GobiMin Announces First Quarter 2010 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 2010. 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
                                    2010            2009     quarterly basis
    -------------------------------------------------------------------------
    Cash and cash equivalents
     and time deposit            $53 million     $92 million       -41.9%
    Cash and cash equivalents
     and time deposit per
     share(1)                       $0.78           $1.32          -40.5%
    Revenue                          $Nil       $0.9 million        -100%
    Gain on disposal of
     subsidiaries                    $Nil      $33.6 million        -100%
    Net (losses)/earnings      ($1.2 million)  $38.2 million      -103.2%
    (LBITDA)/EBITDA(1)         ($1.1 million)  $38.5 million        -103%
    Basic (losses)/earnings
     per share                    ($0.018)          $0.543        -103.3%
    Diluted (losses)/earnings
     per share                    ($0.018)          $0.541        -103.3%
    (LBITDA)/EBITDA per share(1)  ($0.017)          $0.550        -103.1%
    -------------------------------------------------------------------------
    (1) As non-GAAP measurements, (LBITDA)/EBITDA, (LBITDA)/EBITDA per share
        and Cash and cash equivalents and time deposit 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) Gold Project in Xinjiang
        ------------------------

        The Company, through a wholly owned subsidiary, entered into an
        agreement with Xinjiang Baodi Mining Company ("Baodi") and a
        subsidiary of Brigade No. 2 of Xinjiang Bureau of Geology and Mineral
        Resources ("Brigade No. 2") to form a joint venture company, Xinjiang
        Tongyuan Minerals Ltd. ("Tongyuan"), in China to develop and operate
        the Sawayaerdun Gold Project in Xinjiang, China. GobiMin owns a 70%
        equity interest in Tongyuan while Baodi and Brigade No. 2 each own a
        15% interest. Tongyuan has obtained the related mining license and
        started a drilling program so as to document a NI 43-101 compliant
        resource estimate. It is targeting for the mine construction and
        development during 2011. It has also applied for an exploration
        license for the surrounding area of 20.27 km(2) for further
        exploration and development.

    (b) Coal Project in Xinjiang
        ------------------------

        On February 9, 2010, GobiMin acquired an indirect equity interest of
        24.49% in the Balikun Coal Project in Xinjiang, China and
        participates in its management and operations. GobiMin and its
        partner jointly have a controlling interest in the project through
        Xinjiang Ruide Mining Limited. According to a NI 43-101 Mineral
        Resource estimate prepared by Scott Wilson Ltd. in February 2010, the
        Balikun Coal Project hosts 38 million tonnes of coal in Measured
        Resources and 50 million tonnes in Indicated Resources. The mine
        construction is actively in process while the infrastructure and
        electricity and water supply will be in place during 2010.

    (c) Silver Operations
        -----------------

        The Company intends to build a vertically integrated silver
        operation. In 2009, GobiMin acquired a 49% equity interest in China
        Precision Material Limited ("China Precision") which engages
        predominantly in silver trading. China Precision buys physical silver
        ingots from producers and sells them directly to end consumers. All
        its positions are hedged and it is not exposed to market price
        movements. GobiMin will continue to source and explore new business
        opportunities with potential partners in this sector.

    (d) Base Metals Exploration Projects in Xinjiang
        --------------------------------------------

        GobiMin currently owns 5 base metals exploration projects in
        Xinjiang, China including nickel, copper, lead and zinc projects. The
        most advanced project is the Yanxi Copper Property located about 115
        km south of the city of Hami in Xinjiang, China, which is held by the
        40% owned joint venture, Xinjiang Tongxing Minerals Ltd.
        ("Tongxing"). Tongxing is in the process of applying for the mining
        licence, which is expected to be obtained within 2010. On April 13,
        2010, GobiMin entered into a framework agreement to dispose of a 32%
        interest in the Yanxi Copper Property, retaining an 8% indirect
        equity interest in the Property.

        For the remaining exploration projects, the Company will continue to
        conduct pre-survey, reconnaissance or detailed survey and to identify
        potential mineralization of good scale among the licensed area.

    (e) Investment Opportunities
        ------------------------

        The Company ceased to have its substantial mining operations in Hami,
        Xinjiang of China following the disposal of two operating
        subsidiaries in February 2009. With a cash and time deposit balance
        of $53.4 million, the Company will keep on searching for potential
        investment opportunities. Several projects are currently under
        negotiation and assessment.

    (f) Normal Course Issuer Bid
        ------------------------

        On January 26, 2010, GobiMin has renewed its normal course issuer bid
        to repurchase up to an additional 3,412,865 common shares for a
        further one year period. The normal course issuer bid will expire on
        January 31, 2011. No common shares were repurchased during the
        quarter. For the period from April 1, 2010 to May 27, 2010, a total
        of 267,500 common shares were repurchased at an aggregate cost of
        CAD220,681 ($212,692). All shares repurchased were returned to
        treasury for cancellation.

    Outlook
    -------
    

GobiMin is entering the year 2010 with a comfortable cash position of US$53.4 million. Our primary focus remains on advancing our existing projects while looking for potential opportunities in base and precious metals.

The Sawayaerdun gold project will take another 10,000 metres drilling this year to be followed by metallurgical tests. For the Balikun coal project, we will push forward the infrastructure construction during 2010, aiming at production in 2013.

We are optimistic about the prospect of the Company in 2010 by taking full advantage of our sound financial fundamentals and growth impetus.

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. 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.

"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

SOURCE GobiMin Inc.

For further information: For further information: Felipe Tan, Chief Executive Officer, Tel: (852) 3586-6500, Email: felipe@gobimin.com

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