Contact Announces Non-Brokered Private Placement and Increase in Credit Facilities

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES 


Contact Exploration Inc. ("Contact" or the "Company") (TSX VENTURE:CEX) is
pleased to announce that it intends to proceed with a non-brokered private
placement (the "Private Placement") of up to: (i) 10,256,411 common shares (the
"Common Shares") of the Company at an issue price of $0.39 per Common Share; and
(ii) 13,700,000 Common Shares to be issued on a "flow-through" basis respecting
the expenditure of Canadian development expenses pursuant to the provisions of
the Income Tax Act (Canada) (the "Flow-Through Shares") at an issue price of
$0.445 per Flow-Through Share, for aggregate gross proceeds of up to
approximately $10.09 million.


Proceeds of the Private Placement will be used to fund the Company's exploration
and development program, including funding expenditures that qualify as Canadian
development expenses which will be renounced in favour of the subscribers of the
Flow-Through Shares effective on or before December 31, 2014. 


All securities issued pursuant to the Private Placement will be subject to a
four-month hold period from the closing date. The Private Placement is subject
to approval of the TSX Venture Exchange. 


It is expected that a cash fee of 5% of the gross proceeds from the sale of the
Common Shares in the Private Placement will be paid to Beacon Securities Limited
("Beacon") as a financial advisory fee respecting Beacon's assistance with the
placement of the Common Shares. No fees or commissions are payable by Contact in
respect of the issuance of the Flow-Through Shares.


Credit Facility Increase

Contact is also pleased to announce that its senior lender has increased the
amounts available under the Company's credit facilities to $9.7 million. The
amended operating facility has been increased from $4.5 million to $5.5 million
and the non-revolving acquisition and development demand loan has been increased
from $3.2 million to $4.2 million. The other terms of the Company's credit
facility have remained the same. 


The securities offered have not been, and will not be, registered under the
United States Securities Act of 1933, as amended or any U.S. state securities
laws and may not be offered or sold in the United States or to United States
persons absent registration or any applicable exemption from the registration
requirement of the U.S. Securities Act and applicable U.S. state securities
laws. This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there by any sale of these securities
in any jurisdiction in which such offer, solicitation or sale would be unlawful.


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.


Forward-Looking Information and 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", "anticipate", "continue", "estimate", "may", "will", "project",
"should", "believe", "plans", "intends" 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
anticipated closing of the Private Placement, the anticipated fee payable to
Beacon in respect of the Common Shares sold pursuant to the Private Placement
and the anticipated use of proceeds of the Private Placement. 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. The closing of the Private Placement
could be delayed if Contact is not able to obtain the necessary regulatory and
stock exchange approvals on the timelines it has planned. The Private Placement
will not be completed at all if these approvals are not obtained or some other
condition to the closing is not satisfied. Accordingly, there is a risk that the
Private Placement will not be completed within the anticipated time or at all.
The intended use of the proceeds of the Private Placement by Contact might
change if the board of directors of Contact determines that it would be in the
best interests of Contact to deploy the proceeds for some other purpose. 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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