NEWS RELEASE August 1, 2008
Not for distribution to U.S. newswire services or for dissemination
in the United States or to United States persons
GEOINFORMATICS ANNOUNCES BRIDGE FINANCING WITH GEOLOGIC RESOURCE PARTNERS LLC TO REPLACE $25 MILLION PRIVATE PLACEMENT
Toronto, Ontario ? Geoinformatics Exploration Inc. (TSX-V: GXL) (?Geoinformatics? or the ?Company?) announces that it has received formal notification from Geologic Resource Partners LLC (?GRP?) that GRP will not proceed with a conditional $25 million private placement announced on June 11, 2008, and approved by the Company?s minority shareholders at the Company?s annual and special meeting of shareholders on July 11, 2008.
GRP has offered to extend a short-term loan (the ?Loan?) of up to Cdn$5.5 million on a secured basis to the Company to fund the Company?s on-going exploration programs and working capital. The proposed Loan may be drawn down in tranches and bears interest at a rate of 12% per annum, payable monthly. The Loan will mature on February 28, 2009. The Company expects to finalize the terms of the Loan and to enter into a binding agreement with GRP in the coming days and will provide further details in a subsequent announcement.
In light of the termination of the conditional $25 million private placement, the Company will not proceed with its previously announced stock consolidation (please see the Company?s press release of June 11, 2008, for further details with respect to the private placement and stock consolidation).
About Geoinformatics
Geoinformatics is a North American-focused minerals exploration company which has developed a unique approach to exploration applying innovative and proprietary technology.
The Company announced an independent NI 43-101-compliant mineral resource estimate with an Indicated Resource of 840,000 ounces of gold and an Inferred Resource of 2.7 million ounces on the initial discovery zone at the Whistler Project in southern Alaska. The Indicated category contains 30 million tonnes grading 0.87 g/t gold, 2.46 g/t silver and 0.24% copper and the Inferred category contains 155 million tonnes grading 0.62 g/t gold, 2.15 g/t silver and 0.19% copper. Significant copper and silver mineralization increases the Indicated gold-equivalent mineral resource to 1.3 million ounces and the Inferred mineral resource to 4.4 million ounces.
Geoinformatics is also exploring several advanced projects located in Sinaloa (Mexico), Utah, the Cortez Trend region of Nevada, and British Columbia. Geoinformatics has an extensive portfolio of other direct and indirect property interests, joint ventures, and royalties covering a wide range of minerals in Mexico, Australia, New Zealand and North America.
For Further Information Please Contact:
Ms. Petra Decher
President & Chief Financial Officer
Tel: 416-861-1300 x225
Email: petrad@geoinformex.com
Geoinformatics Exploration Inc.
330 Bay Street, Suite 1109
Toronto, Ontario M5H 2S8
www.geoinformex.com
This news release includes certain forward-looking statements concerning the future performance of Geoinformatics? business, operations and financial performance and condition, as well as management?s objectives, strategies, beliefs and intentions, including in respect of its intent to finalize a loan arrangement with GRP. 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 Geoinformatics? securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and the reader is cautioned 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.