Contact Exploration Inc. Announces $10 Million Bought Deal Financing



    CALGARY, June 4 /CNW/ - Contact Exploration Inc. (TSX-V: CEX) is pleased
to announce it has entered into an agreement with Canaccord Capital
Corporation of Calgary, Alberta as lead underwriter on behalf of a syndicate
of underwriters, including Acadian Securities Inc., of Halifax, Nova Scotia,
pursuant to which such underwriters have agreed to purchase, on a bought deal
basis, 15,400,000 units of Contact at a price of $0.65 per unit. Each unit
consists of one common share of Contact and one half of a common share
purchase warrant. Each whole warrant will enable the holder to acquire one
additional common share of Contact at a price of $0.95 for 24 months from the
date of closing. Gross proceeds of the offering will be approximately
    In addition, subject to regulatory approval, the underwriters will be
entitled to an option, exercisable for a period of 30 days from the date of
closing, to purchase up to an additional 2,310,000 units at the offering price
of $0.65 per unit, for additional gross proceeds of $1,501,500.
    The net proceeds from this financing will be used for Contact's Nova
Scotia and New Brunswick shale gas activities and for general corporate
    All securities issued pursuant to this financing, including any
securities issued in payment of commissions, will be subject to a four month
hold period commencing on the date of closing.

    About Contact Exploration Inc.

    Contact Exploration Inc. is a junior exploration company with a focus on
Canadian East Coast onshore exploration & production. Contact's holdings and
operations are located in close proximity to one of the world's largest
consumption markets, near strong pipeline and refining infrastructure and in
mature jurisdictions with reasonable royalty structures in place.
    Contact's philosophy is to operate production and exploration in our core
area of Atlantic Canada, and to participate in unconventional shale gas
exploration, such as the Windsor Shale Block in Nova Scotia and the underlying
shale formation in New Brunswick (operated by Triangle Petroleum).
    Contact has onshore interests in approximately 700,000 acres in Nova
Scotia, approximately 70,000 acres in west Newfoundland and 165,000 acres in
New Brunswick which includes the Stoney Creek Field (approximately
5,500 acres), a field with estimated proved and probable reserves of
1.2 million barrels of oil and 6.5 bcf of natural gas. In addition to the
Atlantic Canadian properties, Contact has producing oil assets in south
eastern Saskatchewan.


    Certain statements contained herein may constitute forward-looking
statements. These statements relate to future events or our future
performance. All statements other than statements of historical fact may be
forward-looking statements. These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or events to
differ materially from those anticipated in such forward-looking statements.
We believe that the expectations reflected in the forward-looking statements
are reasonable based upon management's current views but no assurance can be
given that these expectations will prove to be correct and such
forward-looking statements should not be unduly relied upon. These statements
speak only as of the date hereof. We do not intend, and do not assume any
obligation, to update conclusions, forecasts or projections that may be
contained in these forward-looking statements, whether as a result of new
information, future events or otherwise. No assurance can be given that actual
results, performance or achievement expressed in, or implied by these
forward-looking statements will occur, or if they do, that any benefits may be
derived from them. Past results have been applied in drawing a conclusion or
making a forecast or projection set out in the forward-looking information.
    Our actual results could differ materially from those anticipated in
these forward-looking statements as a result of factors that may include, but
are not limited to: the impact of government regulation, potential delays or
changes in plans with respect to exploration and development projects, success
of exploration and development activities, general industry and market
conditions and other risks detailed from time to time in Contact's Annual
Information Form and Management's Discussion and Analysis, both of which may
be found at

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

    Not for distribution to United States newswire services or for
    dissemination in the United States.

    %SEDAR: 00005097E

For further information:

For further information: Darcy Spady, President and CEO, (403) 234-8663,

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