Contact Exploration Inc.

Contact Exploration Inc.

June 12, 2006 16:02 ET

Contact Exploration Inc.: Private Placement Financing

CALGARY, ALBERTA--(CCNMatthews - June 12, 2006) - Contact Exploration Inc. (TSX VENTURE:CEX) announces that it intends to proceed with a $5,000,000 Private Placement comprising:

1. 3,200,000 Units ("Units"), each consisting of one (1) common share and one half ( 1/2) purchase warrant at a price of $1.25 per Unit. Each whole purchase warrant will entitle the holder to purchase one common share at an exercise price of $1.75 exercisable for a period of one year from the date of issue; and

2. 800,000 flow through common shares at a price of $1.25 per flow through common share.

The price of the Securities was determined by the Company. In connection with the private placement, certain agents may be paid a cash commission representing 6% of the aggregate subscription funds arranged through them. This non-brokered private placement is subject to regulatory approval including further filings with the TSX Venture Exchange.

Contact intends to use the proceeds of the financing to fund further exploration and development of its Canadian East Coast onshore oil and gas exploration properties.

Contact is a junior exploration company with a focus on Canadian East Coast onshore exploration. Contact has interests in approximately 2.3 million acres onshore Nova Scotia. In addition, Contact has interests in approximately 160,000 acres onshore West Newfoundland and 62,000 acres onshore New Brunswick.

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

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