GeoSentric Oyj - Company Announcement

FUNDING UPDATE, COMPANY TO SEEK SECURED LOAN FROM ITS LARGEST SHAREHOLDERS TO SECURE SUFFICIENT LIQUIDITY

GEOSENTRIC OYJ      STOCK EXCHANGE RELEASE January 16, 2012 at 15:35



FUNDING UPDATE, COMPANY TO SEEK SECURED LOAN FROM ITS LARGEST SHAREHOLDERS TO
SECURE SUFFICIENT LIQUIDITY 

As announced on November 10, 2011, the Company has recently secured incoming
new equity investment totalling €1,026,000 in a directed share offering. This
amount was €224,000 short of the Company's targeted amount to be raised in the
offering of €1.25 million. As a result, the Company has been continuing to
explore all options available to it to ensure that it has sufficient liquidity
to secure its operations through 2012 and beyond.  As previously announced, the
Company's current cash resources are sufficient to finance the business into Q1
2012 and any alternative funding options should therefore be completed by the
end of Q1 2012. 

Having thoroughly explored all the realistic options open to the Company, the
Board has now resolved to issue a secured interest-bearing loan note, primarily
directed to the investors who participated in the recent directed share
offering. The note will seek to raise €350,000, or potentially more, depending
on investor appetite, which will secure the Company's liquidity until the end
of 2012. The note will use the 24% equity investment that the Company holds in
GeoSolutions Holdings N.V as security. The detailed terms of this new
instrument will be published in due course when finalized. Meanwhile the Board
continues to retain and pursue, where appropriate, all realistic strategic
options open to it in order to raise the necessary finance including another
directed share offering, further cost cutting measures where possible, asset
sales and other possible sources of external finance. 


GEOSENTRIC OYJ

Board of Directors

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