On December 8, 2006, Contact Exploration Inc. closed a brokered private placement totalling approximately $3.5 million, consisting of 3,006,085 flow-through common shares of Contact at a price of $1.15 per share. The flow-through offering was oversubscribed and Contact received TSX Venture Exchange approval to increase the size of the offering from $2.5 to $3 million with a corresponding increase in the 20% over-allotment option.

A non-brokered private placement, which Contact closed on December 21, 2006, totaled $690,000. The closing consisted of 690,000 units at a price of $1.00 per unit. Each unit consisted of one common share and one-half purchase warrant; each whole warrant entitles the holder to purchase one common share at an exercise price of $1.40 per share expiring June 21, 2008.

The proceeds from these private placements will be used to finance continuing exploration and development activities at Contact's coal bed methane properties in Nova Scotia, and at its Stoney Creek property in New Brunswick, as well as for general corporate purposes.

Contact Exploration Inc. is a junior exploration company with a focus on Canadian East Coast onshore exploration. Contact's land claims and holdings are located in close proximity to the largest consumption markets in North American with pipeline and refinery infrastructure in place.

Fasken Martineau advised Contact in these transactions with a team comprised of Rod Ferguson and Hugoline Morton (Calgary), Frank Schober and Karima Penman (Vancouver) and Robert Eberschlag (Toronto).