Many other facotrs may also lower your ranking such as too many ads, bad content, duplicated conent, etc. While, I don't think that it's Google penguin that penalize your site. Google panda 3.5 has also been released several days before the penguin update. Panda 3.5 targets at hitting spam websites, either.
What I can advice is the following:
1. Check your Google webmaster message about why your ranking gets lowered. Google webmaster message may give you some explaination and help you the answer.
2. Analyze your inboud links to make sure that you have no low quality links. If spam do exist, try to get rid of such links from your site.
3. Your site doesn't visiually look well. You may give the site one new good looking, and try to fill more good quality into your site. And it's better if you delete the ad on your PR1 site, which hurts your site value.
4. Build some high quality inbound links for your sites and help improve the ranking. Perhaps, you need some link building work to get high PR and trust in Google.
Hope my words help you. Good luck with your sites.
Search engine algorithms are based on a simple premise: searchers want an answer to their queries. For any search, there are hundreds or thousands of sites that offer a potential link or insight related to the query. Navigating Google’s current landscape requires not only a general understanding of search engine algorithms and how they operate, but specifics of recent updates. In the last few years, Google has implemented a number of changes that have hit site owners particularly hard. These have focused on three key areas: content and usability, the quality of links, and the importance of mobile and how we search.
Google released the Penguin update a couple weeks ago, in an effort to rid its search engine results of webspam. The update targeted the kinds of things Google has always tried to rid its results . Follow the google instructions carefully.So that you can increase your ranks.
Check out these two youtube videos I found a yesterday regarding Google Penguin. I hope that helps you out a bit:) Personally I don't think anyone knows what to do for sure unless you work @ Google:(
Google penguin affect your site ranking because off site link spamming. If only one link show on blog and article , press release , penguin affect link.So don,t use direct link of sites.
Because your website is over optimized for search engines.
I have my PR1 site http://www.evergreencigarette.com on 1st page of Google, but after the Google update code name "Penguin" my site's rank went down.Please help me how to fix this issue.Thanks