Good news on future pricing:

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 $10,010,000.

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 purposes.

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.