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GobiMin Updates on Sawayaerdun Gold Project

GobiMin Inc. has provided an update on the progress of its Sawayaerdun 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.


Gobimin Inc.


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