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To: D. K. G. who wrote (31777)	3/15/2005 12:43:09 PM
From: GARY P GROBBEL	Respond to of 120405

GKX.V...Gemini Corp... .75/.78 strong 9mo results here plus outlook or 4th qtr and 2005 also strong-30m out. See report on Sedar.com. Solid energy play. 9mo rev $28m vs $17.8m, net inc $2m vs $402k, per sh $.06 vs $.01. All figures C. MESSAGE TO SHAREHOLDERS We are pleased to provide our report on the Company’s activities and financial results for the period ending September 30th 2004. Our business during the quarter remained very strong and is reflected in the financial results we are providing. At the beginning of the year management set out a plan for 15% growth and to date we are well above meeting that objective. A summary of the financial results are provided in the table below. Our business continues to grow based on four key factors: 1) continued strong commodity prices of oil and gas, 2) our success in entering new areas of business such as cogen and forestry projects, 3) continued growth in the oil and gas juniors, and 4) the continued growth within our core and long term client base. We will use this base for developing a platform to support new growth and expansion as we develop our 2005 plans. OPERATIONS The engineering sector continues to experience stable work loads. During the third quarter activity remained at high levels as expected. Although booking of new work slowed down during the summer months our backlog remains strong. It is expected that as we enter the winter season new opportunities will increase. The major issue facing this sector of our business continues to be finding additional staff needed to support our growth. As evident throughout the province the demand for professionals is very high. The Company has a continuous program to search for additional staff. Activity within the fabrication division remained high during the quarter. Our key focus has been completion of the Xergy Sulphur Recovery Plant. The scope of supply was dramatically increased during design stage and that in turn moved fabrication work into the later part of the year. This division was successful in acquiring a significant inventory of shop production equipment which will increase efficiencies in several areas and reduce rental costs. This equipment, valued at over 1.3 million dollars was acquired for pennies on the dollar. A year ago management had developed a long term plan with respect to becoming the preferred fabricator to several clients. This objective is being accomplished and we expect that next year revenues from these clients could become 20% of the shop business and continue for several years. The fabrication division continues to support our activities toward sale of the OTSG (Once Through Steam Generators). Although our first proposal was not successful interest continues to be high and several clients recognize the technical benefits of this design. The construction activities of the Company experienced a dramatic increase in activity for during the quarter. At the end of Quarter 2 we mentioned the success in acquiring $5 million dollars of work. This work was successfully completed during the quarter and since then we have been successful in getting an additional $3.5 million with strong probability of a further $4 to $5 million of project work. Most of the latter will be started in 2005. With respect to our contract operations activities they remain constant and in line with our 2004 plan. Management is working on developing this business further in the new year. The Company continues to believe that there are opportunities on which we can capitalized, especially in the junior oil and gas market. GenSolutions continues to develop its activities and will meet its objectives for 2004. We are developing a marketing plan for 2005 which is expected to ramp up the growth for this operation. GenSolutions has assumed responsibility for our activities in promoting our biomass and biogas cogen activities. A significant amount of effort is being consumed in this area. Results are starting to show in that we are preparing a plan for an R&D project for a major municipal client in this area. Interest continues to be strong in the thermal hydrolysis technology we are pilot testing at Ponoka. NEW VENTURES Gemini continues with its program to diversify its business. As noted, we are seeing the biomass activities starting to take place. Our wind development is also continuing with negotiations on a PPA (Power Purchase Agreement) relative to the Saskatchewan lands. We are also in discussions to develop the Alberta lands. In addition to these longer term plans the Company very recently added a maintenance services group within the Kinetic Projects operation. This opportunity developed as a result of the success experienced in our construction activities. Since this service is different from construction a new group was formed, and Mr. Ross King has joined the company to manage this business. Ross brings over twenty five years experience in maintenance services to the Company. The expectation is that we will require three to four months to develop all the processes, procedures and market the services before any revenues of significance will occur. However, in the long term we expect this venture to become a significant contributor to our growth and bring opportunities to both engineering and fabrication groups. Last quarter we noted that the Company will relocate to downtown Calgary in new space approximately 30% larger than our current space. Work is on schedule and we expect to be in the new space by mid December as planned. At the time we felt this would carry us through to 2006. However, due to continued and faster-than-expected growth we will enter this space with only 8% vacancy and hence we are already negotiating for additional space in the same building. At this time we are reasonably confident that our goals set for 2004 will be met. We are excited about the progress made during the year to this point and the foundation that has been set to move your company forward. Our plans for 2005 are almost complete and we are looking toward the New Year with excitement. As this will be the last report until the new year I would like to express a sincere thank you to our employees in all areas who have worked extremely hard to deliver a quality product in a safe manner to our clients, to our Board of Directors for their guidance and to our shareholders for their continued support. I wish everyone all the best for Peace, Health and Prosperity in the New Year.