Geoinformatics Exploration Inc.
TSX VENTURE : GXL

Geoinformatics Exploration Inc.

October 05, 2005 10:21 ET

Geoinformatics Announces Closing of Share Purchase by New Strategic Investor and Provides Partner Update

TORONTO, ONTARIO--(CCNMatthews - Oct. 5, 2005) - Geoinformatics Exploration Inc. (TSX VENTURE:GXL) today announced that Sun Valley Gold LLC ("Sun Valley") and Geologic Resources Partners LLC ("Geologic") have completed the purchase of 22 million shares of Geoinformatics on behalf of certain managed accounts and investment funds. Of the total, 20 million of the shares were purchased from St. Andrew Goldfields Ltd. (TSX- SAS) and 2 million shares were purchased from a third party associated to St. Andrew. As previously announced, the purchase price was approximately Cdn $3.5 million for the 20 million shares purchased from St Andrew (15 million of which are escrowed pursuant to the terms of the TSX Venture Exchange Value Escrow arrangement). In aggregate Sun Valley and Geologic collectively own or control approximately 28 million shares of Geoinformatics, representing approximately 31.1% of the total shares outstanding.

Geoinformatics is also pleased to announce that one of its alliance partners, Resource Finance and Investments Limited ("RFI") has closed an AUD $3.5 million Initial Public Offering earlier than expected, which was substantially over-subscribed. RFI also has an alliance with Zinifex Limited (ASX: ZFX) whereby Zinifex Limited will provide an additional AUD $1 million to RFI for exploration. RFI is scheduled to commence trading on the Australian Stock Exchange on October 18, 2005 following which it will commence an aggressive exploration program in Northwest Tasmania.

Geoinformatics and RFI have jointly assembled the largest single land position in the Mt Read Volcanics Belt in Northwest Tasmania, an area that hosts numerous large-scale base metals and gold deposits. RFI can earn up to a 75% interest in exploration licenses currently held by Geoinformatics by sole-funding exploration activities up to the completion of a pre-feasibility study. Geoinformatics will also receive 150,000 RFI shares upon the transfer of the exploration licenses into the names of both parties. RFI has also agreed to fund work performed by Geoinformatics in conducting focused application work on the exploration licensed areas. Geoinformatics will receive 750,000 shares and 150,000 options in RFI based on progress and milestones achieved throughout the project work. Geoinformatics will also be entitled to receive up to a further 5 million RFI shares upon the achievement of technical milestones based on multiples of ounces of gold or gold equivalent discovered and defined in the Mt Read Volcanics Intervention Project. (See press release issued on May 24, 2005).

Geoinformatics is also pleased to announce that a definitive agreement has been signed between the Company and Nickel Australia Limited on Geoinformatics' portfolio of 13 gold, silver and copper properties in Sonora, Mexico. (See press release issued August 2, 2005).

About Geoinformatics

Geoinformatics is a global resources company, which has developed a unique and innovative approach to resources exploration. The Company's team of geoscientists and technical experts has created a scientific and technology platform (the "Geoinformatics Process"), which integrates data aggregation, data mining and three-dimensional modeling to identify and prioritize exploration drill targets. 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 provide a pipeline of exploration resource projects to the mining community while retaining an interest in each project.

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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