Highlights                                                                  
                                                                            
As at and for the periods                                                   
 ended                           Three months ended        Six months ended 
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                                            June 30,                June 30,
                               June 30,        2010    June 30,        2010 
                                  2011  Restated (1)      2011  Restated (1)
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Financial ($ 000s, except $                                                 
 per share)                                                                 
Revenue                                                                     
 Mineral Division                  177           73        352          143 
 Oil and Gas Division              547          686        961        1,259 
Funds Flow (2)                     270          (41)       392          163 
 Per Share Basic (3)              0.01        (0.00)      0.01         0.00 
 Per Share Diluted (3)            0.01        (0.00)      0.01         0.00 
Cash Flow (Deficiency) from                                                 
 Operations                        (24)        (239)      (186)        (216)
 Per Share Basic (3)             (0.00)       (0.00)     (0.00)       (0.00)
 Per Share Diluted (3)           (0.00)       (0.00)     (0.00)       (0.00)
Net Earnings (Loss)                141          (12)       114         (178)
 Per Share Basic (3)              0.00        (0.00)      0.00        (0.00)
 Per Share Diluted (3)            0.00        (0.00)      0.00        (0.00)
Capital Expenditures                                                        
 Mineral Division                  616            -      1,292            - 
 Oil and Gas Division               10            -         15          157 
Total Assets                                                                
 Mineral Division                                       41,170       26,684 
 Oil and Gas Division                                   13,589        9,474 
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Oil and Gas Operations                                                      
Barrels of Oil Equivalent                                                   
 (BOE) per day (4)                 124          148        131          154 
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(1) The comparative highlights have been restated with the adoption of      
    International Financial Reporting Standards (IFRS).                     
(2) Funds flow is not a recognized measure under IFRS. For these purposes,  
    the Company defines funds flow as cash flow provided by operations after
    including investment dividend and interest income and the changes in
    non-cash investing working capital related to these sources of
    investment income.                                                      
(3) Geomark issued one common share upon incorporation on April 20, 2010,   
    and on July 6, 2010 issued 52,039,760 common shares as consideration for
    the net investment in Geomark Operations with an ascribed net book value
    of $21,152,000 as at December 31, 2009 and cancelled the original common
    share. For purposes of the per share calculations, it was assumed that
    all 52,039,760 shares issued have been outstanding since January 1,
    2010.      
(4) Barrels of Oil Equivalent (BOE) are calculated using a conversion ratio 
    of 6 MCF to 1 barrel of oil. The conversion is based on an energy 
    equivalency conversion method primarily applicable at the burner tip and
    does not represent a value equivalency at the wellhead and as such may
    be misleading if used in isolation.                                    


Operations

--  Diamond drilling continues on two of the Company's eight gold properties
    in the Timmins area of Ontario. Due to positive results from the first
    phase of drilling, the drill program was extended to approximately 6,700
    meters from an initial 4,000 meters. 

--  A total of 2,659 meters were completed in four drill holes on the 100
    percent owned and operated Thornloe gold property. All samples from this
    program have been in the lab for some time. Despite strong pressure from
    Geomark, the turnaround of results from the lab has been unacceptably
    slow and every effort is being made to receive them in the near future. 

--  On the operated Carr-Wilkie property, the first pass drill program of
    1,687 meters in three drill holes produced low grade gold values (1.3gmt
    gold over 10.8 meters, 2.2 gmt over 3.23 meters, and 7.4 gmt gold over
    0.4 meters; all in the same drill hole CW19-11) in an area of
    interesting geology and alteration (For further information, please see
    the Company's press release dated June 27, 2011). 

--  Follow-up drilling of the target at Carr-Wilkie commenced in July and a
    total of three additional drill holes (approximately 2,300 meters) was
    completed in mid August. A different assay lab has been engaged to do
    the sample work for the follow-up drill program. Results will be
    reported when received. 


Business Development

--  The Company's business strategy is to acquire early stage mineral
    properties and to conduct exploration programs on them to advance the
    prospects to advanced exploration property status or into defined
    economic deposits.  

--  Despite record high precious metal prices, recent market uncertainty is
    having an impact on the mineral exploration business. The readily
    available financing that junior exploration companies enjoyed previously
    appears to be tightening. While this is obviously not preferable to the
    industry as a whole, Geomark's large cash position of approximately $39
    million and cash flow derived from its oil and gas properties, dividends
    and interest income (approximately $2.5 million annually) provides it
    with a strong competitive advantage over its peers. 

--  Geomark personnel have been actively searching for new mineral
    exploration projects and are encouraged by some of the potentially
    available properties. Several hundred properties have been examined in
    the last nine months, with over 25 of these advancing to the
    Confidentiality Agreement stage and followed up with detailed analysis.
    Property visits have been undertaken to various projects in North and
    South America and will continue to be made in various locations in the
    United States and Canada. The Company's main focus is precious metals
    (gold and/or silver), but other commodities are being considered on a
    property by property basis. The Company remains optimistic that
    additional opportunities will develop in the near-term. 


Financial

--  Geomark's working capital position at June 30, 2011 was approximately
    $50.7 million, including the value of liquid investments of $11.7
    million. The current working capital, anticipated cash flow from oil and
    gas operations and interest and investment income are more than adequate
    to cover all planned expenditures for the remainder of the year. The
    Company's strong financial position provides the Company with
    flexibility and the means to act quickly in transacting potential
    property acquisitions.