Mr. Peter Sametz reports

GEMINI CORPORATION REPORTS FISCAL 2015 RESULTS

Gemini Corp. has released its financial results for the fiscal year ended Dec. 31, 2015.

Gemini experienced very mixed results in 2015. Revenue increased 16 per cent to a record $167-million from $144-million in 2014. This was driven principally by the rail-loading terminal project that commenced in September, 2014, and was completed in the fourth quarter of 2015. The facility has been commissioned and tested with operating results exceeding the designed performance targets. Although this project was successful in driving revenue, there were significant cost overruns on the facility that seriously impaired profitability. Gross profit for 2015 was profoundly impacted by the cost overruns on the rail-loading terminal project, which resulted in negative margins for the Field Solutions segment. The majority of the excess costs incurred on this project was related to the site civil work and construction of the facility. Project commencement was delayed in 2014, and the schedule lengthened into 2015, with winter construction and other construction challenges resulting in significant unplanned incremental costs being incurred in 2015.

The net loss for 2015 was $17.2-million (22 cents per share) compared with the net earnings of $3.0-million (five cents per share) in 2014. The fourth quarter loss was $3.8-million (five cents per share) compared with net earnings of $1.5-million (two cents per share) in 2014. Non-cash goodwill impairment charges of $2.3-million for 2015 and $2.0-million in the fourth quarter were recognized due to the current challenging market conditions.

Looking beyond the cost challenges of the rail-loading terminal project, the corporation's fabrication, field projects and environmental business units all performed well in relation to the challenging conditions that existed throughout 2015 in the oil and gas services market. The fabrication operations in particular have been engaged to construct modules for some of the most prominent projects in Alberta at the present time. Its reputation for quality and on-time delivery is generating increasing opportunities for this business unit.

The continuing decline of commodity prices has created significant pressure to reduce costs throughout the oil and gas industry. The corporation has taken action to align costs to revenue by reducing staff, pay rates, and other variable and fixed costs. Management is monitoring industry information carefully to position the organization for success as the market stabilizes and begins to recover.

"Downsizing has occurred in all aspects of our business as the drive for efficiency, cost-effectiveness, and smart technical and operational solutions for our clients becomes paramount," stated Gemini's newly appointed president and chief executive officer, Peter Sametz. "We have excellent personnel at our Ponoka fabrication shop, our construction and maintenance group located in Fort Saskatchewan, and our environmental and regulatory groups in Calgary and Fort St. John. All of these units are busy and developing new business in this difficult environment. We remain optimistic that we will come out of the current economic downturn stronger, nimbler and more efficient."

                           CONSOLIDATED FINANCIAL HIGHLIGHTS  
  
Operating highlights ($000)                    Three months ended                     Year ended  
                                       Dec. 31, 2015      Dec. 31, 2014     Dec. 31, 2015      Dec. 31, 2014

Revenue                                   $   21,278          $  48,460        $  166,557         $  143,953
Gross profit                                   4,008              7,462            (2,267)            21,841
Income (loss) before interest and
taxes                                         (3,682)             2,190           (19,669)             4,605
Net income (loss)                         $   (3,763)         $   1,479        $  (17,183)        $    2,968
Earnings per share (basic)                $    (0.05)         $    0.02        $    (0.22)        $     0.05
Earnings per share (diluted)              $    (0.05)         $    0.02        $    (0.22)        $     0.04

We seek Safe Harbor.