Project Described in November/December 2009 Issue of North American Pipelines Magazine

SARVER, Pa. — (BUSINESS WIRE) — January 7, 2010 — Geospatial Holdings, Inc. (OTC BB: GSPH), a developer and producer of technologies and services for managing underground pipeline assets, has announced the successful completion of several pipeline mapping projects on behalf of Sunoco Logistics Partners, which carries out numerous relocations, reroutes and rehabilitation projects to maintain its extensive network of crude oil and refined products pipelines.

On one recent project Geospatial employed its cutting-edge Smart Probe™ technology, a 3D mapping system, during a 1,200-foot-long, horizontal directional drilling (HDD) bore performed by Sunoco for a 12.75-inch-wide crude oil pipeline in Tyler, Texas. This project was part of a required utility relocation on behalf of the Texas Department of Transportation’s Toll 49 Highway project. Geospatial’s probe succeeded in creating an accurate direct measurement of the pipeline’s centerline. The project was completed during October 2009.

Geospatial’s Smart Probe™ technology is used in a number of underground utility industries, including oil and gas, municipal, electrical and power, telecom and industrial facilities. The probe moves through a pipeline, recording all changes in inclination, heading and velocity, and stores the information internally on the probe. The technology involves two components: an array of instruments for data collection, including accelerometers, gyroscopes and odometers; and a software package that subsequently transfers the data into a GIS database. Users accessing the database can obtain a file documenting horizontal coordinates and elevation (x, y, z) at regular intervals along the pipeline.

At the Texas worksite, the Smart Probe™ was attached to a nylon-braided tape and pulled through the pipe once in each direction to ensure the most accurate readings. “Sunoco validated its use of the 3D mapping process for trenchless installation and rehabilitation of its crude oil and refined products pipelines, and Geospatial’s Smart Probe™ produced as-built plans and profiles for the project,” said William Chaparro, project manager for western area pipeline relocations at Sunoco Logistics.

Mark A. Smith, CEO of Geospatial Holdings added, "We view this project as a major inflection point for Geospatial. This project has established Geospatial as a trusted vendor for Sunoco, and helped pave the way for a long-term alliance between the two companies. Moreover, the project's success gives us a foothold among top-tier oil and gas companies, which we intend to leverage to attract new customers looking for help in managing their pipeline assets and infrastructure data.

For a detailed description of the entire project, please visit http://www.napipelines.com/featured/2009/2009-11-feature-2.html. This article, titled “Mapping Future Pipelines: Sunoco Teams with Geospatial to Create 3D GIS Pipeline Database,” appeared in the November/December 2009 edition of North American Pipelines and was written by Chaparro and Todd Porter, Vice President of Global Energy Services at Geospatial.

About Geospatial Holdings

Geospatial Holdings (Geospatial), a Pittsburgh, Pennsylvania based company, through its wholly-owned subsidiaries is a solutions provider for the underground infrastructure industry. Using proven mapping systems technology, we successfully and accurately map XYZ centerline coordinates and create three-dimensional maps and Geographic Information System (GIS) databases. Geospatial is the exclusive provider of innovative, proprietary technologies and services throughout North America, South America and Australia.

As the number of underground systems increases and the need for replacing aging subsurface infrastructure continues, it is critical to identify the specific location of the utilities and conduits to assist in modifications, upgrades, retrofits, and replacements. Our precision technology gives our clients in the oil and gas, electric, municipal services (water and sewer), telecommunications, electrical transmission, GIS and Horizontal Directional Drilling (HDD) markets fast, cost-effective solutions, which minimize disruptions while enhancing customer satisfaction. We also offer solutions and technology to industry service providers including engineers, consultants and constructors regarding critical infrastructure issues.

For more information on Geospatial Holdings, go to www.geospatialcorporation.com.

Safe Harbor Statement

Except for historical information contained herein, the matters set forth above may be forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors such as the level of business and consumer spending, the amount of sales of the Company's products, the competitive environment within the industry, the ability of the Company to continue to expand its operations, the level of costs incurred in connection with the Company's expansion efforts, economic conditions in the industry and the financial strength of the Company's customers and suppliers. The Company does not undertake any obligation to update such forward-looking statements. Investors are also directed to consider all other risks and uncertainties.