October 24, 2012, (Calgary, Alberta) – Contact Exploration Inc. ("Contact" or the "Company") (TSX-V:CEX) is pleased to announce that it is currently negotiating with Pieridae Energy Canada ("Pieridae") a participation and earning agreement (the "Proposed Agreement") respecting Contact’s New Brunswick natural gas assets. Pieridae is a Canadian energy infrastructure development company that has announced the development, along with RWE Group (being one of Europe’s leading integrated energy companies), of a liquefied natural gas ("LNG") export facility (the "Goldboro LNG Facility") in Goldboro, Nova Scotia, Canada.

In addition to setting forth the framework for the funding and joint development of Contact’s New Brunswick natural gas assets, the Proposed Agreement is to contemplate that Contact will exclusively manage the operations of any investment made by the partners in the Goldboro LNG Facility with respect to the exploration and development of all potential Canadian on-shore natural gas for the facility.

As announced by Pieridae, the Goldboro LNG Facility is to include a gas liquefaction plant and facilities for the storage and export of LNG, including a marine jetty for off-loading, and upon completion, is expected to ship approximately five million metric tons of LNG per year and have on-site storage capacity of 420,000 cubic metres of LNG. The Goldboro LNG Facility is to be located adjacent to the Maritimes & Northeast Pipeline, a 1,400-kilometre transmission pipeline system built to transport natural gas between Nova Scotia, Atlantic Canada and the North eastern United States. As announced by Pieridae, the Goldboro LNG Facility project is expected to create significant direct and indirect economic benefits for the local community, Provinces of Nova Scotia and New Brunswick and region, with Pieridae anticipating that, at its peak, the Goldboro LNG Facility will create up to 1,500 jobs during construction and 100 full-time, permanent jobs during operations.

Negotiations between Contact and Pieridae respecting the terms of the Proposed Agreement are ongoing and the Company expects the Proposed Agreement to be finalized within the next four weeks. Contact will provide further details regarding the timing of finalizing and entering into the Proposed Agreement, and the terms and conditions thereof, in due course.