Geoinformatics Exploration Inc.
TSX VENTURE : GXL

Geoinformatics Exploration Inc.

August 10, 2005 10:57 ET

Geoinformatics Announces $4 Million Private Placement Financing

TORONTO, ONTARIO--(CCNMatthews - Aug. 10, 2005) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OR TO UNITED STATES PERSONS

Geoinformatics Exploration Inc. (TSX VENTURE:GXL) ("Geoinformatics" or the "Company") announces that it intends to conduct a brokered private placement financing (the "Offering") for gross proceeds of up to $4,000,240. Salman Partners Inc. will act as lead agent for the Offering.

Geoinformatics will offer Units at $0.25 per Unit for proceeds of $2,500,000 (the "Unit Offering") and Flow-Through Units at $0.28 per Flow-Through Unit for proceeds of up to $1,500,240 (the "Flow-Through Unit Offering"). Each Unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will be exercisable to acquire one common share at $0.30 per share for a period of twenty-four months. Each Flow-Through Unit will consist of one common share to be issued on a "flow-through" basis and one-half of one flow-through warrant. Each whole flow-through warrant will be exercisable to acquire one common share at $0.30 per share for a period of twenty-four months.

Geoinformatics has granted to the agent the option to increase the size of the Unit Offering by an additional $2 million, exercisable by the agent up to two days prior to closing. Additionally, Geoinformatics and the agent may mutually agree, up to two days prior to closing, to increase the size of the agent's option by up to a further $2 million. In the event both options are exercised, the gross proceeds from the Offering of Units and Flow-Through Units would be $8 million. It is anticipated that closing of the Offering will occur in September 2005.

The proceeds of the Unit Offering will be used for working capital and general corporate purposes. The proceeds from the Flow-Through Unit Offering will be used to incur Canadian Exploration Expenses on the Redton project as well as other projects in the West Cordillera, British Columbia and the Yukon.

All of the securities issued under the Unit offering and the Flow-Through Unit offering will be subject to restrictions on resale for a period of four months.

The agent will be paid an aggregate fee of 7% of the gross proceeds from the Offering and also will receive broker warrants (the "Broker Warrants") equal in number to 10% of the aggregate number of Units and Flow-Through Units sold. Each Broker Warrant will be exercisable to acquire one common share at a price of $0.30 for a period of twenty-four months.

About Geoinformatics

Geoinformatics is a global exploration company focused on the resources industry that exchanges intellectual capital for equity. Geoinformatics has long term relationships with some of the most senior mining companies in the world and provides a pipeline of exploration resource projects to the mining community.

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 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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