SOURCE: Georgia Exploration Inc.

January 24, 2007 19:59 ET

Georgia Exploration Inc. Completion of Equity Financing

VANCOUVER, BC and HOUSTON, TX -- (MARKET WIRE) -- January 24, 2007 -- Georgia Exploration Inc. ("Georgia Exploration") (OTCBB: GXPL) announces that it has completed the first tranche of an equity financing for proceeds of $3,205,000. In connection with the financing, the company issued 3,205,000 units at a price of $1.00 per unit, with each consisting of a share in the common stock of the company, a Class A warrant and a Class B warrant. Each Class A Warrant may be exercised at a price of $2.00 for a period of 3 years to acquire one additional share. Each Class B Warrant may be exercised at a price of $3.00 for a period of 3 years to acquire one additional share. The shares and warrants are subject to restrictions on transfer pursuant to U.S. securities laws.

The proceeds from the sale of the units will be applied towards the acquisition and development of oil and gas interests in the Brushy Creek and Shamrock frio formation projects in Texas, the continued lease acreage acquisition and reserve development of the Mound Branch project in Elk County, Kansas and for general working capital purposes.

The offering of the units and the underlying securities has not been registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. Hedging transactions involving these securities or the securities issuable upon exercise thereof may not be conducted unless in compliance with the Act.

Contact Information

  • For more information, contact:

    Georgia Exploration Inc.
    Bassam Nastat
    President
    Tel. (713) 355-7001