Geologix Explorations Signs Option Agreement to Acquire Additional Claims at Tepal Project

Geologix Explorations Inc. (TSX:GIX) (FRANKFURT:GF6) (BERLIN:GF6) (STUTTGART:GF6) (MUNICH:GF6) has announced it has signed an option agreement to acquire additional claims totalling 34 square kilometers at its Tepal Project in Michoacán State, Mexico.

The definitive option agreement with Minera Tepal SA de CV ("Minera Tepal") grants the Company the right to acquire 100% of the Division Tepal 1 mineral claim ("Tepal 1") subject to a 2% net smelter return ("NSR") payable to Minera Tepal. The addition of the Tepal 1 claim expands the Company's land position to a contiguous Tepal project mineral claim of approximately 181 square kilometers.

To complete the option, the agreement requires the Company to make cash payments to Minera Tepal as follows (all amounts expressed in $US):

A 2.0 % NSR based on the sale of all minerals is payable to Minera Tepal. Geologix retains a right of first refusal on any sale or assignment of royalties. Geologix may purchase at any time all or part of the NSR for $1,100,000 plus Value Added Tax for each 1% of the royalty.

Source: Geologix Explorations Inc.