GeoGlobal Proposes $25M Financing

GeoGlobal Resources Inc. has entered into a letter agreement in which it proposes to offer for sale, on a best efforts basis, by way of a private placement of up to 5 million units ("Units") of the Company's securities for aggregate gross proceeds of US$25,000,000. Each Unit will be sold at a price of US$5.00 with each Unit comprising one common share and one-half of one common share purchase warrant where one full common share purchase warrant will entitle the holder to purchase one common share at a price of US$7.50, for a term of two years from the closing of the offering, subject to an accelerated expiry.

In connection with the offering, the Company will pay a fee equal to 6% of the gross proceeds raised pursuant to the offering, amounting up to US$1,500,000, and will issue compensation options to the agents entitling them to purchase common shares equal to 6% of the aggregate number of Units sold pursuant to the offering, amounting up to 300,000 common shares, at a price of US$5.00 per share.

The purchase warrants are subject to an accelerated expiration in the event that the trading price of the Company's common shares trade at US$12.00 or more for 20 consecutive trading days, provided that the resale by the holders of the securities comprising the Units has been registered under the US Securities Act of 1933 (the "1933 Act"), and the hold period for Canadian subscribers has expired. In such event, the warrant term will be reduced to 30 days from the date of issuance of a news release announcing such change to the warrant term.

The net proceeds from the offering will be used for exploration and development of the newly acquired NELP-VI exploration blocks, all other exploration blocks acquired hereafter and for general corporate purposes.

The securities are intended to be offered in the provinces of Alberta, British Columbia and Ontario, and such other provinces of Canada as the agents and the Company may agree upon. The Units may also be placed in the United States through a U.S. sub-agent pursuant to applicable exemptions from the registration requirements of the 1933 Act.

GeoGlobal Resources Inc., headquartered in Alberta, Canada, is a US publicly traded oil and gas company, which through its subsidiaries, is engaged primarily in the pursuit of petroleum and natural gas through exploration and development in India. Since inception, the Company's efforts have been devoted to the pursuit of Production Sharing Contracts with the Government of India. Currently, the Company is focused on the development of high potential exploration targets in the Krishna Godavari, Cambay, Rajasthan and the Deccan Syneclise basin areas.

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