Vast Exploration Inc. - Closes $10 Million Private Placement Financing



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

    VAST EXPLORATION INC. (TSX VENTURE:VST)

    CALGARY, June 5 /CNW/ - Vast Exploration Inc. ("Vast" or the "Company")
(TSX-V: VST) is pleased to announce that it has closed its previously
announced equity financing, including the exercise of the option. Pursuant to
the financing, the Company has issued and sold 25,000,000 units of the Company
at a price of $0.40 per unit for total gross proceeds of $10,000,000 (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 $0.50 at any
time prior to June 5, 2011.
    The Company intends to use the net proceeds from the financing 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 and for working capital. 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 agent, and Macquarie Capital
Markets Canada Ltd., Genuity Capital Markets and Haywood Securities Inc
(collectively, the "Agents") acted as agents for the financing. In
consideration for their efforts, the Agents received a cash commission equal
to $576,000 and 1,440,000 compensation options that will entitle them to
acquire an equal number of Vast common shares at a price of $0.40 per share at
any time prior to June 5, 2010.
    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.

    
    NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS
    THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
    





For further information:

For further information: Ahmed S. Said, President and CEO, Tel: (403)
263-3000, asaid@vastexploration.com

Organization Profile

VAST EXPLORATION INC.

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