GobiMin Announces an Update on Sawayaerdun Gold Project

TSX-V: GMN

TORONTO, Oct. 18 /CNW/ - GobiMin Inc. ("GobiMin" or the "Company") is pleased to provide an update on the progress of its Sawayaerdun Gold Project (the "Gold Project").

In 2009, GobiMin, through a wholly owned subsidiary, acquired a 70% equity interest in the Gold Project. The mining license covers an area of about 1.71 km2 and an application for an exploration license for a further area of 20.27 km2 is under processing. The Gold Project is located 200 km northwest of the city of Kashi, western Xinjiang, China and lies within the Tian Shan Gold Belt, which is one of the most promising gold belts in China.

Of the 22 known areas of identified mineralization based on the exploration works carried out before GobiMin's acquisition of the Gold Project, Zones I, II, IV and XI have been recognized as relatively large scale mineralization and Zone IV has been intensively explored and recognized as the most substantial mineralization. Based on the previous findings, GobiMin extended the detailed exploration works in the northern part of Zone IV above the elevations of 3,200 m and conducted general exploration on the deep part of the Zone IV gold vein, Zones I, II and XI, so as to determine the extension of banded vein, comprising numerical vertical/inclined drilled holes, trenches, and horizontal shaft/tunneling.

The main exploration works carried out this year include 35 drill holes with a total length of about 6,800 m and 33 trenches of approximately 1,350 m. Wardrop Engineering Inc. ("Wardrop") has been engaged to prepare a NI 43-101 technical report and, Mr. Greg Mosher, P.Geo., a Senior Geologist of Wardrop, with over 30 years of international geological experience, will carry out the engagement. In October 2010, Mr. Greg Mosher visited the site and reviewed the drilling program. The NI 43-101 technical report is expected to be available early next year and results of the drilling and sampling programs will be announced in due course.

All exploration work on the Gold Project is currently being suspended in preparation for winter, and will resume next year. A further drilling program will be carried out during 2011.

About GobiMin

As at June 30, 2010, GobiMin had approximately USD 48 million in cash and cash equivalent (approximately USD 0.71 per share based on the total outstanding capital of 67,828,802 shares).

In addition to the equity interest of 70% in the Sawayaerdun Gold Project, GobiMin owns an equity interest of 8% in the Yanxi Copper Deposit and four other joint ventures on base metal projects in Xinjiang, China.

GobiMin acquired in February 2010 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.

GobiMin is aggressively seeking opportunities to acquire high quality mining and exploration projects.

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 transaction as mentioned in this press release will be completed 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."

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For further information: Felipe Tan, Chief Executive Officer, Tel: [phone], Email: [email protected]