Geoinformatics Exploration Inc.
TSX VENTURE : GXL

Geoinformatics Exploration Inc.

August 24, 2006 17:53 ET

Geoinformatics' Joint Venture Partner Reports Gold Intersections on Tasmanian Project

TORONTO, ONTARIO--(CCNMatthews - Aug. 24, 2006) - Geoinformatics Exploration Inc. (TSX VENTURE:GXL) ("Geoinformatics" or the "Company") is pleased to announce that its joint venture partner, Bass Metals Limited ("Bass Metals")(ASX:BSM), has reported gold intersections in early-stage drilling on their Mt. Charter Project in Tasmania, which is part of the Mt. Read Volcanic Alliance between the companies.

Geoinformatics is also pleased to provide an update on two other important alliance projects: the Lachlan Alliance with Gold Fields Ltd. ("Gold Fields") in New South Wales, Australia and Coromandel/Central Volcanic Region Alliance with Glass Earth Limited ("Glass Earth") in New Zealand.

Mt. Read Volcanic Alliance, Tasmania - Bass Metals Limited

Bass Metals has the right to earn a 75% interest in 11 exploration licenses held by Geoinformatics in Tasmania by funding exploration on the licenses to the completion of a pre-feasibility study.

In addition, Geoinformatics will earn equity in the form of Bass Metals shares upon the achievement of certain milestones in the Mt. Charter and Que River projects in Tasmania, which are not part of the 11 earn-in licenses. Geoinformatics already holds 600,000 Bass Metals shares with a current market value of approximately Aud$132,000 from the original joint venture agreement. Geoinformatics earns additional equity in tranches of 250,000 Bass Metals shares per 500,000 ounces gold-equivalent of reserve/resources outlined at Que River above a threshold of 250,000 ounces gold-equivalent and over 500,000 ounces gold-equivalent of reserve/resources outlined at Mt. Charter.

Geoinformatics has been compiling geological, geophysical and drill data from more than 1,300 open file reports and integrating the data into three-dimensional spatial datasets with the objective of generating drill targets on the 11 earn-in licenses.

Mt. Charter Results

The Mt. Charter project comprises an extensive outcropping gold-silver mineralized system. The objective of the current drill program is to scope the resource potential of the Mt. Charter alteration system and to enable a JORC-compliant mineral resource estimate to be generated by the conclusion of the program.

Bass Metals has reported the following drill results to-date (Please see Bass Metals' press releases dated August 16, July 11, June 16, and June 8, 2006, at www.bassmetals.com.au).



Table 1: Summary of Assay Results for Mt. Charter Drill Program
(1.0 g/t gold cut-off)
------------------------------------------------------------------------
Drill Hole From To Interval Gold Silver Zinc Lead
(m) (m) (m) (g/t) (g/t) (%) (%)
------------------------------------------------------------------------
MCD20 1.7 54.2 52.5 1.9 39 nsr(a) nsr(a)
------------------------------------------------------------------------
MCD21 0.0 80.0 80.0 1.6 61 nsr(a) nsr(a)
------------------------------------------------------------------------
MCD22 56.0 71.4 15.4 2.1 38 4.8 1.9
------------------------------------------------------------------------
83.9 91.9 8.0 2.1 27 2.9 1.0
------------------------------------------------------------------------
within a broader zone defined at a 0.5 g/t Au cut-off
------------------------------------------------------------------------
49.2 98.6 49.4 1.4 22 2.6 1.0
------------------------------------------------------------------------
MCD23 84.0 85.0 1.0 4.6 16 nsr(a) nsr(a)
------------------------------------------------------------------------
within a broader zone defined at a 0.5 g/t Au cut-off
------------------------------------------------------------------------
83.0 88.6 5.6 1.4 8 nsr(a) nsr(a)
------------------------------------------------------------------------
MCD24 No significant intercepts
------------------------------------------------------------------------
MCD25 No significant intercepts
------------------------------------------------------------------------
MCD26 12.0 32.0 20.0 2.0 47 0.8 0.5
------------------------------------------------------------------------
37.0 96.0 59.0 1.3 31 0.9 0.3
------------------------------------------------------------------------
within a broader zone defined at a 0.5 g/t cut-off
------------------------------------------------------------------------
4.0 96.0 92 1.3 33 0.8 0.3
------------------------------------------------------------------------
includes a zinc rich zone of greater than 1% Zn
------------------------------------------------------------------------
37 52 15 1.5 40 2.3 0.7
------------------------------------------------------------------------
MCD27 7.0 35.0 28.0 1.2 41 2.0 1.0
------------------------------------------------------------------------
40.0 49.0 9.0 1.3 32 0.6 nsr(a)
------------------------------------------------------------------------
within a broader zone defined at a 0.5 g/t cut-off
------------------------------------------------------------------------
3.0 54.0 51.0 1.1 33 1.3 0.6
------------------------------------------------------------------------
includes a zinc rich zone of greater than 1% Zn
------------------------------------------------------------------------
15.0 35.0 20.0 1.3 47 2.6 1.3
------------------------------------------------------------------------
MCD28 73.0 78.0 5.0 1.8 14 0.8 0.2
------------------------------------------------------------------------
91.0 96.0 5.0 1.1 7 0.2 nsr(a)
------------------------------------------------------------------------
101.0 105.0 4.0 1.1 10 1.9 0.4
------------------------------------------------------------------------
within a broader zone defined at a 0.5 g/t cut-off
------------------------------------------------------------------------
73.0 174.0 101.0 0.7 8 0.5 nsr(a)
------------------------------------------------------------------------
MCD29 4.8 39.0 34.2 1.4 27 0.5 0.2
------------------------------------------------------------------------
within a broader zone defined at a 0.5 g/t cut-off
------------------------------------------------------------------------
4.8 56.5 51.7 1.1 22 0.3 nsr(a)
------------------------------------------------------------------------
MCD30 17.0 28.0 11.0 1.5 27 0.6 0.2
------------------------------------------------------------------------
35.0 40.0 5.0 1.0 25 0.5 0.2
------------------------------------------------------------------------
within a broader zone defined at a 0.5 g/t cut-off
------------------------------------------------------------------------
16.0 43.0 27.0 1.0 21 0.4 nsr(a)
------------------------------------------------------------------------
80.0 84.0 4.0 1.3 29 0.3 nsr(a)
------------------------------------------------------------------------
MCD31 1.0 17.0 16.0 1.4 30 0.5 0.2
------------------------------------------------------------------------
41.0 49.0 8.0 1.1 36 2.6 1.1
------------------------------------------------------------------------
within a broader zone defined at a 0.5 g/t cut-off
------------------------------------------------------------------------
0.0 52.0 52.0 1.0 19 0.8 0.4
------------------------------------------------------------------------
MCD32 0.0 6.0 6.0 1.3 32 0.7 0.2
------------------------------------------------------------------------
111.0 117.0 6.0 1.1 14 1.9 0.4
------------------------------------------------------------------------
153.0 164.0 11.0 1.1 19 1.0 0.4
------------------------------------------------------------------------
MCD33 11.0 19.0 8.0 1.5 27 0.3 nsr(a)
------------------------------------------------------------------------
129 134.8 5.8 1.4 28 1.0 0.4
------------------------------------------------------------------------
MCD34 17.0 89.0 72.0 1.8 73 0.8 0.2
------------------------------------------------------------------------
within a broader zone defined at a 0.5 g/t cut-off
------------------------------------------------------------------------
14.0 106.0 92.0 1.6 62 0.7 0.2
------------------------------------------------------------------------
MCD1 77.0 84.0 7.0 1.2 6 0.3 nsr(a)
------------------------------------------------------------------------
108.0 133.0 25.0 1.0 10 0.5 nsr(a)
------------------------------------------------------------------------
163.0 177.0 14.0 1.2 63 0.2 nsr(a)
------------------------------------------------------------------------
MC2 No significant intercepts
------------------------------------------------------------------------
MC3 No significant intercepts
------------------------------------------------------------------------
MAC26 3.0 58.4 55.4 1.5 36 1.0 0.5
------------------------------------------------------------------------
includes a zinc rich zone of greater than 1% Zn
------------------------------------------------------------------------
23.5 57.0 33.5 1.9 43 1.4 nsr(a)
------------------------------------------------------------------------

(a) "nsr" indicates "no significant results"


Lachlan Alliance - Gold Fields Ltd, New South Wales

In partnership with Gold Fields, Geoinformatics is exploring for Ordovician porphyry gold-copper deposits on 12 exploration licenses in the Lachlan Fold Belt in New South Wales, Australia. The Lachlan Fold Belt is a prolific mineral province hosting Cadia-Ridgeway, a world-scale porphyry system, which reportedly holds more than 35 million ounces of gold and 4 million tons of copper. Geoinformatics has applied for two additional exploration licenses which would increase the total number of licenses to 14.

In July 2004, Geoinformatics entered into an agreement with Gold Fields under which Gold Fields was committed to spend an initial Aud$1million on the Lachlan exploration licenses over a 30-month period to earn the right to identify and select specific high-quality "targets" as individual exploration projects. On each "selected" project, Gold Fields can earn a 75% interest by spending an additional Aud$1M. At the completion of that stage, Geoinformatics has the option to contribute on a pro rata (25%) basis or allow its interest to be diluted until, at a level of 10%, Geoinformatics' interest would be converted to a 2.5% net smelter royalty (NSR).

Gold Fields has completed the initial Aud$1 million expenditure under the agreement and is currently funding the next Aud$500,000 of exploration expenditures. Should Gold Fields select a target before spending the Aud$500,000, they will have the right to earn an 80% interest in that target by spending an additional Aud$1 million. An expanded exploration program from August to January 2007, including air-core drilling, is currently underway.

Coromandel/Central Volcanic Region Alliance - Glass Earth Limited, New Zealand

Geoinformatics holds a 2% NSR under a strategic alliance agreement on all targets drilled by Glass Earth Limited ("Glass Earth", TSX-V) on the approximately 9,900 sq. kms. of exploration licenses in the Coromandel/Central Volcanic Region of the North Island of New Zealand. Glass Earth has announced that it has commenced a drill program in the Tahunaatara area (Please see the Glass Earth press release dated May 23, 2006 at www.glassearthlimited.com).

The Coromandel/Central Volcanic Region Glass hosts the 10 million ounce Waihi/Martha Hill Mine owned by Newmont Mining. Glass Earth is targeting similar epithermal gold deposits on its properties, which include claims adjacent to the Waihi mine that contain the strike continuation of a number of the Waihi lodes.

In addition to the current drilling, Glass Earth has completed ground resistivity and soil gold geochemical surveying of 14 targets generated by Geoinformatics and Glass Earth, of which six targets have coincident magnetic lows (possibly associated with hydrothermal alteration), gravity highs (interpreted to be silicification), resistivity highs (interpreted to be silicification), and low level gold in soils (up to 30 ppb Au).

Qualified Persons

The technical content of this release has been provided by Dr. Nick Archibald, CP Geo/FAIMM. Dr. Archibald is a qualified person (as defined by National Instrument 43-101) who has more than 30 years experience in the minerals exploration/mining industry. Mr. Mike Rosensteich (MAIMM) of Bass Metals is a qualified person providing technical information on the Mt Charter and Que River properties Mr. Simon Henderson (MAIMM) of Glass Earth is a qualified person providing technical information on the Glass Earth properties.

About Geoinformatics

Geoinformatics is a global resources company which has developed a unique and innovative approach to mineral exploration. The Company is actively exploring three significant properties located in British Columbia (Redton), the Battle Mountain-Eureka Trend region of Nevada (Colorback), and Sinaloa Province, Mexico (La Noria-Azulitas). These properties have been acquired in part as a result of a relationship between Geoinformatics and the Kennecott Exploration Company ("Kennecott"), a subsidiary of Rio Tinto, plc, which has been recently formalized into a US$20 million broad-based, multi-year exploration program under a Master Strategic Alliance Agreement (Please see Geoinformatics' press release of August 14, 2006). The Company also has an extensive portfolio of other property interests, royalties and equity interests in alliance partners covering a wide range of minerals in North America, Australia, New Zealand, Tasmania and the Ukraine.

Under the Kennecott Agreement, Geoinformatics will 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 next two years in designated regions covered by the Kennecott Agreement. 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 using 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 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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