GobiMin Inc.
TSX VENTURE : GMN

GobiMin Inc.

November 15, 2006 08:00 ET

GobiMin Reports Record Results of Third Quarter of 2006

TORONTO, CANADA--(CCNMatthews - Nov. 15, 2006) -

(Expressed in United States dollars except where otherwise indicated)

GobiMin Inc. (the "Company" or "GobiMin") (TSX VENTURE:GMN) is pleased to report its financial and operating results 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.

Results of Operations

GobiMin continued to execute well in all key areas of its business and these results can be seen in our revenue growth, strong gross margin and net income reaching record levels in the third quarter:

- Record quarterly revenue of $6.2 million, an increase of 38% over the $4.5 million recorded in Q3 2005.

- Gross margin was 73%, compared to 65% in Q3 2005.

- Record quarterly net income of $2.8 million compared to $1.8 million in Q3 2005, an increase of 59%.

- Cash costs, after by-product credits, decreased to $8.80 per tonne of ore or $0.67 per pound of nickel payable sold, compared to $17.85 or $1.10 respectively for last year's same period.

- Cash position rose to a record $15 million.

Exploration

GobiMin continued the Diamond Drilling program at Yellow Mountain and the results of the first six holes are very encouraging and in line with historical results. The total drilling program will be increased to 18,000 meters over 18 holes, to be completed in November 2006 and the NI43-101 resources calculation will be completed in the first half of 2007.

Construction

- One new production shaft at our Yellow Mountain East was completed during the quarter and should come on stream in the fourth quarter.

- Three more new production shafts are under construction. All will come on stream during 2007.

- Given four new shafts and the currently producing shafts under operation, our future production capacity should increase to 400,000 tonnes per year from 150,000 tonnes in 2005.

A new mill of 1,000 tonnes per day was completed in this quarter and will start production by the end of this year.

Fund Raising

The Company raised gross proceeds of approximately $6.3 million (CAD$ 7 million) in a private placement of 4,120,000 common shares, through a syndicate led by Desjardins Securities Inc. and including MGI Securities Inc. and Wellington West Capital Markets Inc.

Copper Separation

Starting from the second quarter, the Company successfully separated copper concentrates from nickel concentrates while in the past, the Company produced mixed nickel-copper concentrates only. As a result, the price factor for realized copper revenue has been increased from approximately 30% to over 60%. Copper accounted for 14.1% of revenues in the third quarter of 2006, considerably higher than 6.7% in the third quarter of 2005.

The significant decrease in cash cost per tonne of ore in 2006 was mainly due to the increasing by-product credits, driven by higher copper market price and copper price factor from the copper separation.

Outlook

The Company expects that the new mill will commence production and reach its full annual capacity of 1,000 tonnes per day within the fourth quarter of 2006. The 2007 production level is expected to be increased to a greater level, with four more mining shafts coming on stream. The 18,000 meters exploration drilling at our Yellow Mountain project will be completed before the year-end of 2006. The Company plans to complete a NI 43-101 resources calculation in the first half of 2007.

Certain information contained in this press release constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties which may cause actual results, performance or achievements to differ materially from any results expressed or implied by such forward-looking statements. Such factors are disclosed in the Company's documents available on www.sedar.com and the Company's website www.gobimin.com.

To receive GobiMin press releases by email, send a message to Catarina@chfir.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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