Electromagnetic Geoservices ASA

AGM Information • Mar 2, 2018

EMGS: Proposed Comprehensive Refinancing and Calling of Extraordinary General Meeting

EMGS: Proposed Comprehensive Refinancing and Calling of Extraordinary General Meeting

As further described in Electromagnetic Geoservices ASA's ("EMGS" or the

"Company") Q4 2017 report, published on 8 February 2018, the Company's financial

situation is such that additional financing is required.

Following a thorough assessment of all options available to the Company, an

independent board of directors (the "Independent Board") of the Company which

did not include board members representing the major shareholders. has, in

cooperation with the Company's three largest shareholders, developed a

comprehensive refinancing proposal (the "Comprehensive Refinancing"). The

Comprehensive Refinancing consists of two elements; (i) a rights issue with

gross proceeds of up to USD 12.5 million, whereof USD 10.0 million is

underwritten (the "Rights Issue") ; and (ii) issuance of a new, fully

underwritten convertible bond loan with a total nominal amount of up to USD

32.5 million (the "Bond Issue"). The underwriting will be regulated by way of

underwriting agreements, with fully termed underwriting agreements expected to

be executed on or about 5 March 2018.

The rights issue will provide the Company with financing for general corporate

purposes.

The net proceeds from the Bond Issue will be used to refinance the Company's

existing bond issue. The proposed terms of the Bond Issue include a reduction of

the free cash covenant (USD 2.5 million compared with USD 10 million under

current bond loan), denomination in USD (new interest rate based on 3M USD LIBOR

plus a margin of 5.5 per cent, compared with 3M NIBOR plus a margin of 6.0 per

cent under current bond loan), an extension of the maturity (2023 compared with

2019 under current bond loan) and a conversion price equal to 135% of the

subscription price in the Rights Issue.

The Independent Board is firmly of the opinion that the Comprehensive

Refinancing will secure and maintain shareholder value going forward, by

providing the Company with a significantly improved financial runway, stability

and flexibility.

The Rights Issue and the Bond Issue are subject to approval from the Company's

general meeting. Hence, notice is hereby given of an extraordinary general

meeting of EMGS at Karenslyst Allé 2, 0278 Oslo to be held on 23 March 2018 at

10:00 (local time).

Reference is made to the attached calling notice for further details regarding

the Comprehensive Refinancing. The calling notice will be distributed

electronically or by post to all shareholders with a known address. The calling

notice, as well as appendices, is also available on EMGS' website.

Contact

Hege Veiseth, EMGS Chief Financial Officer, +47 992 16 743

About EMGS

EMGS, the marine EM market leader, uses its proprietary electromagnetic (EM)

technology to support oil and gas companies in their search for offshore

hydrocarbons. EMGS supports each stage in the workflow, from survey design and

data acquisition to processing and interpretation. The Company's services enable

the integration of EM data with seismic and other geophysical and geological

information to give exploration experts a clearer and more complete

understanding of the subsurface. This improves exploration efficiency and

reduces risks and the finding costs per barrel.

EMGS operates on a worldwide basis with offices in Trondheim, Oslo, Houston,

Villahermosa, Rio de Janeiro and Kuala Lumpur.

For more information, visit www.emgs.com

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.