Puma Exploration Inc.

Puma Exploration Inc.

August 16, 2006 12:29 ET

Puma Exploration: $256,500 Placement Completed

RIMOUSKI, QUEBEC--(CCNMatthews - Aug. 16, 2006) - Puma Exploration (TSX VENTURE:PUM) has completed a placement of $256,500 coming from the issue of 855,000 shares at the price of $0.30 per share and 427,500 warrants, each one giving the holder the right to purchase a common share. The shares may not be traded until December 17, 2006. Each warrant attached to the issued shares may be exercised at the price of $0.35 per share until August 16, 2007 and at $0.40 per share until August 16, 2008. If, at any time, the trading price of the common shares of the Company on the TSX Venture Exchange is equal to or exceeds $0.75 for 10 consecutive trading days, as evidenced by the price at the close of market, Puma Exploration shall be entitled to notify in writing the holders of warrants of its intention to force the exercise of the warrants. Upon receipt of such notice, the holders of warrants shall have 10 business days to exercise the warrants, failing which the exercise price of the warrants will automatically be adjusted to $0.60 until their expiration.

Proceeds from the placement will be used as working capital and for exploration work.

The Company has now issued 24,862,727 shares along with this placement.

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

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