Contact Exploration Inc.
TSX VENTURE : CEX

Contact Exploration Inc.

June 11, 2007 12:21 ET

Contact Announces Farm-out on Windsor

CALGARY, ALBERTA--(Marketwire - June 11, 2007) - Contact Exploration Inc. (TSX VENTURE:CEX) is pleased to announce the completion of a farm-out agreement with Triangle Petroleum Corporation ("Triangle") on Contact's 516,000 acre shale gas prospect in Nova Scotia. This agreement also relates to a previously announced shale gas farm-out in New Brunswick on March 19th 2007, in which Triangle's name was purposely withheld until negotiations on this second block of ground were completed. Contact has now secured both agreements with Triangle and looks forward to working with them on these two exciting shale gas prospects.

Located in the Windsor region of Nova Scotia, the Shale Gas Prospect covers 516,000 acres in what Triangle concurs is a highly favorable geological setting with comparable geological attributes to the Barnett Shale project in Texas and the Fayetteville Shale project in Arkansas. Triangle's evaluation of the Shale gas play in Eastern Canada began in the spring of 2006 with the company's decision to proceed following its extensive screening and technical work-over including evaluating historical information available from previously drilled conventional wells.

Under the terms of the farm-out, Triangle will be entitled to earn a 70% working interest in the block subsequent to paying an $80,000 deposit to the Nova Scotia government prior to September 15, 2007 and then electing to drill a test well no later than September 15, 2008. Contact will retain a 30% working interest subsequent to Triangle's earn in commitment.

"We are delighted to bring in such a strong industry partner on both of our shale gas prospects in New Brunswick and Nova Scotia," comments Terry Brown, President of Contact Exploration. "Triangle as a partner brings the benefit of both technical expertise and profile to this exciting unconventional gas prospect in Eastern Canada."

About Contact

Contact Exploration Inc. is a junior exploration company with a focus on Canadian East Coast onshore exploration. Contact's land claims and holdings are located in close proximity to the largest consumption markets in North American with pipeline and refinery infrastructure in place.

Contact has interests in approximately 1.5 million acres onshore Nova Scotia, approximately 160,000 acres onshore West Newfoundland and 165,000 acres onshore New Brunswick which includes the Stoney Creek Field.

Certain statements contained herein may constitute forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. We believe that the expectations reflected in the forward-looking statements are reasonable based upon management's current views but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. These statements speak only as of the date hereof. We do not intend, and do not assume any obligation, to update conclusions, forecasts or projections that may be contained in these forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by these forward-looking statements will occur, or if they do, that any benefits may be derived from them. Past results have been applied in drawing a conclusion or making a forecast or projection set out in the forward-looking information.

Our actual results could differ materially from those anticipated in these forward-looking statements as a result of factors that may include, but are not limited to: the impact of government regulation, potential delays or changes in plans with respect to exploration and development projects, success of exploration and development activities, general industry and market conditions and other risks detailed from time to time in Contact's Annual Information Form and Management's Discussion and Analysis, both of which may be found at www.sedar.com.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information