Contact and Donnycreek Announce Closing of Arrangement - Seite 2

Kicking Horse Credit Facility

Immediately subsequent to the closing of the Arrangement, the Company entered into a $70 million senior secured credit facility with a Canadian chartered bank. The credit facilities of Contact and Donnycreek have been retired in connection with the closing of the Arrangement.

Kicking Horse Operations Update

Reflective of the recent sharp decline in crude oil and natural gas liquids prices and the Company's focus on maintaining a strong balance sheet and financial flexibility, Kicking Horse will be proceeding with a single rig drilling program at East Kakwa, commencing in early 2015. In that connection, the Company expects to release one of two drilling rigs under contract at East Kakwa upon the completion of the drilling of the 08-11-063-6W6 well, expected in early January 2015. Once this well is rig released, Kicking Horse will have four new Montney wells drilled at East Kakwa awaiting completion, with completion operations expected to be carried out in the first quarter of 2015, and will also have two additional Montney wells drilled and completed awaiting tie-in. The Company is reviewing its capital expenditure plans for 2015, including for the drilling program at East Kakwa, and expects to provide additional guidance in this regard early in 2015.

For further information on the Company and the Arrangement, please refer to Contact's press release dated October 21, 2014 and the Circular, each of which are available on SEDAR at www.sedar.com.

Forward-Looking Information

This news release contains forward-looking statements and information ("forward-looking statements") within the meaning of applicable securities laws and is based on the expectations, estimates and projections of management of Contact as of the date of this news release, unless otherwise stated. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking statements. More particularly and without limitation, this news release contains forward-looking statements concerning: the anticipated timing for the trading of the Company shares on the TSX Venture Exchange, the timing of the release of one of its rigs upon completion of the 08-11-063-6W6 well, the expectation of four wells to be drilled by December 31, 2014, the anticipated timing for completion of such wells and the anticipated timing for providing additional capital expenditures guidance. Such forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Investors are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. Accordingly, readers should not place undue reliance on the forward-looking statements contained in this news release.