Geoinformatics Exploration Inc.
TSX VENTURE : GXL

Geoinformatics Exploration Inc.

January 17, 2007 15:51 ET

Geoinformatics Closes First Tranche of Convertible Loan Facility

TORONTO, ONTARIO--(CCNMatthews - Jan. 17, 2007) - Geoinformatics Exploration Inc. (TSX VENTURE:GXL) ("Geoinformatics" or the "Company") announced today that it has completed the initial drawdown of US$10 million under the previously announced long-term US$20 million convertible loan facility (the "Convertible Facility") with Geologic Resource Fund LP ("GRF"). GRF is managed by Geologic Resources Partners LLC, a related party to Geoinformatics, which, together with its affiliates, hold a 25.5% common equity interest in Geoinformatics.

Advances under the Convertible Facility bear interest at 5% per annum and can be converted into common shares of Geoinformatics at the option of GRF at a conversion rate of $0.25 per share until August 28, 2008 and thereafter at a conversion rate of $0.275 per share. In limited circumstances, the Company may require conversion of a portion of the amount drawn under the Convertible Facility at the prevailing conversion price. The Convertible Facility will mature on August 28, 2009.

Geoinformatics will pay a commitment fee of 5% per annum in respect of the funds available under the second tranche of the Convertible Facility until it is drawn upon or is cancelled. Geoinformatics has the option of paying both interest and the commitment fee in either cash or shares, with the effective issue price of the shares equal to the average closing price of the Company's shares for the 20 trading days ending 5 business days prior to such payment date. Geoinformatics has issued 1,196,365 common shares to GRF in satisfaction of the commitment fee for the period August 29, 2006 to December 31, 2006.

Proceeds from the initial drawdown of US$10 million were used to satisfy the outstanding amount under a short-term bridge loan facility with GRF and the balance, of US$1,857,782, will be used to fund the Company's obligations under the Master Strategic Alliance Agreement entered into with Kennecott Exploration Company and for general working capital purposes.

This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our current Annual Information Form and other recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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