Vast Exploration Inc.
TSX VENTURE : VST

Vast Exploration Inc.

June 12, 2008 12:01 ET

Vast Exploration Closes $35 Million Bought Deal Financing in Connection With Production Sharing Contract in Kurdistan Region of Iraq

CALGARY, ALBERTA--(Marketwire - June 12, 2008) -

NOT FOR ISSUE IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES

Vast Exploration Inc. ("Vast" or the "Company") (TSX VENTURE:VST) is pleased to announce that it has closed its previously announced equity financing, including the exercise in full of the over-allotment option. Pursuant to the financing, the Company has issued and sold 58,335,000 units of the Company at a price of $0.60 per unit for total gross proceeds of $35,001,000 (the "Offering"). Each unit was comprised of one common share and one-half of one share purchase warrant, with each whole share purchase warrant entitling the holder thereof to acquire one Vast common share at a price of $0.90 at any time prior to June 12, 2010.

The Company intends to use the net proceeds from the financing for working capital and to fund its commitments under a Production Sharing Contract ("PSC") that it has entered into with the Kurdistan Regional Government - Iraq for the exploration, development and production of petroleum resources in the 846 square kilometre Qara Dagh Block in the Sulaymaniya Governorate of the Federal Region of Kurdistan - Iraq. Further details regarding the PSC are available on the website of the Company at www.vastexploration.com and in a press release issued on May 20, 2008.

Canaccord Capital Corporation, as lead underwriter, and Macquarie Capital Markets Canada Ltd. (collectively, the "Underwriters") acted as underwriters for the financing. In consideration for their efforts, the Underwriters received a cash commission equal to 6% of the gross proceeds of the Offering and 3,500,100 compensation options that will entitle them to acquire an equal number of Vast common shares at a price of $0.60 per share at any time prior to June 12, 2009.

All securities issued pursuant to the private placement are subject to a four month hold period following the closing date.

This press release is not an offering of securities for sale in the United States. The units have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of that Act.

About Vast Exploration Inc.

Vast Exploration Inc. is an independent oil and gas exploration and production company actively pursuing crude oil and natural gas opportunities. Vast currently has production operations in the Province of Alberta, Canada.

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the terms of the PSC agreement, the planned use of proceeds, and receipt of all regulatory approvals. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of exploration activities; regulatory risks; risks inherent in foreign operations; and other risks of the oil and gas industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

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