Coretrack Raises $1.5 Million

Coretrack Raises $1.5 Million

ANNOUNCEMENT
20 OCTOBER 2009

Coretrack Limited has received an overwhelmingly positive response to a proposed capital raising to sophisticated investors, with firm commitments received to raise $1,500,000 (before costs) via a placement of 9,375,000 fully paid ordinary shares ("Shares") at an issue price of $0.16 each ("Placement").

The Placement will be made under s708 of the Corporations Act to sophisticated investor clients of Cygnet Capital. The funds raised from the Placement will be applied towards commercialisation and global marketing of the now complete Core Level Recorder System ("CLRS") and for general working capital purposes.

The Placement Shares will be issued in two tranches. Tranche 1, comprising one third of the Placement Shares, will be issued upon receipt of cleared funds, pursuant to the Company's existing 15% placement capacity. Tranche 2, comprising the remaining two thirds of the Placement Shares, will be issued following shareholder approval at Coretrack's Annual General Meeting, to be held on or around 24 November 2009.

An Appendix 3B for the Tranche 1 Shares and a Notice of Annual General Meeting to seek shareholder approval for, among other things, the issue of Tranche 2 shares will follow in due course. The Company will also seek approval at the Annual General Meeting for the issue of 2 million unlisted options, exercisable at
25 cents on or before 30 November 2012 and 3 million unlisted options exercisable at 30 cents on or before 30 November 2012 to Cygnet Capital or its nominee/s in part consideration for services provided in relation to the Placement.

Nanne van `t Riet, Coretrack's Managing Director, today commented: "Coretrack is on the cusp of entering a new and exciting phase and the Company anticipates making an announcement regarding its first coring job, providing core acquisition data in real time, in the near future.

"Coretrack is looking forward to continuing to work with Cygnet Capital as we advance to the next stage of our corporate development."

AUTHORISED BY:
Shannon Coates
Company Secretary

Coretrack Limited is an ASX listed company which provides leading technological solutions to the global oil & gas industry.

Coretrack's primary focus since listing has been the commercialisation of its revolutionary and patented technology, the Core Level Recorder System.

The Core Level Recorder System is a coring tool that will enable an explicit, real time measurement of the acquisition of a core sample during a coring operation. The availability of real time data on the rig floor will ensure substantial cost savings to the exploration and production companies.

Coretrack Limited
37 Bronte Street
East Perth
Western Australia
6004
T: +61 08 9265 0000
F: +61 08 9265 0001
E: [email protected]
W: www.coretack.com.au

SOURCE: Coretrack Limited