GobiMin Inc.
TSX VENTURE : GMN

GobiMin Inc.

October 12, 2005 17:28 ET

GobiMin Inc. Announces Second Quarter Results for Alexis Resources Limited

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 12, 2005) - Not for dissemination or distribution in the United States of America.

GobiMin Inc. (TSX VENTURE:GMN) ("GobiMin") is pleased to announce that in accordance with continuous disclosure obligations, it has filed a business acquisition report concerning its recent acquisition of Alexis Resources Limited ("Alexis"), including the unaudited consolidated financial statements of Alexis for the quarter ended June 30, 2005. This report can be accessed on www.sedar.com.

For the three and six month periods ended June 30, 2005, Alexis generated sales of HK$30,741,594 ($4,657,323) and HK$42,271,688 ($6,404,122) respectively, with gross profits of HK$19,753,976 ($2,992,700) and HK$27,633,374 ($4,186,431). Net earnings for the periods were HK$13,053,917 ($1,977,656) and HK$15,175,056 ($2,299,007).

Net cash flows from operating activities were HK$20,031,328 ($3,034,728) and HK$26,046,020 ($3,945,948) respectively and the company had cash and cash equivalents at the end of the period of HK$35,505,011 ($5,378,977). The increase in Alexis' profitability for the three months ended June 30, 2005 is largely attributed to the seasonal nature of its operations, as the ore concentration process is suspended from late November until early March. During the second quarter, concentrate with content of approximately 369 tons of nickel was sold at an average price of HK $78,000 ($11,817).

All amounts in this press release were converted from HK$ at the rate of HK$1 for $0.1515, based on the Bank of Canada rate as of October 11, 2005.

Caution Concerning Forward-Looking Statements

This press release contains certain "forward-looking statements". Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of base metals, risks associated with mining operations, including environmental risks and hazards and other risks.

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

Contact Information

  • GobiMin Inc.
    Michael Choy
    Chief Financial Officer
    (604) 649-3766