Electromagnetic Geoservices ASA

Share Issue/Capital Change • Dec 16, 2015

EMGS - Completion of Rights Issue in Electromagnetic Geoservices ASA

EMGS - Completion of Rights Issue in Electromagnetic Geoservices ASA

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

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

Reference is made to the previous stock exchange announcements by

Electromagnetic Geoservices ASA ("EMGS" or the "Company") regarding the rights

issue of 1,112,000,000 news shares at a subscription price of NOK 0.25 per share

(the "Rights Issue").

The subscription period in the Rights Issue expired on 15 December 2015 at

12:00 CET. A total of 867,505,218 shares were subscribed for in the Rights

Issue, and as a result the Underwriters will subscribe for the remaining

244,494,782 shares. These remaining shares have been divided between the

Underwriters according to their respective underwriting obligations. The Rights

Issue will result in gross proceeds to the Company of NOK 278 million through

the issuance of 1,112,000,000 new shares.

Notifications of allocated new shares and the corresponding amount to be paid by

each subscriber will be sent to the subscribers today, 16 December 2015.

Subscribers having access to investor services through their VPS account will be

able to check the number of new shares allocated to them from 09:00 CET today.

Subscribers may also contact Carnegie at +47 22 00 93 60, from 09:00 CET today,

to obtain information about the number of new shares allotted. Payment for the

allocated new shares falls due on 18 December 2015.

The new shares may not be transferred or traded until they are fully paid by the

individual subscriber and the new shares have been registered with the Register

of Business Enterprises. Subject to payment being received when due, the new

shares are expected to be delivered to the respective subscribers' VPS account

on or about 22 December 2015.

The new shares are expected to commence trading on Oslo Børs on or about 22

December 2015.

Following the registration of the new share capital in the Norwegian Register of

Business Enterprises, the Company will have 1,311,765,555 shares outstanding,

each with a par value of NOK 0.25.

For further information, please contact:

Charlotte Knudsen, EMGS head of investor relations, +47 97 56 19 59

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The release is not for publication or distribution, in whole or in part directly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 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 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 Manager assumes any responsibility in

the event there is a violation by any person of such restrictions.

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. Carnegie 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 pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1973855]