GobiMin Inc.

GobiMin Inc.

November 19, 2007 17:21 ET

GobiMin Earnings Increase 100% to Record $5.6 Million in Third Quarter

TORONTO, ONTARIO--(Marketwire - Nov. 19, 2007) -

(Expressed in United States dollars except where otherwise indicated)

GobiMin Inc. (the "Company" or "GobiMin") (TSX VENTURE:GMN) is pleased to announce net earnings of $5,587,909 or $0.076 basic earnings per share for the third quarter of 2007, compared to net earnings of $2,794,450 or $0.045 basic earnings per share for the third quarter of 2006. The unaudited interim consolidated financial statements along with management's discussion and analysis have been filed with SEDAR (www.sedar.com) and are also available at the website of the Company (www.gobimin.com).

Financial Highlights

During the quarter, the Company generated record profits by increasing production and maintaining a low cost structure. The financial highlights in the third quarter of 2007 are as follows:

Quarter ended Quarter ended Increase
September 30, September 30, on
2007 2006 quarterly basis
$ $ %
Revenue 9,940,327 6,174,557 61%
Net earnings 5,587,909 2,794,450 100%
EBITDA(1) 6,867,351 3,774,674 82%
Basic earnings per share 0.076 0.045 69%
Diluted earnings per share 0.075 0.042 79%
EBITDA per share(1) 0.094 0.061 54%
Cash and cash equivalents
per share(1) 0.546 0.235 132%

YTD ended YTD ended Increase
September 30, September 30, on
2007 2006 YTD basis
$ $ %
Revenue 29,969,472 12,068,076 148%
Net earnings 15,549,517 3,951,320 294%
EBITDA(1) 19,452,980 6,043,013 222%
Basic earnings per share 0.222 0.069 222%
Diluted earnings per share 0.217 0.063 244%
EBITDA per share(1) 0.278 0.106 162%
Cash and cash equivalents
per share(1) 0.546 0.235 132%

(1) As non-GAAP measurements, Operating cash flow per share, Cash and cash
equivalents per share and EBITDA do not comply with GAAP and,
therefore, the amounts presented in the above table may not be
comparable to similar data presented by other companies. The data is
intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP.

Business Summary

Production Growth

In this quarter, the Company continued to increase production in its mining operations. The total tonnes of ore, pounds of nickel and copper in concentrate produced and sold during this quarter are higher than any other previous quarter. Ore mined increased to record high of 101,951 tonnes from 73,623 tonnes in the last quarter. The record performance was achieved despite a severe correction of nickel prices which has affected throughout the industry. The Company is confident to achieve its annual production target of approximately 300,000 tonnes in 2007 compared to 226,000 tonnes in 2006. The optimization plan at Yellow Mountain East Mine is also progressing satisfactorily.


Yakesi IPO

Following a strategic review of opportunities in China and upon the acceptance of sponsorship by the 5th largest Chinese securities firm, GF Securities Co., Ltd, GobiMin has authorized its subsidiary, Xinjiang Yakesi Resources Co. Ltd. ("Yakesi"), to apply for an initial public offering, targeted for Mid 2008, on either the Shanghai or Shenzhen Stock Exchange. The Company is implementing the announced restructuring to effect this proposed IPO. This IPO will enhance the Company's profile in the mining industry in China and finance the development of the Yellow Mountain deposit and potential local acquisitions by tapping into one of the most dynamic capital markets in the world. Yakesi intends to issue approximately 25% of its shares in the Chinese market subject to regulatory approval.

New Foreign Investments Industry Sector Guidance Catalogue in China

On October 31, 2007, the Ministry of Commerce and the National Development and Reform Commission of China ("NDRC") issued a new "Foreign Investments Industry Sector Guidance Catalogue" (the "New Catalogue") that will become effective December 1, 2007. The New Catalogue introduced some changes and reclassification that may impact various sectors of the mining industry and some foreign invested enterprises in China. However, the New Catalogue does not have any impact on the operations of GobiMin.

Yellow Mountain Deposit

The Company expects to complete its 2007 drilling program in Yellow Mountain deposit by this December. Results will be released in early 2008. In addition to the exploration drilling, many aspects related to mining development have been initiated in the field. The Company has also started cooperation programs with local governments to ensure water, electricity and other key infrastructure facilities are in place for the development.

Other projects

GobiMin is actively engaged in working on new exploration projects. In addition to one lead/zinc joint venture set up in 2006 and two copper projects announced earlier this year, the Company is discussing with potential partners in exploring other nickel and copper properties in Xinjiang and laterite projects in Indonesia. Some new joint ventures are expected to be set up in coming months.

Certain statements contained in this press release constitute forward-looking information. Such statements are based on the current expectations of management of GobiMin. The readers are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause actual results, future circumstances or events to differ materially from those projected in the forward-looking information. These risks include, but are not limited to, risks associated with fluctuations in metal prices, risks associated with mining operations including environmental hazards, GobiMin's reliance on key suppliers and on key personnel, the potential for changes in the legislative and regulatory environment in China and other risks and uncertainties detailed from time to time in GobiMin's annual report and other filings with the Canadian securities commissions. The readers should not place undue reliance on the forward-looking information included in this press release given that (i) actual results could differ materially from a conclusion, forecast or projection in the forward-looking information, and (ii) certain material factors or assumptions applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information could prove to be inaccurate. These statements speak only as of the date they are made, and GobiMin assumes no obligation to revise such statements as a result of any event, circumstance or otherwise, except in accordance with law. Additional information about (i) the material factors that could cause actual results to differ materially from the conclusion, forecast or projection in the forward-looking information, and (ii) the material factors or assumptions, that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information is contained in GobiMin's annual report and other documents filed from time to time with the Canadian securities commissions, all of which are available at www.sedar.com and the Company's website www.gobimin.com.

To receive GobiMin press releases by email, please send a message to info@gobimin.com and specify "GobiMin press releases" on the subject line.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

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