Contact Announces Private Placement

Jul 25, 2013

Contact Exploration Inc. (“Contact” or the “Company”) (TSX VENTURE:CEX) is pleased to announce its intention to complete a brokered private placement of up to 12,500,000 common shares (the “Shares”) of the Company, at a price of $0.26 per Share, and up to 5,833,334 Shares to be issued on a “flow-through” basis pursuant to the Income Tax Act (Canada) (the “Flow-Through Shares”), at a price of $0.30 per Flow-Through Share, for aggregate gross proceeds of up to $5,000,000 (the “Private Placement”).

The Private Placement is to be conducted on a commercially reasonable “best efforts” agency basis through a syndicate of agents led by Integral Wealth Securities Limited (collectively, the “Agents”). As part of the Private Placement, the Company has agreed to grant the Agents an option, exercisable at any time up to 24 hours prior to the closing of the Private Placement, to offer for sale up to an additional 1,875,000 Shares, at a price of $0.26 per additional Share, and up to an additional 875,000 Flow-Through Shares, at a price of $0.30 per additional Flow-Through Share, for additional aggregate gross proceeds of $750,000, if fully exercised. The Private Placement is expected to close on or about August 8, 2013.

Proceeds from the Private Placement will be used to fund the Company’s drilling and operational activity in the East Kakwa Montney Project area in the Deep Basin in Alberta and for general corporate purposes. In particular, Contact will incur eligible Canadian Exploration Expenses (within the meaning of the Income Tax Act (Canada)), in an amount equal to the aggregate subscription price for the Flow-Through Shares, by December 31, 2014, and renounce such expenses to purchasers of Flow-Through Shares effective December 31, 2013.

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.

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.

http://www.contactexp.com/Press_Release.html