Gemini Corporation

Gemini Corporation

December 23, 2008 17:16 ET

Gemini Corporation Completes Sale and Leaseback of Alberta Heartland Property

Strengthens balance sheet and retains sufficient land to support operations

CALGARY, ALBERTA--(Marketwire - Dec. 23, 2008) - Gemini Corporation (TSX VENTURE:GKX) announces the sale of its land located on the outskirts of Fort Saskatchewan. A portion of the property has been leased back from the new owner and will be used to support module fabrication and assembly on projects destined for the Alberta Heartland region and Northern Alberta heavy oil development.

By mid-2008, the Corporation had received a number of purchase inquiries relating to the property and it was concluded that these should be explored. Gemini management had determined that not all of the Fort Saskatchewan property was required to meet their production requirements. However, with project delays and short-term industry uncertainty, the sale of the entire parcel of land became a preferred option. Under the terms of the leaseback, the Corporation will be able to service its clients in the manner originally contemplated.

Gemini will realize a gain of approximately $2,900,000 on the sale of the 80-acre parcel of land, which it acquired in May of 2007. The majority of this gain will be sheltered from tax through the application of capital losses carried forward from previous years.

Gemini's existing operations in the Fort Saskatchewan region have established solid relationships with a wide array of clients founded upon a reputation for safe, quality workmanship. The Corporation's breadth of services from engineering through to fabrication, construction and maintenance is extremely well-suited to delivering value to these clients. The infrastructure to support oil sands production, refining and distribution is continuing to be developed, notwithstanding the current slowdown in activity. The long-term spending in this market sector remains in the billions of dollars and the Corporation is committed to securing a share of this business as activity resumes.

"By selling this land and leasing back a portion we have accomplished two important results", said Rob Brookwell, Gemini's Executive Vice President & CFO. "Financially we have significantly strengthened our balance sheet by reducing our debt obligations at a critical time in the marketplace and operationally we have retained access to the land required to service the expected business opportunities we have been working diligently to secure. Gemini is well positioned to manage through the uncertainties of 2009 and continue to execute its strategic growth plans."

About Gemini Corporation

Gemini Corporation offers a wide range of interrelated services including project management, engineering, fabrication, construction, and maintenance of oil & gas and industrial facilities within Canada and internationally. The Corporation is a leading provider of engineered solutions and field services through either stand-alone or integrated, full-service approaches to a broadening client base in the energy, environmental and industrial sectors.

Shares of Gemini trade on the TSX Venture Exchange under the symbol "GKX". For more information about the Corporation and its services, go to


This news release contains forward looking information that represents Gemini's internal projections, expectations, estimates or beliefs concerning, among other things, future operating results and various components thereof or Gemini's future economic performance. All statements other than the statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expects", "projects", "plans", "anticipates", and similar expressions. The projections, estimates and beliefs contained in such forward-looking statements are based on management's assumptions relating to Gemini's performance and competition within the sectors in which it competes, the continuation of the current regulatory and tax regimes in the jurisdictions in which Gemini operates, and necessarily involve known and unknown risks and uncertainties, including risks and assumptions relating to client service demand, field service costs, labour rates, and other factors that may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted or suggested. The Corporation does not undertake to update any forward-looking information in this document whether as to new information, future events or otherwise.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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