Geoinformatics Exploration Inc.
TSX VENTURE : GXL

Geoinformatics Exploration Inc.

September 22, 2005 17:26 ET

Geoinformatics Announces Second And Final Closing Of Equity Financing

TORONTO, ONTARIO--(CCNMatthews - Sept. 22, 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") is pleased to announce that it has completed the second and final tranche of its previously announced equity financing, issuing an additional 2,200,000 Units for gross proceeds of Cdn$550,000. Salman Partners Inc. (the "Agent") acted as agent in respect of the financing.

Under this equity financing, the Company issued a total of 14,000,000 Units at $0.25 per Unit (which included the Agent's exercise of an over-allotment option of 4,000,000 Units) and 5,358,000 Flow-Through Units at $0.28 per Flow-Through Unit, for total gross proceeds of Cdn$5,000,240. Each Unit consists of one common share and one-half of one common share purchase warrant. Each Flow-Through Unit consists of one common share issued on a "flow-through" basis and one-half of one common share purchase warrant. Each whole warrant is exercisable to acquire one common share of the Company at a price of $0.30 per share for a twenty-four month term.

The proceeds from 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.

The Agent received a cash commission equal to 7% of the gross proceeds of the financing and compensation warrants totaling 10% of the number of Units and Flow-Through Units sold. Each compensation warrant is exercisable to acquire one common share of the Company at a price of $0.30 per share for a twenty-four month term.

All of the securities issued under the financing are subject to resale restrictions for a period of four months from the date of issuance.

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 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 has been to bring a faster, less expensive and more reliable analytical methodology to resources 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 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.

Contact Information