Contact Exploration Announces Private Placement

Contact Exploration intends to proceed with a $500,000 Private Placement consisting of up to 1,250,000 Units to be priced at $0.40 per Unit. Each Unit will comprise either one flow through common share of the Company or one non-flow through common share and one half common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at a price of $0.60 per share, exercisable for a period of one year from the date of issue.

The price of the Units was determined by the Company. This non-brokered private placement is subject to regulatory approval including further filings with the TSX Venture Exchange within thirty days of the date of this release.

Contact intends to use the proceeds of the financing to fund further exploration of its Canadian East Coast onshore oil and gas properties. Contact may pay a commission of 6% to registered dealers who assist in the placement.