Contact Reserves Increase by 320% in Fiscal 2013

Contact Exploration Inc. ("Contact" or the "Company") (TSX VENTURE:CEX) is
pleased to report that independent reserves evaluations effective March 31, 2013
have been completed by the Company's reserves evaluators in accordance with the
COGE Handbook. GLJ Petroleum Consultants Ltd. ("GLJ") evaluated the Company's
Stoney Creek and Hopewell properties in New Brunswick, while McDaniel and
Associates Consultants Ltd. ("McDaniel") evaluated the Company's core area at
Kakwa, Alberta. 


During fiscal 2013, the Company more than tripled the reserves in its portfolio.
The Montney discovery at Kakwa, Alberta, as announced on May 3, 2012, was
successfully expanded and delineated with the drilling of the 14-30 and 3-19
wells, resulting in a reserves booking on 6 gross sections, which represents
approximately one third of the Company's East Kakwa 19 section block. Reserves
assigned to these 6 sections are currently restricted to the Middle Montney
interval. Reserves have not yet been assigned in any of the other potential
Montney intervals. Contact holds a 25% working interest at East Kakwa. 


The West Kakwa assets, which consist of 11 sections (100% working interest held
by Contact) located approximately 6 miles to the west of East Kakwa, were not
part of the independent evaluation.


Highlights include (all numbers are reported as "net" to the Company and before
tax and in many cases referenced against bookings from Contact's previous fiscal
year):




--  Total Company reserves (net proved and probable) increased by 320% from
    1,935 mboe to 6,235 mboe (54% oil and natural gas liquids). 
    
--  Total Company net present value (net proved and probable reserves
    discounted at 10%) increased by 220% from $46.8MM to $103.0MM. The Kakwa
    reserves account for $64.2MM of the Company's total net present value. 
    
--  Net proved reserves increased in 2013 by 390% from reserve volumes
    reported in 2012, from 395 mboe to 1,552 mboe. (58% oil and natural gas
    liquids). 
    
--  Net present value of net proved reserves (discounted at 10%) increased
    by 237%, from $11.8MM in 2012 to $28.0MM in 2013. 
    
--  Stoney Creek and Hopewell, New Brunswick field evaluations remained
    consistent from 2012, with total proved and probable reserves decreasing
    less than 1% (1,935 mboe to 1,921 mboe), with a net present value in
    2013 of $38.9MM discounted at 10%. 
    
--  Kakwa proved plus probable reserves were assigned 135 bbl/mmcf free
    condensate, with an additional 12 bbl/mmcf of natural gas liquids
    recoveries at processing facilities. 
    
--  Kakwa proved plus probable reserves were assigned 4,315 mboe consisting
    of 2,507 mboe natural gas and 1,808 mboe liquids. 



Additional Lands Secured

In addition to Contact's West Kakwa acreage, the Company is pleased to announce
that is has acquired an additional 31 sections of 100% acreage within the Deep
Basin Montney trend. These additional lands have varied rights, some including
all rights from surface to basement; however, Contact's Alberta focus continues
to remain on the Montney. The Company expects to release further details on
these lands as additional technical evaluations are completed. Contact expects
to maintain its 2013 drilling focus on East Kakwa. With the recent land
acquisitions, Contact now holds 46.7 net (61 gross) sections of Montney-focused
acreage within Alberta's Deep Basin.


Drilling and Completions Update

As previously reported on January 29, 2013, Contact participated in a
non-operated Montney well, immediately adjacent to Contact's existing 25%
working interest East Kakwa acreage. The well was successfully drilled before
spring breakup and the well operator now advises that the well is expected to be
completed and tested in mid-July 2013, as ground conditions have improved and
will now support the required equipment. This well will evaluate the Upper
Montney. Contact is responsible to pay for 23.75% of well costs to earn a 23.75%
working interest in the spacing unit of the well, and a total of 2.25 gross
sections, subject to a 5% non-convertible gross overriding royalty. 


The next Contact-operated Kakwa well to be drilled in the East Kakwa block is
scheduled to be spud within the first two weeks of July 2013. Contact will hold
a 25% working interest in this well.


Production Update

The Company's first 3 operated wells in East Kakwa have continued to produce at
high rates and liquids yields. The 13-17 well has been on production since
December 2012, and has produced condensate yields steadily at 135 bbl/mmcf, with
the well continuing to perform at 1 mmcf/d. Contact's second well, 14-30, has
flowed between 2 and 4 mmcf/d in the first two months of production, with
condensate yields averaging 180 bbl/mmcf. In accordance with standard operating
practices, the 14-30 well has recently been shut in to record build pressures.
Since shutting in the 14-30 well, the 3-19 well has been brought online at
approximately 3.5 mmcf/d with a condensate yield of 166 bbl/mmcf. Contact holds
a 37.5% working interest (before payout) in the 13-17 well and a 25% working
interest in both the 14-30 well and 3-19 well.


The Company is also pleased to announce that its proposed 15 MM/d compressor
station and condensate stabilization has received approval. The facility will be
centrally located and will serve to lower gathering pipeline and wellhead
flowing pressures on the East Kakwa lands. Equipment ordering has commenced with
start-up still anticipated prior to the end of 2013. 


About Contact Exploration Inc.

Contact Exploration Inc. is a public oil and gas company which has a long-term
history of operating in Atlantic Canada and has recently demonstrated success in
Alberta's liquids-rich Montney Formation tight gas play. For more information,
please see the Company's website: www.contactexp.com.


Cautionary Statements

Information Regarding Disclosure on Oil and Gas Reserves and Operational
Information 


ADVISORY ON USE OF "BOEs": "BOEs" may be misleading, particularly if used in
isolation. A BOE conversion ratio of six thousand cubic feet of natural gas to
one barrel of oil equivalent (6 mcf: 1 bbl) is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not represent
a value equivalency at the wellhead. Given that the value ratio based on the
current price of crude oil or natural gas liquids as compared to natural gas is
significantly different from the energy equivalency of 6:1, utilizing a
conversion on a 6:1 basis may be misleading as an indication of value.


The estimates of reserves and future net revenue for individual properties may
not reflect the same confident level as estimates of reserves and future net
revenue for all properties due to the effects of aggregation. 


ADVISORY ON FORWARD-LOOKING STATEMENTS: This press release contains certain
forward-looking information and statements within the meaning of applicable
securities laws. The use of any of the words "expect", "continue", "estimate",
"may", "will", "should", "believe", "plans", "cautions" and similar expressions
are intended to identify forward-looking information or statements. In
particular, but without limiting the forgoing, this press release contains
statements concerning the timing to complete a new non-operated well, the
earning by Contact of a working interest upon paying a portion of the costs of
completing the non-operated well, the timing to drill and complete a new well at
the East Kakwa property and the construction of a 15 MM/d compressor station and
condensate stabilization facility.


Forward-looking statements or information are based on a number of material
factors, expectations or assumptions of Contact which have been used to develop
such statements and information but which may prove to be incorrect. Although
Contact believes that the expectations reflected in these forward-looking
statements are reasonable, undue reliance should not be placed on them because
Contact can give no assurance that they will prove to be correct. Since
forward-looking statements address future events and conditions, by their very
nature they involve inherent risks and uncertainties. In particular, in addition
to other factors and assumptions which may be identified herein, no assurances
can be given respecting: whether the Company's exploration and development
activities respecting the Deep Basin Montney project will be successful or that
material volumes of petroleum and natural gas reserves will be encountered, or
if encountered can be produced on a commercial basis; the ultimate size and
scope of any hydrocarbon-bearing formations at the Deep Basin Montney project;
that the compressor station and condensate stabilization facility will be
developed as planned and in the time anticipated; that the additional drilling
operations in the Deep Basin Montney project will be successful such that
further development activities in this area is warranted; that Contact's efforts
to raise additional capital will be successful; that Contact will continue to
conduct its operations in a manner consistent with past operations; results from
drilling and development activities will be consistent with past operations; the
accuracy of the estimates of Contact's reserve volumes and those volumes
reported by GLJ and McDaniel in their respective evaluations; the general
stability of the economic and political environment in which Contact operates;
drilling results; field production rates and decline rates; the general
continuance of current industry conditions; the timing and cost of pipeline,
storage and facility construction and expansion and the ability of Contact to
secure adequate product transportation; future commodity prices; currency,
exchange and interest rates; regulatory framework regarding royalties, taxes and
environmental matters in the jurisdictions in which Contact operates; and the
ability of Contact to successfully market its oil and natural gas products. 


Further, events or circumstances may cause actual results to differ materially
from those predicted as a result of numerous known and unknown risks,
uncertainties, and other factors, many of which are beyond the control of the
Company, including, without limitation: changes in commodity prices; changes in
the demand for or supply of the Company's products; unanticipated operating
results or production declines; changes in tax or environmental laws, royalty
rates or other regulatory matters; changes in development plans of Contact or by
third party operators of Contact's properties, increased debt levels or debt
service requirements; inaccurate estimation of Contact's oil and gas reserve and
resource volumes; limited, unfavourable or a lack of access to capital markets;
increased costs; a lack of adequate insurance coverage; the impact of
competitors; and certain other risks detailed from time-to-time in Contact's
public disclosure documents. Additional information regarding some of these risk
factors may be found under "Risk Factors" in the Company's Management Discussion
and Analysis prepared for the year ended March 31, 2012. The reader is cautioned
not to place undue reliance on this forward-looking information. The
forward-looking statements contained in this press release are made as of the
date hereof and Contact undertakes no obligations to update publicly or revise
any forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws.


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.



FOR FURTHER INFORMATION PLEASE CONTACT: 
Contact Exploration Inc.
Steve Harding
President and CEO
(403) 771-1091
(403) 695-3915 (FAX)
sharding@contactexp.com
www.contactexp.com
Contact Exploration Inc. (TSXV:CEX)
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