SOURCE: Gemini Explorations, Inc.

October 08, 2007 02:30 ET

Gemini Explorations, Inc. Reports on Re-Development Budget for the Los Chorros Gold Mine

Mine Modernization Projected to Yield US$7,300,000 of Net Cash Flow to Gemini

CALGARY, AB--(Marketwire - October 8, 2007) - Gemini Explorations, Inc. ("Gemini") (OTCBB: GXPI) is pleased to report that it has received an extensive project cost analysis for the modernization and complete re-development of the Los Chorros Gold Mine. The MPGS report was overseen and prepared by Juan Fernando Restrepo, professional geologist and general manager of Minera Primecap Geological Services (MPGS) of Medellin, Colombia.

The detailed project cost analysis covers the estimated budget to completely modernize and redevelop the Los Chorros Gold Mine. The report also includes the annualized mining costs of Los Chorros operating at a production rate of 100 tonnes per day. The report includes the following categories:

I.   Personnel Costs including professional engineers, technical staff and
     auxiliary support personnel (includes permanent mine management and
     operating personnel.)
II.  Geological Exploration & Mining Costs covering geological &
     geochemical analysis, mineralogy and metallurgy development, mine
     and plant design, legal & environmental contingency plan and
     digitalization costs of topographical and sampling data.
III. Direct Operating Costs including personnel installation costs,
     management costs, civil works, recovery plant building, power plant,
     underground mining equipment and the mineral recovery plant. Also
     included are environmental waste disposal and site vehicle costs.

The total cost of the project is estimated to be US$595,900; adding a contingency factor of 30% would bring the maximum projected total to US$774,700.

The Los Chorros Mine is currently being mined with extremely antiquated equipment and this report further solidifies Gemini's belief that the project could be turned into a highly efficient producing gold project with low capital costs. Current mining operations at Los Chorros recover a low percentage of the available gold and precious metals present on the property. The plant would initially run at 30 to 50 tonnes/day with a targeted production rate of 100 tonnes per day during the first year. MPGS geologist Juan Restrepo reported that 50 tonnes per day production yielding an average grade of 12 grams per tonne Au (gold) would produce US$3,515,000 per year and a 100 tonnes per day production rate would produce over US$7,300,000 of net cash flow after all costs.

MPGS estimate that production in the second year could increase to 200 tonnes per day yielding US$14,600,000 net cash flow to the company. These estimates are based on US$730 per ounce gold with US$200 per ounce operating and production costs netting US$530 per ounce. Gemini has purchased an 80 percent controlling interest in the mine and has secured first rights of refusal on the remaining 20 percent interest.

The principal exposed vein in the Los Chorros working tunnels measures up to 2 meters thick and dips down at 45 degrees. Visible sulphides and massive sulphides are exposed and run from 2% up to 70%. Visible gold is present and samples assayed along a 30 meter section of the principal vein exposed between 2 faults returned values between 15 grams/tonne Au and 250 grams/tonne Au. The Los Chorros Mine presents an excellent opportunity for Gemini to take advantage of the near record high gold bullion prices and provides an internal source of cash flow to fund its ongoing development and exploitation of its wholly owned La Planada Gold Project, a potential multi million ounce gold deposit in southern Colombia.

Historically one of the largest gold producing countries in the world, Colombia's vast mineral potential has remained virtually unexplored using modern exploration and mining techniques. The Department (Province/State) of Antioquia alone produces over 1,000,000 ounces of gold per year currently, and most of it is produced from antiquated production equipment and facilities. Driven by a new era of political and economic stability and an investment-friendly mining code, Colombia has emerged as one of the resource sector's most attractive new mining frontiers.

Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the expectation of the gold production of the property, the expected completion date of the redevelopment and modernization of the Los Chorros Gold mine, the low capital costs to upgrade the Los Chorros operating plant, the assumed production and net cash flow and the multi million ounce potential of the La Planada Gold project.Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the 2006 fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

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