Geomark Announces First Quarter 2012 Results

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED
STATES


Geomark Exploration Ltd. (Geomark or the Company) (TSX VENTURE:GME) is pleased
to announce its operating and financial results for the first quarter ended
March 31, 2012. The quarterly report is summarized in this release, with the
complete version of the related condensed consolidated financial statements and
notes, as well as management's discussion and analysis, available on the System
for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com and on
Geomark's website at www.geomark.ca 


Highlights



                                         March 31,  December 31,  March 31, 
As at and for the three months ended          2012          2011       2011 
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Financial ($ 000s, except $ per share)                                      
Revenue                                                                     
  Mineral Division(1)                          169           175        175 
  Oil and Gas Division                         526           578        414 
Funds Flow(2)                                  251           367        122 
  Per Share Basic and Diluted                 0.00          0.01       0.00 
Cash flow (Deficiency) from Operations         (45)          (90)      (162)
  Per Share Basic and Diluted                (0.00)        (0.00)     (0.00)
Net Earnings (Loss)                             30          (678)       (27)
  Per Share Basic and Diluted                 0.00         (0.01)     (0.00)
Capital Expenditures                                                        
  Mineral Division                              27            43        677 
  Oil and Gas Division                          17            30          4 
Total Assets                                                                
  Mineral Division                          40,613        40,432     40,826 
  Oil and Gas Division                      12,133        12,667     13,320 
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Oil and Gas Operations                                                      
Barrels of Oil Equivalent (BOE) per                                         
 day(3)                                        124           115        139 
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(1) Geomark is a junior mineral exploration company with mineral revenue
currently from non-production sources.


(2) Funds flow is not a recognized measure under IFRS. For these purposes, the
Company defines funds flow as funds provided by operations after including
investment dividend and interest income and the changes in non-cash investing
working capital related to these sources of investment income. 


(3) Barrels of Oil Equivalent (BOE) are calculated using a conversion ratio of 6
MCF to 1 barrel of oil. The conversion is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not represent
a value equivalency at the wellhead and as such may be misleading if used in
isolation.


Business Development



--  Geomark's business strategy continues to be the involvement (by
    acquisitions or joint ventures) of majority interests in either early
    stage or smaller advanced stage precious metal properties. The Company
    has been selective on the geological potential of the various plays and
    their ability to host a possible economic deposit. 

--  Recent market volatility (uncertainty) in the latter half of 2011 and
    into 2012 has significantly restricted the flow of equity to junior
    exploration companies. Geomark is witnessing an appreciable positive
    change in the willingness of companies to discuss option terms on their
    flagship properties. While deal terms from some companies have yet to
    come into balance with the current realities in the exploration and
    mining space, it is apparent that Geomark's solid financial position is
    being recognized by its peers as an obvious asset in the current market.

--  The Company has presently been concentrating its acquisition efforts in
    the mid-western United States (predominantly Nevada, Idaho, Utah and
    Arizona), in North and South Carolina, and in most of Canada.
    Exploration plays are also being examined in other regions and in
    countries that meet Geomark's expectations of security of mineral tenure
    and low geopolitical risk. 

--  The Company is very optimistic that its patient and conservative
    approach to joint ventures and acquisitions will result in it being
    rewarded in the near term. 



Financial



--  Geomark currently has a cash position of approximately $39.4 million
    with additional very liquid investments of approximately $10.3 million
    (total of $49.7M in cash and investments). 

--  Cash flow derived from its oil and gas production, dividends and
    interest income easily covers all general and administrative costs on a
    yearly basis with excess income used for property acquisitions and/or
    exploration expenses. 



Operations



--  Geomark is currently (early May 2012) conducting a geophysical program
    on two of its Ontario gold properties, Whitney and Tisdale. The results
    of the program will be received in the near-term and should the results
    be favourable, drilling of the targets will take place in the summer. 



Outlook



--  While we continue to conduct exploration programs on our Timmins area
    gold projects, Geomark's main goal is to secure new precious metal
    properties through prudent, and sustainable, deals in jurisdictions
    where exploration plays can be quickly advanced to economic situations.
    Geomark has very experienced management, a strong technical team with a
    history of success, and an enviable balance sheet. 



Cautionary Statement

This summarized news release should not be considered a suitable source of
information for readers who are unfamiliar with Geomark Exploration Ltd. and
should not be considered in any way as a substitute for reading the full report.



For the full report, please go to www.geomark.ca 

Use of non-IFRS financial measures

Included in this report we use the term "funds flow" to analyze the Company's
operating performance. Funds flow is not a standardized measure recognized under
IFRS and does not have a standardized meaning prescribed by IFRS. This funds
flow calculation is considered by management to be informative for shareholders
and analysts. This measure may differ from those made by other companies and
accordingly may not be comparable to such measures as reported by other
companies. 


Geomark's funds flow is calculated by adding investment dividend and interest
income and the changes in non-cash investing working capital related to these
sources of investment income to cash flow (deficiency) from operating
activities. 


Forward-Looking Statements

Certain statements contained in this report include statements which contain
words such as "anticipate", "could", "should", "expect", "seek", "may",
"intend", "likely", "will", "believe" and similar expressions, statements
relating to matters that are not historical facts, and such statements of our
beliefs, intentions and expectations about development, results and events which
will or may occur in the future, constitute "forward-looking information" within
the meaning of applicable Canadian securities legislation and are based on
certain assumptions and analysis made by us derived from our experience and
perceptions. Forward-looking information in this report includes, but is not
limited to: expected cash provided by continuing operations; future capital
expenditures, including the amount and nature thereof; mineral prices and
demand, oil and natural gas prices and demand; expansion and other development
trends of the mineral and oil and gas industry; business strategy and outlook;
expansion and growth of our business and operations; and maintenance of existing
customer, supplier and partner relationships; supply channels; accounting
policies; credit risks; and other such matters.


All such forward-looking information is based on certain assumptions and
analyses made by us in light of our experience and perception of historical
trends, current conditions and expected future developments, as well as other
factors we believe are appropriate in the circumstances. The risks,
uncertainties, and assumptions are difficult to predict and may affect
operations, and may include, without limitation: foreign exchange fluctuations;
equipment and labour shortages and inflationary costs; general economic
conditions; industry conditions; changes in applicable environmental, taxation
and other laws and regulations as well as how such laws and regulations are
interpreted and enforced; the ability of mineral companies to raise capital; the
effect of weather conditions on operations and facilities; the existence of
operating risks; volatility of oil and natural gas prices; oil and gas product
supply and demand; risks inherent in the ability to generate sufficient cash
flow from operations to meet current and future obligations; increased
competition; stock market volatility; opportunities available to or pursued by
us; and other factors, many of which are beyond our control. The foregoing
factors are not exhaustive.


Actual results, performance or achievements could differ materially from those
expressed in, or implied by, this forward-looking information and, accordingly,
no assurance can be given that any of the events anticipated by the
forward-looking information will transpire or occur, or if any of them do, what
benefits will be derived therefrom. Except as required by law, Geomark disclaims
any intention or obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise. 


The forward-looking information contained herein is expressly qualified by this
cautionary statement.