CALGARY, ALBERTA–(EMWNews – July 23, 2008) – Contact Exploration Inc. (“Contact”) (TSX VENTURE:CEX) is pleased to announce the results from the year-end evaluation of its Stoney Creek, New Brunswick and Stoughton, Saskatchewan oil and gas reserves by the independent firm of Martin & Brusset Associates of Calgary.

As stated in the reserves report, which was conducted in accordance with National Instrument 51-101 of the Canadian Securities Administrators, Contact’s reserves, which include the 100% working interest Stoney Creek field and Stoughton wells are estimated to contain proved and probable reserves of 1,207,000 barrels of oil and 7.182 billion cubic feet of natural gas. These ultimate estimated reserves, when discounted at 10% using forecast pricing, give a net present value of $45,157,000. The estimates are net values before tax and after royalties.

“We are pleased to have a significant increase in the monetary estimation of our reserves over last year,” commented Darcy Spady, President of Contact Exploration Inc. The majority of the reserve report was for the Stoney Creek Field in New Brunswick, which represents a small portion (5,500 acres) of the Company’s portfolio of properties, and overlies the significant Beech Hill shale gas prospect. This report provides no value to any of Contact’s shale gas prospects, which are the subject of our current exploration activities.

Details of the reserve report have been included with the year end results contained in the “Annual Information Form” and “Statement of Reserves Data and Other Oil and Gas Information” (Form 51-101F1) for the year ending March 31, 2008, which is available along with our full year end filings at www.sedar.com.

About Contact Exploration Inc.

Contact Exploration Inc. is a junior exploration company with a focus on Canadian East Coast onshore conventional exploration, shale gas exploration & oil production. Contact’s holdings and operations are located in close proximity to one of the world’s largest consumption markets, near strong pipeline and refining infrastructure and in mature jurisdictions with reasonable royalty structures in place.

Contact’s philosophy is to operate production and exploration in our core area of Atlantic Canada, and to participate in unconventional shale gas exploration, such as the Windsor Shale Block in Nova Scotia and the Beech Hill Shale Prospect in New Brunswick (both of which prospects were generated by Contact).

Contact has onshore interests in approximately 700,000 acres in Nova Scotia, approximately 70,000 acres in west Newfoundland and 165,000 acres in New Brunswick which includes the Stoney Creek Field (approximately 5,500 acres). The Stoney Creek field in New Brunswick and Stoughton wells in Saskatchewan have estimated proved and probable reserves of 1.2 million barrels of oil and 7.2 bcf of natural gas.

Certain statements contained herein may constitute forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. We believe that the expectations reflected in the forward-looking statements are reasonable based upon management’s current views but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. These statements speak only as of the date hereof. We do not intend, and do not assume any obligation, to update conclusions, forecasts or projections that may be contained in these forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by these forward-looking statements will occur, or if they do, that any benefits may be derived from them. Past results have been applied in drawing a conclusion or making a forecast or projection set out in the forward-looking information.

Our actual results could differ materially from those anticipated in these forward-looking statements as a result of factors that may include, but are not limited to: the impact of government regulation, potential delays or changes in plans with respect to exploration and development projects, success of exploration and development activities, general industry and market conditions and other risks detailed from time to time in Contact’s Annual Information Form and Management’s Discussion and Analysis, both of which may be found at www.sedar.com.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.