Contact Exploration has entered into an agreement with MGI Securities respecting a brokered private placement pursuant to which MGI will act as Contact's agent to sell, on a "best efforts" basis, up to 15,384,615 common shares in the capital of the Company to be issued on a "flow-through" basis pursuant to the Income Tax Act (Canada) to exempt buyers on a private placement basis at a price of $0.13 per Flow-Through Share, for aggregate gross proceeds of up to $2 million.

Contact expects to use the proceeds of the Flow Through Private Placement to incur eligible Canadian Exploration Expenses to fund its ongoing capital programs. These qualifying Canadian Exploration Expense expenditures will be renounced to subscribers effective December 31, 2012. The Flow-Through Shares issued pursuant to the Flow Through Private Placement will be subject to a four-month hold period from the closing date, which is anticipated to occur on or about April 5, 2012. The Flow Through Private Placement is subject to approval from the TSX Venture Exchange ("TSXV").

Tags: Contact Exploration Inc.