Contact Exploration closes $6.49-million financing

Aug 8, 2013

CONTACT ANNOUNCES CLOSING OF PRIVATE PLACEMENT

Contact Exploration Inc. has closed its previously announced brokered private placement pursuant to which it has issued 14,009,616 common shares of the company at a price of 26 cents per common share and 9,495,000 common shares issued on a flow-through basis pursuant to the provisions of the Income Tax Act (Canada) at an issue price of 30 cents per flow-through share for total gross proceeds of $6,491,000. Integral Wealth Securities Limited led a syndicate of agents, which included Dundee Securities Ltd., MGI Securities Inc. and Beacon Securities Ltd. (collectively, the “Agents”), in respect of the Private Placement and the Agents were paid a cash commission equal to 7% of the aggregate gross proceeds raised by the Company.

The securities issued pursuant to the Private Placement are subject to a four-month hold period from the date hereof, which expires on December 9, 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.

We seek Safe Harbor.

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