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, 2009




[
 ] 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 [ ].




Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).  Yes [ ]  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 [ ] No [ ]. Not applicable.




As of
November 19,
2009 there were 41,152,856 shares of the issuer's Common Stock
outstanding.




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
                    [  
      ]
                    Accelerated
      filer
                    [ 
       ]Non-accelerated
      filer
                    [ 
       ] (Do not check if smaller reporting company)
                    Smaller
      reporting company
                    [X]


1




TABLE
OF CONTENTS




PART
I FINANCIAL INFORMATION




Item
      1.
            Consolidated
      Financial Statements (Unaudited)Consolidated
      Balance Sheets as of September 30, 2009 andas
      of December 31, 2008 (Audited)
            3Consolidated
      Statements of Operations for the three months and nine months
      endedSeptember
      30, 2009 and September 30, 2008 and for the development
    stageperiod
      from January 1, 1995 (inception) through September 30,
2009
            4Consolidated
      Statements of Cash Flows for the nine months endedSeptember
      30, 2009 and September 30, 2008 and for the development
    stageperiod
      from January 1, 1995 (inception) through September 30,
2009
            5Notes
      to Consolidated Financial Statements (Unaudited)
            6-20Item 2.
            Management's
      Discussion and Analysis or Plan of Operation
            20-21Item 3.
            Quantitative
      and Qualitative Disclosures About Market Risk
            21-22Item 4T.
            Controls
      and Procedures
            22




PART
II OTHER INFORMATION





Item
      1.
            Legal
      Proceedings
            22-23Item 2.
            Unregistered
      Sale of Equity Securities and Use of Proceeds
            23Item 3.
            Defaults
      Upon Senior Securities
            23Item
      4.
            Submission
      of Matters to a Vote of Security Holders
            23Item
      5.
            Other
      Information
            23Item
      6.
            Exhibits
            24-25





SIGNATURES




CERTIFICATIONS


2




PART I - FINANCIAL INFORMATION




Item
1. Financial Statements.




GLOBAL
      GOLD CORPORATION AND SUBSIDIARIES(A
      Development Stage Company)CONSOLIDATED
      BALANCE SHEETSASSETSSeptember 30, 2009
                                            
                                            
                                            December 31, 2008(Unaudited)
                                            
                                            
                                            (Audited)CURRENT
      ASSETS:Cash
                                            
                                            $
                                            42,547
                                            
                                            
                                            $
                                            228,371Inventories
                                            
                                            
                                            992,107
                                            
                                            
                                            
                                            1,057,833Tax
      refunds receivable
                                            
                                            
                                            87,191
                                            
                                            
                                            
                                            178,909Prepaid
      expenses
                                            
                                            
                                            10,285
                                            
                                            
                                            
                                            8,459Accounts
      receivable
                                            
                                            
                                            8,688
                                            
                                            
                                            
                                            -Other
      current assets
                                            
                                            
                                            16,839
                                            
                                            
                                            
                                            39,141TOTAL
      CURRENT ASSETS
                                            
                                            
                                            1,157,658
                                            
                                            
                                            
                                            1,512,713LICENSES,
      net of accumulated amortization of $1,781,880 and $1,412,340,
      respectively
                                            
                                            
                                            3,091,221
                                            
                                            
                                            
                                            3,460,761DEPOSITS
      ON CONTRACTS AND EQUIPMENT
                                            
                                            
                                            388,681
                                            
                                            
                                            
                                            440,510PROPERTY,
      PLANT AND EQUIPMENT, net of accumulated depreciation of $1,790,639 and
      $1,591,207, respectively
                                            
                                            
                                            1,884,052
                                            
                                            
                                            
                                            2,802,415$
                                            6,521,612
                                            
                                            
                                            $
                                            8,216,399LIABILITIES AND STOCKHOLDERS' EQUITY
      (DEFICIT)CURRENT
      LIABILITIES:Accounts payable and accrued expenses
                                            
                                            $
                                            2,864,067
                                            
                                            
                                            $
                                            1,853,634Deposit payable
                                            
                                            
                                            150,000
                                            
                                            
                                            
                                            150,000Secured line of credit - short term portion
                                            
                                            
                                            416,788
                                            
                                            
                                            
                                            389,099Current portion of note payable to Directors
                                            
                                            
                                            3,246,065
                                            
                                            
                                            
                                            970,890TOTAL
      CURRENT LIABILITIES
                                            
                                            
                                            6,676,920
                                            
                                            
                                            
                                            3,363,623SECURED
      LINE OF CREDIT - LONG TERM PORTION
                                            
                                            
                                            56,250
                                            
                                            
                                            
                                            286,943NOTE
      PAYABLE TO DIRECTORS
                                            
                                            
                                            1,312,500
                                            
                                            
                                            
                                            2,625,000TOTAL
      LIABILITIES
                                            
                                            
                                            8,045,671
                                            
                                            
                                            
                                            6,275,566STOCKHOLDERS'
      EQUITY (DEFICIT)Common
      stock $0.001 par, 100,000,000 shares authorized; 41,152,856 and
      39,187,023at
      September 30, 2009 and December 31, 2008, respectively, shares issued and
      outstanding
                                            
                                            
                                            41,153
                                            
                                            
                                            
                                            39,187Additional
      paid-in-capital
                                            
                                            
                                            31,330,308
                                            
                                            
                                            
                                            30,982,350Accumulated
      deficit prior to development stage
                                            
                                            
                                            (2,907,648
                                            )
                                            
                                            
                                            (2,907,648
                                            )Deficit
      accumulated during the development stage
                                            
                                            
                                            (33,053,081
                                            )
                                            
                                            
                                            (29,480,246
                                            )Accumulated
      other comprehensive income
                                            
                                            
                                            3,065,209
                                            
                                            
                                            
                                            3,307,190TOTAL
      STOCKHOLDERS' EQUITY (DEFICIT)
                                            
                                            
                                            (1,524,059
                                            )
                                            
                                            
                                            1,940,833$
                                            6,521,612
                                            
                                            
                                            $
                                            8,216,399The
      accompanying notes are an integral part of these unaudited consolidated
      financial
statements
  3
  GLOBAL
      GOLD CORPORATION AND SUBSIDIARIES(A
      Development Stage Company)UNAUDITED
      CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
    LOSSCumulative
      amountfromThree
      Months Ended
                                                  
                                                  
                                                  Nine
      Months Ended
                                                  
                                                  
                                                  January
      1, 1995September
      30,
                                                  
                                                  
                                                  September
      30,
                                                  
                                                  
                                                  through2009
                                                  
                                                  
                                                  2008
                                                  
                                                  
                                                  2009
                                                  
                                                  
                                                  2008
                                                  
                                                  
                                                  September
      30, 2009REVENUES
                                                  
                                                  $
                                                  74,352
                                                  
                                                  
                                                  $
                                                  -
                                                  
                                                  
                                                  $
                                                  136,641
                                                  
                                                  
                                                  $
                                                  12,074
                                                  
                                                  
                                                  $
                                                  192,685COST
      OF GOODS SOLD
                                                  
                                                  
                                                  31,978
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  63,812
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  63,812NET
      SALES
                                                  
                                                  
                                                  42,374
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  72,829
                                                  
                                                  
                                                  
                                                  12,074
                                                  
                                                  
                                                  
                                                  128,873EXPENSES:
                                                  
                                                  
                                                  
                                                  
                                                  
                                                  
                                                  
                                                  
                                                  
                                                  
                                                  
                                                  
                                                  
                                                  
                                                  
                                                  
                                                  
                                                  `General
      and administrative
                                                  
                                                  
                                                  476,135
                                                  
                                                  
                                                  
                                                  562,815
                                                  
                                                  
                                                  
                                                  1,674,425
                                                  
                                                  
                                                  
                                                  2,589,774
                                                  
                                                  
                                                  
                                                  19,193,212Mine
      exploration costs
                                                  
                                                  
                                                  24,341
                                                  
                                                  
                                                  
                                                  242,121
                                                  
                                                  
                                                  
                                                  742,754
                                                  
                                                  
                                                  
                                                  862,666
                                                  
                                                  
                                                  
                                                  13,951,467Amortization
      and depreciation
                                                  
                                                  
                                                  282,181
                                                  
                                                  
                                                  
                                                  307,920
                                                  
                                                  
                                                  
                                                  841,632
                                                  
                                                  
                                                  
                                                  923,269
                                                  
                                                  
                                                  
                                                  3,747,308Write-off
      on investment
                                                  
                                                  
                                                  40,882
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  40,882
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  176,605Gain
      on sale of investment
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  (2,779,778
                                                  )Loss/(Gain)
      from investment in joint ventures
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  (2,373,701
                                                  )Interest
      expense
                                                  
                                                  
                                                  129,992
                                                  
                                                  
                                                  
                                                  32,805
                                                  
                                                  
                                                  
                                                  346,124
                                                  
                                                  
                                                  
                                                  78,038
                                                  
                                                  
                                                  
                                                  807,132Bad
      debt expense
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  151,250Loss/(Gain)
      on foreign exchange
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  70,971Gain
      on extinguishment of debt
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  (29,343
                                                  )Interest
      income
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  (155
                                                  )
                                                  
                                                  
                                                  (2,564
                                                  )
                                                  
                                                  
                                                  (357,393
                                                  )TOTAL
      EXPENSES
                                                  
                                                  
                                                  953,532
                                                  
                                                  
                                                  
                                                  1,145,661
                                                  
                                                  
                                                  
                                                  3,645,663
                                                  
                                                  
                                                  
                                                  4,451,183
                                                  
                                                  
                                                  
                                                  32,557,732Loss
      from Continuing Operations
                                                  
                                                  
                                                  (911,158
                                                  )
                                                  
                                                  
                                                  (1,145,661
                                                  )
                                                  
                                                  
                                                  (3,572,834
                                                  )
                                                  
                                                  
                                                  (4,439,109
                                                  )
                                                  
                                                  
                                                  (32,428,859
                                                  )`Discontinued
      Operations:Loss
      from discontinued operations
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  386,413Loss
      on disposal of discontinued operations
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  237,808Net
      Loss Applicable to Common Shareholders
                                                  
                                                  
                                                  (911,158
                                                  )
                                                  
                                                  
                                                  (1,145,661
                                                  )
                                                  
                                                  
                                                  (3,572,834
                                                  )
                                                  
                                                  
                                                  (4,439,109
                                                  )
                                                  
                                                  
                                                  (33,053,080
                                                  )Foreign
      currency translation adjustment
                                                  
                                                  
                                                  (9,911
                                                  )
                                                  
                                                  
                                                  23,164
                                                  
                                                  
                                                  
                                                  (15,373
                                                  )
                                                  
                                                  
                                                  123,597
                                                  
                                                  
                                                  
                                                  2,686,237Unrealized
      gain on investments
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  -
                                                  
                                                  
                                                  
                                                  353,475Comprehensive
      Net Loss
                                                  
                                                  $
                                                  (921,069
                                                  )
                                                  
                                                  $
                                                  (1,122,497
                                                  )
                                                  
                                                  $
                                                  (3,588,207
                                                  )
                                                  
                                                  $
                                                  (4,315,512
                                                  )
                                                  
                                                  $
                                                  (30,013,368
                                                  )NET
      LOSS PER SHARE-BASICAND
      DILUTED
                                                  
                                                  $
                                                  (0.02
                                                  )
                                                  
                                                  $
                                                  (0.03
                                                  )
                                                  
                                                  $
                                                  (0.09
                                                  )
                                                  
                                                  $
                                                  (0.13
                                                  )WEIGHTED
      AVERAGE SHARESOUTSTANDING
      - BASIC AND DILUTED
                                                  
                                                  
                                                  40,407,584
                                                  
                                                  
                                                  
                                                  34,117,023
                                                  
                                                  
                                                  
                                                  39,650,851
                                                  
                                                  
                                                  
                                                  34,027,461The
      accompanying notes are an integral part of these unaudited consolidated
      financial
statements





4


GLOBAL
      GOLD CORPORATION AND SUBSIDIARIES(A
      Development Stage Enterprise)UNAUDITED
      CONSOLIDATED STATEMENTS OF CASH FLOWSCumulative
      amountfromJanuary
      1, 2009
                                                                                    
                                                                                    
                                                                                    January
      1, 2008
                                                                                    
                                                                                    
                                                                                    January
      1, 1995through
                                                                                    
                                                                                    
                                                                                    through
                                                                                    
                                                                                    
                                                                                    throughSeptember
      30, 2009
                                                                                    
                                                                                    
                                                                                    September
      30, 2008
                                                                                    
                                                                                    
                                                                                    September
      30, 2009OPERATING
      ACTIVITIES:Net
      loss
                                                                                    
                                                                                    $
                                                                                    (3,572,834
                                                                                    )
                                                                                    
                                                                                    $
                                                                                    (4,439,110
                                                                                    )
                                                                                    
                                                                                    $
                                                                                    (33,053,080
                                                                                    )Adjustments
      to reconcile net lossto
      net cash used in operating activities:Amortization
      of unearned compensation
                                                                                    
                                                                                    
                                                                                    246,013
                                                                                    
                                                                                    
                                                                                    
                                                                                    587,930
                                                                                    
                                                                                    
                                                                                    
                                                                                    3,743,801Stock
      option expense
                                                                                    
                                                                                    
                                                                                    103,911
                                                                                    
                                                                                    
                                                                                    
                                                                                    202,819
                                                                                    
                                                                                    
                                                                                    
                                                                                    1,091,176Amortization
      expense
                                                                                    
                                                                                    
                                                                                    369,540
                                                                                    
                                                                                    
                                                                                    
                                                                                    375,740
                                                                                    
                                                                                    
                                                                                    
                                                                                    2,007,564Depreciation
      expense
                                                                                    
                                                                                    
                                                                                    472,092
                                                                                    
                                                                                    
                                                                                    
                                                                                    547,529
                                                                                    
                                                                                    
                                                                                    
                                                                                    1,965,652Accrual
      of stock bonuses
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    56,613Write-off
      of investment
                                                                                    
                                                                                    
                                                                                    40,882
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    176,605Loss
      on disposal of discontinued operations
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    237,808Equity
      in loss on joint venture
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    12,000Gain
      on extinguishment of debt
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (139,766
                                                                                    )Gain
      on sale of investments (non-cash portion)
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (2,470,606
                                                                                    )Bad
      debt expense
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    151,250Other
      non-cash expenses
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    2,979
                                                                                    
                                                                                    
                                                                                    
                                                                                    155,567Changes
      in assets and liabilities:Other
      current and non current assets
                                                                                    
                                                                                    
                                                                                    180,178
                                                                                    
                                                                                    
                                                                                    
                                                                                    (585,956
                                                                                    )
                                                                                    
                                                                                    
                                                                                    (1,068,845
                                                                                    )Accounts
      payable and accrued expenses
                                                                                    
                                                                                    
                                                                                    1,010,433
                                                                                    
                                                                                    
                                                                                    
                                                                                    (73,106
                                                                                    )
                                                                                    
                                                                                    
                                                                                    3,371,685NET
      CASH FLOWS USED IN OPERATING ACTIVITIES
                                                                                    
                                                                                    
                                                                                    (1,149,783
                                                                                    )
                                                                                    
                                                                                    
                                                                                    (3,381,175
                                                                                    )
                                                                                    
                                                                                    
                                                                                    (23,762,575
                                                                                    )INVESTING
      ACTIVITIES:Purchase
      of property, plan and equipment
                                                                                    
                                                                                    
                                                                                    (2,861
                                                                                    )
                                                                                    
                                                                                    
                                                                                    (742,122
                                                                                    )
                                                                                    
                                                                                    
                                                                                    (4,023,431
                                                                                    )Proceeds
      from sale of Armenia mining interest
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    1,891,155Proceeds
      from sale of Tamaya Common Stock - basis not in income
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    2,497,600Proceeds
      from sale of investment in common stock of Sterlite Gold
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    246,767Investment
      in joint ventures
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (260,000
                                                                                    )Investment
      in mining licenses
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (9,000
                                                                                    )
                                                                                    
                                                                                    
                                                                                    (5,756,101
                                                                                    )NET
      CASH USED IN INVESTING ACTIVITIES
                                                                                    
                                                                                    
                                                                                    (2,861
                                                                                    )
                                                                                    
                                                                                    
                                                                                    (751,122
                                                                                    )
                                                                                    
                                                                                    
                                                                                    (5,404,010
                                                                                    )FINANCING
      ACTIVITIES:Net
      proceeds from private placement offering
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    18,155,104Repurchase
      of common stock
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (25,000
                                                                                    )Secured
      line of credit
                                                                                    
                                                                                    
                                                                                    (109,891
                                                                                    )
                                                                                    
                                                                                    
                                                                                    340,884
                                                                                    
                                                                                    
                                                                                    
                                                                                    566,151Due
      to related parties
                                                                                    
                                                                                    
                                                                                    962,674
                                                                                    
                                                                                    
                                                                                    
                                                                                    3,507,671
                                                                                    
                                                                                    
                                                                                    
                                                                                    4,536,347Warrants
      exercised
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    2,322,250NET
      CASH FLOWS PROVIDED BY FINANCING ACTIVITIES
                                                                                    
                                                                                    
                                                                                    852,783
                                                                                    
                                                                                    
                                                                                    
                                                                                    3,848,555
                                                                                    
                                                                                    
                                                                                    
                                                                                    25,554,852EFFECT
      OF EXCHANGE RATE ON CASH
                                                                                    
                                                                                    
                                                                                    114,037
                                                                                    
                                                                                    
                                                                                    
                                                                                    118,743
                                                                                    
                                                                                    
                                                                                    
                                                                                    3,642,928NET
      (DECREASE)INCREASE IN CASH
                                                                                    
                                                                                    
                                                                                    (185,824
                                                                                    )
                                                                                    
                                                                                    
                                                                                    (164,999
                                                                                    )
                                                                                    
                                                                                    
                                                                                    31,195CASH
      AND CASH EQUIVALENTS - beginning of period
                                                                                    
                                                                                    
                                                                                    228,371
                                                                                    
                                                                                    
                                                                                    
                                                                                    298,032
                                                                                    
                                                                                    
                                                                                    
                                                                                    11,352CASH
      AND CASH EQUIVALENTS - end of period
                                                                                    
                                                                                    $
                                                                                    42,547
                                                                                    
                                                                                    
                                                                                    $
                                                                                    133,033
                                                                                    
                                                                                    
                                                                                    $
                                                                                    42,547SUPPLEMENTAL
      CASH FLOW INFORMATIONIncome
      taxes paid
                                                                                    
                                                                                    $
                                                                                    -
                                                                                    
                                                                                    
                                                                                    $
                                                                                    -
                                                                                    
                                                                                    
                                                                                    $
                                                                                    2,683Interest
      paid
                                                                                    
                                                                                    $
                                                                                    50,803
                                                                                    
                                                                                    
                                                                                    $
                                                                                    -
                                                                                    
                                                                                    
                                                                                    $
                                                                                    66,225Noncash
      Transactions:Stock
      issued for deferred compensation
                                                                                    
                                                                                    $
                                                                                    239,717
                                                                                    
                                                                                    
                                                                                    $
                                                                                    -
                                                                                    
                                                                                    
                                                                                    $
                                                                                    3,869,217Stock
      forfeited for deferred compensation
                                                                                    
                                                                                    $
                                                                                    -
                                                                                    
                                                                                    
                                                                                    $
                                                                                    -
                                                                                    
                                                                                    
                                                                                    $
                                                                                    742,500Stock
      issued for mine acquisition
                                                                                    
                                                                                    $
                                                                                    -
                                                                                    
                                                                                    
                                                                                    $
                                                                                    112,500
                                                                                    
                                                                                    
                                                                                    $
                                                                                    1,227,500Stock
      issued for accrued bonuses
                                                                                    
                                                                                    $
                                                                                    -
                                                                                    
                                                                                    
                                                                                    $
                                                                                    84,563
                                                                                    
                                                                                    
                                                                                    $
                                                                                    84,563Stock
      issued for accounts payable
                                                                                    
                                                                                    $
                                                                                    -
                                                                                    
                                                                                    
                                                                                    $
                                                                                    -
                                                                                    
                                                                                    
                                                                                    $
                                                                                    25,000Shares
      cancelled for receivable settlement
                                                                                    
                                                                                    $
                                                                                    -
                                                                                    
                                                                                    
                                                                                    $
                                                                                    -
                                                                                    
                                                                                    
                                                                                    $
                                                                                    77,917Mine
      acquisition costs in accounts payables
                                                                                    
                                                                                    $
                                                                                    -
                                                                                    
                                                                                    
                                                                                    $
                                                                                    -
                                                                                    
                                                                                    
                                                                                    $
                                                                                    50,697The
      accompanying notes are an integral part of these unaudited consolidated
      financial
statements




5





GLOBAL
GOLD CORPORATION AND SUBSIDIARIES


(A
Development Stage Company)




Notes
to Unaudited Consolidated Financial Statements




September
30, 2009




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




The
accompanying consolidated financial statements present the available development
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, 2009.




The
Company remains as a Development Stage Company but will continue to evaluate
this status as revenues continue and become more significant.





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,
2008 annual report on Form 10-K. The results of operations for the nine month
period ended September 30, 2009 are not necessarily indicative of the operating
results to be expected for the full year ended December 31, 2009. 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, 2009, and for the period then
ended were prepared assuming that the Company would continue as a going concern.
Since its inception, the Company, a developing stage company, has generated
revenues of $192,685 (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 losses in excess of $32 million. On December 19,
2006, Global Gold Mining LLC restructured the Aigedzor Mining Company Joint
Venture in exchange for: one million dollars; a 2.5% Net Smelter Return royalty
payable on all products produced from the Lichkvaz and Terterasar mines as well
as from any mining properties acquired in a 20 kilometer radius of the town of
Aigedzor in southern Armenia; a 20% participation right in any other projects
undertaken by Iberian, or its successors, outside the 20 kilometer zone; and
five million shares of Iberian Resources Limited's common
stock.  Iberian Resources Limited subsequently merged into Tamaya
Resources Limited and the five million Iberian shares were converted into twenty
million shares of Tamaya Resources Limited.  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 Canada 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, 2009 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 development stage. It is engaged in exploration for,
and development and mining of, gold, silver, and other minerals in Armenia,
Canada 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 its re-entry into the development stage of
mineral exploration and mining on 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'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.  The Company is also focused on the exploration and development
of the Marjan and an expanded Marjan North property.  In addition, the
Company is exploring and developing other sites in Armenia including the
Company’s Getik property.  The Company also holds royalty and
participation rights in other locations in the country through affiliates and
subsidiaries.


6




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




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 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
Puero 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 August 14, 2009, the Company amended the
above agreement whereby Global Gold Valdivia became wholly owned by the Company
and retained only the Pureo Claims Block (approximately 8,200 hectares),
transferring the Madre De Dios claims block to the sole ownership to members of
the Quijano family.




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.




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.




Fair
Value of Financial Instruments - Effective January 1, 2008, the Company adopted
guidance issued by the Financial Accounting Standards Board (“FASB”) on “Fair
Value Measurements”, for assets and liabilities measured at fair value on a
recurring basis.  This guidance 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 this guidance did not have an impact on the
Company’s financial position or operating results, but did expand certain
disclosures.
  7


The FASB
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, the FASB 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 liabilitiesLevel 2:
              Observable
      market-based inputs or unobservable inputs that are corroborated by market
      dataLevel 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, 2009 and December 31, 2008 with the exception of the secured
line of credit and the note payable to director.





The
Company discloses the estimated fair values for all financial instruments for
which it is practicable to estimate fair value. As of September 30, 2009 and
December 31, 2008, the fair value short-term financial instruments, approximates
book value due to their short-term duration.  It was not practicable
to estimate the fair value of the long-term portion of the secured line of
credit and notes payable to directors because quoted market prices do not exist
and it was not practicable to make estimates through other
means.





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 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, 2009 and December 31,
2008:




September
      30,
                      
                      
                      December
      31,2009
                      
                      
                      2008Ore
                      
                      $
                      835,199
                      
                      
                      $
                      796,235Concentrate
                      
                      
                      22,774
                      
                      
                      
                      98,311Materials,
      supplies and other
                      
                      
                      134,134
                      
                      
                      
                      163,287Total
      Inventory
                      
                      $
                      992,107
                      
                      
                      $
                      1,057,833




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.




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, 2009 and September 30, 2008 was 6,327,500 and
4,570,833, respectively.


8




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 expenses stock options and warrants in accordance with guidance issued
by FASB, "Share-Based Payment".  Stock-based compensation represents
the cost related to stock-based awards granted to employees and others. The
Company measures stock-based compensation cost at grant date, based on the
estimated fair value of the award, and recognizes the cost as expense on a
straight-line basis (net of estimated forfeitures) over the requisite service
period. The Company estimates the fair value of stock options using a
Black-Scholes valuation model.  The expense is recorded in the
Consolidated Statements of Operations.





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.  The Company uses the following assumptions terms: 1-3
year; interest rate: 3.5% to 5.0%; volatility 100 – 380%.




For the
nine months ended September 30, 2009 and 2008, 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, 2009
and 2008 was $349,924 and $790,749, respectively. The expense for stock-based
compensation is a non-cash expense item.




Comprehensive
Income - The Company has adopted guidance issued by the FASB on "Reporting
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, 2009 and
2008.




Nine
      Months Ending September 30,2009
                        
                        
                        2008Net
      loss
                        
                        $
                        (3,572,834
                        )
                        
                        $
                        (4,439,109
                        )Unrealized
      loss arisingduring
      year
                        
                        $
                        (15,373
                        )
                        
                        $
                        123,597Comprehensive
      loss
                        
                        $
                        (3,588,207
                        )
                        
                        $
                        (4,315,512
                        )




Income
Taxes - The Company accounts for income taxes in accordance with guidance issued
by the FASB, "Accounting for Income Taxes." The Company accounts for income
taxes under the liability method. Under the liability method, a deferred tax
asset or liability is determined based upon the tax effect of the differences
between the financial statement and tax basis of assets and liabilities as
measured by the enacted rates that will be in effect when these differences
reverse.




Acquisition,
Exploration and Development Costs - Mineral property acquisition, exploration
and related 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 of properties owned by
the Company, 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
guidance issued by the FASB, "Accounting for 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 – The Company’s consolidated financial statements have been
prepared in accordance with accounting principles generally accepted in the
United States of America, and include its accounts, its wholly owned
subsidiaries' accounts and a proportionate share of the accounts of the joint
ventures in which it participates. All significant 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 10 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.





As of
September 30, 2009, the Company wrote-off an investment on $40,882 for licenses
in Canada that it has allowed to lapse.




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 determined at acquisition according to the initial minimal license
term.  At September 30, 2009 and 2008, amortization expense totaled
$369,540 and $375,740.




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 of
September 30, 2009 but none as of September 30, 2008 which it needs to pay
towards its environmental costs.




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 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 recognized
royalty income for the nine months ended September 30, 2009 and 2008 of $0 and
$12,074, respectively, from a 2.5% NSR royalty from Tamaya Resources Limited’s
Lichkvadz-Tei and Terterasar properties in Armenia.  The Company had
sales of gold and silver concentrate for the nine months ended September 30,
2009 and 2008 of $136,641 and $0, respectively.




New
Accounting Standards:




In May
2009, the FASB issued authoritative guidance, which establishes the accounting
for and disclosures of subsequent events. The objective of this guidance is to
establish general standards of accounting for and disclosure of events that
occur after the balance sheet date but before financial statements are issued or
are available to be issued. In accordance with this Statement, an entity should
apply the requirements to interim or annual financial periods ending after June
15, 2009. Management has adopted this new standard with the filing of the second
quarter interim financial statements.  In preparing these consolidated
financial statements, the Company evaluated events that occurred through the
date of this filing for potential recognition or disclosure.





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.




10




In
June 2009, the FASB issued authoritative guidance which eliminates the
concept of a qualifying special-purpose entity, creates more stringent
conditions for reporting a transfer of a portion of a financial asset as a sale,
clarifies other sale-accounting criteria, and changes the initial measurement of
a transferor’s interest in transferred financial assets. 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.





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, 2009 and
December 31, 2008.




September
      30,
                      
                      
                      December
      31,2009
                      
                      
                      2008Property,
      plant and equipment
                      
                      $
                      3,674,691
                      
                      
                      $
                      4,393,622Less
      accumulated depreciation
                      
                      
                      (1,790,639
                      )
                      
                      
                      (1,591,207
                      )$
                      1,884,052
                      
                      
                      $
                      2,802,415




The
Company had depreciation expense for the nine months ended September 30, 2009
and 2008 of $472,092 and $547,529, respectively.




4.
ACCOUNTS PAYABLE AND ACCRUED EXPENSES




As of
September 30, 2009 and December 31, 2008, the accounts payable and accrued
expenses consisted of the following:




September
      30,
                      
                      
                      December
      31,2009
                      
                      
                      2008Drilling
      work payable
                      
                      $
                      312,265
                      
                      
                      $
                      292,417Accounts
      payable
                      
                      
                      2,450,026
                      
                      
                      
                      1,501,178Accrued
      expenses
                      
                      
                      101,776
                      
                      
                      
                      60,039$
                      2,864,067
                      
                      
                      $
                      1,853,634




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.  The Company has not
paid back this deposit as of the date of this filing.




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 total credit available of $565,795 was used in its
entirety.  As of September 30, 2009, the Company still owed $473,038
of which approximately $98,000 is payable in 2009 and approximately $375,000 is
payable in 2010.  The credit accrues interest at approximately 15% per
year.




7.
SEGMENT REPORTING BY GEOGRAPHIC AREA




The
Company sells its products to various customers primarily in Europe and the
former Soviet Union. 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.




11




For the
nine months ending September 30, 2009 and 2008, the Company had revenues of
$136,641 and $12,074, respectively, all from Armenia.





The
following summarizes identifiable assets by geographic area:




Assets
      table:September
      30,
                      
                      
                      December
      31,2009
                      
                      
                      2008Armenia
                      
                      $
                      5,070,500
                      
                      
                      $
                      5,896,980Chile
                      
                      
                      1,401,403
                      
                      
                      
                      1,991,088Canada
                      
                      
                      -
                      
                      
                      
                      40,882United
      States
                      
                      
                      49,709
                      
                      
                      
                      287,449$
                      6,521,612
                      
                      
                      $
                      8,216,399




The
following summarizes operating losses before provision for income
tax:




Segment
      losses table:Nine
      Months Ending September 30,2009
                        
                        
                        2008Armenia
                        
                        $
                        1,889,531
                        
                        
                        $
                        2,088,534Chile
                        
                        
                        212,622
                        
                        
                        
                        411,812Canada
                        
                        
                        40,882
                        
                        
                        
                        28,847United
      States
                        
                        
                        1,429,799
                        
                        
                        
                        1,909,916$
                        3,572,834
                        
                        
                        $
                        4,439,109




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, 2009 and as of December 31, 2008.  As of September 30,
2009 and December 31, 2008, the Company had approximately $7,000 and $10,000,
respectively, in Armenian bank deposits and $29,000 and $27,000, respectively,
in Chilean bank deposits, which may not be insured. The Company has not
experienced any losses in such accounts through September 30, 2009 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 TRANSACTIONS





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




12





On
January 1, 2007, the Company entered into an employment agreement with Hrayr
Agnerian, designating him as the Company's Senior Vice President for Exploration
and Development.  The employment agreement provides that Mr. Agnerian
will receive an annual base salary of $62,500, and is entitled to receive any
bonus as determined in accordance with any plan approved by the Board of
Directors. Mr. Agnerian resigned from the Board of Directors effective December
31, 2006. The employment agreement is for an initial term of two years,
terminating on December 31, 2008. Pursuant to the employment agreement, Mr.
Agnerian was also granted (i) Eighty Three Thousand Three Hundred Thirty Four
(83,334) shares of the common stock of Global Gold Corporation pursuant to the
terms of the Restricted Stock Award to vest in four equal installments of 20,834
shares every six months, commencing on June 1, 2007 and (ii) options to acquire
Eighty Three Thousand Three Hundred Thirty Four (83,334) shares of common stock
of Company at the rate of 41,667 per year from January 1, 2007 through January
1, 2008 (totaling 83,334) at $0.88 per share (the arithmetic mean of the high
and low prices of the Company's stock on December 29, 2006), to vest in two
equal installments of 41,667 shares each on January 1, 2007 and January 1, 2008.
On June 15, 2007, the Company entered into an amendment to the
employment agreement of Mr. Hrayr Agnerian with respect to his employment as
Senior Vice President for Exploration and Development of the Company. The
revised Employment Agreement provides that Mr. Agnerian will receive an annual
base salary of $150,000, representing a 140% increase over his previous salary
effective June 1, 2007 and is entitled to receive any bonus as determined in
accordance with
any plan approved by the Board of Directors. The amended Employment Agreement
terminates on December 31, 2008. Pursuant to the revised agreement, Mr. Agnerian
was also granted an additional (i) 116,666 shares of restricted stock to vest in
three equal installments of 38,889 shares each on December 31, 2007, June 30,
2008 and December 31, 2008 and (ii) 116,666 stock options to purchase Common
Stock at $0.83 per
share (the arithmetic mean of the high and low prices of the Company's stock on
June 15, 2007), to vest in equal installments of 58,333 shares each on December
31, 2007, and December 31, 2008. The restricted stock and options previously
awarded to Mr. Agnerian will continue to vest pursuant to his original
Employment Agreement. The restricted stock and options are subject to a
substantial risk of forfeiture upon termination of his employment with the
Company during the term of the Agreement and the option grant was made pursuant to the Global Gold
Corporation 2006 Stock Incentive Plan.  On December 31, 2008, Mr.
Agnerian’s contract was terminated.





On June
15, 2007, the Company approved a new employment agreement for Jan Dulman with
respect to his employment as the Controller of the Company. The Board of
Directors unanimously elected Mr. Dulman as the Chief Financial Officer. The
revised new agreement provides that Mr. Dulman will resign as Controller and
assume the title of Chief Financial Officer effective June 1, 2007 and will
receive an annual base salary of $125,000, representing a 108% increase over his
previous salary and is entitled to receive any bonus as determined in accordance
with any plan approved by the Board of Directors. The new agreement is for two
years and two months terminating on July 31, 2009. Pursuant to the new
agreement, Mr. Dulman was also granted (i) 150,000 shares of restricted stock to
vest in four equal installments of 37,500 shares each on January 31, 2008, July
31, 2008, January 31, 2009 and July 31, 2009 and (ii) 150,000 stock options to
purchase Common Stock at $0.83 per share (the arithmetic mean of the high and
low prices of the Company's stock on June 15, 2007), to vest in equal
installments of 75,000 shares each on August 1, 2007, and August 1,
2008.




The
restricted stock and options previously awarded to Mr. Dulman will continue to
vest pursuant to his original Employment Agreement. The restricted stock and
options are subject to a substantial risk of forfeiture upon termination of his
employment with the Company during the term of the Agreement and the option
grant was made pursuant to the Global Gold Corporation 2006 Stock Incentive
Plan.




On June
15, 2007, the Company approved the employment agreement of Lester Caesar with
respect to his employment as the Controller effective June 1, 2007. Effective
August 1, 2007, Mr. Caesar will receive an annual base salary of $30,000,
representing a 29% decrease over his previous salary and is entitled to receive
any bonus as determined in accordance with any plan approved by the Board of
Directors. The new agreement is for one year commencing on August 1, 2007 and
terminating on July 31, 2008. Pursuant to the new agreement, Mr. Caesar was also
granted 20,000 shares of restricted stock to vest in equal installments of
10,000 shares each on January 31, 2007, and July 31, 2008. The restricted stock
previously awarded to Mr. Caesar will continue to vest pursuant to his original
employment agreement. 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
December 14, 2007, the Company also declared stock bonuses to 8 key employees in
Armenia for a total of 27,000 shares of common stock at $0.55 per share for a
total value of $14,850 which vest over 2 years. The shares were issued on
February 11, 2008.





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 promises 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 will have the right at any time to convert the terms of all
or a portion of the Loan to the 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 the anticipated signing of the July 31, 2008
Agreement.  On September 23, 2008, after the termination of the July
31, 2008 Agreement, 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.  Accrued interest as of September 30,
2009 and 2008 was $357,671 and $78,038, respectively.





On April
8, 2008, 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 $0.45 per share, vesting on October 8, 2008. The option grants
were made pursuant to the Global Gold Corporation 2006 Stock Incentive
Plan.




13




On August
1, 2008, pursuant to his employment agreement, Mr. Caesar’s agreement was
automatically extended for an additional year though July 31,
2009.  On December 10, 2008, Mr. Caesar was granted 20,000 shares of
restricted stock to vest in equal installments of 10,000 shares each on
January 31, 2009, and July 31, 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.





Between
September 3, 2008, and September 9, 2008, Nicholas Aynilian, one of the
Company’s independent directors, purchased a total of 192,002 shares on the open
market at $0.10 per share.  The purchase was made in accordance with
the Company’s insider trading policies.




On
October 3, 2008, the Company authorized the issuance of 300,000 shares of
restricted common stock to Dr. Urquhart at $0.17 per share for a total value of
$51,000 based on the market share price.  The shares were issued both
as a bonus for services rendered in 2008 (200,000 shares) and in exchange for
cancellation of $46,343 of debt (100,000 shares).  The shares vested
immediately.




On
October 8, 2008, Nicholas Aynilian, an independent Director of the Company, had
an open order to purchase 250,000 shares of the Company’s common stock
inadvertently executed and filled.  Upon becoming aware of this
transaction and to avoid any appearance of a conflict, per our inside trading
policies, Mr. Aynilian immediately sold the 250,000 shares on October 15, 2008
and disgorged profits to the Company.





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.





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 interest
as of September 30, 2009 was $2,298.




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.





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 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
lenders will also have the right until this and any other loans from you are
repaid at any time to convert the terms of all or a portion of this or other
loans made pursuant to the terms provided to any third party investor or lender
financing the Company.  Accrued as of September 30, 2009 was
$21,096.





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.




14





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, all as described in exhibit 10.10
below.  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, all as described in exhibit 10.11
below.  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, all as described in
exhibit 10.12 below.  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, all as described in exhibit 10.13 below.  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
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.





On
September 14, 2009, pursuant to a loan agreement, the Company borrowed $50,000
from one of its directors 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 loans are not repaid by December 1, 2009,
the lenders 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.  The lenders will also have the right until this and any other loans
from you are repaid at any time to convert the terms of all or a portion of this
or other loans made pursuant to the terms provided to any third party investor
or lender financing the Company.  Accrued interest as of September 30,
2009 was $219.





Compensation
expense for the nine months ended September 30, 2009 and 2008 was $1,262,195 and
$1,452,195.  The amount of total deferred compensation amortized for
the nine months ended September 30, 2009 and 2008 was $349,924 and
$790,749.




10.
EQUITY TRANSACTIONS





On August
1, 2005, Global Gold Mining entered into a share purchase agreement to acquire
the Armenian limited liability company Mego-Gold, LLC which is the licensee for
the Tukhmanuk mining property and surrounding exploration sites as well as the
owner of the related processing plant and other assets.  On August 2,
2006, Global Gold Mining exercised its option to acquire the remaining
forty-nine percent (49%) of Mego-Gold, LLC, in exchange for one million dollars
($1,000,000) and five hundred thousand (500,000) restricted shares of the
Company's common stock with a contingency allowing the sellers to sell back the
500,000 shares on or before September 15, 2007 for a payment of $1 million if
the Company's stock is not traded at or above two dollars and fifty cents
($2.50) at any time between July 1, 2007 and August 31, 2007. On September 12,
2006, Global Gold Mining loaned two hundred thousand dollars ($200,000) to
Karapet Khachatryan ("Maker"), one of the sellers of Mego-Gold LLC, a citizen of
the Republic of Armenia, as evidenced by a convertible promissory note payable(“Note”)
to Global Gold Mining, with interest in arrears on the unpaid principal balance
at an annual rate equal to ten percent (10%). At any time following September
18, 2006, the Company, at its sole option, had the right to convert all of
Maker's debt from the date of the Note to the date of conversion into shares of
common stock of the Company at the conversion price of $1.50 per share with all
of such shares as security for all obligations. Maker pledged two hundred fifty
five thousand (255,000) shares of the Company's common stock as security for his
obligations thereunder. On September 16, 2007, the contingency period expired
without exercise, extension or amendment. The Company has accounted for this by
booking the 500,000 shares, at the fair market value of $1,000,000, into
Additional Paid-In Capital.  The Company also booked the $200,000
secured loan into Note Receivable and accrued interest, from inception of Note
as per the terms of the Note above, intoAdditional
Paid-In Capital.  On February 12, 2008 the Company exercised its
option and converted the Note and accrued interest into one hundred fifty two
thousand seven hundred seventy eight shares (152,778), which were then
cancelled.  As a result, the Company recorded bad debt expense of $151,250
for the difference in the value of the stock and the amount owed to the
Company.




15




On April
8, 2008, the board of directors of the Company approved an amendment executed
March 31, 2008 to the agreement for mining properties on Ipun Island and Chiloe
Island in Southern Chile.  The key terms of the amendment transfer the
Chiloe and Ipun licenses to the existing Global Gold Valdivia company and
require the Company to deliver 250,000 restricted shares of Common Stock of the
Company on or before May 1, 2008, which shares were issued.  See the
Agreements section below for an update on these properties.




In
December 2008, the Company sold 4,750,000 units at $0.10 per share in a private
placement. The units included 4,750,000 common shares and 4,750,000 warrants
exercisable at $0.15 per share and expire on or before December 9,
2013.





In May
2009, the Company issued 333,333 restricted shares of common stock to its
employees in accordance with employment agreements and retention awards as
described in Note 9 above.  The Company valued these grants based on
the common stock fair market value at the date of the grant at $0.20 per share
or $66,667 and amortizes it as part of general and administrative expense using
a straight line method over the term of the vesting period.




In August
2009, the Company issued 1,632,500 restricted shares of common stock to its
employees in accordance with employment agreements and retention awards as
described in Note 9 above.  The Company valued these grants based on
the common stock fair market value at the date of the grant, 1,387,500 shares at
$0.10 per share and 245,000 shares at $0.14 per share, or $173,050 and amortizes
it as part of general and administrative expense using a straight line method
over the term of the vesting period.




11.
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, and has phased out of these properties.  The licenses have
expired as of September 30, 2009.




On April
12, 2007, Global Gold Uranium entered into an agreement to acquire an option for
the Cochrane Pond license area ("the Agreement") with Commander Resources Ltd.
("Commander") and Bayswater Uranium Corp. ("Bayswater"). The Cochrane Pond
property consists of 2,600 claims within 61,000 hectares (approximately 150,708
acres).  The Agreement is subject to board approval and the conclusion
of an option a greement which the
relevant boards subsequently approved. Major terms include the following.
Global Gold Uranium may earn a 51% equity interest over a period of four years
in Cochrane Pond Property by completing; Cash payments of US $700,000 over four
year period; Share issuance of 350,000 shares of Global Gold Corporation (50 %
each to Commander and Bayswater) over a four year period; Property expenditures
over four year period of C$3.5 million.




Either
party may, at any time up to the commencement of commercial production, elect to
convert its respective interest to a 2% gross uranium sales royalty in the case
of a uranium deposit or a 2% NSR in the case of a non-uranium deposit. In either
case, 50% of the royalty obligation may be purchased at any time prior to
commercial production for a $1,000,000 cash payment.




As of
June 30, 2007, the Company has paid $200,000 and issued 150,000 shares of the
Company's common stock, 75,000 shares each to Commander and
Bayswater.





On
October 17, 2008, the Company through Global Gold Uranium entered into an
agreement (the "Royalty Agreement") with Commander and Bayswater pertaining to
the Cochrane Pond Property (the “Property”) located in southern Newfoundland
that is owned 50% by Commander and 50% by Bayswater through a joint venture (the
“CPJV”). The Company originally entered into an agreement acquiring an option
(the “Option Agreement”) on the Property with Commander and Bayswater on April
12, 2007.  The Royalty Agreement grants Global Gold a royalty in the
Property and terminates Global Gold’s pre-existing rights and obligations
associated with Property.


16




The key
terms of the Royalty Agreement are that the CPJV shall provide a royalty to
Global Gold for uranium produced from the Property in the form of a 1% gross
production royalty from the sale of uranium concentrates (yellowcake) capped at
CDN $1 million after which the royalty shall be reduced to a 0.5%
royalty.





The
royalty shall remain attached to the Property and in the name of Global Gold or
GGU as required under the local laws and exchange regulations.   The
royalty shall survive the sale and transfer of the property to a third
party.





In
consideration for the royalty, Global Gold agreed to pay a total of $50,000
cash, $25,000 cash each to Commander and Bayswater, on or before November 14,
2008.   The Company paid $25,000 cash each to Commander and Bayswater
on November 11, 2008.




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 assumed a 51% interest in the placer and hard rock gold Madre de Dios and
Puero properties.  The name of the joint venture company is Compania
Minera Global Gold Valdivia S.C.M. (“Global Gold Valdivia” or
“GGV”).




Key
agreement terms for the Madre De Dios joint venture agreement include a
1,000,000 euro payment from Global Gold (paid as of October 30, 2007), and the
following joint venture terms equity interests set at 51%-49% in favor of Global
Gold; of the 3 directors, two (Mr. Krikorian and Dr. Ted Urquhart, Global's Vice
President in Santiago) are appointed by Global Gold; Global Gold commits to
finance at least one plant and mining operation within 6 months as well as a
mutually agreed exploration program to establish proven reserves, if that is
successful, two additional plants/operations will be financed; from the profits
of the joint venture, Global Gold will pay its partner an extra share based on
the following scale of 28 million euros for (a) 5 million ounces of gold
produced in 5 years or (b) 5 million ounces of gold proven as reserves according
to Canadian National Instrument 43-101 (“NI 43-101”) standards in 5
years.  The 6 month obligation was amended and extended by the October
27, 2007 Pact to a period of 3 years.  The definitions of proven and
probable reserves in NI 43-101 reports differ from the definitions in SEC
Industry Guide 7.  Also, the SEC does not recognize the terms “measured
resources and indicated resources” or “inferred resources” which are used in NI
43-101 reports.





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 whereby GGV will
become wholly owned by Global Gold and retain only the Pureo Claims Block
(approximately 8,200 hectares), transferring the Madre De Dios claims block to
the sole ownership to members of the Quijano family.  On July 28,
2009, the amendment was approved by the Company’s board of
directors.




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.




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), all as described in Exhibit 10.14 below.





On
September 5, 2007, the Company entered into a confidential agreement which was
made public on October 29, 2007, with members of the Quijano family by which the
Company has the option to earn a 51% interest in the Estrella del Sur
Gold-Platinum project on Ipun Island and another Gold-Platinum property on
Chiloe Island.





Key
agreement terms for the Estrella del Sur and Chiloe projects required Global
Gold to pay approximately $160,000 to cover government and license fees in
exchange for an exclusive option until January 30, 2008 to review, explore, and
form joint ventures on the properties. On or before January 31, 2008, at Global
Gold's sole option, either or both of the properties shall be transferred to a
new joint venture company (or two separate companies on the same terms). For
both properties and in consideration for forming the joint venture, Global Gold
shall pay 1,500,000 euros (or the Chilean peso equivalent) on the following
schedule: 1. January 31, 2008, 250,000 euros; 2. July 31, 2008, 250,000 euros;
3. January 30 2009, 500,000 euros; and 4. July 31 2009, 500,000
euros.  The Company received an extension of the first payment date to
March 31, 2008.  On April 8, 2008, the board of directors of the
Company approved an amendment executed March 31, 2008 to the above option
agreement for mining properties on Ipun Island and Chiloe Island in Southern
Chile. The key terms of the amendment transfer the Chiloe and Ipun licenses to
the existing Global Gold Valdivia company and require the Company to deliver
250,000 restricted shares of Common Stock of the Company on or before May 1,
2008.  The 250,000 restricted shares were issued on April 8,
2008.




17




If either
or both properties continue to production and reserves are proven by the
prefeasibility and scoping studies, Global Gold's partner will be entitled to an
extra share based on the following scale of 37,000,000 euros (15,000,000 for
Chiloe and 22,000,000 for Ipun) for 3,700,000 commercially reasonable
recoverable ounces of gold plus platinum (calculated on a gold price equivalent
basis, using the monthly average of the New York COMEX price for the month in
which calculations of proven reserves are made according to Canadian 43-101
standards) based on the prefeasibility and scoping studies. Payments will come
as the joint venture produces gold or platinum as mutually agreed from no more
than 25% of Global Gold's profit from the joint venture. Part of the payments
may be in Global Gold stock on mutually agreeable terms. The economic value of
any other materials besides gold or platinum shall not be calculated as part of
this formula and instead will be shared according to joint venture terms. After
the prefeasibility and scoping studies, each party shall carry its own share of
the costs.




On
October 3, 2008, the Company entered into an agreement to sell all of the
Company’s interest in its Chiloe and Ipun island properties in Chile, held by a
Joint Venture with the Quijano family, to the Quijano family.  The
agreement was concluded by October 15, 2008 and the properties transferred to
the purchaser as of November 1, 2008.





The
consideration for the sale of the Chiloe and Ipun island properties include the
following to Global Gold or its designee: (a) $200,000 USD, fifty percent of
which will be paid at the closing and the other fifty percent to be paid within
sixty days; (b) certain second hand equipment and parts used for mining which
are currently on or around the territory of the Global Gold Valdivia joint
venture to be specified in the mutually agreed transfer documents, including a
Caterpillar 966 wheel loader, a Warner Swasey excavator, and a Caterpillar 290
kva generator; (c) certain land rights, buildings and improvements which are
currently on or around the territory of the Global Gold Valdivia joint
venture,  generally described as an approximately five
hectare  property, known as Lote No11, situated in Pureo, where Amparo
and Pureo mining properties are located, and approximately ten hectares
including two properties with their buildings, situated in the area where the
mining property Guadalupe 61-120 is located, all as  to be specified
in the mutually agreed transfer documents; and (d) a first priority right of
payment from the profits of the Global Gold Valdivia joint venture company of
$200,000 USD.





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.





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.





12. LEGAL
PROCEEDINGS





GGH, which is the license
holder for the Hankavan and Marjan properties, 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 are valid and remain 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 2009.  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, GlobalGold
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.




18




The
Company is aware that another company based in Hong Kong has recently 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.





13.
SUBSEQUENT EVENTS





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
October 29, 2009, pursuant to a loan agreement, the Company borrowed $60,000
from one of its directors 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 loans are not repaid by December 31, 2009,
the lenders 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.  The lenders will also have the right until this and any other loans
from you are repaid at any time to convert the terms of all or a portion of this
or other loans made pursuant to the terms provided to any third party investor
or lender financing the Company.





On
November 12, 2009, pursuant to a loan agreement, the Company borrowed $10,000
from one of its directors 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 loans are not repaid by December 31, 2009,
the lenders 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.  The lenders will also have the right until this and any other loans
from you are repaid at any time to convert the terms of all or a portion of this
or other loans made pursuant to the terms provided to any third party investor
or lender financing the Company.





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 yesterday
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.
 
 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, all as described in Exhibit 10.15 below.


19




Cautionary
Note to U.S. Investors – All mineral reserves have been estimated and disclosed
in accordance with the definition standards on mineral resources and mineral
reserves of the Republic of Armenia State Natural Resources Agency as provided
by the Republic of Armenia’s Regulation for Applying Reserves Classification for
Gold Deposits. U.S. reporting requirements for disclosure of mineral properties
are governed by the United States Securities and Exchange Commission “SEC”
Industry Guide 7. Armenian, International, and Guide 7 standards may not be
consistent. The United States Securities and Exchange Commission 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. U.S. investors are urged to consider closely
the disclosure in our Form 10-K. You can review and obtain copies of these
filings from our website
or at http://www.sec.gov/edgar.shtml
.. Investors are cautioned not to assume that any part or all of mineral
resources will ever be confirmed or converted to Guide 7 compliant “reserves.”
The information in the press release and this filing reports on the legal
document issued by the Armenian Agency.





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, 2009 AND NINE MONTHS ENDED SEPTEMBER 30,
2008




During
the nine month period ended September 30, 2009, the Company's administrative and
other expenses were $1,674,425 which represented a decrease of $915,349 from
$2,589,774 in the same period last year.  The expense decrease was
primarily attributable to lower compensation expense of $163,000, stock
compensation expense of $341,917, travel expense of $22,918 and legal expenses
of $96,704.  During the nine month period ended September 30, 2009,
the Company's mine exploration costs were $742,754 which represented a decrease
of $119,912 from $862,666 in the same period last year.  The expense
decrease was primarily attributable to the increased activity at the Tukhmanuk
property of $301,198 and decreased activity at the Marjan property of $123,515
and the Getik property of $72,466 and the Madre De Dios property of
$193,564.   During the nine month period ended September 30,
2009, the Company's amortization and depreciation expenses were $841,632 which
represented a decrease of $81,637 from $923,269 in the same period last year.
The expense decrease was primarily attributable to a decrease in depreciation
expense of $75,437 and in amortization expense of $6,200.  During the
nine month period ended September 30, 2009, the Company's sales were $136,641
which represented an increase of $136,641 from $0 in the same period last year.
The sales increase was attributable to an increase in sales of gold and silver
concentrate from the Tukhmanuk property of $136,641.  During the nine
month period ended September 30, 2009, the Company's cost of sales was $63,812
which represented an increase of $63,812 from $0 in the same period last year.
The cost of sales increase was attributable to an increase in cost of sales of
gold and silver concentrate from the Tukhmanuk property of
$63,812.  During the nine month period ended September 30, 2009, the
Company's interest expense was $346,124 which represented an increase of
$268,086 from $78,038 in the same period last year. The expense increase was
primarily attributable to an increase in interest expense on loans from
Directors of $207,356 and in interest expense from its secured line of credit of
$55,784.




LIQUIDITY
AND CAPITAL RESOURCES




As
September 30, 2009, the Company's total assets were $6,521,612, of which $42,547
consisted of cash or cash equivalents.




The
Company's plan of operation for at least the next twelve months ending September
30, 2010:





(a)
Earlier this year, the Company had announced its plans to sustain production of
approximately 300 ounces of gold per month, but the Company has been unable to
sustain such production despite the plant capacity and stockpiled ore to do so
for financial and other reasons, however, the Company looks to begin production
again of the approximately 300 ounces of gold per month and also 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 and develop Marjan, Getik and other mining properties in Armenia and to
generate cash flow and establish gold, silver and other reserves;




20


(b) To
generate revenue by production at an initial site selected, Guadalupe, in the
Puero claim block in Chile through the Company’s Global Gold Valdivia company
and conduct further development, exploration, and mining at other placer and
hard rock sites;




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




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




The
Company retains 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, Vendanta Resources Plc announced that its tender 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 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 have filed for bankruptcy in
Australia and the Company
has taken action to protect its rights.  Subsequently, Sipan 1, LLC
was sold to new owners, Terranova Overseas registered in the United Arab
Emirates, who succeed to the original obligations.




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 million shares of Common
Stock of the Company at an exercise price of $0.15 per share, which expire on
December 9, 2013.  If these Warrants were exercised in full, the
Company would receive $712,500 in gross proceeds.





The
Company may engage in further research and development related to exploration
and processing at Tukhmanuk during 2009, and anticipates purchasing processing
plant and equipment assets.




The
Company needs additional funds in order to conduct any active mining development
and production operations in the foreseeable future. Especially in light of the
international financial crisis starting in 2008, there can be no assurance that
any financing for acquisitions or future projects will be available for such
purposes or that such financing, if available, would be on terms favorable or
acceptable to the Company.




Although
the Company has received a going concern opinion from its independent registered
public accounting firm, it is currently actively engaged in raising additional
funds.  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 operations and positive cash flow are
achieved and maintained. Although management believes that it will be able to
secure suitable additional financing for the Company's operations, there can be
no assurances that such financing will continue to be available on reasonable
terms, or at all.





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 $835,199 and $22,774, 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, 2009 and as of December 31, 2008.  As of September 30,
2009 and December 31, 2008, the Company had approximately $7,000 and $10,000,
respectively, in Armenian bank deposits and $29,000 and $27,000, respectively,
in Chilean bank deposits, which may not be insured. The Company has not
experienced any losses in such accounts through September 30, 2009 and as of the
date of this filing.




21




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
4T. 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 June 30, 2009. 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.




PART II - OTHER INFORMATION




Item
1. Legal Proceedings.




GGH,
which is the license holder for the Hankavan and Marjan properties, 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 are valid and remain 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
2009.  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.




22




The
Company is aware that another company based in Hong Kong has recently 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. Submission of Matters to a Vote of Security Holders.




At the
annual shareholder meeting, on June 19, 2009, the following directors were
re-elected: Messrs. Drury J. Gallagher, Van Z. Krikorian, Nicholas J. Aynilian,
Ian C. Hague, and Harry Gilmore. Sherb & Co., LLP was also re-elected as the
Company's outside auditor.




Item
5. Other Information.




None




23




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, 2009 and as of December 31, 2008; Statements of
Operations and Comprehensive Loss for the nine months and three months ended
September 30, 2009 and September 30, 2008, and for the development stage period
from January 1, 1995 through September 30, 2009, and Statements of Cash Flows
for the nine months
ended September 30, 2009 and  September 30, 2008, and for the
development stage period from January 1, 1995 through September 30, 2009 and the
Exhibits which are listed on the Exhibit Index .




EXHIBIT NO.
                        DESCRIPTION
      OF EXHIBITExhibit  3.1
                        Amended
      and Restated Certificate of Incorporation of the Company, effective
      November 20, 2003. (1)Exhibit  3.2
                        Amended
      and Restate Bylaws of the Company, effective November 20, 2003.
      (2)Exhibit
      10.1
                        Material
      Contract - Madre de Dios Mining Property Joint Venture and Options for
      Chiloe and Ipun Island Properties Agreement dated as of August 9, 2007.
      (3)Exhibit
      10.2
                        Material
      Contract - (Unofficial English Translation) Contractual Mining Company
      Agreement dated October 29, 2007. (4)Exhibit
      10.3
                        Amended
      Terms for Options on Chiloe and Ipun Island Properties dated March 31,
      2008 and confirmed April 8, 2008 (5)Exhibit
      10.4
                        Chiloe
      and Ipun Island Properties Sale Agreement dated as of October 3, 2008.
      (6)Exhibit
      10.5
                        Royalty
      Agreement on Cochrane Pond Property, Newfoundland dated as of October 17,
      2008. (7)Exhibit
      10.6
                        Loan
      to Global Gold Corporation and Royalty dated September 23, 2008. (8)Exhibit
      10.7
                        Private
      Placement Agreement, dated December 31, 2008. (9)Exhibit
      10.8
                        Loan
      to Global Gold Corporation dated May 12, 2009. (10)Exhibit
      10.9
                        Employment
      Agreement, dated as of May 18, 2009, by and between Global Gold
      Corporation and Courtney Fellowes. (11)Exhibit
      10.10
                        Employment
      Agreement, dated as of August 11, 2009, by and between Global Gold
      Corporation and Van Krikorian. (12)Exhibit
      10.11
                        Employment
      Agreement, dated as of August 11, 2009, by and between Global Gold
      Corporation and Ashot Boghossian. (13)Exhibit
      10.12
                        Employment
      Agreement, dated as of August 11, 2009, by and between Global Gold
      Corporation and Jan Dulman. (14)Exhibit
      10.13
                        Employment
      Agreement, dated as of August 11, 2009, by and between Global Gold
      Corporation and Lester Caesar. (15)Exhibit
      10.14
                        Material
      Contract – Amendment of Global Gold Valdivia Joint Venture Terms,
      Separation of Properties and Royalty Agreement. (16)Exhibit
      10.15
                        Armenian
      State Natural Resources Agency Decision N234 on theRecalculation
      of Reserves for Toukhmanuk – delivered Friday,November
      13, 2009 – Partial Unofficial Translation (17)Exhibit
      31.1
                        Certification
      of Chief Executive Officer pursuant to Rule 13a-14(a), as adopted pursuant
      to Section 302 of the Sarbanes-Oxley Act of 2002Exhibit
      31.2
                        Certification
      of Chief Executive Officer pursuant to Rule 13a-14(a), as adopted pursuant
      to Section 302 of the Sarbanes-Oxley Act of 2002Exhibit
      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





24





(1)
Incorporated herein by reference to Exhibit 3.1 to the Company's annual report
on Form 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 Form 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 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 report on Form
8-K filed with the SEC on November 1, 2007.




(5)
Incorporated herein by reference to Exhibit 10.5 to the Company's report on Form
8-K filed with the SEC on April 9, 2008.




(6)
Incorporated herein by reference to Exhibit 10.3 to the Company's report on Form
8-K filed with the SEC on October 8, 2008.





(7)
Incorporated herein by reference to Exhibit 10.3 to the Company's report on Form
8-K filed with the SEC on October 22, 2008.




(8)
Incorporated herein by reference to Exhibit 10.9 to the Company's quarterly
report on Form 10-Q for the third quarter ended September 30, 2008, filed
with the SEC on November 14, 2008.




(9)
Incorporated herein by reference to Exhibit 10.15 to the Company's annual report
on Form 10-K for the year ended December 31, 2008 filed with the SEC on April
15, 2009.





(10)
Incorporated herein by reference to Exhibit 10.8 to the Company's quarterly
report on Form 10-Q for the first quarter ended March 31, 2009, filed with
the SEC on May 19, 2009.





(11)
Incorporated herein by reference to Exhibit 10.9 to the Company's quarterly
report on Form 10-Q for the first quarter ended March 31, 2009, filed with
the SEC on May 19, 2009.





(12)
Incorporated herein by reference to Exhibit 10.10 to the Company's quarterly
report on Form 10-Q for the second quarter ended June 30, 2009, filed with
the SEC on August 14, 2009.





(13)
Incorporated herein by reference to Exhibit 10.11 to the Company's quarterly
report on Form 10-Q for the second quarter ended June 30, 2009, filed with
the SEC on August 14, 2009.





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





(15
Incorporated herein by reference to Exhibit 10.13 to the Company's quarterly
report on Form 10-Q for the second quarter ended June 30, 2009, filed with
the SEC on August 14, 2009.





(16)
Incorporated herein by reference to Exhibit 10.5 to the Company's current report
on Form 8-K filed with the SEC on July 29, 2009.




(17)
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.




25





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 19,
      2009
                  By:
                  /s/ Van
      Z. KrikorianVan
      Z. Krikorian
                    Chairman
      and Chief Executive Officer