| ||July 07, 2008|
GobiMin Provides Update on Yakesi's IPO
Toronto, Canada. July 7, 2008 - Subsequent to the press release published on February 22, 2008 on the proposed initial public offering ("IPO") on the Shenzhen Stock Exchange of Xinjiang Yakesi Resources Co. Ltd. ("Yakesi"), a subsidiary of GobiMin Inc. ("GobiMin" or "Company"), Yakesi:
However, recent IPO market conditions in China as well as around the world have been extremely weak. China's benchmark Shanghai Composite Index (SSEC) fell over 20% in June and has plunged 55% from its high. The Sponsor is of the view that the rising volatility in global capital markets, increasing stock market volatility due to recession and inflation threats as well as rising oil prices altogether will hamper its ability to underwrite the IPO. As reported, several prominent Chinese IPOs have been recently postponed despite obtaining regulatory approvals. At the recommendation of the Sponsor, Yakesi agreed to delay the filing of the prospectus until such time as market conditions permit.
- completed a 3 month tutoring offered by the IPO sponsor, GF Securities Co., Ltd. (the "Sponsor")
- is in the final stage of the preparation of the prospectus.
GobiMin remains committed to executing its existing projects. With more than US$35 million cash and equivalents in hand as of June 30, 2008, the Company is well funded for the planned operation and investments. Delay of the IPO will not hinder the Company's growth, including the development of the Yellow Mountain Project.
About GobiMin Inc.
GobiMin Inc. is a junior mining company with nickel/copper sulphide operations and development properties in northwestern China. GobiMin, through Yakesi, controls three concessions, within a 10-kilometre radius, totaling 455 hectares. In operation since 1999, GobiMin currently operates two underground mines (Yellow Mountain East and Xiangshan) and is also currently developing its Yellow Mountain nickel/copper deposit. GobiMin's common shares are traded on the TSX-Venture Exchange under the symbol GMN.
Forward-Looking Statements and Risk Factors
This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond GobiMin's ability to control or predict, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. There is no guarantee that the proposed IPO will proceeded and that the Yellow Mountain deposit will be successfully placed in commercial production. Readers should not place undue reliance on forward-looking statements.
For further information, please contact:
James Xiang, Chief Financial Officer, GobiMin Inc.
Tel: (416) 915-0133
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
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