Contact Exploration Closes Private Placement

Contact Exploration announces the closing of it's previously announced (January 15, 2004) Private Placement financing of $500,000.

The Private Placement consisted of 282,500 Units comprised of flow through common shares entitling the holders to a renunciation of $0.40 per share in CEE or CDE within two years of issue and 967,500 Units comprised of one common share and one half purchase warrant. Each whole purchase warrant entitles the holder to purchase one common share at an exercise price of $0.60 expiring March 18, 2005.

Net proceeds will be used to fund further exploration of Contact's Canadian East Coast onshore oil and gas properties, including the Parsons Pond, West Newfoundland exploration well currently drilling.