GobiMin Completed the Sale of Yanxi Copper Deposit for CAD 8 million

TSX-V: GMN

TORONTO, July 23 /CNW/ - Further to the press release on April 13, 2010, GobiMin Inc. ("GobiMin" or the "Company") is pleased to announce that, in accordance with the framework agreement signed by the Company and China Daye Non-Ferrous Metals Mining Limited ("China Daye"), the Company has completed the reorganization to form a new holding company ("Holdco") to hold 80% equity interest in Xinjiang Tongxing Minerals Limited ("Xinjiang Tongxing") (the "Reorganization"). Xinjiang Tongxing currently owns the Yanxi Copper Deposit in Hami, Xinjiang Uygur Autonomous Region of the People's Republic of China ("China"). In addition to the Reorganization, the conditions precedent listed in the framework agreement have been satisfied by both the Company and China Daye.

On July 14, 2010, the Company has entered into a Share Transfer Agreement (the "Transfer Agreement") with China Daye to dispose of the 100% equity interest in Holdco (the "Transaction"). The Company shall keep an 8% indirect equity interest in the Yanxi Copper Deposit after the completion of the Transaction. The main terms of the Transfer Agreement mirrored the terms of the framework agreement which have been disclosed in the press release dated April 13, 2010.

The Transaction was completed on July 22, 2010 and GobiMin has received all the cash consideration and the first lot of convertible bonds. After the mining license of the Yanxi Copper Deposit is granted, the Company shall receive the second and final lot of convertible bonds. GobiMin expects to receive the net proceeds of about HKD 60.48 million (CAD 8.16 million).

Mining License of Yanxi Copper Deposit

Xinjiang Tongxing is in the process of applying for the mining license of the Yanxi Copper Deposit. Should the mining license not be granted by December 31, 2010, GobiMin guarantees to refund to China Daye all the consideration received and in return, China Daye shall transfer the interest in the Holdco back to GobiMin. It is estimated that the mining license should be granted before the end of December 2010 according to the normal processing procedures in China. The related gain on disposal shall be recognised by the Company upon obtaining the mining license of the Yanxi Copper Deposit.

Exchange rate used: CAD 1= HKD 7.41

About GobiMin

As at March 31, 2010, GobiMin had approximately USD 53 million in cash and cash equivalent (approximately USD 0.78 per share based on the total issued capital of 68,282,302 shares).

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

As announced in its press release of February 9, 2010, GobiMin acquired an indirect equity interest of 24.49% in Balikun Coal Project in Xinjiang, China and will participate 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]