Kicking Horse Energy Inc. (fka CXLIF)

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March 14,2012 Update-

http://www.contactexp.com/Home_files/PressReleaseMarch14.pdf

CALGARY, CANADA (TSX-V:CEX)
NEWS RELEASE
Contact Exploration Announces Flow Through Private Placement and Provides Montney Drilling Update
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
March 14, 2012, (Calgary, Alberta) Contact Exploration Inc. (“Contact” or the “Company”) (TSX-V: CEX) is pleased to announce that it has entered into an agreement with MGI Securities Inc. ("MGI") respecting a brokered private placement (the "Flow Through 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) ("Flow-Through Shares") 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").
Contact is also negotiating a non-brokered private placement (the "Preferred Share Placement") of up to $1 million of convertible, redeemable, 8% preferred shares to a third party purchaser, which placement remains subject to the completion of final documentation and the approval of the TSXV. Contact expects to finalize the Preferred Share Placement within the next few weeks and will announce further information as terms are finalized.
As previously announced, Contact and its partners are currently drilling a Montney exploratory well in the Kakwa area of Alberta. To date, drilling costs associated with this well remain on budget and intermediate casing is scheduled to be set in the Montney formation within the next week. The well is then programmed to be drilled horizontally for a minimum distance of approximately 1,000 meters, expected to reach total depth in April 2012.
Should Contact successfully close both the Flow Through Private Placement and the Preferred Share Placement for the maximum gross proceeds contemplated, Contact expects to have fully funded its capital obligations associated with the drilling of the Montney well, with $1 million of available cash and an undrawn $2 million credit facility. Contact anticipates finalizing completion operations on this well after Spring break-up.
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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