The Boards of Directors of Pinnacle Bankshares Corporation (the “Company”) (Over the Counter Bulletin Board: PPBN), and its wholly-owned subsidiary, First National Bank (the “Bank”), today announced that Robert H. Gilliam, Jr., President and Chief Executive Officer of the Company and the Bank, will be retiring in a mid-year 2011 timeframe and that Aubrey H. (Todd) Hall, III has been selected by both boards as successor to Mr. Gilliam. Mr. Hall has served most recently as Executive Vice President of the Company and as Executive Vice President and Chief Lending Officer of the Bank. The Board of Directors of First National Bank further announced today that Mr. Hall has been appointed to the Bank’s Board of Directors and elected President and Chief Operating Officer of First National Bank, both effective January 11, 2011. Mr. Gilliam will continue serving as Chief Executive Officer of First National Bank and as President and Chief Executive Officer of Pinnacle Bankshares Corporation until his retirement, at which time Mr. Hall will take on those roles. Implementation of a management succession plan in this fashion will enable Mr. Gilliam and Mr. Hall to work in concert for a period of approximately six months to ensure a smooth transition that will be in the best interests of the Company’s and the Bank’s customers, shareholders and employees. Mr. Hall joined First National Bank in March 2003 as Vice President and Business Development Officer after nearly eleven years with Central Fidelity Bank and its successor, Wachovia. Mr. Hall became Chief Lending Officer of First National Bank in May 2007 and Executive Vice President in April 2008. He was elected Executive Vice President of Pinnacle Bankshares Corporation in December 2010. A native of Rustburg, Virginia, Mr. Hall earned a Bachelor of Arts degree in Accounting from Lynchburg College in May 1992 and was named the college’s Outstanding Accountant Graduate Award recipient. He is a 2008 graduate of the Virginia Bankers School of Bank Management at the University of Virginia and is a member of the Senior Class at the Graduate School of Banking at Louisiana State University, scheduled to graduate in May 2011.