CALGARY, ALBERTA: Touchstone Exploration Inc. (TSX, LSE: TXP) has raised aggregate gross proceeds of approximately US$13 million through the placing of a total of 19.924 million new common shares of no par value, at a price of 54.5 pence per Fundraise Share (C$0.90 per Fundraise Share in respect of the Canadian Private Placement).

The Fundraise Shares will represent approximately 8.5 percent of the total issued share capital in the company on admission to trading.

Of the aggregate common shares to be issued pursuant to the fundraise, the company has placed 8,704,400 new common shares with investors in Canada raising gross proceeds of approximately US$5.8 million, and 11,220,000 new common shares with institutional investors in the United Kingdom raising gross proceeds of approximately US$7.5 million.

Shore Capital and Corporate Limited and Shore Capital Stockbrokers Limited and Canaccord Genuity Limited acted as Joint Bookrunners in connection with the UK Placing.

Paul R. Baay, President and Chief Executive Officer of Touchstone Exploration, commented: “I am pleased to confirm the completion of our fundraising, with strong support from both existing and new shareholders.

The Fundraise allows us to accelerate our exploration and development program on the Ortoire block, which has yielded excellent results to date. With Coho having recently been brought onto production and facility construction at Cascadura underway, we are making substantial progress towards becoming an energy production company of significant scale, with a range of additional exploration prospects.

The Fundraise allows us to accelerate certain aspects of our exploration and development strategy while we focus resources on bringing Cascadura onto production. I look forward to updating shareholders on our progress.”

Application will be made for the Fundraise Shares, which will rank pari passu with the Company’s existing issued share capital, to be admitted to trading on AIM and the Toronto Stock Exchange.

Touchstone Exploration Inc. is a Calgary, Alberta based company engaged in the business of acquiring interests in petroleum and natural gas rights and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago. The Company’s Common Shares are traded on the Toronto Stock Exchange and the AIM market of the London Stock Exchange under the symbol “TXP”.