Global Industrial Services Inc (fka GBSV)

[Rager]

Global Industrial Services, DD

GBSV on Nasdaq OTC, GID on Frankfurt
52 week trading range US$0.08 to $0.34
Shares outstanding approx. 26 million
Float 10 to 12 million

Global Industrial Services Inc. is a Nevada-based corporation incorporated in 1999. They are a

consolidating and vertically integrating engineering, drilling, equipment construction and mining

services. They also plan to participate in the cogeneration of power and water utilities.

Consolidation targets are small to medium-sized private companies that provide the synergy to

support other divisions of GBSV via their technology, resources, products and services. An

optioned aggregate project is also expected to be in production by year-end.

The Company's objective is to consolidate companies in these industries into a full service

organization whose combined strength will be far greater than those of the individual companies,

and whose activities will be global in scope.

Management

GBVS has an excellent management team with the required financial and operational expertise. They

also have a high level of expertise amongst their employees.

Terry A. Kirby, Chairman of the Board, is a marketing and corporate development specialist who

focuses on strategic alliances through mergers and acquisitions. Since 1996, Mr. Kirby has been a

key management figure in the electronic identification industry and is currently Chair and CEO of

Electronic Identification Inc. In addition to operating his own businesses, Mr. Kirby was

selected as Director of Corporate Sponsorship for the hugely successful 1986 World Exposition

held in Vancouver, British Columbia.

Reg D. Berry, BCom., Managing Director is an experienced executive with an extensive background

in commercial real estate brokerage, the investment industry, and investment banking. He is a

graduate of the University of Saskatchewan and has completed merchant banking and commercial real

estate transactions in excess of $750 million.

Charles Nuanez, President, Drilling Division. Mr. Nuanez, an experienced drilling executive, has

agreed to head up a team of experienced former owners/operators who have combined drilling

experience in excess of 100 years and have worked in over 16 countries. These individuals will

have employee contracts with GBSV while working under Mr. Nuanez's guidance.

Winston D. Stothert, B.Sc., M.Sc., President - Engineering Division. Mr. Stothert is the

President and CEO of Stothert Group, an engineering and management consulting firm. He has

experience in the management of large scale manufacturing operations and in design, construction,

start-up, and financial control for major projects with particular emphasis in chemicals

manufacturing, pulp and paper, wood products processing, electric power and shipping terminals.

Through his management and ownership of Stothert Group, Mr. Stothert has undertaken projects

across Canada and in more than 60 other countries. Mr. Stothert holds a Bachelor of Science

degree from the University of Alberta and a Master of Science degree from the University of

Toronto.

Mark T. Brown, C.A., is Vice President of Pacific Opportunity Company Ltd., a financial

consulting and merchant banking firm in Vancouver, B.C., will serve as Chief Financial Officer of

GIS. Mark has worked with PriceWaterhouseCoopers and became a Chartered Accountant in 1993, after

receiving a Bachelor of Commerce in 1990 from the University of British Columbia. Mark is a

director of several other public firms including Spartacus Capital Inc., Orphan Boy Resources

Inc. and Gateway Enterprises Inc. He has worked with Miramar Mining Corporation, Northern Orion

Explorations Ltd. and Eldorado Gold Corporation. His experience with these companies includes

raising equity and debt capital, performing due-diligence, reviewing acquisition targets,

operating and setting up rapidly growing companies, and managing national and international tax

planning projects.

Assets/Divisions

The company has two 100% subsidiaries: Stothert Group, Inc. and A.K. Drilling. It also has an 80%

joint venture with Dateline Drilling Inc. and an option to acquire the aggregate properties of

Trisil Minerals Inc.

GBSV's two drilling companies will provide drilling services for clients engaged in mineral

exploration, geotechnical surveying, environmental assessments, water well and methane gas

drilling. As we enter a new bull market in mineral exploration, GBSV services will see strong

demand. In fact all their drill rigs (approx. 40) but one are currently working.

A.K. Drilling, Ramsay, Montana

A.K. Drilling has provided drilling services to the mining industry since 1995. The company uses

the latest technology to support its drilling operations. Specializing in the mining industry,

the company has a reputation as being one of the most efficient drilling companies in the United

States. A.K. Drilling has established long-term relationships with many customers and joint

ventures with other mining exploration companies. They have excellent maintenance programs and

facilities that have enabled the company to maintain a 97% up time rate.

Drilling Operations

The equipment is designed primarily for exploration such as drilling of water and large diameter

monitoring wells using dual rotary, mud rotary and reverse circulaton methods. Geographic areas

of operations include the western U.S. and Peru. The A.K. client base includes private

landowners, state and federal landowners, construction companies, municipalities, and mining

companies.

Dateline Drilling, Missoula, Montana

GBSV, through it's subsidiary A.K. Drilling Inc., have formed a joint venture with Dateline

Drilling Inc. The joint venture corporation will be owned 80% by GBSV and is designed to maximize

efficiencies in equipment, personnel and client servicing. GBSV expects to acquire the balance of

Dateline during 2002.

Dateline Drilling is providing drilling services for companies engaged in the hard rock mining

industry as a drilling contractor specializing in exploration and definition reverse circulation

drilling for precious and base metals. Dateline is also providing drilling services to petroleum

clients involved in the extraction of coal bed methane gas in Wyoming.

Dateline Drilling's equipment is designed primarily for remote reconnaissance, exploration

drilling, and definition drilling focusing on the ability to deliver specialty equipment to

clients' specifications utilizing their in-house manufacturing capability.

Geographic areas of operation include western U.S., Mexico, Balkan Region, Alaska, and South

America. Client base includes major mining companies, junior mining companies, industrial mineral

corporations, and federal and state government agencies.


Summary - drill division

In the past several months, world prices for precious metals have risen considerably and mining

companies have raised $100s of millions in financing. GBSV is very active with methane gas

drilling in Wyoming and this will reach an all-time high level of activity for year 2002. An

unparalleled level of activity is taking place in GBVS's drilling operations with virtually all

rigs in use and GBSV is working on sourcing more equipment.

GBSV is currently running close to $1 million/month in drilling revenue and has approximately $12

million in contracts lined up. I expect the drilling division alone will have a very positive

impact on revenues and earnings and ultimately the share price.

Engineering - Stothert Group is wholly owned by GBSV

Since 1966, Stothert has provided technologies and multi-discipline engineering and management

services for industrial projects in North America and worldwide.

Stothert continues to be active in development of applicable new technologies and has achieved

significant successes around the world with it's Skewed Gas Flow Technology (SGFT) for reduction

of power and chemical boiler emissions. SGFT is a patented process developed by a senior Stothert

Engineer

The Stothert Group has well-established credibility with international financial institutions

such as The World Bank, the Asian Development Bank, the Commonwealth Secretariat, and the

Commonwealth Development Corporation. They are experienced and respected as an international

trade broker. To date, the company has conducted trade exchanges and performed engineering

services in more than sixty countries.

Stothert provides project management services to the Industrial Minerals, Pulp and Paper and

Power industries and for Government and International Agencies.

Stothert's Major Power & Cogeneration Clients include: Tembec Inc. Montenay Inc. B.C. Hydro /

TransAlta Epcor Power Development Corp. ATCO Electric Israel Electric Corp. Pacificorp

Stothert's Minerals Division provides comprehensive services covering ore analyses, feasibility

studies, recommended recovery processes, process design, capital and recovery cost estimates,

project planning, management of mine and recovery plant development, start-up and commissioning.

Stothert will supply any or all of these services to suit the client's needs.

Currently Stothert is a 40 man engineering firm and is on track to bring in revenues of US$5

million in 2002. They are negotiating some very large contracts that if concluded would have a

dramatic impact on revenue and earnings.

Two major contracts are being negotiated with existing clients which, if awarded, would double

Stothert Engineering's revenues in year 2002. A group like Stothert can actually benefit from the

fallout from a company like Enron as they expect to pick up a number of gas fired turbine

projects.

Minerals & Construction Aggregate

GBSV has an option to acquire the Sechelt aggregate project from Trisil Minerals. The option

includes a $0.25 per ton royalty and a cash payment that will come from production revenue. The

6,050-acre property is located just north of Vancouver and has excellent infrastructure support.

The Sechelt reserves can be mined by open pit keeping production costs low while the project's

location in the coastal area will reduce shipping and transportation costs to competitive levels.

In addition, a 230 kV transmission line crosses the property providing additional power, when

required, without need for expensive connections.

The property has in excess of 200 million tons of drill proven dolomite, limestone and granite

and is now ready for production. The permits have been issued for 500,000 tons and GBSV has

received its mineral leases from the Government Mineral Commissioner. GBSV is working with a

multi-national transportation company to ship and export its construction aggregate to the US

market.

The US aggregate market is almost a $15 billion/year market with most exports coming from Canada.

California alone uses 150 million tons of crushed aggregate per year and, with the lower Canadian

Dollar exchange rate with the US dollar, the timing is ideal for the export of Canadian crushed

stone. The Global Industrial Mineral division is projected to earn revenues in excess of US

$5,000,000 in year 2002 and may well exceed this number.

GBSV is contracting with a nearby aggregate operation for use of the necessary equipment so they

will not have a huge capital expense.

Aggregate production costs will likely be from $8/ton to $16/ton for longer hauls. Revenue to

GBSV will likely range from $10/ton to $20/ton for super pave aggregate and/or for Dolomite.

This is an excellent project that will be a real cash cow for GBSV and will also be an attractive

acquisition target. This comment from an independent firm sums it up very well.

"To the best of our knowledge, there are no known dolomite deposits of equal quality in the

Western parts of Canada and the U.S." Wright Engineering Ltd. describing the quality of the

Sechelt deposit.

Blue Sky

Further Acquisitions

GBSV has aligned itself with a European financial institution to raise the additional capital to

enable it to exercise further acquisitions which, if successful, would result in its total

revenues being multiples of their current run rate.

Financial

GBSV has little debt, which is owed to insiders of the company. They currently have a strong

revenue stream that is growing and currently running at a pace around US$12 million with

projections of $18 million for 2003. They have good cash flow from the drilling and engineering

divisions that should continue to grow strongly through acquisitions and as mineral exploration

levels increase.



Summary

I believe we are at the beginning of a new growth cycle in the mining and resource sector and

GBSV will be positioned perfectly to take advantage of this.

GBSV believes that the acquisition of Trisil uniquely positions it to pursue a multiple number of

construction and engineering initiatives on the west cost of North America. This high quality

mineral/aggregate property along with an experienced engineering firm will position GBSV very

competitively in the market place. I expect we will see numerous positive news announcements on

various projects in the months and years ahead.

GBSV has put in place a strong strategy and foundation for revenue and profit growth that is well

suited for the current and expected economic climate.

The stock is very undervalued based on only the drilling division. At $0.15 the market cap is

just under US$4 million which is only 1/3 of the estimated revenues from their drilling division

alone. As the Trisil property comes on stream, and assuming profit margins around 20% and another

10 million in share dilution, GBSV should earn around $0.10/share and I expect this could double

after 1 year of production aided by continued growth from their drilling division.

In other words, GBSV could have earnings greater than the current share price within a year or

so. In the near term I am expecting the stock to move up to the $0.50 area and to $1 or more in

the medium term (1 to 2 years).

The strongest revenue growth for GBSV is expected to come from the production and sale of

industrial minerals. Small-scale production is expected to begin during the fourth quarter of

2002. Revenues are expected to grow from $1 million this year to about $5 in 2003.


Average Volume: 130,600 (50-day) 99,100 (200-day)


For more information, please contact GIS Investor Relations at [e-mail].


CONTACT: Terry Kirby, 604/683-8358
[e-mail]
http://www.gbsv.com










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