Geoinformatics Exploration Inc.

Geoinformatics Exploration Inc.

March 30, 2006 10:46 ET

Geoinformatics Provides an Update on Strategic Alliances

TORONTO, ONTARIO--(CCNMatthews - March 30, 2006) -

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 provide an update on the status of its Strategic Exploration Alliance with Kennecott Exploration Company ("Kennecott"), related financings, and other exploration alliances where drilling programs are currently underway.

Geoinformatics is undertaking a series of initiatives with the intent of transforming itself into a premier mining exploration company focused on providing a pipeline of world class projects for the global mining industry. To achieve this, Geoinformatics intends to use its data aggregation and Geoinformatics Process on known, highly mineralized terranes with a wealth of historical exploration data, and undertake sophisticated, risk-managed targeting while using methodologies similar to those employed in the oil industry. As a result of these initiatives, Geoinformatics expects to drill test more than 60 of its quality precious metal, base metal and uranium targets over the next 24 months, either by funding the drilling internally or funding to be provided through its joint venture and/or alliance partners. Almost all of these targets were generated by the Geoinformatics Process. The Company is well-positioned to capitalize on its extensive target generation programs undertaken over the past three years.

In order to achieve this transformation, Geoinformatics has entered into a strategic exploration alliance with Kennecott that focuses on terranes in the Cordilleran of North and Central America which are host to some of the largest copper, lead, zinc, silver and gold deposits in the world. Geoinformatics has also signed an agreement for a convertible loan facility for up to of US$20 million and intends to undertake one or more equity financings which will reduce the funding available under the convertible loan, dollar for dollar.

Kennecott Strategic Exploration Alliance

Geoinformatics has entered into a strategic exploration alliance with Kennecott covering parts of Mexico, the US and Canada (see Company press release dated December 12, 2005). A Master Agreement is currently being finalized based on an agreement in-principle by both companies as to its terms. The Master Agreement consolidates earlier agreements between Geoinformatics and Kennecott covering the Yukon and British Columbia, Great Basin (Nevada and western Utah) and the South West Porphyry Province (Arizona, western New Mexico, Sonora and Chihuahua) where major projects of data aggregation through to targeting have been completed or are currently underway.

The broad terms of the Master Agreement are:

- Kennecott has given Geoinformatics access to its data covering areas primarily in Alaska, Nevada, Yukon, British Columbia, Arizona, New Mexico and Mexico.

- Kennecott will provide Geoinformatics with four "properties of merit" in the first two years of the Master Agreement, with La Noria-Azulitas, Sinaloa, Mexico being the first of such properties.

- Geoinformatics will explore for base metals, precious metals and uranium deposits of a size and quality of interest to Kennecott.

- In the event that any of the targets drilled by Geoinformatics meet Kennecott's criteria for possible development, Kennecott will have an opportunity to exercise a one-time back-in right, up to the completion of an order-of-magnitude study. If Kennecott elects not to exercise its back-in right, the targets become 100% owned by Geoinformatics with Kennecott retaining a 2%NSR.

- Geoinformatics will commit to spend US$20 million on exploration programs that drill 40 targets over a two year period.

- The Master Agreement can be renewed by agreement of the parties after the initial 2 year term provided Geoinformatics continues to spend US$10 million per annum and drill 20 targets per annum.

Financing Arrangements

In order to give effect to the terms of the Master Agreement with Kennecott, Geoinformatics entered into a binding letter agreement with Geologic Resource Fund LP for a US$20 million unsecured convertible loan facility (the "Facility") in connection with the Kennecott Strategic Exploration Alliance (see Company press release dated February 14, 2006).

Prior to closing the Facility, Geoinformatics has agreed to use its best efforts to complete an equity financing, and any amounts raised under such equity financing will reduce the funding available under the Facility, dollar for dollar. Geoinformatics is currently in discussions with investment dealers to conduct one or more equity financings by way of private placement, public offering or both.

43-101 Reports

Geoinformatics has commissioned SRK Consulting to provide 43-101 technical reports on two key exploration projects in the Kennecott Exploration Alliance; Takla Redton in British Columbia and La Noria-Azulitas in Mexico. It is expected that these reports will be completed in April 2006.

Upcoming Exploration Activities within the Kennecott Strategic Exploration Alliance

The Company anticipates that the following projects will be explored and drilled during the upcoming exploration season:

- Takla-Redton; The Redton project is located between the Kemess and Mt Milligan projects within the Quesnell Trough, British Columbia (see Company press releases dated June 9, 2005 and January 23, 2006). A detailed aeromagnetic and radiometric survey was completed over the 1,180 sq km claim holding in late 2005. This survey was incorporated into an extensive digital data base of all available previous exploration in the area. Interpretation of the geology, geochemistry and geophysics has led to the identification of four copper-gold targets with coincident geochemical and geophysical anomalism characteristic of porphyries. At least 7 other targets with similar geophysical signatures have no previous record of geochemical sampling.

In addition to the porphyry targets, the airborne radiometric survey identified two significant uranium/thorium anomalies, one of which is coincident with an old uranium prospect where up to 0.12% uranium was encountered in a rock chip sample from a pegmatitic alaskite granite.

A significant drilling program is planned at Redton in 2006.

- La Noria-Azulitas; La Noria is a series of intrusion-related hydrothermal breccias and sulphidic fracture zones with Cu-Mo-Ag-Au mineralization (see Company press release dated December 12, 2005). Confirmation of the mineralization at the Azulitas pipe and drilling of the other untested pipes in the La Noria project will be a priority for 2006.

- Nevada; Geoinformatics has staked 12.5sq km in the Cortez trend, some 15km to 20km north of the Pipeline deposit and the recently discovered Cortez Hills deposit. Exploration during 2005 revealed structurally-controlled fracture zones in siliciclastic rocks of the Upper Plate of the Robert Mountains thrust with strongly anomalous Au, Ag and As values (see Company press release dated January 23, 2006). Diamond drilling of these claim blocks will be part of the 2006 exploration program.

Other Alliances with ongoing drill programs

In order to focus its resources on the Kennecott Exploration Alliance, Geoinformatics has entered into alliances, and will continue to enter into alliances, with exploration companies on its remaining properties with the goal to free-carry Geoinformatics through early phase exploration.

- Bass Metals, Tasmania; Bass Metals continues to drill at Que River and Mt Charter where significant base metal and precious metal mineralization has been encountered in recent drilling (see Company press release dated January 25, 2006).

- Nickel Australia, Sonora (Mexico): Nickel Australia is currently undertaking a 4,000 metre drill program (see Company press release January 23, 2006). Two rigs are currently on site and four holes have been completed. High grade gold and silver mineralization has been intersected at the Tabisco project. Initial results include:


Hole North East Dip / From To Interval Au Ag AuEq
no (m) (m) Azimuth (m) (m) (m) (g/t) (g/t) (g/t)
TABDD 3 303 750 623 636 -50 16.1 17.8 1.7 22.0 332 27.5
- 01 degrees/
66.8 70.3 3.5 4.45 161 7.14
135.9 136.7 0.8 5.77 849 19.9
TABDD 3 303 751 623 636 -70 28.4 29.9 1.5 0.98 18.8 1.30
- 02 degrees/
44.4 46.9 2.5 1.09 69.2 2.24

NOTE: Samples assayed at ALS Chemex (Vancouver) using method GRA21 (gold) & AA46 (silver)

Drill intercepts calculated as weighted averages using a 1.0g/t AuEq cut-off and no top cut

AuEq (gold equivalent) grade has been calculated using gold to silver price ratio of 1:60

Assay results from a third hole at Tabisco have yet to be received. These holes drilled into a quartz vein system that extends over a strike length of approximately 1,000 metres. Rock chip sampling of these quartz veins has confirmed high grade gold and silver mineralization (refer to Company press release dated January 23, 2006). A fourth hole at the San Juan project failed to intersect any significant mineralisation.

- Midas Resources, Alaska: Midas and Geoinformatics have just signed a Joint Venture Agreement (refer to Midas press release dated March 16, 2006; covering the Uncle Sam gold property near Pogo in Alaska. Midas has moved a reverse circulation rig on site to drill 16 holes totaling 2,000 metres and results are expected to be available within weeks.

Qualified Person

The technical content of this release has been provided by Dr. Nick Archibald, CP Geo/FAIMM and Mr. Gerry Bidwell PGeo. Dr. Archibald and Mr. Bidwell are qualified persons (as defined by National Instrument 43-101) who each have more than 30 years experience in the minerals exploration/mining industry. Mr. Tony Rovira (MAIMM) of Nickel Australia is a qualified person providing the technical information on the Sonoran Properties, Mexico.

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.

The Company's 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.

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 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

  • Geoinformatics Exploration Inc.
    Ms. Petra Decher
    President & Chief Financial Officer
    (416) 861-1300 ext 225
    Geoinformatics Exploration Inc.
    Dr. Nicholas Archibald
    CEO and Vice-Chairman
    (416) 861-1300 ext 224
    Geoinformatics Exploration Inc.
    330 Bay Street, Suite 1109
    Toronto, ON M5H 2S8