Kicking Horse Energy Inc. (fka CXLIF)

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Last PR-

December 30, 2011, (Calgary, Alberta) Contact Exploration Inc. ("Contact" or the "Company") (TSX-V: CEX) is pleased to announce that it has closed its previously announced non-brokered private placement (the "Private Placement") of common shares ("Flow-Through Shares") of the Company, issued on a "flow-through" basis pursuant to the Income Tax Act (Canada). Contact issued an aggregate of ??????????Flow-Through Shares in the Private Placement, at a price of $0.13 per Flow-Through Share for aggregate gross proceeds of $1,157,702, inclusive of ??????????Flow-Through Shares that were issued today (for gross proceeds of $147,030) in the final tranche of the Private Placement. In respect of this final tranche, the Company paid a cash finder's fee of $5,250 related to subscriptions for 577,000 of the Flow-Through Shares.
The Flow-Through Shares issued today are subject to a four month hold period under applicable securities laws, which hold period expires on May 1, 2012.
Contact expects to use the proceeds of the Private Placement to incur eligible Canadian Exploration Expenses as part of its ongoing capital programs, including the drilling of a previously announced initial Montney well in the Kakwa area of Alberta, prior to December 31, 2012. These qualifying Canadian Exploration Expense expenditures will be renounced to subscribers effective December 31, 2011.
Additionally, Contact has reached agreement with a third party lender for the provision of a secured, subordinated $1,000,000 loan, which loan will have a one year term and an 8% per annum interest rate. Contact plans to close this debt financing within the next 30 days, to best coincide with the Company's operational activity requirements. The debt financing is subject to approval from the TSX Venture Exchange.
About Contact Exploration Inc. Contact Exploration Inc. is a public company which has been focused on Canadian East Coast onshore oil and gas exploration and development. Our philosophy is to operate exploration and development in our core areas of Stoney Creek, Hillsborough and Edgett's Landing, New Brunswick and to participate through overrides and carried interests in certain regional unconventional plays in Nova Scotia and Newfoundland. In addition to the Atlantic Canadian properties, Contact is pursuing a new core area in Alberta's "Deep Basin" targeting the Montney Formation.
For more information please contact:
Steve Harding President and CEO Contact Exploration Inc. Phone: [phone] Fax: [phone] Email: [e-mail] www.contactexp.com


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