Contact Exploration Inc.
TSX VENTURE : CEX

Contact Exploration Inc.

November 02, 2007 13:51 ET

Contact Exploration Inc. Completes $2.8 Million Financing

CALGARY, ALBERTA--(Marketwire - Nov. 2, 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 it has closed the previously announced brokered private placement through Acadian Securities Inc. of Halifax, Nova Scotia as Agent.

The private placement was oversubscribed and increased at the request of the Agent for aggregate proceeds of $2,800,000. 3,000,000 flow through common shares were sold at $0.40 per share and 4,000,000 common share units were sold at $0.40 per unit, each unit consisting of one common share and one full share purchase warrant, with each warrant entitling the holder to purchase one additional common share at $0.60 until March 2, 2009.

Acadian Securities Inc. received a cash commission of 7% of the aggregate proceeds and 490,000 agent's options exercisable at $0.40 per share for twenty four months.

All securities issued pursuant to these private placements, including the securities issued in payment of commissions, are and will be subject to a four-month hold period, commencing at closing.

The proceeds from these private placements will be used to finance continuing exploration, development and production activities at Contact's production and exploration properties in New Brunswick and shale gas exploration and completion in Nova Scotia. The flow through funds raised from the issuance of the flow through common shares shall be used for exploration, which will constitute Canadian Exploration Expense (as defined by the Income Tax Act) and will be renounced for the 2007 taxation year to subscribers.

TSX Venture exchange filings are required post closing and will be made by Contact.

About Contact

Contact Exploration Inc. is a junior exploration company with a focus on Canadian East Coast onshore exploration and development as well as ongoing oil production from the Stoney Creek Field. 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 is also a 30% working interest holder in the Triangle Petroleum Corporation operated Windsor Shale Prospect in Windsor, Nova Scotia.

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 currently producing oil 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.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in any jurisdiction where such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from registration is available.

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

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