GobiMin Inc.

 April 17, 2012
GobiMin Announces Results of 2011 and Pays Dividend

 (Expressed in United States dollars except where otherwise indicated)

Toronto, Canada. April 17, 2012 - (TSXV: GMN) GobiMin Inc. (the "Company" or "GobiMin") is pleased to report its financial and operating results of 2011 and announce the declaration of an annual dividend of $0.01 (CAD0.01) per share.

The audited consolidated financial statements of GobiMin Inc. and its subsidiaries (together the "Group") along with management's discussion and analysis will be filed with SEDAR (www.sedar.com) and will also be available at the website of the Company (www.gobimin.com.com).

Financial Highlights

As at / For the year ended December 31, 2011 2010 2009
$ $ $
Revenue - - 0.9 million
Other revenue and gains 0.9 million 0.4 million 0.5 million
Share of results of associates and a jointly-controlled entity 0.5 million (1.1 million) 0.1 million
Gain on disposal of an associate/subsidiaries 8.8 million - 31.4 million
Change in fair value on other financial assets (2.7 million) 1.6 million -
Profit/(loss) for the year 2.5 million (3.6 million) 29.5 million
(LBITDA)/EBITDA(1) (3.8 million) (4.9 million) 30.5 million
Basic earnings/(losses) per share 0.05 (0.05) 0.43
Diluted earnings/(losses) per share 0.05 (0.05) 0.42
(LBITDA)/EBITDA per share (1) (0.06) (0.07) 0.44
Cash and cash equivalents 63.2 million 37.4 million 78.3 million
Cash and cash equivalents per share (2) 1.00 0.57 1.15
Working Capital 53.2 million 51.1 million 84.1 million
Total non-current financial liabilities 83,000 4,000 -
Total assets 120.6 million 119.1 million 90.4 million
Annual dividend per share(2) 0.01 0.01 0.0125


(1) As non-IFRS measurements, (LBITDA)/EBITDA ((losses)/earnings before interest income and expense, income taxes, depreciation and amortisation), (LBITDA)/EBITDA per share and cash and cash equivalents per share do not comply with IFRS 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 IFRS.

(2) The Company declared an annual dividend of $0.01 (CAD0.01) per share for 2011 in accordance with its dividend policy and the 2011 annual performance. For 2010, the Company paid an annual dividend of $0.01 (CAD0.01) per share pursuant to its dividend policy. The Company paid an annual dividend of $0.0125 (CAD0.0125) per share based on 2009 annual performance.

(3) The 2011 and 2010 financial information were prepared in accordance with IFRS while 2009 financial information was prepared in accordance with Canadian GAAP.

Annual Dividend
On April 17, 2012, the Company declared an annual dividend of $0.01 (CAD0.01) per share in accordance with its dividend policy and the 2011 annual performance. The dividend is payable on May 24, 2012 to shareholders of record on May 10, 2012.

Business Summary and Development

(a) Gold Project in Xinjiang

Through a wholly owned subsidiary, the Company owns a 70% equity interest in Xinjiang Tongyuan Minerals Ltd. ("Tongyuan") which is developing and operating the Sawayaerdun Gold Project in Xinjiang, China.

In April 2012, GobiMin retained Mr. Philip A. Jones, B App Sc, AusIMM, AIG, a Qualified Person as defined in NI 43-101, to review the 92 drilling results of the 2011 exploration program and update the NI 43-101 compliant resource estimate. The NI 43-101 compliant technical report can be viewed at www.sedar.com. At a lower cutoff grade of 0.5 grams/tonne gold, Zone IV and Zone I are estimated to contain indicated resources of approximately 2.30 million ounces (about 72 tonnes) gold content with an average grade of 1.3 grams/tonne and inferred resources of approximately 1.9 million ounces (about 61.25 tonnes) gold content with an average grade of 0.8 grams/tonne.

GobiMin announced the new NI 43-101 compliant resource estimate in April 2012. According to Mr. Philip A. Jones' comments, the assay results have confirmed that the mineralised structure is mapped over a strike length of over 6,500 m and at depth.

The remaining commitment of $873,488 (RMB5,500,000) to complete the acquisition of the exploration and mining licences of the Sawayaerdun Gold Property will be paid in due course subject to the progress on the transfer of the exploration licence to Tongyuan.

The Company also has a remaining commitment of $1,246,233 (RMB7,847,030) for the further development of the Sawayaerdun Gold Property including exploration service, the Chinese feasibility and mine design and related facilities.

Plan for 2012
In order to facilitate plan and design of the projected mine, GobiMin will continue to implement in-fill drilling programs and other exploration programs to further ascertain the mineralised structure with detailed information including shape, scale, distribution and ores features. GobiMin aims to complete approximately 30,000 meters in drilling programs in 2012, which commenced in April 2012.

Along with the above planned drilling programs, GobiMin will continue to pursue the infrastructure construction programs for the mine site.

(b) Coal Project in Xinjiang

GobiMin formerly owned an indirect equity interest of 24.49% in the Balikun Coal Project in Xinjiang, China. It entered into an agreement with an existing shareholder of the project to dispose of all its interest in exchange for a total consideration of $31.76 million, which includes the proceeds of the disposal, the repayment of the loans and the related interests. GobiMin has recorded a gain of approximately $8.83 million from the disposal in September 2011.

(c) Silver Operations

GobiMin holds an equity interest of 48.02% in China Precision which engages in metal trading and processing, predominantly in silver.

During the year, China Precision issued shares to a corporate shareholder beneficially owned by its employees. Accordingly, the equity interest of GobiMin in China Precision was diluted from 49% to 48.02%. In order to cope with its expanding business, the Group and other shareholders mutually agreed to increase the registered capital of China Precision to approximately $1.3 million (HKD10 million) by capitalisation of the retained earnings, which was completed on December 31, 2011.

The Group has made advances to China Precision from time to time to finance its silver inventory. As at December 31, 2011, amounts due from China Precision to the Group amounted to $5.5 million while China Precision had a silver stock of 6.8 tonnes with a market value of $6 million. The Group recorded interest income of $274,076 on these advances of funding for 2011. China Precision had a net profit of approximately $1.1 million for 2011, with GobiMin's share amounting to $0.5 million, compared with $0.1 million for 2010.

Plan for 2012
China Precision showed strong growth in net profit which in turn contributed to a significant growth in the equity gain of the Group in 2011. The Group believes that China Precision will continue its growing trend of business and thus increase the return to GobiMin following the increase in its registered capital.

(d) Base Metals Exploration Projects in Xinjiang

(i) Four Exploration Companies

GobiMin has invested a total of $3,652,767 (RMB23,000,000) as capital in five exploration companies in Xinjiang since 2007, including an investment in the Yanxi Copper Property subsequently disposed of. Other than the Yanxi Copper Property, GobiMin currently owns equity interests in four exploration companies in Xinjiang, China for nickel, copper, and gold. During the year ended December 31, 2011, these companies entered into agreements to dispose of five exploration licences for a total consideration of $986,293 (RMB6,500,000), which resulted in a gain on disposal of $375,106 (RMB2,361,894) after deducting the related costs and taxes.

Among the exploration projects of these four companies, three projects showed good indications of copper mineralisation. GobiMin will continue the exploration programs for those three projects, which are located in Nileke and Hejing, Xinjiang. The total cost of investment in the four exploration companies amounts to $2,382,239 (RMB15,000,000) while the equity investment up to December 31, 2011 amounts to $2,337,755 (RMB14,719,900).

(ii) Yanxi Copper Property

GobiMin formerly owned a 40% indirect equity interest in another exploration company, Xinjiang Tongxing Minerals Limited ("Tongxing"), which is engaged in exploration and development of the Yanxi Copper Property in Xinjiang, China. The Group entered into a Share Transfer Agreement with China Daye Non-Ferrous Metals Mining Limited ("China Daye") on July 14, 2010 regarding the disposal of 80% of its equity interest in Tongxing. The transaction was completed on July 22, 2010 and GobiMin received all the cash consideration and a first lot of convertible bonds ("CB"). GobiMin currently retains an 8% indirect unlisted equity interest in the Yanxi Copper Property.

The Group entered into supplemental agreements with China Daye to extend until May 31, 2012 the deadline for obtaining the Yanxi Mining Licence.

The application for the Yanxi Mining Licence is at the final stage and GobiMin is liaising with relevant government departments to facilitate the application to meet the deadline.

It is expected that upon obtaining the Yanxi Mining Licence, the Group would realise an estimated gain of about $5.7 million for its disposal of the 32% equity interest in Tongxing, with a further potential gain to be ascertained and realised after finalising the New Mining Licence and the related exploration work.

(e) Normal Course Issuer Bid

On January 4, 2011, GobiMin renewed its normal course issuer bid to repurchase up to an additional 3,294,541 common shares for the year expiring on January 31, 2012. The Company repuchased the said 3,294,541 common shares at an average price of CAD0.788 during the year. All shares repurchased were returned to treasury for cancellation.

On January 20, 2012, GobiMin announced the renewal of its normal course issuer bid to repurchase up to an additional 3,129,814 common shares, representing approximately 5% of the common shares then outstanding. Purchases are expected to be made in accordance with applicable regulations over a maximum period of 12 months ending on January 31, 2013. As of April 17, 2012, a total of 810,500 common shares were repurchased at an aggregate cost of $613,325 (CAD603,063). All shares repurchased will be returned to treasury for cancellation.

Management believes that the repurchase by the Company of its own shares can maximise shareholder value and is in the best interest of the Company and its shareholders. A copy of the related Notice of Intention to Make a Normal Course Issuer Bid for 2012 shall be provided to shareholders upon receipt of written request to the Company at its registered office.

(f) Working Capital

As at December 31, 2011, the Group has a working capital of about $53.2 million (December 31, 2010: $51.1 million), after netting off its current liabilities of $33.9 million (December 31, 2010: $33.9 million). The working capital is sufficient to support the development of the existing projects and operations, including the Sawayaerdun Gold Project, in the foreseeable future.

For further information, please contact:

Felipe Tan, Chief Executive Officer
Tel: (852) 3586-6500

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. Forward looking information includes without limitation, statements regarding the size and quality of the Company's mineral resources, progress in development of mineral properties, the prospective mineralization of the properties, and planned exploration programs. 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 its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

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You can view the Next News Releases item: Thu May 24, 2012, GobiMin Announces First Quarter 2012 Results

You can view the Previous News Releases item: Tue Apr 3, 2012, GobiMin Inc -- Increases Indicated Resource Estimates at Sawayaerdun Gold Project to 56.5 Million Tonnes at 1.3 g/t Au for 2.3 Million Ounces in Zones I and IV

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