CEX Contact Exploration Inc.

Contact Exploration Inc. ("Contact" or the "Company") (TSX-V:CEX) is pleased to announce that the third Contact-operated horizontal Montney well (the "3-19 Well") has been successfully completed and tested. The well was flow-tested for 161 hours. During the final 24 hours of flow-back the well averaged gross production rates of 1,798 boe/d consisting of 826 bbl/d condensate and 5,833 mscf/d gas (207 bbl/d and 1,458 mscf/d, or 450 boe/d combined, net to Contact) against anticipated gathering system pressure of approximately 5,000 kPa. The successful drilling and completion of the 3-19 Well continues to demonstrate that Contact's Kakwa lands are in the heart of the liquids-rich Montney trend, validating the repeatability of this prolific play. The Company has engaged an independent reserve evaluator to provide an assessment of the reserves and resources on Company lands as at Contact's fiscal year end of March 31, 2013.  This assessment is anticipated to be complete by May 2013 and will be Contact's first reserve evaluation to include its Kakwa interests.

Equipping and facilities work will begin immediately to add additional liquids handling equipment on site that will accommodate both the 3-19 Well and the Contact operated well at 14-30 which well was drilled from the same surface location.  It is currently anticipated that production from both wells will commence in mid-April 2013. The Company is currently permitting multiple new wells at Kakwa and anticipates the drilling of the next well to commence after spring break-up.    The Company advises that although the initial rates from the 3-19 Well are very encouraging, production test results are not necessarily indicative of long-term performance or of ultimate recovery from the 3-19 Well.  About Contact Exploration Inc.

Contact Exploration Inc. is a public oil and gas company which has a long-term history of operating in Atlantic Canada and has recently demonstrated success in Alberta's liquids-rich Montney Formation tight gas play. For more information, please see the Company's website: www.contactexp.com   ADVISORY ON USE OF "BOEs": "BOEs" may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 mcf: 1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.  Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value. ADVISORY ON FORWARD-LOOKING STATEMENTS: This press release contains certain forward–looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "continue", "estimate", "may", "will", "should", "believe", "plans", "cautions" and similar expressions are intended to identify forward-looking information or statements.  In particular, but without limiting the forgoing, this press release contains statements concerning utilizing completion techniques on subsequent wells at Kakwa, plans to drill multiple new wells post-break up, timing of completion of the reserves and resources evaluation on the Company's lands, the economic returns from the 3-19 Well and the timing to tie-in the 3-19 Well and commence production from the 3-19 Well and 14-30 well, among others.  Forward-looking statements or information are based on a number of material factors, expectations or assumptions of Contact which have been used to develop such statements and information but which may prove to be incorrect. Although Contact believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Contact can give no assurance that they will prove to be correct.  Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.  In particular, in addition to other factors and assumptions which may be identified herein, no assurances can be given respecting: whether the Company's exploration and development activities respecting the Deep Basin Montney project and the 3-19 Well will be successful or that material volumes of petroleum and natural gas reserves will be encountered, or if encountered can be produced on a commercial basis; that the results of the 24 hour production test will be indicative of the long-term performance of the 3-19 Well or of ultimate recovery from the well; the ultimate size and scope of any hydrocarbon bearing formations at the Deep Basin Montney project; that additional drilling operations in the Deep Basin Montney project, including at the 3-19 Well, will be successful such that further development activities in this area is warranted; that Contact's efforts to raise additional capital will be successful; that Contact will continue to conduct its operations in a manner consistent with past operations; results from drilling and development activities will be consistent with past operations; the accuracy of the estimates of Contact's reserve volumes; the general stability of the economic and political environment in which Contact operates; drilling results; field production rates and decline rates; the general continuance of current industry conditions; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Contact to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Contact operates; and the ability of Contact to successfully market its oil and natural gas products. Further, events or circumstances may cause actual results to differ materially from those predicted as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including, without limitation: changes in commodity prices; changes in the demand for or supply of the Company's products; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Contact or by third party operators of Contact's properties, increased debt levels or debt service requirements; inaccurate estimation of Contact's oil and gas reserve and resource volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in Contact's public disclosure documents.  Additional information regarding some of these risk factors may be found under "Risk Factors" in the Company's Management Discussion and Analysis prepared for the year ended March 31, 2012.  The reader is cautioned not to place undue reliance on this forward-looking information. The forward-looking statements contained in this press release are made as of the date hereof and Contact undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CONTACT: For more information please contact: 
         
         Steve Harding 
         President and CEO 
         Contact Exploration Inc.  
         Phone:  (403) 771-1091 
         Fax:  (403) 695-3915 
         Email:   sharding@contactexp.com 
         www.contactexp.com