Electromagnetic Geoservices ASA

Prospectus • Jun 21, 2017

EMGS - Approved Prospectus and commencement of Subscription Period

EMGS - Approved Prospectus and commencement of Subscription Period

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART DIRECTLY OR

INDIRECTLY, IN AUSTRALIA, CANADA, JAPAN, HONG KONG, SINGAPORE OR THE UNITED

STATES

The Financial Supervisory Authority of Norway has approved a prospectus (the

"Prospectus") covering the issue and listing of 58,634,735 new shares in

Electromagnetic Geoservices ASA ("EMGS" or the "Company") with tradable

subscription rights for existing shareholders of the Company as per the end of

19 June 2017 as registered in the VPS on 21 June 2017 (the "Rights Issue"). A

link to the Prospectus can be found on the Company's homepage www.emgs.com

The subscription period commences 22 June 2017 at 09:00 CET and expires on 6

July 2017 at 12:00 CET (the "Subscription Period"). The Subscription Rights (as

defined below) will be listed and tradable on Oslo Børs under the ticker "EMGS

T" from 22 June 2017 at 09:00 CET until 4 July 2017 at 16:30 CET.

The gross proceeds to be raised in the Rights Issue are NOK 143,655,100 and will

be used to strengthen the Company's financial position and for general corporate

purposes.

The Rights Issue is fully guaranteed by certain large shareholders (the

"Underwriters") of the Company. The Underwriters will receive a guarantee

commission of 1.5% of their guaranteed amount, subject to the completion of the

Rights Issue. For further information regarding the underwriting agreement,

please refer to section 5.3 "The Underwriting and the Underwriting Syndicate" in

the Prospectus.

The Rights Issue comprises an offering of 58,634,735 new shares at a

subscription price of NOK 2.45. The Rights Issue will be directed towards the

shareholders of the Company as of 19 June 2017, as registered in the Norwegian

Central Security Depository (VPS) on 21 June 2017 ("Record Date") who are not

resident in a jurisdiction where such offering would be unlawful, or for

jurisdictions, other than Norway, that require any filing, registration or

similar action (the "Eligible Shareholders"). Regarding further restrictions in

respect of who may be allocated or permitted to acquire or exercise Subscription

Rights/subscribe for new shares, reference is made to section 5.8 "Subscription

Rights" and section 17 "Selling and transfer restrictions" in the Prospectus.

Each Eligible Shareholder will be granted 1.78796 Subscription Rights for every

one (1) share in the Company registered as owned as the Record Date. Information

regarding the number of Subscription Rights that has been allocated to each

Eligible Shareholder will be distributed in a letter. In addition, Eligible

Shareholders who have access to investor services through their VPS account

manager will be able to check the number of Subscription Rights allocated to

them from 09:00 CET on 22 June 2017. One Subscription Right will, subject to

applicable securities law, give the holder the right to subscribe for and be

allocated one New Share in the Company in the Rights Issue. Oversubscription and

subscription without subscription rights are allowed.

Acquired Subscription Rights will give the same right to subscribe for and be

allocated new shares as Subscription Rights held by Eligible Shareholders on the

basis of their registered holdings as of the Record Date.

The Subscription Rights are expected to have an economical value. Please note

that Subscription Rights that are not used to subscribe for new shares before

the end of the Subscription Period or sold before 16:30 CET on 4 July 2017 will

lapse without compensation and consequently be of no value. Holders of

Subscription Rights (whether granted or acquired) should note that subscriptions

for new shares must be made in accordance with the procedures set out in the

Prospectus.

DNB, Registrar's Department acts as receiving agent and Advokatfirmaet Wiersholm

AS acts as legal adviser in connection with the Rights Issue.

For further information, please contact:

Hege Veiseth, CFO, +47 99 21 67 43

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 explorationists 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

Important information:

The release is not for publication or distribution, in whole or in part directly

or indirectly, in or into Australia, Canada, Japan, Hong Kong, Singapore or the

United States (including its territories and possessions, any state of the

United States and the District of Columbia).

This release is an announcement issued pursuant to legal information

obligations, and is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act. It is issued for information

purposes only, and does not constitute or form part of any offer or solicitation

to purchase or subscribe for securities, in the United States or in any other

jurisdiction. The securities mentioned herein have not been, and will not be,

registered under the United States Securities Act of 1933, as amended (the

"Securities Act"). The securities may not be offered or sold in the United

States except pursuant to an exemption from the registration requirements of the

Securities Act. The Company does not intend to register any portion of the

offering of the securities in the United States or to conduct a public offering

of the securities in the United States. Copies of this announcement are not

being made and may not be distributed or sent into Australia, Canada, Japan,

Hong Kong, Singapore or the United States. The issue, exercise, purchase or sale

of subscription rights and the subscription or purchase of shares in the Company

are subject to specific legal or regulatory restrictions in certain

jurisdictions. Neither the Company nor the Receiving Agent assumes any

responsibility in the event there is a violation by any person of such

restrictions.

This communication is only being distributed to and is only directed at persons

in the United Kingdom that are (i) investment professionals falling within

Article 19(5) of the Financial Services and Markets Act 2000 (Financial

Promotion) Order 2005, as amended (the "Order") or (ii) high net worth entities,

and other persons to whom this announcement may lawfully be communicated,

falling within Article 49(2)(a) to (d) of the Order (all such persons together

being referred to as "relevant persons"). This communication must not be acted

on or relied on by persons who are not relevant persons. Any investment or

investment activity to which this communication relates is available only to

relevant persons and will be engaged in only with relevant persons. Persons

distributing this communication must satisfy themselves that it is lawful to do

so.

This announcement is an advertisement and does not constitute a prospectus for

the purposes of Directive 2003/71/EC (as amended, together with any applicable

implementing measures in any Member State, the "Prospectus Directive").

The distribution of this release may in certain jurisdictions be restricted by

law. Persons into whose possession this release comes should inform themselves

about and observe any such restrictions. Any failure to comply with these

restrictions may constitute a violation of the securities laws of any such

jurisdiction. The Receiving Agent is acting for the Company and no one else in

connection with the Offering and will not be responsible to anyone other than

the Company for providing the protections afforded to their respective clients

or for providing advice in relation to the Offering and/or any other matter

referred to in this release.

This information is subject of the disclosure requirements under section 5-12 of

the Norwegian Securities Trading Act.