LNG Lng Energy Ltd.

Contact Exploration Inc. ("Contact") (TSX VENTURE:CEX) and Pieridae Energy
Limited ("Pieridae") are pleased to announce the creation of a new natural
gas-focused exploration and production entity - Pieridae Production Limited
Partnership ("PPLP" or the "Partnership"). 


PPLP has been formed by Pieridae and Contact to source, develop and produce
natural gas to serve as significant portion of the feedstock for Pieridae's
proposed Goldboro LNG Terminal in Guysborough, Nova Scotia. The proposed
terminal is anticipated to receive, liquefy and export up to about ten million
metric tons of natural gas per year and have on-site storage capacity of 690,000
cubic metres of liquefied natural gas ("LNG"). Upon completion of the terminal,
North American natural gas supplies are to be transported to Goldboro, Nova
Scotia, using existing pipelines and exported by ship to international markets.
The Partnership will focus on securing and developing natural gas assets onshore
Atlantic Canada and the eastern United States for the Goldboro terminal and,
upon completion, the Partnership's production and reserves are to be dedicated
to the facility.


The initial assets acquired by PPLP (the "Assets") consist of approximately
50,000 acres of lands prospective for natural gas development within New
Brunswick, initially held by Contact. As consideration for the indirect
contribution of a 15% working interest in the Assets into the Partnership,
Contact has received an initial cash payment of $1.3MM from Pieridae and has
been issued common shares of Pieridae equal to 15% of Pieridae's currently
issued and outstanding shares. 


The quantity of shale gas resource contained on PLPP's lands within the
Frederick Brook Member of the Albert Formation was the subject of an independent
study (the "GLJ Study") effective December 31, 2010, conducted for Contact by
GLJ Petroleum Consultants Ltd. of Calgary, Alberta in accordance with the
Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 -
Standards of Disclosure for Oil and Gas Activities. The GLJ Study states that,
as at the effective date thereof, the best estimate of prospective resources on
the Partnership's lands is 2.138 TCF based on a 20% recovery factor of the
undiscovered petroleum-initially-in-place of 10.897 TCF gross and 10.690 TCF
Partnership working interest (98.1%). The GLJ Study concludes that recovery
factors should range between 10 and 30 percent for such resources, with a P50
case of 20 percent. The GLJ Study further concluded that the low estimate of
prospective resources on the Partnership's lands is 750 BCF and that the high
estimate of prospective resources on the Partnership's lands is 4.492 TCF, based
on a 20% recovery factor. See Contact's press release dated January 25, 2011 for
more information respecting the Assets and the results of the GLJ Study. The
Hiram Brook Member within PLPP's lands has also tested natural gas and is
believed to be highly prospective, however an independent resource study has yet
to be completed on this formation. There is no certainty that any portion of the
resources associated with the Assets will be discovered. If discovered, there is
no certainty that it will be commercially viable to produce any portion of the
resources.


Initial ownership of PLPP will be 85% Contact and 15% Pieridae. An additional
$15.4 million of third-party equity funding for the Partnership is currently
being sought and coordinated by Pieridae, which once invested, will reduce
Contact's ownership in the Partnership to 50%. Contact has created a
wholly-owned subsidiary to manage PPLP ("Contact Opco"). Contact Opco is to
provide management and administrative services to the Partnership on a long-term
contractual basis and will be compensated for such services through a
combination of fixed monthly fees and incremental fees based on capital
expenditures, production and completion of acquisitions and dispositions by the
Partnership. Pending the completion of the initial funding of $15.4 million into
the Partnership, which is expected to be completed no later than July 2014, the
fees payable to Contact Opco for its management services will be funded by
Pieridae through capital contributions into the Partnership. 


Steve Harding, President and CEO of Contact Exploration commented, "This is an
exciting new platform for Contact to expand and diversify its opportunity
portfolio. We are ideally positioned to source and develop long-term sustainable
feedstock for the proposed Goldboro LNG Terminal by leveraging our long-standing
history in Atlantic Canada and our tight gas expertise from Western Canada. By
combining efforts with Pieridae and their extensive knowledge of North American
gas transmission systems and global LNG markets, we believe that the Partnership
will be a valuable entity integral to advancing the success of the Goldboro LNG
Terminal."


Alfred Sorensen, President and CEO of Pieridae, said, "Goldboro LNG creates an
opportunity for further exploration and production of natural gas resources in
Atlantic Canada and northeastern United States. We are pleased to form a
partnership with Contact to advance natural gas resource development in the
region and secure a North American supply for export to global markets."


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.


About Pieridae Energy Limited

Pieridae Energy Limited is a Canadian energy infrastructure development company
focused on liquefied natural gas opportunities. The company's management team
has extensive LNG experience and deep connections to the LNG industry
world-wide.


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 the business purpose and business plan of the Partnership,
the timing of completion of the Goldboro LNG facility, the throughput and
capacity of the Goldboro LNG facility once completed, the timing of completing
additional funding into the Partnership and the nature and timing of the fees
payable by the Partnership to Contact Opco. 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 


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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Contact Exploration Inc.
Steve Harding
President and CEO
(403) 234-8663
sharding@contactexp.com
www.contactexp.com


Pieridae Energy Ltd.
Sean Lewis
(902) 425-1860 ext.225
slewis@nationalpr.ca

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