Geoinformatics Announces Revisions to Exploration Alliance with Kennecott.

TORONTO -- Geoinformatics Exploration Inc. (TSX VENTURE:GXL) ("Geoinformatics" or the "Company") is pleased to announce it has entered into a non-binding Letter of Intent (the "LOI") with respect to an exploration alliance ("Revised Exploration Alliance") with Kennecott Exploration Company ("Kennecott"), a subsidiary of Rio Tinto plc. The Revised Exploration Alliance will cover parts of Mexico, the US, and Canada but will exclude areas covered by pre-existing agreements with other companies. The proposed alliance is subject to Geoinformatics establishing the financial capacity to carry-out a US$20 million exploration program over 24 months from, and to the execution of the formal binding agreement (the "Master Agreement") by, January 31, 2006.

Under the terms of the LOI, Kennecott will transfer four "properties of merit" to Geoinformatics during the twenty-four months from February 1, 2006. These properties will have had some positive drilling results but will not have met Kennecott's corporate investment criteria. Azulitas in Sinaloa Province, Mexico is the first of the four "properties of merit" (See Azulitas below and will be transferred to Geoinformatics, immediately after the Master Agreement is signed.

Geoinformatics will undertake exploration for deposits of base metals, precious metals and uranium, of a size and quality to be of interest to Kennecott. Projects will be held in trust by Geoinformatics. Kennecott will have back-in rights that will allow it to acquire a 51% or 60% interest in those properties as well as the "properties of merit". Those properties that Kennecott does not exercise its back in right will become 100% owned by Geoinformatics, with Kennecott retaining a 2% net smelter return royalty.

Geoinformatics will use its exploration expertise in targeting, modeling and analyses to identify the targets for testing. It will manage and fund a US$20M exploration program over a twenty-four month period. The Revised Exploration Alliance will provide for exploration activities from Mexico through to Alaska. Under existing arrangements Kennecott has provided properties and targets, supplementary technical support and its proprietary exploration data for the South West Porphyry Project covering Sonora and Chihuahua Provinces in Mexico, Arizona and western New Mexico, the Great Basin Project covering Nevada and Western Utah, and the West Cordillera Project covering British Columbia, the Yukon and certain parts of Alaska. Geoinformatics has acquired significant mineral titles in British Columbia, the Yukon, Alaska, Nevada and Mexico as a consequence of analysis of these and other databases (refer Geoinformatics' press releases dated May 11, 2005, June 9, 2005, August 2, 2005 and August 29, 2005). These mineral titles will constitute part of the portfolio of properties to be tested under the Revised Exploration Alliance.

Master Agreement

The Exploration Alliance is subject to the execution of a Master Agreement by January 31, 2006 which will incorporate and merge the terms of the various existing agreements between Geoinformatics and Kennecott, and will standardize the terms of Kennecott's back-in right. The LOI is a non-binding agreement and will terminate upon execution of the Master Agreement, or February 1, 2006 whichever is sooner.

Upon signing the Master Agreement, Kennecott will commit to provide four "properties of merit" over the two year period from February 1, 2006 and Geoinformatics will commit to expenditures of US$20M and to test no less than 40 targets over the same period.

Upon the completion by Geoinformatics of an Order of Magnitude Study for any property, which will include an estimation of the size and grade of the mineralization on the property, Kennecott will have a limited time to exercise its back-in right to acquire a 51% interest in that property. Kennecott may increase its interest to 60% by completing a feasibility study for the property. If Kennecott elects not to exercise its back-in right its sole interest will be a 2% NSR royalty.

About Azulitas

Azulitas is located approximately 60 km northeast of Mazatlan, Mexico. The property consists of three optioned claims and a surrounding exploration license. Previous exploration work has been confined largely to the claims. Reconnaissance drainage geochemical sampling and geological mapping have been carried out over the exploration license. Several intrusion-related hydrothermal breccias occur within a 2.5 km by 2 km area of the claims. The breccias are hosted by a late Cretaceous to Paleocene granodiorite-monzonite intrusive complex intruded into Paleozoic meta-sediments. The orientation and size of the moderately to steeply dipping breccias have yet to be well constrained.

Mineralization in the Azulitas breccias consists of chalcopyrite-pyrite-(sphalerite); associated with potassic and phyllic/intermediate argillic alteration assemblages; plus molybdenite, which commonly occurs in, but is not restricted to, cross-cutting fault/fracture zones. The total sulfide mineral abundance of the breccias is high, commonly exceeding approximately 5% and locally reaching approximately 15%.

Recent work by Kennecott on Azulitas has included reconnaissance soil sampling and mapping, limited bulldozer costean work, airborne magnetics and scout diamond drilling. Geoinformatics' exploration plan on the project would include geochemical soil and rock sampling, geological and structural mapping, ground IP-resistivity surveys and diamond drilling.

Qualified Person

The technical content of this release has been provided by Dr. Nick Archibald, CP Geo/FAIMM. Dr. Archibald is a qualified person (as defined by National Instrument 43-101) who has more than 30 years experience in the minerals exploration/mining industry.

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.

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 www.sedar.com. 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 ad equacy or accuracy of this release.

Geoinformatics Exploration Inc. (TSX VENTURE:GXL)