Geologix has formed a strategic alliance with Newmont Gold to explore a highly prospective geological gold and silver bearing area in Central Peru, covering 7,200 square kilometres. The alliance will spend US$1 million in 2006 on the acquisition and exploration of properties.

The Alliance is basically an extension of our past work in Peru with the addition of Newmont's data and "state of the art" technological support. Considering the highly prospective terrain and this relatively under-explored region of the Andes, we as a team, expect to have several drill ready gold targets within the first year of this alliance.

Geologix Explorations Inc. has signed an option to purchase a 100 % interest in the San Agustin gold/silver/zinc property from Silver Standard Resources Inc.

Located 85 kilometres north of Durango City in the State of Durango, Mexico, there is good infrasture with a paved highway and grid power 5 kilometres away. The property was explored for gold,silver and zinc by Monarch Resources Limited from 1997- 1998 and by Silver Standard Resources Inc. in 2003. Exploration efforts to date include 14,290 meters of drilling in 93 drill holes. In 2004, Silver Standard commissioned a technical report on the property that identified an inferred resource utilizing a 0.5 gram per tonne gold cut off of 11.22 million tonnes averaging 0.96 grams per tonne of gold and 12.86 grams per tonne of silver (346,000 ounces of gold, 4.6 million ounces of silver). On a gold equivalent basis, the resource equals 439,000 ounces of gold equivalent based on a $50:$1 gold to silver price ratio.

Gold, silver and zinc mineralization is wide-spread within the property’s large dacite dome complex. Drilling has indicated higher gold grades concentrated in a north-east trend which is open on strike and to depth. Within the dacite dome, multiple zones of gold, silver and zinc values are present. Geologix’s initial focus will be on the expansion of the identified northeast gold trend as well as evaluating a >100 m/t Au/Ag/Zn bulk tonnage deposit. Drilling is scheduled to begin drilling at the end of 2006.

Geologix is actively evaluating further acquisitions in the Durango district.

Geologix’s 100% owned Huacullo Project is located in the Andean Highlands in Huancavelica Department, 200 kilometers southeast of Lima, Peru. Geologix holds 12 concessions totaling 58 square kilometres. Huacullo contains both high- and low-sulphidation epithermal precious-metal targets as well as porphyrystyle gold, +/- copper mineralization associated with Tertiary-age extrusive volcanic rocks and associated subvolcanic intrusions. Hydrothermal alteration is extensive at Huacullo covering greater than 30 square kilometers. Several coalescing alteration systems are envisioned.

High-sulphidation style precious-metal targets at Huacullo include both high-grade (to 7 g/t gold), structurally controlled, multi-staged fracture and breccia fillings and potential bulk tonnage strata-bound deposits hosted within an eruptive volcanic sequence. Late-stage, low-sulphidation silver-bearing veins and fracture/breccia fillings are also present (to 560 g/t silver). Porphyry-style mineralization has returned consistent gold values ranging from 0.2 g/t to 0.6 g/t.

High-sulphidation target models for Huacullo include the Yanachoca deposits. These deposits occur within large hydrothermal alteration zones which are present at Huacullo.

Geologix has completed extensive rock and soil sampling, regional and detailed geologic mapping, IP, and magnetic geophysical surveys. Work to date has resulted in the identification of three zones of significant precious-metal mineralization, two of which have been investigated in detail. The project is fully permitted and ready for initial drilling of both epithermal and porphyry targets. Drilling is planned for the fourth quarter of 2006.

NEVADA PROJECTS

Jersey Canyon drilling intersected a new epithermal precious metal system in the spring of 2006 which has encouraged continued exploration.

Silver Cloud which borders the Hollister Project and is south of the famous Midas Mine, is progressing to a drill ready stage during 2007 to test continuance of historical intercepts of 4.6 oz./t Au over 5' and .18oz./t Au, 1.7 oz./t Ag over 40'.

The QC property will be drilled in the spring of 2007 to test the Carlin Type mineralization adjacent to a 3.5 km long gold bearing jasperoid structure.

Scraper Springs exploration on the northern extension of the Carlin Trend, is targeting Roberts Mountain thrust carbonate mineralization in up lifted blocks.

RO Claims are located on the strike extension of the Sleeper Mine.

Geologix has been preparing the Nevada properties for an agressive drill campaign in 2007.