GobiMin Inc. Invests in Balikun Coal Project in Xinjiang, China

Toronto-based GobiMin Inc. announced that it entered into an agreement with an existing shareholder (the vendor) of Fortune Aspect Limited (Project Holdco) to acquire a 49% equity stake in Project Holdco. Project Holdco in turn owns 98% of Xinjiang Ruide Mining Limited, a Chinese company which owns a 51% equity interest in an operating company holding the Balikun Coal Project. After completion of the transaction, GobiMin and the vendor will jointly have a controlling interest in the project. GobiMin itself will hold an indirect equity interest of 24.49% in the project and will participate in the management and operations. The project is located about 265 km. from the city of Hami, Xinjiang, China and the mining permit covers about 29.77 sq. km. GobiMin Inc., together with its subsidiaries, is engaged in the exploration, development and exploitation of mineral properties, mainly in the Xinjiang Uygur Autonomous Region of China.