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Ithaca Energy Inc.

Increase in Directors and Officers Shareholdings

7 July 2014

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) ("Ithaca" or the "Company") announces that certain Directors and Officers have increased their shareholdings in the Company. Share options expiring this year have been exercised, resulting in an aggregate increase in their shareholdings of 154,000 Common Shares.

Ithaca also reports that it has granted 95,000 share options to Alec Carstairs, who was appointed as a Non-Executive Board Director in March 2014.

Exercise of Share Options

On 3 July 2014, the individuals listed below exercised the following share options. Ron Brenneman retained all his shares while Graham Forbes increased his shareholding by the balance of the shares available after selling sufficient shares to approximately cover the option purchase costs, including income taxes. The shares were sold at a price of £1.48 (C$2.71) per Common Share.

A further 420,000 share options have also been exercised by other employees of the Company.

As a result of the option exercises reported above, the Company has applied for a total of 1,120,000 Common Shares (the "New Common Shares") to be admitted to trading on AIM ("Admission"). Admission of the New Common Shares is expected to occur on 10 July 2014. Each New Common Share will rank pari passu with the existing Common Shares.

Share Options Award

In accordance with the Company's existing Stock Option Plan the Board of Directors has granted 95,000 share options to Mr Alec Carstairs, recently appointed Non-Executive Board Director, exercisable at a price of C$2.68, which was the closing price on the Toronto Stock Exchange on 3 July 2014. The options were granted effective 4 July 2014 and may be exercised for a period of four years from that date. One third of the options vest at the end of each of the first, second and third years from the effective date.

Shareholding & Options Summary

Following completion of the transactions noted above, the revised shareholdings and share options held by those Directors and Officers of the Company noted in this release are as follows:

The Company now has 329,518,620 Common Shares in issue with one voting right per Common Share. There are no Common Shares held in treasury. The total number of voting shares in the Company is therefore 329,518,620. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the UK Financial Services Authority's Disclosure and Transparency Rules.

The total number of Common Shares under option is now 15,968,567, representing approximately 4.6% of the total shares outstanding and under option.

Fully diluted, the Company now has 345,487,187 Common Shares in issue.

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Enquiries:

Ithaca Energy

About Ithaca Energy

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) is a North Sea oil and gas operator focused on the delivery of lower risk growth through the appraisal and development of UK undeveloped discoveries, the exploitation of its existing UK producing asset portfolio and a Norwegian exploration and appraisal business centred on the generation of discoveries capable of monetisation prior to development. Ithaca's strategy is centred on generating sustainable long term shareholder value by building a highly profitable 25kboe/d North Sea oil and gas company. For further information please consult the Company's website www.ithacaenergy.com.

Not for Distribution to U.S. Newswire Services or for Dissemination in the United States