GeoPetro Closes Private Placement

GeoPetro Resources has satisfied all closing conditions and completed its previously announced private placement of 2,002,599 units in the securities of the Company to a group of private investors at a subscription price of US$3.85 per Unit, for total gross proceeds of US$7.71 million. Each Unit consists of one share of common stock of the Company (the "Common Shares") and three-tenths of one common share purchase warrant of the Company. Each one whole warrant entitles the holder to acquire one share of common stock at a price of $4.50 per share for a period of five years from the closing date. Energy Capital Solutions, L.P. acted as placement agent with respect to the Private Placement and received 60,078 common share purchase warrants and a fee as consideration for its services.

The Company currently has 31,583,007 Common Shares outstanding. The proceeds of the sale of common shares will be used to fund the Company's exploration and development program and for general working capital purposes.

In connection with the Private Placement, the Company has agreed to file a registration statement covering the shares with the United States Securities and Exchange Commission.

GeoPetro is an independent oil and natural gas company headquartered in San Francisco, California. GeoPetro currently has projects in the United States, Canada and Indonesia. GeoPetro has developed a producing property in its Madisonville Project in Texas and is conducting a drilling program in East Kalimantan, Indonesia. Elsewhere, GeoPetro has assembled a geographically diversified portfolio of exploratory and appraisal prospects.