De Beers and Gedex Sign Strategic Agreement

Toronto, Canada, June 29, 2006 --(PR.com)-- Gedex Inc., a private Canadian corporation, has completed a strategic agreement with De Beers, the world’s largest diamond mining group, which will assist in the commercialization of Gedex’s new resource exploration technology.

De Beers has contracted with Gedex to use its unique and proprietary high definition airborne gravity gradiometer (HD-AGG™) system in exploration surveys and to provide related services over several years.

De Beers is committed to using leading edge technologies in the exploration for diamonds.  “We believe the Gedex AGG has the potential to make a material difference in our ability to identify new resources,” said Bill McKechnie, Director, Group Exploration, De Beers.

Demand for resources is rising and making new discoveries is increasingly difficult.  Gedex’s HD-AGG could make a great contribution to increased exploration success due to its anticipated high signal resolution and capability to operate at high productivity rates.

“We are working with the mining, oil and gas industries to reduce risk, cost and lead-time for new discoveries, while sharply enhancing the certainty of discovery,” said Gedex’s President and CEO, Robbie Banks. “Our airborne HD-AGG will provide significant benefit and a strategic advantage for resource companies.”

Gedex’s system will provide unparalleled deep, sub-surface information by measuring minute density differences in rock formations in prospective areas.  It can be used to discover new resources including diamonds, gold, silver, coal, uranium, copper, zinc, nickel, iron, and aluminum, as well as oil and gas.  The system “sees” through water and is environmentally friendly – it can fly safely over sensitive and difficult areas without affecting wildlife or the natural environment.

A Unique New System
Current commercial gravity gradiometry evolved from US military programs in the 1970s.  When development is completed, Gedex’s HD-AGG system is expected to be the world’s highest resolution and fastest system available for airborne surveys.  It rapidly and effectively measures minute gravity differences that are key to identifying important geological structures.  Exploration teams will clearly image sub-surface anomalies from data that can pinpoint resource deposits from near surface to many kilometres deep into the earth.

Gedex’s system combines technologies developed by the University of Maryland, the Canadian Space Agency, the University of Western Australia, and Gedex’s development team.  

Private Placement
Gedex is raising private equity capital for further development. Part of the proceeds from this financing will be used to complete the engineering required to operate the HD-AGG system in a stabilized, airborne environment.

Gedex plans to commercialize the system, which is thoroughly protected by comprehensive patents and licenses, in 2007.

About GEDEX, Inc.: Gedex is a private company incorporated in 1999 and headquartered in Mississauga, Canada. Gedex’s new gravity gradiometer product will provide images of subsurface density that will, independently and in conjunction with other data, provide valuable information to engineers and geologists exploring for and delineating subsurface resources and structures. HD-AGG also has military, government, sovereignty, space, ground water, and other applications.

Gedex was founded by its chairman Bill Breukelman, who was also a founder of IMAX, now a worldwide entertainment enterprise, and Sciex, an integral part of global life sciences company, MDS.

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