GobiMin Announces Second Quarter 2009 Results

    (Expressed in United States dollars except where otherwise indicated)

    TSX-V: GMN

    TORONTO, Aug. 19 /CNW/ - GobiMin Inc. (the "Company" or "GobiMin")
reports its financial and operating results for the second 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

    Financial highlights

                              3 months ended  3 months ended  3 months ended
                                  June 30,        June 30,        June 30,
                                    2009            2008            2007
    Cash and cash equivalents    $81 million     $39 million     $37 million
    Cash and cash equivalents
     per share(1)                      $1.17           $0.54           $0.50
    Revenue                               $-    $6.8 million    $9.8 million
    Net earnings (losses)      ($0.5 million)   $1.3 million    $5.4 million
    EBITDA(1)                  ($0.5 million)   $2.6 million    $6.6 million
    Basic earnings (losses)
     per share                       ($0.007)         $0.018          $0.075
    Diluted earnings (losses)
     per share                       ($0.007)         $0.018          $0.073
    EBITDA per share(1)              ($0.007)         $0.035          $0.096

    (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) 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 balance of $81 million, the Company will keep on
searching for potential investment opportunities. Several projects are
currently under negotiation and assessment including the silver refinery
operation described below.

    (b) Exploration 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 40% owned Yanxi Copper Deposit which is located about 115 km
south of the city of Hami in Xinjiang, China. Mineralization of the Yanxi
Copper Deposit presently outlines a deposit about 1,000 m long, about 700 m
down dip and up to 80 m thick. The Company is continuing the work towards the
potential development of this project and is planning to apply for a mining
licence, complete the preliminary design and prepare the mine infrastructure
plan. The remaining exploration projects are at early exploration stages while
some of them have undergone reconnaissance-prospecting or reconnaissance

    (c) Silver Operations

    The Company intends to build a vertically integrated silver operation.
During the quarter, GobiMin acquired a 49% equity interest in China Precision
Material Limited ("China Precision") which engages mostly 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.
    The Company has also signed in July 2009 a Memorandum of Understanding
(the "MOU") with Shandong Zhaojin Group Co., Ltd. ("Zhaojin") to invest in a
silver refinery. GobiMin intends to acquire from Zhaojin an equity interest of
about 50% in Chenzhou Zhaojin Precious Metal Production Co. Ltd. ("Chenzhou
Zhaojin"), which in turn owns a 75% equity interest in Yongxing Zhaojin
Precious Metals Processing Co. Ltd. ("Yongxing Zhaojin"), a silver refinery in
Yongxing, Hunan of PRC. Zhaojin will devolve its silver refinery business to
Yongxing Zhaojin according to the MOU. Through Chenzhou Zhaojin, GobiMin will
participate in silver refinery operations and other potential silver related
projects. The two parties will proceed with the negotiation of a formal
agreement, subject to a due diligence review by GobiMin on Chenzhou Zhaojin
and the regulatory approval. (See the Company's news release on July 28,

    (d) 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 1,600,000 common
shares during the quarter and 1,974,800 common shares cumulatively for the
period from January 23, 2009 to August 19, 2009. All shares repurchased were
returned to treasury for cancellation. GobiMin now has 68,814,602 shares


    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 intends to build a vertically integrated silver operation. It
has made an investment in silver trading operation and proposes to acquire a
silver refinery. This is the beginning stage and the Company will look into
either building or acquiring businesses in the sector.
    Making opportunistic acquisitions with the cash reserves remains the
Company's objective. GobiMin will keep searching and evaluating high quality
exploration and mining projects in China and overseas. On the base metal side,
the Yanxi Copper Deposit continues to be an important development project.

    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. There is no guarantee that the final agreement
as mentioned in this press release will be entered into or that its terms will
not be varied.

    "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

For further information:

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

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