Contact and Donnycreek Announce Closing of Arrangement

CALGARY, ALBERTA--(Marketwired - Dec. 19, 2014) -

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Contact Exploration Inc. ("Contact") (TSX VENTURE:CEX) and Donnycreek Energy Inc. ("Donnycreek") (TSX VENTURE:DCK) are pleased to announce the successful completion of the merger of the two companies pursuant to the previously announced plan of arrangement (the "Arrangement") to form Kicking Horse Energy Inc. ("Kicking Horse" or the "Company").

Shareholders and optionholders of Contact and Donnycreek along with the Court of Queen's Bench of Alberta approved the Arrangement on December 19, 2014.

Kicking Horse will maintain a public listing on the TSX Venture Exchange ("TSXV") and expects that its common shares will begin trading on the TSXV under the symbol "KCK" on or about December 24, 2014. The Company has also assumed all of the liabilities and assets of each of Contact and Donnycreek in accordance with the terms of the Arrangement and the Business Corporations Act (Alberta).

Pursuant to the Arrangement, shareholders of Donnycreek received 0.600 shares of the Company for each Donnycreek share and shareholders of Contact received 0.075 shares of the Company for each Contact share. As a result, Kicking Horse has approximately 59.7 million shares outstanding. Additionally, all of the outstanding stock options of Contact and Donnycreek were exchanged for stock options of Kicking Horse based on each of the applicable Donnycreek and Contact exchange ratios under the Arrangement, with the exercise price of the issued Kicking Horse options being similarly adjusted.

Shareholders whose Donnycreek or Contact shares are held by a broker, agent or other intermediary should contact their broker or agent in respect of the exchange of their shares pursuant to the Arrangement. Registered holders of Donnycreek shares and Contact shares must deposit their certificates with a duly completed Letter of Transmittal in order to receive their Company shares, as set forth in the joint information circular (the "Circular") of Contact and Donnycreek dated November 21, 2014. Certificates formerly representing Donnycreek shares and Contact shares now represent only the right to receive Company Shares to which the holders thereof are entitled pursuant to the Arrangement.