Geoinformatics Exploration Inc.
TSX VENTURE : GXL

Geoinformatics Exploration Inc.

December 15, 2006 17:16 ET

Geoinformatics Announces Closing of Flow-Through Financing and Appointment of New Chairman

TORONTO, ONTARIO--(CCNMatthews - Dec. 15, 2006) - Geoinformatics Exploration Inc. (TSX VENTURE:GXL) ("Geoinformatics" or the "Company") is pleased to announce that it has completed its previously announced non-brokered equity private placement, raising Cdn$4,272,808 from the issuance of 23,737,820 flow-through units (the "Units") at a price of $0.18 per Unit. The proceeds from this financing will be used to advance the Company's Canadian projects located in British Columbia and Ontario, Canada. Included in the total Units issued is 427,778 Units subscribed to by insiders of the Company.

Each Unit consists of one common share issued on a "flow-through" basis (a "Flow-through Share") and one flow-through common share purchase warrant (a "Flow-through Warrant"). Each Flow-through Warrant entitles the holder to purchase one common share to be issued on a "flow-through" basis at a price of $0.20 per share until August 15, 2007. The Company may accelerate this expiry date if the closing price of the Company's common shares on the TSX Venture Exchange exceeds $0.40 for not less than 20 consecutive days in any 30-day trading period.

The Company has paid a cash finder's fee of $250,128 to certain agents, which included $66,400 to ZED Financial Partners ("ZED"). In addition, the Company granted 2,149,338 compensation warrants ("Compensation Warrants") to certain of these agents, including 639,819 to ZED, which represents 9% of the Units issued. Each Compensation Warrant is exercisable into one common share of the Company at a price of $0.25 per share for a twelve month term. A principal of ZED is a director of Geoinformatics.

The Flow-through Shares, Flow-through Warrants and Compensation Warrants are subject to resale restrictions for a period of four months and one day from the date of issuance.

Geoinformatics is also pleased to announce the appointment of Mr. Kevin L. Snook to the role of Chairman of the Board of Directors. Mr. Snook is an engineer and entrepreneur with over 20 years of experience in investment banking, private equity and venture capital, and joined the Geoinformatics' Board of Directors in June 2005. He replaces Dr. Michael Etheridge who has stepped down as Chairman due to other professional commitments, but remains a member of the Board of Directors.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State or to such persons in which such offer, solicitation or sale would be unlawful.

About Geoinformatics

Geoinformatics is a global exploration company which has developed a unique and innovative approach to mineral exploration. The Company is actively exploring several significant properties located in British Columbia (Redton, Kliyul, Mesilinka), the Battle Mountain Trend region of Nevada (Colorback), and Sinaloa, Province, Mexico (La Noria/Azulitas). The Company also has an extensive portfolio of joint ventures, other direct property interests and royalties covering a wide range of minerals in Australia and New Zealand and North America.

The Company has entered into a Master Strategic Alliance Agreement (the "Master Agreement") with Kennecott Exploration Company ("Kennecott") under which it is using use its scientific and technology platform (the "Geoinformatics Process") which integrates data aggregation, data mining and three-dimensional modeling to identify and prioritize 30 or more exploration drill targets over the first two years of the Master Agreement. Pursuant to the Master Agreement, Kennecott retains certain royalty and/or back-in rights. The Geoinformatics Process has been designed to assist in understanding and quantifying risk at a much earlier stage of the exploration cycle than has traditionally been available. The Company's objective is to advance its properties to a stage of commercial development by applying faster, less expensive and more reliable analytical methods to resource exploration.

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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