Contact Exploration Inc.
TSX VENTURE : CEX

Contact Exploration Inc.

October 15, 2007 16:30 ET

Contact Exploration Inc. Announces $2 Million Financing

CALGARY, ALBERTA--(Marketwire - Oct. 15, 2007) -

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

Contact Exploration Inc. (TSX VENTURE:CEX) is pleased to announce that, subject to regulatory acceptance, Acadian Securities Inc. of Halifax, Nova Scotia has been engaged as agent to offer a brokered private placement on a reasonable commercial efforts basis of up to $2,000,000, which shall consist of up to 2,500,000 flow-through common shares at a price of $0.40 per share and 2,500,000 common share units at a price of $0.40 per unit. Each unit will consist of one common share and one common share purchase warrant entitling the holder to purchase an additional common share at an exercise price of $0.60 for a period of eighteen months from closing.

Additionally, the Agent has been granted a 20% over allotment option under the terms of the engagement to sell up to an additional 20% of each of the number of flow-through common shares and common share units, respectively.

The proceeds from this private placement will be used to fund ongoing exploration and development activities at Contact's properties in New Brunswick and Nova Scotia, as well as for general corporate purposes.

All securities issued pursuant to this private placement, including any securities issued in payment of commissions or finders' fees, will be subject to a four-month hold period, commencing at closing.

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 onshore interests in approximately 700,000 acres in Nova Scotia, approximately 160,000 acres in west Newfoundland and approximately 165,000 acres in New Brunswick which includes the Stoney Creek Field (approximately 5500 acres), a field with estimated proved and probable reserves of 1.2 million barrels of oil and 6.5 bcf of natural gas.

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.

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