Norex Exploration Services Inc.

Norex Exploration Services Inc.

March 10, 2005 09:15 ET

Norex Exploration Announces Acquisition of Shares of GAPS and its Affiliate


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NOREX EXPLORATION SERVICES INC.

TSX VENTURE SYMBOL: NRX

MARCH 10, 2005 - 09:15 ET

Norex Exploration Announces Acquisition of Shares of
GAPS and its Affiliate

CALGARY, ALBERTA--(CCNMatthews - March 10, 2005) - Norex Exploration
Services Inc. (the "Corporation") (TSX VENTURE:NRX) is pleased to
announce that it has entered into a letter of intent to acquire all of
the issued and outstanding shares of Geophysical Applications Processing
Services Ltd. ("GAPS"), a private Ontario corporation, and its
affiliate, Geophysical Applications Inc. ("GA"), for a total purchase
price of $1,599,601. The purchase price is comprised of $1,066,401 cash
and the issuance of 1,254,589 common shares in the capital of the
Corporation (the "Common Shares"), at a deemed price per Common Share of
$0.425. Closing of the acquisition is conditional on the satisfaction of
various conditions typical to a transaction of this nature, including
the receipt of necessary regulatory approvals, the negotiation of
definitive agreements, the completion of satisfactory due diligence and
the obtainment of necessary financing.

GAPS and GA, collectively known as GAPS in the industry, with offices in
Guelph Ontario and Elmira N.Y. respectively will be operated as wholly
owned subsidiaries of Norex. Mr. David Schieck, founder, President and
C.E.O. of GAPS will be appointed Vice President, Eastern Operations and
to the Board of Directors of Norex. Mr. Schieck has a MSc.in Geophysics
from the University of Calgary specializing in converted wave seismic
and environmental applications.

GAPS is a full service company offering data acquisition including
design and planning through to permitting and data processing for oil
and gas as well as groundwater exploration, mining and engineering
applications. They own and operate two crews; an ARAM24 for large scale
2D and 3D projects in the Appalachian, Illinois and Michigan basins and
a smaller ARAM cable crew ideally suited to quick 2D confirmation lines
and environmental applications.

The Appalachian trend is seen as a potentially prolific source for
natural gas right at market and is starting to attract considerable
attention from the E & P industry. GAPS is currently experiencing 30%
growth and is expected to close its current year with revenues in the
order of $9 million. Continued, this would be very close to doubling the
current Norex revenue base.

The equipment utilised by GAPS is compatable with that of Norex. The
eastern seismic season is reciprocal to Norex in the western Canadian
basin such that equipment can be moved back and forth in the fall and
spring thereby reducing equipment rental charges considerably and
levelling the seasonal nature of seismic activity for the combined
company. The Norex processing facility in Calgary will be moved to the
east to compliment GAPS' Guelph based support centre where there is less
competition and a profitable local market.

In addition to GAPS the Corporation continues to investigate other
opportunities for potential acquisitions which will further contribute
to our geographic expansion and enhance the combined operations of GAPS
and Norex.

Norex Exploration provides 2D and 3D seismic data acquisition services
to the upstream Canadian resource industry. These services reduce
exploration and development costs and risks, while increasing drilling
success. Norex Exploration Services Inc. is listed for trading on the
TSX Venture Exchange under the symbol "NRX".

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Norex Exploration Services Inc.
    Ben Berg
    President and CEO
    (403) 291-0601
    Email: bberg@norexxpl.com
    or
    Geophysical Applications, Inc.
    Geophysical Applications Processing Services Ltd.
    David Schieck, President
    U.S. Office: (607) 734-2199 or Cdn. Office: (519) 763-3437
    Email: dschieck@compuserve.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.