Electromagnetic Geoservices ASA

Capital/Financing Update • Mar 22, 2017

EMGS - Update on financing position

EMGS - Update on financing position

Electromagnetic Geoservices ASA ("EMGS" or the "Company") refers to the

description of the Company's financing needs in the Q4 report. In order to

improve the free cash position and ensure compliance with the minimum liquidity

covenant in the Companys bond loan, the Company has entered into an agreement

with DNB Bank ASA whereby the existing (i) USD 10 million revolving credit and

(ii) the USD 10 million Guarantee facility will be made fully available to the

Company based on security in the form of guarantees from Siem Industries

Inc. and Perestroika AS who will receive market level guarantee commission.

The Company intends to carry out a preferential rights issue with gross proceeds

equal to a minimum of the NOK equivalent of USD 15 million. EMGS' three largest

shareholders have indicated willingness to underwrite this rights issue. Further

information will be disclosed when available.

The Company expects to send a calling notice for the General Meeting within the

next few weeks.

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 of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.