Puma Exploration Inc.

Puma Exploration Inc.

December 27, 2006 10:15 ET

Puma Exploration Completes a Private Placement of $750,000

RIMOUSKI, QUEBEC--(CCNMatthews - Dec. 27, 2006) - Puma Exploration (TSX VENTURE:PUM) is pleased to announce a non-brokered private placement of $750,000 through the sale of 2,272,727 flow-through units ("FT Units") at $0.33 each to the MineralFields group. Each unit consists of one flow-through common share at a price of $0.329 per share and one common share purchase warrant at a price of $0.001 exercisable until December 21, 2008. Each warrant will entitle the holder thereof to acquire one additional common share at a price of $0.50 per share until December 21, 2007 and at $0.70 per share from December 22, 2007 until December 21, 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 $1.50 for 10 consecutive trading days, as evidenced by the price at the close of market, Puma shall be entitled to notify in writing the holders of warrants of its intention to adjust the exercise price. Upon receipt of such notice, the holders of warrants shall have 20 business days to exercise the warrants, failing which the exercise price of the warrants will automatically be adjusted to $1.25 until their expiration.

Limited Market Dealer Inc. has acted as finder in connection with the placement. Diligence fees of 4 % of the amount of the placement have been paid to Limited Market Dealer together with an option to acquire 204,545 units exercisable until December 21, 2008. Each unit will consist of one common share at a price of $0.33 and one common share purchase warrant. Each common share purchase warrant shall carry the same terms and conditions as those offered to investors.

All securities issued under this placement will be subject to hold period until April 22, 2007. Proceeds from the placement will be used for exploration work scheduled for 2007. Following completion of the placement the Company will have 28,135,454 shares issued and outstanding.

"We are very pleased to be entering into this relationship with MineralFields Group" said Mr Andre Proulx, President and CEO. "This is an important milestone in Puma's development. The MineralFields financing will allow the short term and long term development of Puma's projects."

About Puma Exploration

Puma Exploration is a mineral exploration company that is actively acquiring and exploring advanced mineral properties that contain precious and base metal deposits at the mineral reserve definition stage. The Company is currently evaluating resources on it two major projects, the silver-lead-zinc Nicholas-Denys property in New Brunswick and the Little Stull Lake gold property in Manitoba.

About MineralFields

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged, super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Information about the MineralFields Group is available at www.mineralfields.com.

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

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