      STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
  Cumulative
      amountfromJanuary
      1, 1995Three
      Months Ended
                    
                    
                    Nine
      Months Ended
                    
                    
                    throughSeptember
      30,
                    
                    
                    September
      30,
                    
                    
                    September 30,2010
                    
                    
                    2009
                    
                    
                    2010
                    
                    
                    2009
                    
                    
                    2010(Unaudited)
                    
                    
                    (Unaudited)
                    
                    
                    (Unaudited)
                    
                    
                    (Unaudited)
                    
                    
                    (Unaudited)REVENUES
                    
                    $
                    -
                    
                    
                    $
                    74,352
                    
                    
                    $
                    94,943
                    
                    
                    $
                    136,641
                    
                    
                    $
                    287,628COST
      OF GOODS SOLD
                    
                    
                    -
                    
                    
                    
                    31,978
                    
                    
                    
                    32,855
                    
                    
                    
                    63,812
                    
                    
                    
                    96,667GROSS
      PROFIT
                    
                    
                    -
                    
                    
                    
                    42,374
                    
                    
                    
                    62,088
                    
                    
                    
                    72,829
                    
                    
                    
                    190,961EXPENSES:General
      and administrative
                    
                    
                    519,914
                    
                    
                    
                    476,135
                    
                    
                    
                    1,342,984
                    
                    
                    
                    1,674,425
                    
                    
                    
                    21,013,463Mine
      exploration costs
                    
                    
                    139,599
                    
                    
                    
                    24,341
                    
                    
                    
                    355,312
                    
                    
                    
                    742,754
                    
                    
                    
                    14,229,478Amortization
      and depreciation
                    
                    
                    228,405
                    
                    
                    
                    282,181
                    
                    
                    
                    773,266
                    
                    
                    
                    841,632
                    
                    
                    
                    4,842,595Write-off
      on investment
                    
                    
                    -
                    
                    
                    
                    40,882
                    
                    
                    
                    -
                    
                    
                    
                    40,882
                    
                    
                    
                    176,605Gain
      on sale of investment
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    (2,779,778
                    )Loss/(Gain)
      from investment in joint ventures
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    (192,977
                    )
                    
                    
                    -
                    
                    
                    
                    (2,616,678
                    )Interest
      expense
                    
                    
                    236,546
                    
                    
                    
                    129,992
                    
                    
                    
                    526,155
                    
                    
                    
                    346,124
                    
                    
                    
                    1,546,570Bad
      debt expense
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    151,250Loss
      on foreign exchange
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    193,852Gain
      on extinguishment of debt
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    (289,766
                    )Interest
      income
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    (1,833
                    )
                    
                    
                    (155
                    )
                    
                    
                    (359,226
                    )TOTAL
      EXPENSES
                    
                    
                    1,124,464
                    
                    
                    
                    953,532
                    
                    
                    
                    2,802,907
                    
                    
                    
                    3,645,663
                    
                    
                    
                    36,108,367Loss
      from Continuing Operations
                    
                    
                    (1,124,464
                    )
                    
                    
                    (911,158
                    )
                    
                    
                    (2,740,819
                    )
                    
                    
                    (3,572,834
                    )
                    
                    
                    (35,917,406
                    )`Discontinued
      Operations:Loss
      from discontinued operations
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    386,413Loss
      on disposal of discontinued operations
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    237,808Net
      Loss Applicable to Common Shareholders
                    
                    
                    (1,124,464
                    )
                    
                    
                    (911,158
                    )
                    
                    
                    (2,740,819
                    )
                    
                    
                    (3,572,834
                    )
                    
                    
                    (36,541,627
                    )Foreign
      currency translation adjustment
                    
                    
                    (336,510
                    )
                    
                    
                    (9,911
                    )
                    
                    
                    (157,920
                    )
                    
                    
                    (15,373
                    )
                    
                    
                    2,296,688Unrealized
      gain/(loss) on investments
                    
                    
                    (25,636
                    )
                    
                    
                    -
                    
                    
                    
                    (31,113
                    )
                    
                    
                    -
                    
                    
                    
                    322,362Comprehensive
      Net Loss
                    
                    $
                    (1,486,610
                    )
                    
                    $
                    (921,069
                    )
                    
                    $
                    (2,929,852
                    )
                    
                    $
                    (3,588,207
                    )
                    
                    $
                    (33,922,577
                    )NET
      LOSS PER SHARE-BASICAND
      DILUTED
                    
                    $
                    (0.03
                    )
                    
                    $
                    (0.02
                    )
                    
                    $
                    (0.07
                    )
                    
                    $
                    (0.09
                    )WEIGHTED
      AVERAGE SHARESOUTSTANDING
      - BASIC AND DILUTED
                    
                    
                    41,206,334
                    
                    
                    
                    40,407,584
                    
                    
                    
                    41,170,878
                    
                    
                    
                    39,650,851





The
accompanying notes are an integral part of these unaudited consolidated
financial statements





4


GLOBAL GOLD CORPORATION AND
SUBSIDIARIES


(An
Exploration Stage Enterprise)





CONSOLIDATED
STATEMENTS OF CASH FLOWS





Cumulative
      amountfromJanuary
      1, 2010
                
                
                January
      1, 2009
                
                
                January
      1, 1995through
                
                
                through
                
                
                throughSeptember
      30, 2010
                
                
                September
      30, 2009
                
                
                September
      30, 2010(Unaudited)
                
                
                (Unaudited)
                
                
                (Unaudited)OPERATING
      ACTIVITIES:Net
      loss
                
                $
                (2,740,819
                )
                
                $
                (3,572,834
                )
                
                $
                (36,541,626
                )Adjustments
      to reconcile net lossto
      net cash used in operating activities:Amortization
      of unearned compensation
                
                
                46,822
                
                
                
                246,013
                
                
                
                3,833,529Stock
      option expense
                
                
                59,589
                
                
                
                103,911
                
                
                
                1,177,127Amortization
      expense
                
                
                348,465
                
                
                
                369,540
                
                
                
                2,451,120Depreciation
      expense
                
                
                424,801
                
                
                
                472,092
                
                
                
                2,617,383Accrual
      of stock bonuses
                
                
                -
                
                
                
                -
                
                
                
                56,613Write-off
      of investment
                
                
                -
                
                
                
                40,882
                
                
                
                176,605Loss
      on disposal of discontinued operations
                
                
                -
                
                
                
                -
                
                
                
                237,808Loss/(Gain)
      from investment in joint ventures
                
                
                (192,977
                )
                
                
                -
                
                
                
                (2,566,678
                )Gain
      on extinguishment of debt
                
                
                -
                
                
                
                -
                
                
                
                (289,766
                )Gain
      on sale of investments
                
                
                -
                
                
                
                -
                
                
                
                (2,779,778
                )Bad
      debt expense
                
                
                -
                
                
                
                -
                
                
                
                151,250Other
      non-cash expenses
                
                
                -
                
                
                
                -
                
                
                
                155,567Changes
      in assets and liabilities:Other
      current and non current assets
                
                
                (1,496,714
                )
                
                
                180,178
                
                
                
                (3,303,902
                )Advance
      from customer
                
                
                432,246
                
                
                
                -
                
                
                
                432,246Accounts
      payable and accrued expenses
                
                
                433,430
                
                
                
                (193,978
                )
                
                
                3,026,220Accrued
      interest
                
                
                349,981
                
                
                
                285,394
                
                
                
                1,036,290Wages
      payable
                
                
                389,482
                
                
                
                919,017
                
                
                
                1,564,029NET
      CASH FLOWS USED IN OPERATING ACTIVITIES
                
                
                (1,945,694
                )
                
                
                (1,149,783
                )
                
                
                (28,565,963
                )INVESTING
      ACTIVITIES:Purchase
      of property, plant and equipment
                
                
                -
                
                
                
                (2,861
                )
                
                
                (4,135,919
                )Proceeds
      from sale of Armenia mining interest
                
                
                -
                
                
                
                -
                
                
                
                2,891,155Proceeds
      from sale of Tamaya Common Stock
                
                
                -
                
                
                
                -
                
                
                
                4,957,737Proceeds
      from sale of investment in common stock of Sterlite Gold
                
                
                
                -
                
                
                
                246,767Investment
      in joint ventures
                
                
                -
                
                
                
                -
                
                
                
                (260,000
                )Investment
      in mining licenses
                
                
                -
                
                
                
                -
                
                
                
                (5,756,101
                )NET
      CASH USED IN INVESTING ACTIVITIES
                
                
                -
                
                
                
                (2,861
                )
                
                
                (2,056,361
                )FINANCING
      ACTIVITIES:Net
      proceeds from private placement offering
                
                
                -
                
                
                
                -
                
                
                
                18,155,104Repurchase
      of common stock
                
                
                -
                
                
                
                -
                
                
                
                (25,000
                )Restricted
      cash
                
                
                (404,008
                )
                
                
                -
                
                
                
                (404,008
                )Secured
      line of credit
                
                
                2,167,523
                
                
                
                (109,891
                )
                
                
                2,650,388Note
      payable to Directors
                
                
                92,500
                
                
                
                962,674
                
                
                
                4,357,425Warrants
      exercised
                
                
                -
                
                
                
                -
                
                
                
                2,322,250NET
      CASH FLOWS PROVIDED BY FINANCING ACTIVITIES
                
                
                1,856,015
                
                
                
                852,783
                
                
                
                27,056,159EFFECT
      OF EXCHANGE RATE ON CASH
                
                
                85,033
                
                
                
                114,037
                
                
                
                3,579,718NET
      (DECREASE)INCREASE IN CASH
                
                
                (4,646
                )
                
                
                (185,824
                )
                
                
                13,553CASH
      AND CASH EQUIVALENTS - beginning of period
                
                
                29,551
                
                
                
                228,371
                
                
                
                11,352CASH
      AND CASH EQUIVALENTS - end of period
                
                $
                24,905
                
                
                $
                42,547
                
                
                $
                24,905SUPPLEMENTAL
      CASH FLOW INFORMATIONIncome
      taxes paid
                
                $
                -
                
                
                $
                -
                
                
                $
                2,683Interest
      paid
                
                $
                124,345
                
                
                $
                50,803
                
                
                $
                199,874Noncash
      Transactions:Stock
      issued for deferred compensation
                
                $
                2,000
                
                
                $
                239,717
                
                
                $
                3,871,217Stock
      forfeited for deferred compensation
                
                $
                -
                
                
                $
                -
                
                
                $
                742,500Stock
      issued for mine acquisition
                
                $
                -
                
                
                $
                -
                
                
                $
                1,227,500Stock
      issued for accounts payable
                
                $
                -
                
                
                $
                -
                
                
                $
                25,000Shares
      cancelled for receivable settlement
                
                $
                -
                
                
                $
                -
                
                
                $
                77,917Mine
      acquisition costs in accounts payables
                
                $
                -
                
                
                $
                -
                
                
                $
                50,697




The
accompanying notes are an integral part of these unaudited consolidated
financial statements





5





GLOBAL
GOLD CORPORATION


(An
Exploration Stage Company)





Notes
to Unaudited Consolidated Financial Statements





September
30, 2010





1.
ORGANIZATION, DESCRIPTION OF BUSINESS, AND BASIS FOR PRESENTATION





The
accompanying consolidated financial statements present the available exploration
stage activities information of the Company from January 1, 1995, the period
commencing the Company's operations as Global Gold Corporation (the "Company" or
"Global Gold") and Subsidiaries, through September 30, 2010.





The
accompanying consolidated financial statements are unaudited. In the opinion of
management, all necessary adjustments (which include only normal recurring
adjustments) have been made to present fairly the financial position, results of
operations and cash flows for the periods presented. Certain information and
footnote disclosure normally included in financial statements prepared in
accordance with accounting principles generally accepted in the United States of
America have been condensed or omitted. However, the Company believes that the
disclosures are adequate to make the information presented not misleading. These
consolidated financial statements should be read in conjunction with the
consolidated financial statements and notes thereto included in the December 31,
2009 annual report on Form 10-K. The results of operations for the nine month
period ended September 30, 2010 are not necessarily indicative of the operating
results to be expected for the full year ended December 31, 2010. The Company
operates in a single segment of activity, namely the acquisition of certain
mineral property, mining rights, and their subsequent development.





The
consolidated financial statements at September 30, 2010, and for the period then
ended were prepared assuming that the Company would continue as a going concern.
Since its inception, the Company, an exploration stage company, has generated
revenues of $287,628 (other than interest income, the proceeds from the sales of
interests in mining ventures, and the sale of common stock of marketable
securities) while incurring operating losses in excess of $36.5 million.
Management has held discussions with additional investors and institutions
interested in financing the Company's projects. However, there is no assurance
that the Company will obtain the financing that it requires or will achieve
profitable operations. The Company is expected to incur additional losses for
the near term until such time as it would derive substantial revenues from the
Chilean and Armenian mining interests acquired by it or other future projects in
Armenia or Chile. These matters raised substantial doubt about the Company's
ability to continue as a going concern. The accompanying consolidated financial
statements were prepared on a going concern basis, which contemplated the
realization of assets and satisfaction of liabilities in the normal course of
business. The accompanying consolidated financial statements at September 30,
2010 and for the period then ended did not include any adjustments that might be
necessary should the Company be unable to continue as a going
concern.





Global
Gold is currently in the exploration stage. It is engaged in exploration for,
and development and mining of, gold and other minerals in Armenia and Chile. The
Company's headquarters are located in Greenwich, CT and its subsidiaries
maintain offices and staff in Yerevan, Armenia, and Santiago, Chile. The Company
was incorporated as Triad Energy Corporation in the State of Delaware on
February 21, 1980 and, as further described hereafter, conducted other business
prior to January 1, 1995. During 1995, the Company changed its name from Triad
Energy Corporation to Global Gold Corporation to pursue certain gold and copper
mining rights in the former Soviet Republics of Armenia and Georgia. The Company
has not established proven and probable reserves, in accordance per SEC Industry
Guide 7, at any of its properties.  The Company's stock is publicly
traded. The Company employs approximately 100 people globally on a year round
basis and an additional 200 people on a seasonal basis.





In
Armenia, the Company’s focus is primarily on the exploration, development and
production of gold at the Tukhmanuk property in the North Central Armenian
Belt.  In addition, the Company is exploring and developing other
sites in Armenia including the Company’s Getik property and the Marjan
property.  The Company also holds royalty and participation rights in
other locations in the country through affiliates and subsidiaries.





In Chile,
the Company’s focus is primarily on the exploration, development and production
of gold at the Pureo property in south central Chile, near
Valdivia.  The Company is also engaged in identifying exploration and
production opportunities at other locations in Chile.





6


In
Canada, the Company has engaged in uranium exploration activities in the
provinces of Newfoundland and Labrador, but has phased out this activity,
retaining a royalty interest in the Cochrane Pond property in
Newfoundland.





The
Company also assesses exploration and production opportunities in other
countries.





The
subsidiaries of which the Company operates are as follows:





On
January 24, 2003, the Company formed Global Oro LLC and Global Plata LLC, as
wholly owned subsidiaries, in the State of Delaware. These companies were formed
to be equal joint owners of a Chilean limited liability company, Minera Global
Chile Limitada ("Minera Global"), formed as of May 6, 2003, for the purpose of
conducting operations in Chile.





On August
18, 2003, the Company formed Global Gold Armenia LLC ("GGA"), as a wholly owned
subsidiary, which in turn formed Global Gold Mining LLC ("Global Gold Mining"),
as a wholly owned subsidiary, both in the State of Delaware. Global Gold Mining
was qualified to do business as a branch operation in Armenia and owns assets,
royalty and participation interests, as well as shares of operating companies in
Armenia.





On
December 21, 2003, Global Gold Mining acquired 100% of the Armenian limited
liability company SHA, LLC (renamed Global Gold Hankavan, LLC ("GGH") as of July
21, 2006), which held the license to the Hankavan and Marjan properties in
Armenia.  On December 18, 2009, the Company entered into an agreement
with Caldera outlining the terms of a joint venture on the Company’s Marjan
property in Armenia (“Marjan JV”).  On March 12, 2010, GGH transferred
the rights, title and interest for the Marjan property to Marjan Mining Company,
a limited liability company incorporated under the laws of the Republic of
Armenia (“Marjan RA”).  On June 18, 2010, the Company closed Marjan JV
leaving the Company with a 45% interest.





On August
1, 2005, Global Gold Mining acquired 51% of the Armenian limited liability
company Mego-Gold, LLC, which is the licensee for the Tukhmanuk mining property
and seven surrounding exploration sites.  On August 2, 2006, Global
Gold Mining acquired the remaining 49% interest of Mego-Gold, LLC, leaving
Global Gold Mining as the owner of 100% of Mego-Gold, LLC.





On
January 31, 2006, Global Gold Mining closed a transaction to acquire 80% of the
Armenian company, Athelea Investments, CJSC (renamed "Getik Mining Company,
LLC") and its approximately 27 square kilometer Getik gold/uranium exploration
license area in the northeast Geghargunik province of Armenia.  As of
May 30, 2007, Global Gold Mining acquired the remaining 20% interest in Getik
Mining Company, LLC, leaving Global Gold Mining as the owner of 100% of Getik
Mining Company, LLC.





On
January 5, 2007, the Company formed Global Gold Uranium, LLC ("Global Gold
Uranium"), as a wholly owned subsidiary, in the State of Delaware, to operate
the Company's uranium exploration activities in Canada. Global Gold Uranium was
qualified to do business in the Canadian Province of Newfoundland and
Labrador.





On August
9, 2007 and August 19, 2007, the Company, through Minera Global, entered
agreements to form a joint venture and on October 29, 2007, the Company closed
its joint venture agreement with members of the Quijano family by which Minera
Global assumes a 51% interest in the placer and hard rock gold Madre de Dios and
Pureo properties in south central Chile, near Valdivia. The name of the joint
venture company is Compania Minera Global Gold Valdivia S.C.M. (“Global Gold
Valdivia” or “GGV”).  On October 27, 2010, the Company entered into an
agreement with Conventus Ltd. a BVI corporation (“Conventus”) for the sale of
100% interest in GGV.





The
accompanying consolidated financial statements present the available exploration
stage activities information of the Company from January 1, 1995, the period
commencing the Company's operations as Global Gold Corporation and Subsidiaries,
through September 30, 2010.





2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES





Cash and
Cash Equivalents - Cash and cash equivalents consist of all cash balances and
highly liquid investments with a remaining maturity of three months or less when
purchased and are carried at fair value.





Restricted
Cash - Restricted cash represents amount held by the Company which can only be
used as directed by the line of credit agreement.  The agreement
states that this amount should only be used for operations or expansion of the
operations at Toukhmanuk.





Use of
Estimates - The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.





7


Fair
Value of Financial Instruments - The Company adopted FASB ASC 820-Fair Value
Measurements and Disclosures, for assets and liabilities measured at fair value
on a recurring basis. ASC 820 establishes a common definition for fair value to
be applied to existing generally accepted accounting principles that require the
use of fair value measurements establishes a framework for measuring fair value
and expands disclosure about such fair value measurements. The adoption of ASC
820 did not have an impact on the Company’s financial position or operating
results, but did expand certain disclosures.





ASC 820
defines fair value as the price that would be received to sell an asset or paid
to transfer a liability in an orderly transaction between market participants at
the measurement date. Additionally, ASC 820 requires the use of valuation
techniques that maximize the use of observable inputs and minimize the use of
unobservable inputs. These inputs are prioritized below:





Level 1:
            Observable
      inputs such as quoted market prices in active markets for identical assets
      or liabilities





Level 2:
            Observable
      market-based inputs or unobservable inputs that are corroborated by market
      data





Level 3:
            Unobservable
      inputs for which there is little or no market data, which require the use
      of the reporting entity’s own
assumptions.





The
Company did not have any Level 2 or Level 3 assets or liabilities as
of September 30, 2010 and December 31, 2009.





The
Company discloses the estimated fair values for all financial instruments for
which it is practicable to estimate fair value. As of September 30, 2010 and
December 31, 2009, the fair value short-term financial instruments including
cash, receivables, and accounts payable and accrued expenses, approximates book
value due to their short-term duration.





Cash and
cash equivalents include money market securities and commercial paper that are
considered to be highly liquid and easily tradable. These securities are valued
using inputs observable in active markets for identical securities and are
therefore classified as Level 1 within the fair value
hierarchy.





In
addition, the Financial Accounting Standards Board (“FASB”) issued, “The Fair
Value Option for Financial Assets and Financial Liabilities,” effective for
January 1, 2008. This guidance expands opportunities to use fair value
measurements in financial reporting and permits entities to choose to measure
many financial instruments and certain other items at fair value. The Company
did not elect the fair value option for any of its qualifying financial
instruments.





Inventories
- Inventories consists of the following at September 30, 2010 and December 31,
2009:





September
      30,
              
              
              December
      31,2010
              
              
              2009Ore
              
              $
              924,830
              
              
              $
              772,298Concentrate
              
              
              60,133
              
              
              
              32,855Materials,
      supplies and other
              
              
              173,242
              
              
              
              141,216Total
      Inventory
              
              $
              1,158,205
              
              
              $
              946,369
  Ore
inventories consist of unprocessed ore at the Tukhmanuk mining site in Armenia.
The unprocessed ore and concentrate are stated at the lower of cost or
market.





Deposits
on Contracts and Equipment - The Company has made several deposits for
purchases, the majority of which is for the potential acquisition of new
properties, and the remainder for the purchase of mining equipment.





Tax
Refunds Receivable - The Company is subject to Value Added Tax ("VAT tax") on
all expenditures in Armenia at the rate of 20%. The Company is entitled to a
credit against this tax towards any sales on which it collects VAT tax. The
Company is carrying a tax refund receivable based on the value of its in-process
inventory which it intends on selling in the next twelve months, at which time
they will collect 20% VAT tax from the purchaser which the Company will be
entitled to keep and apply against its credit.





8


Net Loss
Per Share - Basic net loss per share is based on the weighted average number of
common and common equivalent shares outstanding. Potential common shares
includable in the computation of fully diluted per share results are not
presented in the consolidated financial statements as their effect would be
anti-dilutive.  The total number of warrants plus options that are
exercisable at September 30, 2010 and September 30, 2009 was 6,954,167 and
6,327,500, respectively.





Stock
Based Compensation - The Company periodically issues shares of common stock for
services rendered or for financing costs. Such shares are valued based on the
market price on the transaction date.  The Company periodically issues
stock options and warrants to employees and non-employees in non-capital raising
transactions for services and for financing costs.





The
Company accounts for the grant of stock and warrants awards in accordance with
ASC Topic 718, Compensation – Stock Compensation (ASC 718).  ASC 718
requires companies to recognize in the statement of operations the grant-date
fair value of warrants and stock options and other equity based
compensation.





The
Black-Scholes option valuation model was developed for use in estimating the
fair value of traded options that have no vesting restrictions and are fully
transferable. In addition, option valuation models require the input of highly
subjective assumptions including the expected stock price
volatility.





For the
nine months ended September 30, 2010 and 2009, net loss and loss per share
include the actual deduction for stock-based compensation expense. The total
stock-based compensation expense for the nine months ended September 30, 2010
and 2009 was $116,411 and $349,924, respectively. The expense for stock-based
compensation is a non-cash expense item.





Comprehensive
Income - The Company has adopted ASC Topic 220, “Comprehensive
Income.”  Comprehensive income is comprised of net income (loss) and
all changes to stockholders' equity (deficit), except those related to
investments by stockholders, changes in paid-in capital and distribution to
owners.





The
following table summarizes the computations reconciling net loss to
comprehensive loss for the nine months ended September 30, 2010 and
2009.





Nine
      Months Ending September 30,2010
              
              
              2009Net
      loss
              
              $
              (2,740,819
              )
              
              $
              (3,572,834
              )Foreign
      currency translation adjustment
              
              
              (157,920
              )
              
              
              (15,373
              )Unrealized
      loss
              
              
              (31,113
              )
              
              
              -Comprehensive
      loss
              
              $
              (2,929,852
              )
              
              $
              (3,588,207
              )


Income
Taxes - Income taxes are accounted for in accordance with the provisions of FASB
ASC 740, Accounting for Income Taxes. Deferred tax assets and liabilities are
recognized for the future tax consequences attributable to differences between
the financial statement carrying amounts of existing assets and liabilities and
their respective tax bases. Deferred tax assets and liabilities are measured
using enacted tax rates expected to apply to taxable income in the years in
which those temporary differences are expected to be recovered or settled. The
effect on deferred tax assets and liabilities of a change in tax rates is
recognized in income in the period that includes the enactment date. Valuation
allowances are established, when necessary, to reduce deferred tax assets to the
amounts expected to be realized.





Acquisition,
Exploration and Development Costs - Mineral property acquisition costs are
capitalized. Additionally, mine development costs incurred either to develop new
ore deposits and constructing new facilities are capitalized until operations
commence.  All such capitalized costs are amortized using a
straight-line basis on a range from 1-10 years, based on the minimum original
license term at acquisition, but do not exceed the useful life of the
capitalized costs.  Upon commercial development of an ore body, the
applicable capitalized costs would then be amortized using the
units-of-production method.  Exploration costs, costs incurred to
maintain current production or to maintain assets on a standby basis are charged
to operations.  Costs of abandoned projects are charged to operations
upon abandonment.  The Company evaluates, at least quarterly, the
carrying value of capitalized mining costs and related property, plant and
equipment costs, if any, to determine if these costs are in excess of their net
realizable value and if a permanent impairment needs to be
recorded.  The periodic evaluation of carrying value of capitalized
costs and any related property, plant and equipment costs are based upon
expected cash flows and/or estimated salvage value in accordance with ASC Topic
360, "Accounting for the Impairment or Disposal of Long-Lived
Assets."





Foreign
Currency Translation - The assets and liabilities of non-U.S. subsidiaries are
translated into U.S. Dollars at year-end exchange rates. Income and expense
items are translated at average exchange rates during the year. Cumulative
translation adjustments are shown as a separate component of stockholders'
equity.





9





Principles
of Consolidation - Our consolidated financial statements have been prepared in
accordance with accounting principles generally accepted in the United States of
America, and include the accounts of the Company and more-than-50%-owned
subsidiaries that it controls.   Inter-company balances and
transactions have been eliminated in consolidation.





Depreciation,
Depletion and Amortization - Capitalized costs are depreciated or depleted using
the straight-line method over the shorter of estimated productive lives of such
facilities or the useful life of the individual assets. Productive lives range
from 1 to 20 years, but do not exceed the useful life of the individual asset.
Determination of expected useful lives for amortization calculations are made on
a property-by-property or asset-by-asset basis at least annually.





Impairment
of Long-Lived Assets - Management reviews and evaluates the net carrying value
of all facilities, including idle facilities, for impairment at least annually,
or upon the occurrence of other events or changes in circumstances that indicate
that the related carrying amounts may not be recoverable. We estimate the net
realizable value of each property based on the estimated undiscounted future
cash flows that will be generated from operations at each property, the
estimated salvage value of the surface plant and equipment and the value
associated with property interests. All assets at an operating segment are
evaluated together for purposes of estimating future cash flows.





Licenses
- Licenses are capitalized at cost and are amortized on a straight-line basis on
a range from 1 to 10 years, but do not exceed the useful life of the individual
license.  At September 30, 2010 and 2009, amortization expense totaled
$348,465 and $369,540, respectively.





Reclamation
and Remediation Costs (Asset Retirement Obligations) - Costs of future
expenditures for environmental remediation are not discounted to their present
value unless subject to a contractually obligated fixed payment schedule. Such
costs are based on management's current estimate of amounts to be incurred when
the remediation work is performed, within current laws and regulations. The
Company has accrued approximately $60,000 as March 31, 2009 which it needs to
pay towards it environmental costs which remain unpaid as of the date of this
filing.





It is
possible that, due to uncertainties associated with defining the nature and
extent of environmental contamination and the application of laws and
regulations by regulatory authorities and changes in reclamation or remediation
technology, the ultimate cost of reclamation and remediation could change in the
future.





Revenue
Recognition - Sales are recognized and revenues are recorded when title
transfers and the rights and obligations of ownership pass to the customer. The
majority of the company's metal concentrates are sold under pricing arrangements
where final prices are determined by quoted market prices in a period subsequent
to the date of sale. In these circumstances, revenues are recorded at the times
of sale based on forward prices for the expected date of the final
settlement.  The Company recognized $94,943 and $136,641,
respectively, for the nine months ended September 30, 2010 and 2009 of sales
from its Tukhmanuk property in Armenia.  The Company also possesses
Net Smelter Return (“NSR”) royalty from non-affiliated companies.  As
the non-affiliated companies recognize revenue, as per above, the Company is
entitled to its NSR royalty percentage and royalty income is recognized and
recorded.  The Company did not recognize any royalty income for the
nine months ended September 30, 2010 and 2009.





New
Accounting Standards:





In June
2009, the FASB issued authoritative guidance which eliminates the exemption for
qualifying special-purpose entities from consolidation requirements, contains
new criteria for determining the primary beneficiary of a variable interest
entity, and increases the frequency of required reassessments to determine
whether a company is the primary beneficiary of a variable interest entity. The
guidance is applicable for annual periods beginning after November 15, 2009 and
interim periods therein and thereafter. The Company does not expect the adoption
of this standard to have a material effect on its financial position or results
of operations.





EITF
Issue No. 07-5 (ASC 815), “Determining Whether an Instrument (or embedded
Feature) is Indexed to an Entity’s Own Stock” (EITF 07-5) was issued in June
2008 to clarify how to determine whether certain instruments or features were
indexed to an entity’s own stock under EITF Issue No. 01-6 (ASC 815), “The
Meaning of “Indexed to a Company’s Own Stock” (EITF 01-6) (ASC 815),. EITF
07-5(ASC 815), applies to any freestanding financial instrument (or embedded
feature) that has all of the characteristics of a derivative as defined in FAS
133, for purposes of determining whether that instrument (or embedded feature)
qualifies for the first part of the paragraph 11(a) scope exception. It is also
applicable to any freestanding financial instrument (e.g., gross physically
settled warrants) that is potentially settled in an entity’s own stock,
regardless of whether it has all of the characteristics of a derivative as
defined in FAS 133 (ASC 815), for purposes of determining whether to apply EITF
00-19 (ASC 815). EITF 07-5(ASC 815) does not apply to share-based payment awards
within the scope of FAS 123(R), Share-Based Payment (FAS 123(R) (ASC 718)).
However, an equity-linked financial instrument issued to investors to establish
a market-based measure of the fair value of employee stock options is not within
the scope of FAS 123(R) and therefore is subject to EITF 07-5(ASC
815).





10


In
January 2009, the FASB issued FSP EITF 99-20-1 (ASC 325), to amend the
impairment guidance in EITF Issue No. 99-20 (ASC 325) in order to achieve
more consistent determination of whether an other-than-temporary impairment
(“OTTI”) has occurred. This FSP amended EITF 99-20 (ASC 325) to more
closely align the OTTI guidance therein to the guidance in Statement
No. 115 (ASC 320, 10-35-31). Retrospective application to a prior interim
or annual period is prohibited. The guidance in this FSP was considered in the
assessment of OTTI for various securities at December 31,
2008.





In August
2009, the FASB issued the FASB Accounting Standards Update No. 2009-04
“Accounting for Redeemable Equity Instruments - Amendment to Section 480-10-S99”
which represents an update to section 480-10-S99, distinguishing liabilities
from equity, per EITF Topic D-98, Classification and Measurement of Redeemable
Securities. The Company does not expect the adoption of this update to have a
material impact on its consolidated financial position, results of operations or
cash flows. In August 2009, the FASB issued the FASB Accounting Standards Update
No. 2009-05 “Fair Value Measurement and Disclosures Topic 820 – Measuring
Liabilities at Fair Value”, which provides amendments to subtopic 820-10, Fair
Value Measurements and Disclosures – Overall, for the fair value measurement of
liabilities. This update provides clarification that in circumstances in which a
quoted price in an active market for the identical liability is not available, a
reporting entity is required to measure fair value using one or more of the
following techniques: 1. A valuation technique that uses: a. The quoted price of
the identical liability when traded as an asset b. Quoted prices for similar
liabilities or similar liabilities when traded as assets. 2. Another valuation
technique that is consistent with the principles of topic 820; two examples
would be an income approach, such as a present value technique, or a market
approach, such as a technique that is based on the amount at the measurement
date that the reporting entity would pay to transfer the identical liability or
would receive to enter into the identical liability. The amendments in this
update also clarify that when estimating the fair value of a liability, a
reporting entity is not required to include a separate input or adjustment to
other inputs relating to the existence of a restriction that prevents the
transfer of the liability. The amendments in this update also clarify that both
a quoted price in an active market for the identical liability when traded as an
asset in an active market when no adjustments to the quoted price of the asset
are required are Level 1 fair value measurements. The Company does not expect
the adoption of this update to have a material impact on its consolidated
financial position, results of operations or cash flows.





In
September 2009, the FASB issued the FASB Accounting Standards Update No. 2009-08
“Earnings Per Share – Amendments to Section 260-10-S99”,which represents
technical corrections to topic 260-10-S99, Earnings per share, based on EITF
Topic D-53, Computation of Earnings Per Share for a Period that includes a
Redemption or an Induced Conversion of a Portion of a Class of Preferred Stock
and EITF Topic D-42, The Effect of the Calculation of Earnings per Share for the
Redemption or Induced Conversion of Preferred Stock. The Company does not expect
the adoption of this update to have a material impact on its consolidated
financial position, results of operations or cash flows.





In
September 2009, the FASB issued the FASB Accounting Standards Update No. 2009-09
“Accounting for Investments-Equity Method and Joint Ventures and Accounting for
Equity-Based Payments to Non-Employees”. This update represents a correction to
Section 323-10-S99-4, Accounting by an Investor for Stock-Based Compensation
Granted to Employees of an Equity Method Investee. Additionally, it adds
observer comment Accounting Recognition for Certain Transactions Involving
Equity Instruments Granted to Other Than Employees to the Codification. The
Company does not expect the adoption to have a material impact on its
consolidated financial position, results of operations or cash
flows.





In
September 2009, the FASB issued the FASB Accounting Standards Update No. 2009-12
“Fair Value Measurements and Disclosures Topic 820 – Investment in Certain
Entities That Calculate Net Assets Value Per Share (or Its Equivalent)”, which
provides amendments to Subtopic 820-10, Fair Value Measurements and
Disclosures-Overall, for the fair value measurement of investments in certain
entities that calculate net asset value per share (or its equivalent). The
amendments in this update permit, as a practical expedient, a reporting entity
to measure the fair value of an investment that is within the scope of the
amendments in this update on the basis of the net asset value per share of the
investment (or its equivalent) if the net asset value of the investment (or its
equivalent) is calculated in a manner consistent with the measurement principles
of Topic 946 as of the reporting entity’s measurement date, including
measurement of all or substantially all of the underlying investments of the
investee in accordance with Topic 820. The amendments in this update also
require disclosures by major category of investment about the attributes of
investments within the scope of the amendments in this update, such as the
nature of any restrictions on the investor’s ability to redeem its investments
at the measurement date, any unfunded commitments (for example, a contractual
commitment by the investor to invest a specified amount of additional capital at
a future date to fund investments that will be made by the investee), and the
investment strategies of the investees. The major category of investment is
required to be determined on the basis of the nature and risks of the investment
in a manner consistent with the guidance for major security types in U.S. GAAP
on investments in debt and equity securities in paragraph 320-10-50-1B. The
disclosures are required for all investments within the scope of the amendments
in this update regardless of whether the fair value of the investment is
measured using the practical expedient. The Company does not expect the adoption
to have a material impact on its consolidated financial position, results of
operations or cash flows.





11





In
October 2009, the FASB issued guidance for amendments to FASB Emerging Issues
Task Force on EITF Issue No. 09-1 “Accounting for Own-Share Lending Arrangements
in Contemplation of a Convertible Debt Issuance or Other Financing” (Subtopic
470-20) “Subtopic”. This accounting standards update establishes the accounting
and reporting guidance for arrangements under which own-share lending
arrangements issued in contemplation of convertible debt issuance. This
Statement is effective for fiscal years, and interim periods within those fiscal
years, beginning on or after December 15, 2009. Earlier adoption is not
permitted. The Company does not expect the adoption to have a material impact on
its consolidated financial position, results of operations or cash
flows.





In
December 2009, the FASB issued guidance for Consolidations – Improvements to
Financial Reporting by Enterprises Involved with Variable Interest Entities
(Topic 810). The amendments in this update are a result of incorporating the
provisions of SFAS No. 167, Amendments to FASB Interpretation No. 46(R). The
provisions of such Statement are effective for fiscal years, and interim periods
within those fiscal years, beginning on or after November 15, 2009. Earlier
adoption is not permitted. The presentation and disclosure requirements shall be
applied prospectively for all periods after the effective date. Management
believes this Statement will have no impact on the consolidated financial
statements of the Company once adopted.





In
January 2010, the FASB issued ASU 2010-06, Fair Value Measurements and
Disclosures (Topic 820) Improving Disclosures about Fair Value Measurements,
which enhances the usefulness of fair value measurements. The amended guidance
requires both the disaggregation of information in certain existing disclosures,
as well as the inclusion of more robust disclosures about valuation techniques
and inputs to recurring and nonrecurring fair value measurements. The amended
guidance is effective for interim and annual reporting periods beginning after
December 15, 2009, except for the disaggregation requirement for the
reconciliation disclosure of Level 3 measurements, which is effective for fiscal
years beginning after December 15, 2010 and for interim periods within those
years. The Company does not anticipate that this pronouncement will have a
material impact on its results of operations or financial position.





Management
does not believe that any other recently issued, but not yet effective,
accounting standards could have a material effect on the accompanying
consolidated financial statements. As new accounting pronouncements are issued,
the Company will adopt those that are applicable under the
circumstances.





A variety
of proposed or otherwise potential accounting standards are currently under
study by standard setting organizations and various regulatory agencies. Due to
the tentative and preliminary nature of those proposed standards, management has
not determined whether implementation of such proposed standards would be
material to our consolidated financial statements.





3.
PROPERTY, PLANT AND EQUIPMENT





The
following table illustrates the capitalized cost less accumulated depreciation
arriving at the net carrying value on our books at September 30, 2010 and
December 31, 2009.





September
      30,
              
              
              December
      31,2010
              
              
              2009Property,
      plant and equipment
              
              $
              3,691,837
              
              
              $
              3,736,601Less
      accumulated depreciation
              
              
              (2,314,352
              )
              
              
              (1,982,761
              )$
              1,377,485
              
              
              $
              1,753,840
  The
Company had depreciation expense for the nine months ended September 30, 2010
and 2009 of $424,801 and $472,092, respectively.





12


4.
ACCOUNTS PAYABLE AND ACCRUED EXPENSES





As of
September 30, 2010 and December 31, 2009, the accounts payable and accrued
expenses consisted of the following:





September
      30,
              
              
              December
      31,2010
              
              
              2009Drilling
      work payable
              
              $
              315,173
              
              
              $
              317,547Accounts
      payable
              
              
              2,119,305
              
              
              
              1,713,459Accrued
      expenses
              
              
              110,095
              
              
              
              54,166$
              2,544,573
              
              
              $
              2,085,172


13





5.
DEPOSIT PAYABLE





On August
28, 2008, the Company received an advance of $150,000 from one of the Madre
Gold, LLC members on the anticipated signing of the July 31, 2008 Agreement, as
further described in the Agreements section below.   As of
September 16, 2008, the agreement was terminated due to non performance of one
of the closing obligations by one of the parties.  As partial
compensation for the non-performing party’s breach of contract, the Company has
retained this deposit as of the date of this filing.  The Company has
written off the deposit to gain on extinguishment of debt as of December 31,
2009.





6.  SECURED
LINE OF CREDIT





The
Company has secured a secured line of credit from Arexim bank in
Armenia.  The Company pledged certain mining equipment with an
approximate value of $817,550 at its Tukhmanuk property against the line of
credit.  The maximum credit was for $656,631.  As of
September 30, 2010, the Company had borrowings outstanding of $135,000 which is
all payable before March 31, 2011.  The credit accrues interest at
approximately 15% per year.  The balance owed at September 30, 2010 was
$135,000 which includes no accrued interest.





On March
26, 2010, the Company, through its wholly owned subsidiary Mego Gold, LLC
(“Mego”) entered into a credit line agreement for 1 billion Armenian Drams
(approximately $2,500,000) with Armbusinessbank Close Joint Stock Company
(“ABB”) in Yerevan, Armenia.  The credit line includes a grace period
on repayment until April 20, 2011, is not revolving, may be prepaid at any time,
and is to be drawn down towards equipment purchases, construction, and expansion
of the existing plant and operations to increase production capacity to 300,000
tonnes of ore per year at Mego’s Tukhmanuk property in Armenia.  The
loan is for a period of 5 years through March 20, 2015, bears interest at 14%
for amounts borrowed, and bears interest at 2% for amount available but not
borrowed.  The loan is made and payable in local AMD currency. 
As security, 100% of the Mego shares and the mining right certified by the
Mining License Agreement #287 with Purpose of Sub-Surface Exploitation and
Mining License #HA-L-14/356 issued on August 5, 2005.  The balance
owed at September 30, 2010 was $2,767,706 which includes no accrued
interest.  The balance has increased only due to foreign currency
rates as of September 30, 2010.





7.
SEGMENT REPORTING BY GEOGRAPHIC AREA





The
Company sells its products to primarily to one customer in Europe. The Company
performs ongoing credit evaluations on its customers and generally does not
require collateral. The Company operates in a single industry segment,
production of gold and other precious metals including royalties from other
non-affiliated companies production of gold and other precious
metals.





For the
nine months ending September 30, 2010 and 2009, the Company had revenues of
$94,943 and $136,641 all in Armenia from a single customer.





The
following summarizes identifiable assets by geographic area:




September
      30,
              
              
              December
      31,2010
              
              
              2009Armenia
              
              $
              6,177,883
              
              
              $
              4,873,893Chile
              
              
              1,206,659
              
              
              
              1,351,831United
      States
              
              
              43,107
              
              
              
              30,669$
              7,427,649
              
              
              $
              6,256,393
  The
following summarizes operating losses before provision for income tax:





September
      30,
              
              
              September
      30,2010
              
              
              2009Armenia
              
              $
              1,569,068
              
              
              $
              1,885,531Chile
              
              
              165,172
              
              
              
              216,622Canada
              
              
              -
              
              
              
              40,882United
      States
              
              
              1,006,579
              
              
              
              1,429,799$
              2,740,819
              
              
              $
              3,572,834


14





8.
CONCENTRATION RISK





Financial
instruments which potentially subject the Company to concentrations of credit
risk consist principally of cash. The Company places its cash with high credit
quality financial institutions in the United States and Armenia.  Bank
deposits in the United States did not exceed federally insured limits as of
September 30, 2010 and as of December 31, 2009.  As of September 30,
2010 and December 31, 2009, the Company had approximately $454,000 and $18,000,
respectively, in Armenian bank deposits and approximately $800 and $55,000,
respectively, in Chilean bank deposits, which may not be insured. The Company
has not experienced any losses in such accounts through September 30, 2010 and
as of the date of this filing.





The
majority of the Company's present activities are in Armenia and Chile. As with
all types of international business operations, currency fluctuations, exchange
controls, restrictions on foreign investment, changes to tax regimes, political
action and political instability could impair the value of the Company's
investments.





9.
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS





The
Company values shares issued to officers using the fair value of common shares
on grant date.





On
December 31, 2008, pursuant to his employment agreement, Mr. Gallagher’s
agreement was automatically extended for an additional year through December 31,
2009 under the same terms of an annual salary of $125,000, 33,333 shares of
restricted common stock and stock options to purchase 166,667 of common stock of
the Company.  On May 18, 2009, pursuant to Mr. Gallagher’s employment
agreement extension under his contract and as confirmed by the independent
compensation committee and board of directors, Mr. Gallagher was granted 33,333
shares of restricted common stock with 16,667 shares vesting on June 30, 2009,
and 16,666 shares vesting on December 31, 2009.  Mr. Gallagher was
also granted stock options to purchase 166,667 shares of common stock of the
Company at $0.20 per share vesting on November 18, 2009.  The
restricted stock is subject to a substantial risk of forfeiture upon termination
of his employment with the Company during the term of the Employment
Agreement.





On May
18, 2009, the Company issued as directors fees to each of the five directors
(Nicholas Aynilian, Drury J. Gallagher, Harry Gilmore, Ian Hague, and Van Z.
Krikorian) stock options to purchase 100,000 shares of common stock of the
Company each at $0.20 per share, vesting on November 18, 2009. The option grants
were made pursuant to the Global Gold Corporation 2006 Stock Incentive Plan and
pursuant to the Board’s April 24, 2009 decision from which date the options were
valued.





On May
18, 2009, pursuant to Courtney Fellowes’ employment agreement as the Company’s
Vice President of Business Development and Investor Relations for the period of
January 1, 2009 to December 31, 2009, Mrs. Fellowes was granted 100,000 shares
of restricted common stock to vest in equal installments of 50,000 shares each
on June 30, 2009, and December 31, 2009.  Mrs. Fellowes was also
granted stock options to purchase 100,000 shares of common stock of the Company
at $0.20 per share vesting on June 18, 2009.  The restricted stock is
subject to a substantial risk of forfeiture upon termination of his employment
with the Company during the term of the Employment Agreement.  Mrs.
Fellowes options to purchase 100,000 shares have terminated.





On May
18, 2009, the Company issued Jan Dulman 200,000 shares of restricted common
stock as a retention payment under the terms of his employment agreement vesting
on December 31, 2009.  The restricted stock is subject to a substantial
risk of forfeiture upon termination of his employment with the
Company.





On June
19, 2009, the Company’s independent compensation committee and the board of
directors authorized employment amendments and extensions to Messrs. Krikorian,
Boghossian, Dulman, and Caesar under the same terms of their prior
agreements.





On August
12, 2009, the Company finalized employment agreement amendments and extensions
under the same terms of their current contracts which were approved on June 19,
2009 by the Company’s independent compensation committee of the board of
director’s to retain key employees, for Messrs. Krikorian, Boghossian, Dulman
and Caesar.  Annual compensation terms were not
increased.  Mr. Krikorian’s employment agreement was extended for an
additional 3 year term from July 1, 2009 through June 30, 2012 with an annual
salary of $225,000 and Mr. Krikorian was granted 1,050,000 shares of restricted
common stock which will vest in equal semi-annual installments over the term of
his employment agreement.  Mr. Boghossian’s employment agreement was
extended for an additional 3 year term from July 1, 2009 through June 30, 2012
with an annual salary of $72,000 and Mr. Boghossian was granted 337,500 shares
of restricted common stock which will vest in equal semi-annual installments
over the term of his employment agreement.





15





Mr.
Dulman’s employment agreement was extended for an additional 3 year term from
August 1, 2009 through July 31, 2012 with an annual salary of $150,000 and Mr.
Dulman was granted 225,000 shares of restricted common stock which will vest in
equal semi-annual installments over the term of his employment
agreement.  Mr. Dulman was also granted stock options to purchase
225,000 shares of common stock of the Company at $0.14 per share (based on the
closing price at his renewal) vesting in equal quarterly installments over the
term of his employment agreement.  Mr. Caesar’s employment agreement
was extended for an additional year from August 1, 2009 through July 31, 2010
with an annual salary of $30,000 and Mr. Caesar was granted 20,000 shares of
restricted common stock which will vest in equal semi-annual installments over
the term of his employment agreement.  The option grant was made
pursuant to the Global Gold Corporation 2006 Stock Incentive
Plan.  The restricted stock is subject to a substantial risk of
forfeiture upon termination of employment with the Company during the term of
the Employment Agreements.





On August
18, 2010, the Company and Mr. Caesar, the Company’s Controller, decided to not
extend his contract which ended on July 31, 2010.





On August
19, 2010, Mr. Gallagher received 20,000 shares of restricted common stock and
stock options to purchase 100,000 of common stock of the Company.  Mr.
Gallagher’s contract was previously automatically renewed and extended through
December 31, 2010.  On June 18, 2010, pursuant to Mr. Gallagher’s
employment agreement extension under his contract and as confirmed by the
independent compensation committee and board of directors, Mr. Gallagher was
granted 20,000 shares of restricted common stock with 10,000 shares vesting
immediately, and 10,000 shares vesting on December 31, 2010.  Mr.
Gallagher was also granted stock options to purchase 100,000 shares of common
stock of the Company at $0.10 per share, based on the fair market value on June
18, 2010 when they were authorized, vesting on November 19, 2010.  The
restricted stock is subject to a substantial risk of forfeiture upon termination
of his employment with the Company during the term of the Employment
Agreement.





On August
19, 2010, the Company issued as directors fees to each of the five directors
(Nicholas Aynilian, Drury J. Gallagher, Harry Gilmore, Ian Hague, and Van Z.
Krikorian) stock options to purchase 100,000 shares of common stock of the
Company each at $0.10 per share, vesting on November 18, 2009. The option grants
were made pursuant to the Global Gold Corporation 2006 Stock Incentive Plan and
pursuant to the Board’s June 18, 2010 decision from which date the options were
valued.





On August
19, 2010, the Company declared a stock bonus to Dr. Urquhart of 100,000 shares
of common stock at $0.10 per share for a total value of $10,000   pursuant
to the Board’s June 18, 2010 decision from which date the shares were
valued.





Compensation
expense for the nine months ended September 30, 2010 and 2009 was $629,233 and
$1,262,195.  The amount of total deferred compensation amortized for
the nine months ended September 30, 2010 and 2009 was $46,822 and
$349,924.





On
February 7, 2008, the Company received a short term loan in the amount of
$260,000, an additional $280,000 loan on March 10, 2008, and an additional
$300,000 loan on April 14, 2008 (collectively, the “Loans”), from Ian Hague, a
director of the Company, which Loans accrue interest, from the day they are
issued and until the day they are repaid by the Company, at an annual rate of
10%. The Company promised to repay, in full, the Loan and all the Interest
accrued thereon on the sooner of: (1) Mr. Hague’s demand after June 6, 2008; or
(2) from the proceeds of any financing the company receives over $1,000,000. The
Company may prepay this loan in full at any time. But if it is not repaid by
June 10, 2008, Mr. Hague will have the right, among other rights available to
Mr. Hague under the law, to convert the loan plus accrued interest to Common
Stock of the Company at the price calculable and on the terms of the Global
Gold Corporation 2006 Stock Incentive Plan.  In addition, Mr. Hague
has the right at any time to convert all or a portion of the Loan to the same
terms provided to any third party investor or lender financing the
company.  In connection with the Loan, pursuant to the Company’s
standing policies, including it’s Code of Business Conduct and Ethics and
Nominating and Governance Charter, the Board of Directors, acting without the
participation of Mr. Hague, reviewed and approved the Loan and its terms, and
determined the borrowings to be in the Company’s best interest.  On
May 12, 2008, the Company received an advance of $1,500,000 and an additional
advance of $800,000 on July 7, 2008 (collectively, the “Advances”), from Mr.
Hague.  On September 23, 2008, the Company restructured the Loans and
the Advances into a new agreement (the “Loan and Royalty”) which became
effective November 6, 2008.  Key terms of the Loan and Royalty include
interest accruing from September 23, 2008 until the day the loan is repaid in
full at an annual rate of 10% and the Company granting a royalty of 1.75% from
distributions to the Company from the sale of gold and all other metals produced
from the Madre De Dios property currently included in the Global Gold Valdivia
joint venture with members of the Quijano family.  At September 30, 2010
accrued, but unpaid, interest was $707,671.  See subsequent events,
below, for an update on these outstanding loans.





16





Pursuant
to two short-term loan agreements dated April 14, 2009 for $32,000 and May 4,
2009 for $20,000 the Company borrowed a total of $52,000 from one of its
directors, Nicholas J. Aynilian.  The terms of both agreements include an
annual rate of 10% with repayment on the sooner of: (1) demand after June 6,
2009; or (2) from the proceeds of any financing the Company receives.  In
addition, if the loans are not repaid by June 10, 2009, the lender will have the
right, among other rights available, to convert the loan plus accrued interest
to common shares of the Company at the price calculable and on the terms of the
Global Gold Corporation 2006 Stock Incentive Plan.  Accrued, but
unpaid, interest as of September 30, 2010 was $7,498.  See subsequent
events, below, for an update on these outstanding loans.





On April
16, 2009 and April 27, 2009, the Company’s Director and Treasurer, Drury
Gallagher, made interest free loans of $3,000 and $1,000, respectively, to the
Company which have not been repaid as of the date of this filing.  See
subsequent events, below, for an update on these outstanding loans.





On May
13, 2009, pursuant to a loan agreement, the Company borrowed $550,000 from two
of its directors Ian Hague ($500,000) and Nicholas J. Aynilian ($50,000). The
terms of the agreement include an annual rate of 10% with repayment on the
sooner of: (1) demand after June 1, 2009; (2) from the proceeds of any financing
the Company; or (3) from the proceeds of the sale of an interest in any Company
property.    In addition, if the loans are not repaid by June 10,
2009, the lenders will have the right, among other rights available, to convert
the loans plus accrued interest to common shares of the Company at the price
calculable and on the terms of the Global Gold Corporation 2006 Stock Incentive
Plan.  The lenders also have the right until the loans are repaid at any
time to convert the terms of the loans to the terms provided to any third party
investor or lender financing the Company.  Accrued, but unpaid,
interest as of September 30, 2010 was $76,096.  See subsequent events,
below, for an update on these outstanding loans.





On August
27, 2009 and September 10, 2009, the Company’s Director and Treasurer, Drury
Gallagher, made interest free loans of $20,000 and $1,500, respectively, to the
Company which have not been repaid as of the date of this filing.  See
subsequent events, below, for an update on these outstanding loans.





On
September 14, 2009, pursuant to a loan agreement, the Company borrowed an
additional $50,000 from Ian Hague. The terms of the agreement include an annual
rate of 10% with repayment on the sooner of: (1) demand after November 1, 2009;
(2) from the proceeds of any financing the Company; or (3) from the proceeds of
the sale of an interest in any Company property.    In addition,
if the loan is not repaid by December 1, 2009, the lender has the right, among
other rights available, to convert the loan plus accrued interest to common
shares of the Company at the price calculable and on the terms of the Global
Gold Corporation 2006 Stock Incentive Plan.  The lender has the right until
this and any other loans from him are repaid at any time to convert the terms of
all or a portion of this or other loans made to the terms provided to any third
party investor or lender financing the Company.  Accrued, but unpaid,
interest as of September 30, 2010 was $5,219.  See subsequent events,
below, for an update on these outstanding loans.





On
October 29, 2009, pursuant to a loan agreement, the Company borrowed an
additional $60,000 from Ian Hague. The terms of the agreement include an annual
rate of 10% with repayment on the sooner of: (1) demand after December 1, 2009;
(2) from the proceeds of any financing the Company; or (3) from the proceeds of
the sale of an interest in any Company property.    In addition,
if the loan is not repaid by December 31, 2009, the lender has the right, among
other rights available, to convert the loan plus accrued interest to common
shares of the Company at the price calculable and on the terms of the Global
Gold Corporation 2006 Stock Incentive Plan.  The lender has the right until
this and any other loans from him are repaid at any time to convert the terms of
all or a portion of this or other loans made to the terms provided to any third
party investor or lender financing the Company.  Accrued, but unpaid,
interest as of September 30, 2010 was $5,523.  See subsequent events,
below, for an update on these outstanding loans.





On
November 12, 2009, pursuant to a loan agreement, the Company borrowed an
additional $10,000 from Ian Hague. The terms of the agreement include an annual
rate of 10% with repayment on the sooner of: (1) demand after January 1, 2010;
(2) from the proceeds of any financing the Company; or (3) from the proceeds of
the sale of an interest in any Company property.    In addition,
if the loan is not repaid by December 31, 2009, the lender has the right, among
other rights available, to convert the loan plus accrued interest to common
shares of the Company at the price calculable and on the terms of the Global
Gold Corporation 2006 Stock Incentive Plan.  The lender has the right until
this and any other loans from him are repaid at any time to convert the terms of
all or a portion of this or other loans made to the terms provided to any third
party investor or lender financing the Company.  Accrued, but unpaid,
interest as of September 30, 2010 was $855.  See subsequent events,
below, for an update on these outstanding loans.





On
December 10, 2009, the Company’s Director and Treasurer, Drury Gallagher, made
an interest free loan of $2,000 to the Company which has not been repaid as of
the date of this filing.  See subsequent events, below, for an update
on these outstanding loans.





17





On
December 28, 2009, pursuant to a loan agreement, the Company borrowed $110,000
from Ian Hague. The terms of the agreement include an annual rate of 10% with
repayment on the sooner of: (1) demand after February 1, 2010; (2) from the
proceeds of any financing the Company; or (3) from the proceeds of the sale of
an interest in any Company property.    In addition, if the loan
is not repaid by January 31, 2010, the lender has the right, among other rights
available, to convert the loan plus accrued interest to common shares of the
Company at the price calculable and on the terms of the Global Gold Corporation
2006 Stock Incentive Plan.  The lender has the right until this and any
other loans from him are repaid at any time to convert the terms of all or a
portion of this or other loans made to the terms provided to any third party
investor or lender financing the Company.  Accrued, but unpaid, interest as
of September 30, 2010 was $8,318.  See subsequent events, below, for
an update on these outstanding loans.





On
February 2, 2010, one of the Company’s Directors, Nicholas J. Aynilian, made an
interest free loan of $5,000 to the Company. The Company repaid $2,500 to Mr.
Aynilian on March 1, 2010, and the balance has not been repaid as of the date of
this filing.  See subsequent events, below, for an update on these
outstanding loans.





On March
29, 2010, the Company’s Director and Treasurer, Drury Gallagher, made an
interest free loan of $20,000 to the Company which has not been repaid as of the
date of this filing.  See subsequent events, below, for an update on
these outstanding loans.





On May
20, 2010, the Company’s Director and Treasurer, Drury Gallagher, made an
interest free loan of $5,000 to the Company which has not been repaid as of the
date of this filing.  See subsequent events, below, for an update on
these outstanding loans.





On June
30, 2010, the Company’s Director and Treasurer, Drury Gallagher, made an
interest free loan of $5,000 to the Company which has not been repaid as of the
date of this filing.  See subsequent events, below, for an update on
these outstanding loans.





On July,
15, 2010, July 26, 2010, August 17, 2010, September 1, 2010 and September 14,
2010, the Company’s Director and Treasurer, Drury Gallagher, made interest free
loans of $5,000, $7,500, $3,000, $3,000 and $6,000, respectively, to the Company
which have not been repaid as of the date of this filing.  See
subsequent events, below, for an update on these outstanding loans.





On July
1, 2010, July, 15, 2010, August 2, 2010, August 17, 2010 and September 7, 2010,
one of the Company’s Directors, Nicholas J. Aynilian, made interest free loans
of $5,000, $5,000, $7,500, $3,000 and $9,000, respectively, to the Company which
have not been repaid as of the date of this filing.  See subsequent
events, below, for an update on these outstanding loans.





As of
September 30, 2010, the Company owes Drury Gallagher, the Company’s Director and
Treasurer, approximately $19,350 for expense reimbursement which bears no
interest.  See subsequent events, below, for an update on these
outstanding loans.





As of
September 30, 2010, the Company owes unpaid wages of approximately $713,279 to
management.  The Company is accruing interest at an annual rate of 9%
on the net of taxes wages owed to management.





10.
AGREEMENTS





On
January 18, 2007, Global Gold Uranium entered into a "Labrador Uranium Claims
Agreement" with Messrs. Alexander Turpin and James Weick to acquire an option to
acquire a one hundred percent interest ownership of mineral license rights at or
near Grand Lake (approximately 1,850 acres) and Shallow Lake (approximately
5,750 acres). Global Gold Uranium will be solely responsible for exploration and
management during the option periods and can exercise the option to acquire one
hundred percent of the license rights at either property by granting the sellers
a 1.5% NSR royalty which can be bought out for $2,000,000 cash or at the
seller's option in common stock of the Company valued at the six month weighted
average of the stock at the time of exercise. All dollar references are to
Canadian dollars. Global Gold Uranium will earn a One Hundred Percent (100%)
option in the Licenses by paying cash and common stock (20,000 shares initial
deposit). In addition, Global Gold Uranium has completed staking 300 claims
(approximately 18,531 acres) in the immediate vicinity of the Grand Lake and
Shallow Lake properties.  With respect to the Shallow Lake
transaction, the sellers breached a representation and warranty to keep the
license rights in force for a period after acquisition, several of the licenses
lapsed, and Global Gold Uranium, in its own name, successfully staked the same
licenses in June 2007. The Company has not issued the initial 20,000 shares of
Common Stock of the Company as of March 31, 2010, and has phased out of these
properties.  The licenses have expired as of September 30,
2009.





On July
24, 2009, Global Gold entered into an amendment with members of the Quijano
family (“Quijano”) to the October 29, 2007 Global Gold Valdivia joint venture
subject to final board approval on or before July 31, 2009 which made GGV wholly
owned by Global Gold but retaining only the Pureo Claims Block (approximately
8,200 hectares), and transferring the Madre De Dios claims block to the sole
ownership to members of the Quijano family.





18




Key terms
of the amendment included that on or before August 15, 2009, GGV transfer to
Quijano or his designee one hundred percent (100%) interest in the current GGV
claims identified as the Madre De Dios Claims Block and Quijano transfer to
Global Gold one hundred percent (100%) interest in the GGV, or its designee, and
the remaining claims identified as the Pureo Claims Block.  All
transfers were closed in Santiago, Chile on August 14, 2009 which terminated the
joint venture.  If GGV does not commence production on a commercial
basis on the property being transferred to its sole control pursuant to this
agreement within two years (subject to any time taken for permitting purposes),
the property shall revert to Quijano.  The Company has not financed
any plants as of June 30, 2010.





Quijano
shall be entitled a 3% NSR royalty interest in all metals produced from the
properties retained in GGV up to a maximum of 27 million Euros, subject to
Quijano’s initial repayment of $200,000 to Global Gold. For three
years,  GGV or its designee shall have a right of first refusal on any
bona fide offers for all or any part of the properties transferred to Quijano
(to be exercised within five (5) days).  For three years, Quijano
shall also have a right of first refusal on any bona fide offers for all or any
part of the properties retained by GGV or its designee (to be exercised within
twenty (20) days).





March 24,
2009, the Company signed a supply contract agreement with Industrial Minerals SA
(“IM”), a Swiss Company.  The agreement is for IM to purchase all of
the gold and silver concentrate produced at the Company's Tukhmanuk facility at
85% of LBMA less certain treatment and refining
charges.





On April
6, 2009, the Company sold approximately 60 tonnes of gold and silver concentrate
pursuant to its agreement with IM.  The concentrate was delivered on
April 18, 2009.  The tentative amount due to the Company was $63,448
of which the Company received a pre-payment of $31,724 on April 20,
2009.  The Company received $16,140 on May 27, 2009 and $14,425 on
July 7, 2009.  The final sales amount after charges and adjustments
was $62,289.





On July
23, 2009, the Company sold approximately 55 tonnes of gold and silver
concentrate pursuant to its agreement with IM.  The concentrate was
delivered on August 4, 2009.  The tentative amount due to the Company
was $77,255 of which the Company received a partial payment of $65,664 on August
11, 2009.  On October 13, 2009, the Company received $8,688 as final
payment for its sale in July 2009 to IM.  The final sales amount after
charges and adjustments was $74,352.





On
January 28, 2010, the Company sold and delivered approximately 59 tonnes of gold
and silver concentrate pursuant to its agreement with IM.   The
tentative amount due to the Company was $96,823 of which the Company received a
partial payment of $77,189 on January 28, 2010.  On February 26, 2010, the
Company had IM apply the balance due of $17,754 as final payment for its sale
against the advance it received, see paragraph below for more
information.  The final sales amount after charges and adjustments was
$94,943.





On
February 25, 2010, the Company, through its wholly owned subsidiary Mego Gold,
LLC (“Mego”) entered into an agreement with IM to provide Mego with an advance
of $450,000 from IM against future sales of gold and silver concentrate (the
“Advance”).   The advance was provided
by IM on February 26, 2010.





Key terms
include; that Mego provides IM with an exclusive off-take agreement for its gold
and silver concentrate in Armenia through December 31, 2012; for 2009 and until
February 25, 2010, the price IM paid Mego for gold and silver concentrate was
calculated based on 85% of the London AM/PM Gold Fixation and London Silver Spot
(“London Rates”), until Mego delivers 2,250 metric tons of concentrate the 85%
is reduced to 80%, after 2,250 metric tons have been delivered the price will
revert to 85% of London Rates; Mego provides IM with a security interest in its
current ore stockpile in Armenia; and the Company provides for a corporate
guarantee for repayment of the Advance.





On
October 27, 2009, the Company issued a press release announcing the first stage
of approval of reserves for its Toukhmanuk expansion. The Republic of Armenia’s
State Natural Resources Agency (the "Agency") issued its certificate based
on the proposal of the Agency’s State Geological Expert Commission made during
its October 23, 2009 session. The total ore reserve approved 
was roughly 21,900,000 tonnes with an average gold grade of 1.62 grams per
tonne at a cut off grade of 0.80 grams per tonne and an average silver grade of
4.88 grams per tonne.   Total approved reserves in the C1 and C2 categories
are roughly 35.614 tonnes (or 1,145,000 ounces) of gold and 107 tonnes (or
3,440,000 ounces) of silver. In its approval, the Agency added that the
“approved reserves entirely correspond to the requirements for Measured and
Indicated reserves under International Standards."





On
November 18, 2009, the Company issued a press release announcing that following
up on the issuance of the approving a first stage gold reserve, the Republic of
Armenia’s State Natural Resources Agency (the “Agency”) has delivered its full
decision with backup calculations on November 13, 2009 confirming an additional
gold resource in the inferred category. The Agency issued its decision based on
the proposal of the Agency’s State Geological Expert Commission made during its
October 23, 2009 session. A copy of the official approval and a partial
unofficial translation are available on the company’s website www.globalgoldcorp.com
..





19


The
approved gold resource in the Inferred category is 35 tonnes (or 1,225,276
ounces), which together with the approved 1.145 million ounces of reserves marks
a sharp increase from the 8.0 tonnes approved under GKZ decision N28 of January
26, 2004. The reserve and resource estimates were concluded at a cutoff grade of
0.8 grams per tonne.





Cautionary
Note to U.S. Investors - The United States Securities and Exchange Commission
(the “SEC”) limits disclosure for U.S. reporting purposes to mineral deposits
that a company can economically and legally extract or produce.  We use
terms such as “reserves,” “resources,” “geologic resources,” “proven,”
“probable,” “measured,” “indicated,” or “inferred,” which may not be consistent
with the reserve definitions established by the SEC Industry Guide 7.  Laws
of foreign countries including Armenia and Chile are not consistent with SEC
Industry Guide 7 regarding use of such terms.  We are required to adhere to
the mining laws and requirements of the countries we operate in which includes
developing reserves as well as exploration and mining activities pursuant to
laws in the countries where we operate and to be in compliance with license
requirements.  We acknowledge that due to the differences in laws of the
countries in which we operate and SEC Industry Guide 7, our mining activities
are being reported for informational and disclosure purposes based on foreign
country requirements but also that the SEC does not recognize any of our
properties as having proven or probable reserves established under SEC Industry
Guide 7.  Under SEC Industry Guide 7, we can only state that we are in the
exploration stage and have found consistencies in mineralization amongst our
drilling results, even though we have foreign country approved reserves,
resources, mining licenses, and sales of concentrate.





On
December 18, 2009, the Company entered into an agreement with Caldera Resources
Inc. (“Caldera”) outlining the terms for a joint venture on the Company’s Marjan
property in Armenia (“Marjan JV”).





Key terms
include that Caldera shall, subject to terms and conditions, earn a 55% interest
in the Marjan Gold-Silver-Polymetallic Project after completing a bankable
feasibility study on the project or spending US$3.0M on the
property.





As
additional consideration, Caldera made a non-refundable US$50,000 deposit by
December 30, 2009 and issued 500,000 shares of the company on a
post-consolidated basis. Caldera will also make a payment of US$100,000 no later
than March 30, 2010. A definitive agreement will be signed as soon as possible,
upon completion of due diligence review, respective board approvals and any
regulatory approval that may be required.  The Company received the
US$50,000 deposit on December 29, 2009.





On March
24, 2010, the Company entered into an amended agreement with Caldera
establishing the terms for a joint venture on the Company’s Marjan property in
Armenia (“Marjan JV”) which amends the December 18, 2009 agreement.





Key terms
include that Caldera shall own 55% of the shares of a newly created joint
venture company, become the operator of the project, and be responsible for all
expenses.  To maintain its 55% interest, Caldera is obligated to spend
up to US$ 3,000,000 on the Property, issue 500,000 shares of Caldera and make a
payment of US$ 100,000 on or before March 30, 2010 to Global Gold
Corporation.  The joint venture board shall have two Caldera
representatives and one Global Gold representative.  However, certain
actions including adoption of the annual operating and capital budgets require
unanimous consent.  Should Caldera not perform in accordance with the
terms of the Marjan JV, then Global Gold will have 100% interest of the Marjan
JV transferred back and Caldera will receive an NSR on the Marjan property equal
to .5% for each tranche of US$ 1,000,000 up to a maximum NSR of 3% without any
prorating.





Also
under the joint venture agreement Caldera will own 100% in the Marjan
Gold-Silver Project by making quarterly payments totaling US$ 2,850,000,
starting September 30, 2010.  If Caldera misses one of its quarterly
payments based on its failure to raise funds from capital markets, it is
entitled to an automatic 30 day extension from each quarterly payment; if
Caldera defaults on an extended payment then Caldera shall forfeit its shares of
the Marjan JV, be relieved of its investment commitment, but still be liable for
the payments to Global Gold which shall accrue interest at 10%, and possibly
retain a royalty interest as described above.  If Caldera makes its
payments and completes its obligations, Global Gold will retain a 1.5% NSR on
all production on the Central zone and a 2.5% NSR on all production on the
Northern zone.  Caldera can prepay the payments, fulfill the
investment commitment, and take 100% interest of the JV at any
time.





The
agreement was subject to approval by the TSX Venture Exchange and the Board of
Directors of the respective companies.  As of April 30, 2010, Caldera
paid the Company $100,000 and received TSX Venture Exchange approval on the
transaction and was waiting for final approval of its 43-101 to finalize the
transaction.  On June 18, 2010, the transaction was
closed.  See subsequent events, below, for an update on the Marjan
JV.





20





On March
26, 2010, the Company, through its wholly owned subsidiary Mego Gold, LLC
(“Mego”) entered into a credit line agreement for 1 billion Armenian Drams
(approximately $2,500,000) with Armbusinessbank Close Joint Stock Company
(“ABB”) in Yerevan, Armenia.  The credit line includes a grace period
on repayment until April 20, 2011, is not revolving, may be prepaid at any time,
and is to be drawn down towards equipment purchases, construction, and expansion
of the existing plant and operations to increase production capacity to 300,000
tonnes of ore per year at Mego’s Tukhmanuk property in Armenia.  The
loan is for a period of 5 years through March 20, 2015, bears interest at 14%
for amounts borrowed, and bears interest at 2% for amount available but not
borrowed.  The loan is made and payable in local AMD currency. 
As security, 100% of the Mego shares and the mining right certified by the
Mining License Agreement #287 with Purpose of Sub-Surface Exploitation and
Mining License #HA-L-14/356 issued on August 5, 2005.





The
Company rents office space in a commercial building at 45 East Putnam Avenue,
Greenwich, CT where it signed a 5-year lease starting on March 1, 2006 at a
starting annual rental cost of $44,200. On October 1, 2006, the Company expanded
its office space by assuming the lease of the adjacent office space. The assumed
lease had less then one year remaining, through September 30, 2008, at an annual
rental cost of $19,500.  The assumed lease was extended for an
additional year through September 30, 2009 at an annual rental cost of $22,860
for that period.   The assumed lease was further extended through
October 15, 2009 at which point the Company vacated the additional
space.  Messrs.Gallagher and Krikorian gave personal guarantees of the
Company's performance for the first two years of the lease.





11. LEGAL
PROCEEDINGS





In 2006
GGH held the licenses for the Hankavan and Marjan properties, and was the
subject of corrupt and improper demands and threats from the former Minister of
the Ministry of Environment and Natural Resources of Armenia, Vardan Ayvazian.
The Company reported this situation to the appropriate authorities in Armenia
and in the United States. Although the Minister took the position that the
licenses at Hankavan and Marjan were terminated, other Armenian governmental
officials assured the Company to the contrary and Armenian public records
confirmed the continuing validity of the licenses. The Company received
independent legal opinions that all of its licenses were valid and remained in
full force and effect, continued to work at those properties, and engaged
international and local counsel to pursue prosecution of the illegal and corrupt
practices directed against the subsidiary, including international arbitration.
On November 7, 2006, the Company initiated the thirty-day good faith negotiating
period (which is a prerequisite to filing for international arbitration under
the 2003 SHA, LLC Share Purchase Agreement) with the three named shareholders
and one previously undisclosed principal, Mr. Ayvazian.  The Company
filed for arbitration  under the
rules under the International Chamber of Commerce, headquartered in Paris,
France, ("ICC") on December 29, 2006. The forum for this arbitration is New York
City, and the hearing is currently pending for 2010.  On June 25, 2008, the Federal District
Court for the Southern District of New York ruled that Mr. Ayvazian was required
to appear as a respondent in the ICC arbitration.  On September 5,
2008, the ICC International Court of Arbitration ruled that Mr. Ayvazian shall
be a party in accordance with the decision rendered on June 25, 2008 by the
Federal District Court for the Southern District of New York.  In
addition and based on the US Armenia Bilateral Investment Treaty, Global Gold
Mining filed a request for arbitration against the Republic of Armenia for the
actions of the former Minister of Environment and Natural Resources with the
International Centre for Settlement of Investment Disputes, which is a component
agency of the World Bank in Washington, D.C., ("ICSID") on January 29, 2007. On
August 31, 2007, the Government of Armenia and Global Gold Mining jointly issued
the following statement, "{they} jointly announce that they have suspended the
ICSID arbitration pending conclusion of a detailed settlement agreement. The
parties have reached a confidential agreement in principle, and anticipate that
the final settlement agreement will be reached within 10 days of this
announcement." The Company has learned from public records that GeoProMining
Ltd., through an affiliate, has become the sole shareholder of an Armenian
Company, Golden Ore, LLC, which was granted an illegal and competing license for
Hankavan. GeoProMining Ltd. is subject to the 20% obligations as successor to
Sterlite Resources, Ltd.  As of February 25, 2008 Global Gold Mining
has entered into a conditional, confidential settlement agreement with the
Government of the Republic of Armenia to discontinue the ICSID arbitration
proceedings. This agreement does not affect the pending ICC arbitration
involving similar subject matter.





The
Company is subject to various legal proceedings and claims that arise in the
ordinary course of business. In the opinion of management, the amount of any
ultimate liability with respect to these actions will not materially affect the
Company’s consolidated financial statements or results of
operations.





12.
SUBSEQUENT EVENTS





On
October 4, 2010, one of the Company’s Directors, Nicholas J. Aynilian, made an
interest free loan of $5,000 to the Company which has not been repaid as of the
date of this filing.  See subsequent events, below, for an update on
these outstanding loans.





On
October 4, 2010, the Company’s Director and Treasurer, Drury Gallagher, made an
interest free loan of $5,000 to the Company which has not been repaid as of the
date of this filing.  See subsequent events, below, for an update on
these outstanding loans.





21





Caldera
has advised Global as well as governmental authorities that it would not be
complying with the work requirements which prompted 90 day termination notices
from the government and the October 7, 2010 joint venture termination notice
from Global.  Contrary to misleading reports issued by Caldera, these
notices do not trigger mere administrative proceedings nor have they been
withdrawn.





The joint
venture agreement provided that Caldera would be solely responsible for license
compliance and conducting the approved mining plan, and that “[i]n the event
that Caldera does not, or is otherwise unable to, pursue this project and pay to
Global Gold the amounts provided for hereunder, Caldera’s rights to the Property
and the shares of Marjan-Caldera Mining LLC shall be forfeited and replaced by a
Net Smelter Royalty (the “NSR”).” Caldera has not met the threshold to earn any
NSR under the agreement, and its notice of license non-compliance as well as its
failure to pay resulted in an automatic termination of its rights by operation
of the agreement.  The agreement provided that Caldera would deliver
500,000 of its shares to Global, “subject to final approvals of this agreement
by the TSX Venture Exchange.” The TSX Venture Exchange approval was issued in
June and Caldera failed to deliver the shares.





In
addition, Global’s October 7, 2010 termination notice noted Caldera’s illegal
behavior in registering charter changes harmful to and without the consent of
Global, failure to operate with an agreed budget, illegal use of power of
attorney (since withdrawn), refusal to turn over joint venture documents,
material misrepresentations on technical and other matters, and
more.  Global has also provided notice that Caldera should stop using
misleading pictures of Global work and properties unrelated to Marjan on
Caldera’s website, and Caldera has refused to do so.   Global is
committed to preserving the license and hopes to resolve any related problems
amicably, but reports that the joint venture has been confirmed and not
terminated were issued without Global’s approval and Global assumes no
responsibility for them or any information disseminated without Global’s
consent.





On
October 14, 2010, the Company sold and delivered approximately 56 tonnes of gold
and silver concentrate pursuant to its agreement with IM.   The
tentative amount due to the Company was $126,173 before any treatment charges
and or adjustments from final assaying.   The final sales amount
will be credited against the advance previously made by IM.





As of
October 15, 2010, the Company had outstanding loans plus accrued interest
totaling $5,312,642.95 from three of the Company’s Directors, Mr. Ian Hague
($5,052,262.27), Mr. Nicholas J. Aynilian ($154,030.68), and Mr. Drury Gallagher
($106,350).  On October 19, 2010, the Company’s non-interested members
of the Board of Directors approved a restructuring in aid of settlement of all
this debt to extinguish and convert this outstanding debt.  Pursuant
to the restructuring, the loans were cancelled and became convertible into
shares of the Company’s common stock at $0.15 per share.  As of
October 22, 2010, the Company has been given acceptance for the entire
conversion.  The transaction will benefit the Company by reducing the
current debt by $5,312,642.95 and eliminating the interest from continuing to
accrue on these debts.  The Company issued a total of 35,417,620
shares of the Company’s common stock which are restricted in exchange for the
debt cancellation.  The conversion of debt by Mr. Hague will not
impact his 1.75% NSR royalty on the Pureo property in Chile and will remain in
force.





In
connection with its private placement of stock in the Company which closed on
December 30, 2008, the Company issued warrants to acquire a total of 4,750,000
additional shares of the Company at the price per share of $0.15 exercisable on
or before December 9, 2013, unless mutually agreed otherwise. Pursuant to the
decision of the non-interested members of the Board of Directors on October 19,
2010, the Company has amended the warrant strike price per share from $0.15 to
$0.10.  On October 25, 2010, in connection with the aforementioned
warrants, the Company had 2,500,000 warrants exercised, out of 4,750,000
warrants available, for a total of $250,000.  The shares were issued
pursuant to the exemptions from registration requirements of the Securities Act
under Regulation D based upon representations and covenants provided by the
respective purchasers.  The Company anticipates that the balance of
the 4,750,000 warrants will be exercised.





On
October 27, 2010, the Company entered into an agreement with Conventus Ltd. a
BVI corporation (“Conventus”) for the sale of 100% interest in the Compania
Minera Global Gold Valdivia S.C.M. company (“GGV”) which holds the Pureo mining
assets in Chile, as previously described in the Company’s public
filings.    The Company will provide Conventus with
consulting services and technical assistance for development, production,
exploration, and expansion of the GGV mining properties in further consideration
of the payment terms below.





Key terms
include that Conventus shall pay $5.0 million USD over four years and two
months  payable as follows: $250,000 on or before October 31, 2010;
$250,000 on or before November 30, 2010; $500,000 at the closing on or before
March 31, 2011; $1,000,000 on or before December 31, 2011; $1,000,000 on or
before December 31, 2012; $1,000,000 on or before December 31, 2013; and
$1,000,000 on or before December 31, 2014 until $5,000,000 in total has been
paid.  If the sale does not close, the Company is responsible for
repayment of the $500,000 in payments made prior to closing based on terms
contingent upon the reason for the closing to not occur.  Payments to
the Company will be secured. As of October 27, 2010, Conventus Ltd shall be
solely responsible, at its own expense for all expenses and other matters
required by contract or law to comply with conditions related to the Pureo
property, and in particular with the July 24, 2009 contractual condition to
commence production on a commercial basis on the property being transferred to
its sole control pursuant to this agreement on or before August 15, 2011(subject
to any time taken for permitting purposes).





22





As
additional consideration, if within seven years, Conventus or any of its
successors produces 150,000 ounces of gold from the GGV property or property in
Chile which the Company assists GGV or Conventus in acquiring, then Conventus
shall or shall cause GGV to pay the Company a one-off and once only $2,500,000
bonus within 60 days of achieving such production. The closing of the
transaction is subject to a definitive agreement and agreement being reached
with Mr. Ian Hague, with respect to his royalty to the satisfaction of
Conventus.  The closing date is anticipated to be on or before March
31, 2011.





Conventus
wired $250,000 on October 29, 2010 to the Company in accordance with the payment
terms above.





On
October 28, 2010, the Company sold and delivered approximately 55 tonnes of gold
and silver concentrate pursuant to its agreement with IM.   The
tentative amount due to the Company was $123,590 before any treatment charges
and or adjustments from final assaying.   The final sales amount
will be credited against the advance previously made by IM.





ITEM
2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION





When used
in this discussion, the words "expect(s)", "feel(s)", "believe(s)", "will",
"may", "anticipate(s)" and similar expressions are intended to identify
forward-looking statements. Such statements are subject to certain risks and
uncertainties, which could cause actual results to differ materially from those
projected. Readers are cautioned not to place undue reliance on these
forward-looking statements, and are urged to carefully review and consider the
various disclosures elsewhere in this Form 10-Q. The provision of Section 27A of
the Securities Act of 1933 and Section 21 of the Securities and Exchange Act of
1934 shall apply to any forward looking information in this Form
10-Q.





RESULTS
OF OPERATIONS





NINE
MONTHS ENDED SEPTEMBER 30, 2010 AND NINE MONTHS ENDED SEPTEMBER 30,
2009





During
the nine month period ended September 30, 2010, the Company had revenue of
$94,943 and $136,641 in the same period last year.  The decrease in
revenue is primarily attributable to a decrease in sales of gold concentrate of
$41,698.





During
the nine month period ended September 30, 2010, the Company's administrative and
other expenses were $1,342,984 which represented a decrease of $331,441 from
$1,674,425 in the same period last year. The expense decrease was primarily
attributable to lower compensation expense of $632,962, and stock compensation
expense of $293,102, and increased legal expenses of $29,634, insurance expense
of $42,663 and accounting expenses of $53,500.





During
the nine month period ended September 30, 2010, the Company's mine exploration
costs were $355,312 which represented a decrease of $387,442 from $742,754 in
the same period last year.  The expense decrease was primarily
attributable to the decreased activity at the Chile property of $47,441, at the
Tukhmanuk Property of $194,822, at the Getik Property of $43,995 and at the
Marjan Property of $101,184.





During
the nine month period ended September 30, 2010, the Company's amortization and
depreciation expenses were $773,266 which represented a decrease of $68,366 from
$841,632 in the same period last year. The expense decrease was primarily
attributable to a decrease in amortization expense of $21,075 and a decrease in
depreciation expense of $47,291.





During
the nine month period ended September 30, 2010, the Company had interest expense
of $526,155 which represented an increase of $180,031 from $346,124 in the same
period last year.  The expense increase was attributable to an
increase in interest expense of $65,756 on note payable to directors and an
increase interest expense of $114,352 on a secured line of credit both due to
amounts borrowed.





LIQUIDITY
AND CAPITAL RESOURCES





As of
September 30, 2010, the Company's total assets were $7,427,649, of which
$428,913 consisted of cash or cash equivalents.





The
Company has $404,008 of restricted cash as of September 30, 2010.  The
restriction is based on funds deposited by ABB from a line of credit for
approximately $2.5 million being provided to the Company.  The cash is
restricted for production purposes and increasing production at the Toukhmanuk
property in Armenia.





The
Company's plan of operation for at least the next twelve months ending September
30, 2011:





23





The
Company's expected plan of operation for the calendar year 2010 is:





(a) With
the approximately $2.5 million loan secured through ABB, to mine 60,000 to
100,000 tonnes of ore and to expand the Tukhmanuk plant capacity to 300,000
tonnes per year, to continue and to expand gold and silver production at the
Tukhmanuk property in Armenia, to generate income from offering services from
the ISO certified lab operating at Tukhmanuk, and to continue to explore this
property to confirm historical reserve reports, and to explore other mining
properties in Armenia and to generate cash flow and establish gold, silver and
other reserves;





(b) To
commence mining and advance the Marjan property and conduct further exploration
at the Getik property in Armenia;





(c) To
implement and work towards close the sale agreement with Conventus for GGVin
Chile as discussed in Subsequent Events above, including commencing
production;;





(d) To
review and acquire additional mineral bearing properties; and





(e)
Pursue additional financing through private placements, debt and/or joint
ventures.





The
Company had anticipated receiving $2,850,000 from Caldera Resources per the
terms of the Marjan JV.  The payment schedule call for $300,000 on
September 30, 2010 and December 31, 2010; $250,000 on March 30, 2011, June 30,
2011, September 30, 2011, December 30, 2011, March 30, 2012, June 30, 2012, and
September 30, 2012; and $500,000 on December 31, 2012.  The September
payment has not been made and the Company has terminated the Marjan JV as
further describe above in Subsequent Events.





The
Company retained the right until December 31, 2009 to elect to participate at a
level of up to 20% with Sterlite Gold Ltd. or any of its affiliates in any
exploration project undertaken in Armenia. This agreement is governed by New
York law and includes New York courts as choice of forum. On October 2, 2006,
Vedanta Resources Plc announced that its tender offer to take control of
Sterlite Gold Ltd. was successful which made it a successor to the twenty
percent participation with Sterlite Gold Ltd. In September 2007, Vedanta (and
Sterlite) announced that they had closed a stock sale transaction with
GeoProMining Ltd., which made GeoProMining Ltd. and its affiliates the
successors to the 20% participation right.  The Company is now
reviewing legal options to enforce the 20% right.





The
Company retains the right to participate up to 20% in any new projects
undertaken by the Armenian company Sipan 1, LLC and successors to and affiliates
of Iberian Resources Limited, which merged with Tamaya Resources Limited, in
Armenia until August 15, 2015.  In addition, the Company has a 2.5%
NSR royalty on production from the Lichkvaz-Tei and Terterasar mines as well as
from any mining properties in a 20 kilometer radius of the town of Aigedzor in
southern Armenia.  On February 28, 2007, Iberian Resources Limited
announced its merger with Tamaya Resources Limited.  However, as of
December 31, 2008, Iberian Resources and Tamaya filed for bankruptcy in
Australia and the Company has taken action to protect its rights.  In
2009, the bankruptcy administrators sold the shares of Sipan 1, LLC to Terranova
Overseas company organized in the United Arab Emirates, which, on
information and belief, includes local and foreign investors and which also
assumes the continuing obligations of Sipan 1, LLC to Global
Gold.





The
Company also anticipates spending additional funds in Armenia and Chile for
further exploration and development of its other properties as well as
acquisition of new properties.  The Company is also reviewing new
technologies in exploration and processing.  The Company anticipates
that it will issue additional equity or debt to finance its planned
activities.  The Company anticipates that it might obtain additional
financing from the holders of its Warrants to purchase 4,750,000 shares of
Common Stock of the Company at an exercise price of $0.15 per share, which
expire on December 9, 2013.  These Warrants were amended to an
exercise price of $0.10 per share.  On
October 25, 2010, in connection with the aforementioned warrants, the Company
had 2,500,000 warrants exercised, out of 4,750,000 warrants available, for a
total of $250,000.  The shares were issued pursuant to the exemptions
from registration requirements of the Securities Act under Regulation D based
upon representations and covenants provided by the respective
purchasers.  The Company anticipates that the balance of the 4,750,000
warrants will be exercised, all as further discussed above in Subsequent
Events.





The
Company may engage in research and development related to exploration and
processing at Tukhmanuk during 2011, and anticipates purchasing processing plant
and equipment assets.





The
Company has received a going concern opinion from its independent public
accounting firm.  This means that our auditors believe that there is
doubt that we can continue as an on-going business for the next twelve months
unless we raise additional capital to pay our bills.  This is because
the Company has not generated any substantial revenues.  The Company has
been able to continue based upon its receipt of funds from the issuance of
equity securities and by acquiring assets or paying expenses by issuing stock,
debt, or sale of assets. The Company's continued existence is dependent upon its
continued ability to raise funds through the issuance of securities.
Management's plans in this regard are to obtain other financing until profitable
operation and positive cash flow are achieved and maintained.





24




Off-Balance Sheet
Arrangements





We do not
have any off-balance sheet arrangements that have, or are reasonably likely to
have, a current or future effect on our financial condition, changes in
financial condition, revenues or expenses, results or operations, liquidity,
capital expenditures or capital resources that is material to
investors.





Critical Accounting Policies
and Estimates





There
have been no material changes to our critical accounting policies and estimates
from the information provided in Item 7, "Management's Discussion and Analysis
of Financial Condition and Results of Operations", included in our Annual Report
on Form 10-K for the fiscal year ended December 31, 2009.





New Accounting
Standards





Please
see Note 2 of the Notes to Financial Statements in this quarterly report
concerning new accounting standards.





Item
3. Quantitative and Qualitative Disclosures About Market Risk





The
Company does not hold any market risk sensitive instruments nor does it have any
foreign currency exchange agreements.  The Company maintains an
inventory of unprocessed ore and gold concentrate which are carried on the
balance sheet at $772,298 and $805,153, respectively, with our Armenian
subsidiary Mego-Gold LLC.  The Company does not maintain any commodity
hedges or futures arrangements with respect to this unprocessed
ore.





Financial
instruments which potentially subject the Company to concentrations of credit
risk consist principally of cash. The Company places its cash with high credit
quality financial institutions in the United States and Armenia.  Bank
deposits in the United States did not exceed federally insured limits as of
September 30, 2010 and as of December 31, 2009.  As of September 30,
2010 and December 31, 2009, the Company had approximately $454,000 and $18,000,
respectively, in Armenian bank deposits and approximately $800 and $55,000,
respectively, in Chilean bank deposits, which may not be insured. The Company
has not experienced any losses in such accounts through September 30, 2010 and
as of the date of this filing.





The
majority of the Company's present activities are in Armenia and Chile. As with
all types of international business operations, currency fluctuations, exchange
controls, restrictions on foreign investment, changes to tax regimes, political
action and political instability could impair the value of the Company's
investments.





Item
4. Controls and Procedures.





Evaluation
of Disclosure Controls and Procedures





Under the
supervision and with the participation of our management, including our
principal executive officer and principal financial officer, we conducted an
evaluation of our disclosure controls and procedures, as such term is defined
under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities
Exchange Act of 1934, as amended ("Exchange Act"), as of March 31, 2010. Based
on this evaluation, our principal executive officer and principal financial
officer have concluded that our disclosure controls and procedures are effective
to ensure that information required to be disclosed by us in the reports we file
or submit under the Exchange Act is recorded, processed, summarized, and
reported within the time periods specified in the Securities and Exchange
Commission's rules and forms and that our disclosure and controls are designed
to ensure that information required to be disclosed by us in the reports that we
file or submit under the Exchange Act is accumulated and communicated to our
management, including our principal executive officer and principal financial
officer, or persons performing similar functions, as appropriate to allow timely
decisions regarding required disclosure.





Management's
internal control report over financial reporting was not subject to attestation
by the Company's independent registered public accounting firm pursuant to
temporary rules of the Securities and Exchange Commission that permit the
Company to provide only management's report.





Changes
in Internal Control over Financial Reporting





There
were no changes in our internal control over financial reporting that occurred
during our most recently completed fiscal quarter that has materially affected,
or is reasonably likely to materially affect, our internal control over
financial reporting except raw material and work in process physical inventories
are being performed at the end of each quarter.





25


PART
II - OTHER INFORMATION





Item
1. Legal Proceedings.





In 2006
GGH held the licenses for the Hankavan and Marjan properties, and was the
subject of corrupt and improper demands and threats from the former Minister of
the Ministry of Environment and Natural Resources of Armenia, Vardan Ayvazian.
The Company reported this situation to the appropriate authorities in Armenia
and in the United States. Although the Minister took the position that the
licenses at Hankavan and Marjan were terminated, other Armenian governmental
officials assured the Company to the contrary and Armenian public records
confirmed the continuing validity of the licenses. The Company received
independent legal opinions that all of its licenses were valid and remained in
full force and effect, continued to work at those properties, and engaged
international and local counsel to pursue prosecution of the illegal and corrupt
practices directed against the subsidiary, including international arbitration.
On November 7, 2006, the Company initiated the thirty-day good faith negotiating
period (which is a prerequisite to filing for international arbitration under
the 2003 SHA, LLC Share Purchase Agreement) with the three named shareholders
and one previously undisclosed principal, Mr. Ayvazian.  The Company
filed for arbitration under the rules under the International Chamber of
Commerce, headquartered in Paris, France, ("ICC") on December 29, 2006. The
forum for this arbitration is New York City, and the hearing is currently
pending for 2010.  On June 25, 2008, the Federal District Court for
the Southern District of New York ruled that Mr. Ayvazian was required to appear
as a respondent in the ICC arbitration.  On September 5, 2008, the ICC
International Court of Arbitration ruled that Mr. Ayvazian shall be a party in
accordance with the decision rendered on June 25, 2008 by the Federal District
Court for the Southern District of New York.  In addition and based on
the US Armenia Bilateral Investment Treaty, Global Gold Mining filed a request
for arbitration against the Republic of Armenia for the actions of the former
Minister of Environment and Natural Resources with the International Centre for
Settlement of Investment Disputes, which is a component agency of the World Bank
in Washington, D.C., ("ICSID") on January 29, 2007. On August 31, 2007, the
Government of Armenia and Global Gold Mining jointly issued the following
statement, "{they} jointly announce that they have suspended the ICSID
arbitration pending conclusion of a detailed settlement agreement. The parties
have reached a confidential agreement in principle, and anticipate that the
final settlement agreement will be reached within 10 days of this announcement."
The Company has learned from public records that GeoProMining Ltd., through an
affiliate, has become the sole shareholder of an Armenian Company, Golden Ore,
LLC, which was granted an illegal and competing license for Hankavan.
GeoProMining Ltd. is subject to the 20% obligations as successor to Sterlite
Resources, Ltd.  As of February 25, 2008 Global Gold Mining has
entered into a conditional, confidential settlement agreement with the
Government of the Republic of Armenia to discontinue the ICSID arbitration
proceedings. This agreement does not affect the pending ICC arbitration
involving similar subject matter.





The
Company is aware that another company based in Hong Kong began publicly trading
shares in the U.S. with the name Globalgold Corp.  The Company’s
counsel has sent the other company a cease and desist letter for using the
similar name and request that it change its name.





The
Company is subject to various legal proceedings and claims that arise in the
ordinary course of business. In the opinion of management, the amount of any
ultimate liability with respect to these actions will not materially affect the
Company’s consolidated financial statements or results of
operations.





Item
2. Unregistered Sales of Equity Securities and Use of Proceeds.





None





Item
3. Defaults Upon Senior Securities.





None





Item
4.





None





Item
5. Other Information.





None





26





Item
6. Exhibits.





The
following documents are filed as part of this report:





Unaudited
Consolidated Financial Statements of the Company, including Balance Sheets as
of  September 30, 2010 and as of December 31, 2009; Statements of
Operations and Comprehensive Loss for the nine months ended September 30, 2010
and September 30, 2009, and for the exploration stage period from January 1,
1995 through September 30, 2010, and Statements of Cash Flows for the nine
months September 30, 2010 and  September 30, 2009, and for the
exploration stage period from January 1, 1995 through September 30, 2010 and the
Exhibits which are listed on the Exhibit Index





Exhibit
      3.1
            Amended
      and Restated Certificate of Incorporation of the Company, effective
      November 20, 2003. (1)





Exhibit
      3.2
            Amended
      and Restated Bylaws of the Company, effective November 20, 2003.
      (2)





Exhibit
      10.1
            Madre
      De Dios Mining Property Joint Venture Agreement and Options for Chiloe and
      Ipun Island  properties dated as of August 9, 2007.
    (3)





Exhibit
      10.2
            Commitment
      to Contribute Mining Concession to a Contractual Mining Company
      (Unofficial English  Translation) dated as of August 19, 2007.
      (4)





Exhibit
      10.3
            Contractual
      Mining Company Agreement (Unofficial English Translation) dated as
      of  October 29, 2007. (5)





Exhibit
      10.4
            Private
      Placement Agreement, dated December 8, 2008.
(6)





Exhibit
      10.5
            Employment
      Agreement, dated as of August 11, 2009, by and between Global Gold
      Corporation and Van Krikorian. (7)





Exhibit
      10.6
            Employment
      Agreement, dated as of August 11, 2009, by and between Global Gold Mining,
      LLC and Ashot Boghossian. (8)





Exhibit
      10.7
            Employment
      Agreement, dated as of August 11, 2009, by and between Global Gold
      Corporation and Jan Dulman. (9)





Exhibit
      10.8
            Employment
      Agreement, dated as of August 11, 2009, by and between Global Gold
      Corporation and Lester Caesar. (10)





Exhibit
      10.9
            Armenian
      State Natural Resources Agency Decision N234 on the Recalculation of
      Reserves for Toukhmanuk – delivered Friday, November 13, 2009 – Partial
      Unofficial Translation . (11)





Exhibit
      10.10
            Material
      Contract – Marjan Joint Venture Agreement dated as of December 18, 2009.
      (12)





Exhibit
      10.11
            Material
      Contract – Mego Gold, LLC Gold Concentrate Supply Contract with Industrial
      Minerals SA dated as of February 25, 2010.
(13)





Exhibit
      10.12
            Material
      Contract – Mego Gold, LLC Security Agreement with Industrial Minerals SA
      dated as of February 25, 2010. (14)





Exhibit
      10.13
            Material
      Contract – Global Gold Corporation Guarantee to Industrial Minerals SA
      dated as of February 25, 2010. (15)





Exhibit
      10.14
            Material
      Contract – Marjan Joint Venture Agreement dated as of March 24, 2010.
      (16)





Exhibit
      10.15
            Material
      Contract – (Unofficial English Translation) Mego Gold, LLC non revolving
      credit line from Armbusinessbank signed March 26, 2010.
    (17)





Exhibit
      10.16
            Employment
      Agreement, dated as of August 19, 2010, by and between Global Gold
      Corporation and Drury Gallagher. (18)Exhibit
      10.17
            Material
      Agreement – Debt cancellation and restructuring with conversion
      rights. (19)Exhibit
      10.18
            Material
      Agreement – October 27, 2010 signed agreement for the sale of Compania
      Minera Global Gold Valdivia S.C.M. company to Conventus
    Ltd.





27





Exhibit
      31.1
            Certification
      of Chief Executive Officer Pursuant to Rule 13a-14 (a) of the 
      Sarbanes-Oxley Act of 2002.





Exhibit
      31.2
            Certification
      of Chief Financial Officer Pursuant to Rule 13a-14 (a) of the 
      Sarbanes-Oxley Act of 2002.





Exhibit
      32.1
            Certification
      of the Chief Executive Officer and Chief Financial Officer Pursuant to 18
      U.S.C. Section 1350, as Adopted Pursuant to  Section 906 of the
      Sarbanes-Oxley Act of 2002.





(1)
Incorporated herein by reference to Exhibit 3.1 to the Company's annual report
on 10-KSB for the year ended December 31, 2007 filed with the SEC on March 31,
2008.





(2)
Incorporated herein by reference to Exhibit 3.2 to the Company's annual report
on 10-KSB for the year ended December 31, 2007 filed with the SEC on March 31,
2008.





(3)
Incorporated herein by reference to Exhibit 10.3 to the Company's current report
on Form 8-K filed with the SEC on September 7, 2007.





(4)
Incorporated herein by reference to Exhibit 10.4 to the Company's current report
on Form 8-K filed with the SEC on September 7, 2007.





(5)
Incorporated herein by reference to Exhibit 10.4 to the Company's current report
on Form 8-K filed with the SEC on November 1, 2007.





(6)
Incorporated herein by reference to Exhibit 10.15 to the Company’s annual report
on Form 10-K filed with the SEC on April 15, 2009.





(7)
Incorporated herein by reference to Exhibit 10.10 to the quarterly report on
10-Q for the second quarter ended June 30, 2009, filed with the SEC on August
14, 2009.





(8)
Incorporated herein by reference to Exhibit 10.11 to the quarterly report on
10-Q for the second quarter ended June 30, 2009, filed with the SEC on August
14, 2009.





(9)
Incorporated herein by reference to Exhibit 10.12 to the quarterly report on
10-Q for the second quarter ended June 30, 2009, filed with the SEC on August
14, 2009.





(10)
Incorporated herein by reference to Exhibit 10.13 to the quarterly report on
10-Q for the second quarter ended June 30, 2009, filed with the SEC on August
14, 2009.





(11)
Incorporated herein by reference to Exhibit 10.3 to the Company’s current report
on Form 8-K filed with the SEC on November 19, 2009.





(12)
Incorporated herein by reference to Exhibit 10.3 to the Company’s current report
on Form 8-K filed with the SEC on December 22, 2009.





(13)
Incorporated herein by reference to Exhibit 10.3 to the Company’s current report
on Form 8-K filed with the SEC on March 2, 2010.





(14)
Incorporated herein by reference to Exhibit 10.4 to the Company’s current report
on Form 8-K filed with the SEC on March 2, 2010.





(15)
Incorporated herein by reference to Exhibit 10.5 to the Company’s current report
on Form 8-K filed with the SEC on March 2, 2010.





(16)
Incorporated herein by reference to Exhibit 10.4 to the Company’s current report
on Form 8-K filed with the SEC on March 25, 2010.





(17)
Incorporated herein by reference to Exhibit 10.3 to the Company’s current report
on Form 8-K filed with the SEC on March 30, 2010.





(18)
Incorporated herein by reference to Exhibit 10.16 to the quarterly report on
10-Q for the second quarter ended June 30, 2010, filed with the SEC on August
23, 2010.





(19)
Incorporated herein by reference to Exhibit 10.3 to the Company’s current report
on Form 8-K filed with the SEC on October 22, 2010.





(20)
Incorporated herein by reference to Exhibit 10.3 to the Company’s current report
on Form 8-K filed with the SEC on November 1, 2010.




28




SIGNATURES





Pursuant
to the requirements of the Securities 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 CORPORATIONDate:
      November 22, 2010
            By:
            /s/ Van
      Z. KrikorianVan
      Z. Krikorian
              Chairman
      and Chief Executive Officer





29