GobiMin Announces Results of 2008 and Declares $0.07 (CAD$0.08) Dividend



    
    (Expressed in United States dollars except where otherwise indicated)

    TSX-V: GMN
    

    TORONTO, April 17 /CNW/ - GobiMin Inc. (the "Company" or "GobiMin") has
reported today its financial and operating results of 2008 and has declared an
annual and a special dividend totaling $0.07 (CAD$0.08) per share. GobiMin has
approximately $1.25/share (CAD$1.52/share) in cash as of April 16, 2009.
    The audited 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
    --------------------

                                    Year ended     Year ended      Changes
                                   December 31,   December 31,       on
                                          2008           2007   yearly basis
    -------------------------------------------------------------------------
    Revenue                      $21.4 million  $38.5 million         -44.3%
    Net earnings                 $0.03 million  $20.4 million         -99.8%
    EBITDA(1)                     $6.3 million  $26.0 million         -75.9%
    Gross Margin                         44.6%          69.8%         -36.1%
    Basic earnings per share             $0.00          $0.29         -99.8%
    Diluted earnings per share           $0.00          $0.28         -99.8%
    EBITDA per share(1)                  $0.09          $0.37         -76.4%
    Cash and cash equivalents      $54 million    $22 million         140.2%
    Cash and cash equivalents
     per share(1)                        $0.76          $0.30         150.9%
    Cash cost per tonne of ore,
     after by-product credits(1)        $20.32         $14.04          44.7%
    Annual dividend per share            $0.01          $0.03         -66.7%

    (1) As non-GAAP measurements, EBITDA, EBITDA per share, Cash and cash
        equivalents per share and Cash cost per tonne of ore 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.

    Annual and Special Dividend
    ---------------------------

    On April 16, 2009, the Company declared an annual dividend of $0.01
(CAD$0.01) per share for 2008 in accordance with the Company's dividend policy
and a special dividend of $0.06 (CAD$0.07) per share following the disposal of
its two Chinese operating subsidiaries. Both dividends are payable on June 5,
2009 to shareholders of record on May 15, 2009.

    Business Summary and Development
    --------------------------------

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

    On November 3, 2008, the Company announced that it had entered into two
revocable framework agreements with Xinjiang Xinxin Mining Industry Co., Ltd.
("Xinxin") to dispose of its two Chinese operating subsidiaries, which held
three nickel-copper mining properties in Hami, Xinjiang (the "Transaction").
The Transaction involved the sale of GobiMin's entire 93.55% and 95.16%
respective equity interests in Xinjiang Yakesi Resources Co. Ltd. ("Yakesi")
and Hami Jubao Resources Co. Ltd. ("Jubao"), through its wholly owned
subsidiary, Alexis Investments Limited ("Alexis").
    After the completion of Xinxin's due diligence review and audit of Yakesi
and Jubao's accounts as at October 31, 2008 and the receipt of the applicable
approvals, the Company and Xinxin finalized the terms of the Transaction and
entered into two irrevocable Sale and Purchase Agreement (the "Definitive
Agreement") on November 23, 2008. Under the Definitive Agreement, Xinxin
agreed to acquire Alexis's equity interest in Yakesi and Jubao for a total
cash consideration (the "Consideration") of RMB492.33 million (approximately
$72 million).
    During February 2009, the Transaction was approved and registered by the
Chinese regulatory authority. The Consideration was paid to the Company by
February 28, 2009. Pursuant to the Definitive Agreement, Yakesi and Jubao
declared a special dividend of RMB43.89 million (approximately $6.4 million)
which was paid to Alexis together with the final installment of the
Consideration. The earnings or losses of Yakesi and Jubao after November 1,
2008 belong to Xinxin. Accordingly, the losses in November and December 2008
of approximately $1 million are reported as losses in our 2008 results in
accordance with Canadian GAAP and will be reflected as an increase in the gain
on disposal in our 1st quarter results in 2009 (see the Company's news release
of November 24, 2008).
    By April 16, 2009, the Company was debt free and held approximately $87.5
million (CAD$106.5 million) in cash. Most of the cash is kept outside of China
for future project opportunities and approximately $10.4 million cash is held
in China to fund existing and potential exploration projects in China.

    
    (b) Normal Course Issuer Bid
        ------------------------
    

    On February 6, 2008, the Company began a normal course issuer bid to
repurchase some of its common shares on the TSX Venture Exchange. The Company
repurchased 3,236,100 common shares during the year. All shares purchased were
returned to treasury for cancellation. GobiMin had 70,324,402 shares
outstanding as at December 31, 2008.
    On January 23, 2009, the Company renewed its normal course issuer bid to
repurchase an additional 3,516,220 common shares over a maximum period of 12
months ending January 31, 2010. By April 16, 2009, the Company had repurchased
and cancelled a further 374,800 common shares. GobiMin now has 69,949,602
shares outstanding.

    
    Outlook
    -------
    

    Following the disposal of its two Chinese operating subsidiaries, which
held three nickel-copper mining properties in Hami of Xinjiang, China 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 in this environment where excellent projects
abound. In the meantime, the Company may apply its free cash to metal trading
operations.
    Management will continue exploration of the Yanxi Copper Project in view
to develop this property 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 exploration including environmental hazards, GobiMin's
reliance 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: James Xiang, Chief Financial Officer, GobiMin
Inc., Tel: (416) 915-0133, Email: james@gobimin.com, www.gobimin.com

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GobiMin Inc.

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