Kicking Horse Energy Inc. (fka CXLIF)

[futrcash]

Contact Exploration Announces Participation in New
Acreage and Well; Provides Montney Operations Update

January 29, 2013 (Calgary, Alberta)

Contact Exploration Inc. (“Contact” or the “Company”)
(TSX-V: CEX) is pleased to announce that it will be participating in a new non-operated
Montney well, immediately adjacent to Contact’s existing 25% working interest Kakwa acreage.
The operator advises that drilling of this well is expected to commence in mid-February 2013.
Contact is to pay 23.75% of the costs of drilling and casing this well to earn an average 23.75%
working interest in the Montney Formation in 2.25 gross sections of lands contiguous to
Contact’s existing Kakwa acreage position, subject to a 5% non-convertible gross overriding
royalty on the production from the well. Once earned, Contact will hold 27 gross (12.75 net)
sections of Montney acreage at Kakwa.

The first Contact-operated horizontal Montney well (the "13-17 Well") has been on production
since December 1, 2012. Various capacity bottlenecks associated with downstream processing
restricted December 2012 production from this well. Upon introducing additional condensate
handling equipment at the well site on January 4, 2013, the Company has maintained stable
gross production averaging 3.8mmcf/d and 575bbl/d well head condensate. Contact has a
37.5% working interest in the 13-17 Well, before payout.


Contact’s second operated Montney well (the “14-30 Well”) has been successfully tied into
downstream processing facilities. In January 2013, the 14-30 Well was flowed for only a brief
period, due to the third party gas plant not having capacity for the extremely high levels of free
flowing condensate (in excess of 200bbl/mmcf of natural gas) from the well. Contact’s third
operated Montney well (the “3-19 Well”) is being drilled from the same surface location as the
14-30 Well, with drilling on schedule to be finished in mid-February 2013, with completion
operations anticipated to be finished by mid-March 2013.

Once completion operations on the 3-
19 Well are finished, the Company will equip the 14-30 and 3-19 Wells in similar fashion to the
13-17 Well, such that condensate can be separated at location, allowing for flow of natural gas
from these wells to the third party facility and for condensate to be trucked directly to the sales
point. Contact has a 25% interest in both the 14-30 and 3-19 Wells.

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
For more information please contact:
Steve Harding
President and CEO
Contact Exploration Inc.
Phone: [phone]
Fax: [phone]
Email: [e-mail]


http://www.contactexp.com/Home.html


futr