GobiMin Announces First Quarter 2009 Results



    (Expressed in United States dollars except where otherwise indicated)

    TSX-V: GMN

    TORONTO, May 27 /CNW/ - GobiMin Inc. (the "Company" or "GobiMin") reports
its financial and operating results for the first quarter of 2009. 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
    --------------------

                              3 months ended  3 months ended      Changes
                                 March 31,       March 31,           on
                                    2009            2008      quarterly basis
    -------------------------------------------------------------------------
    Cash and cash equivalents    $92 million     $44 million           108.5%
    Cash and cash equivalents
     per share(1)                      $1.32           $0.60           118.2%
    Revenue                     $0.9 million    $4.1 million           -77.3%
    Gain on disposal of
     subsidiaries              $33.6 million               -             100%
    Net earnings               $38.2 million    $0.5 million   (greater than)
                                                                         200%
    EBITDA(1)                  $38.5 million    $1.7 million   (greater than)
                                                                         200%
    Basic earnings per share          $0.543          $0.007   (greater than)
                                                                         200%
    Diluted earnings per share        $0.541          $0.007   (greater than)
                                                                         200%
    EBITDA per share(1)               $0.550          $0.020   (greater than)
                                                                         200%
    -------------------------------------------------------------------------

    (1) As non-GAAP measurements, EBITDA, EBITDA per share, and Cash and cash
        equivalents per share 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 and Development
    --------------------------------

    (a) Completion of sale of two Chinese operating subsidiaries
        --------------------------------------------------------
    

    Under the agreement entered into on November 23, 2008, the Company agreed
to dispose of its equity interest in Yakesi and Jubao for total sales proceeds
of RMB492 million (approximately $72.1 million). By February 11, 2009, the
agreement was approved and registered by the Chinese regulatory authority. The
total proceeds in cash were paid to the Company by February 2009 while Yakesi
and Jubao also declared and paid a special dividend of RMB43.89 million
(approximately $6.4 million) to the Company.

    
    (b) Operations
        ----------
    

    Following the disposal of the equity interests in Yakesi and Jubao in
February 2009, the Company ceased to have its substantial mining operations in
Hami, Xinjiang of China. The losses of Yakesi and Jubao after November 1, 2008
belong to the buyer. Accordingly, the losses in November and December 2008 of
approximately $1 million reported as losses in our 2008 results, together with
the losses in January 2009 reported are reflected in the gain on disposal in
this quarter.

    
    (c) Normal Course Issuer Bid
        ------------------------
    

    On January 23, 2009, the Company renewed its normal course issuer bid to
repurchase up to an additional 3,516,220 common shares over a maximum period
of 12 months ending January 31, 2010. The Company repurchased 374,800 common
shares during the quarter and 574,800 common shares cumulatively for the
period from January 23, 2009 to May 27, 2009. All shares repurchased were
returned to treasury for cancellation. GobiMin now has 70,214,602 shares
outstanding.

    
    Outlook
    -------
    

    Since the successful completion of the disposal of its two Chinese
subsidiaries in February 2009, GobiMin is now in a strong financial position
to develop its existing and potential projects.
    The Company's objective is to make opportunistic acquisitions for the
cash reserves. The projects currently under evaluation include high quality
exploration and mining projects in China and Indonesia. On the base metal
side, the Yanxi Copper Deposit continues to be our core development project
and the Management will assess and design its development feasibility at an
opportunistic time.

    Certain statements contained in this press release constitute
forward-looking information. Such statements are based on the current
expectations of management of GobiMin. You 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 reader 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 were 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 the 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.

    
    "Neither TSX Venture Exchange nor the Investment Industry Regulatory
    Organization of Canada accepts responsibility for the adequacy or
    accuracy of this release."
    

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





For further information:

For further information: Felipe Tan, Chief Executive Officer, Tel: (852)
3586-6500, Email: felipe@gobimin.com or Joyce Ko, Interim Chief Financial
Officer, Tel: (852) 3586-6540, Email: joyce@gobimin.com

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GobiMin Inc.

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