Extended Bank Debt Facilities

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

Ithaca Energy Inc.

Extended Bank Debt Facilities

29 April 2015

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) ("Ithaca" or the "Company") announces that it has executed extended and simplified bank debt financing facilities totalling $650 million, providing the Company with significant funding headroom ahead of first hydrocarbons from the Greater Stella Area in the second quarter of 2016.

Highlights

· Total bank debt facilities sized at $650 million, comprising a senior Reserve Based Lending ("RBL") facility of $575 million and junior RBL facility of $75 million

· Replacement of the former corporate facility with a junior RBL removes the use of historic financial covenant tests from the debt facilities and ensures the funding capacity is reflective of the future value of the Company's assets

· The term of both bank debt facilities is now extended to September 2018

· Total Company debt funding capacity of $950 million with inclusion of the $300 million senior unsecured notes due July 2019

· Forecast peak debt requirement prior to Stella start-up of $825-850 million in the second quarter of 2015, resulting in headroom of over $100 million

Graham Forbes, Chief Financial Officer, commented:

"We are pleased to have promptly and efficiently extended the tenor of our RBL facility on terms similar to our existing facility and converted our corporate facility from one based on historic covenants into a forward looking junior RBL thanks to the strong support of our banking syndicate."

"The facilities are 'right sized' for our needs as we begin the process of deleveraging the business following completion of all offshore drilling operations prior to Stella first oil and receipt of the proceeds from the sale of the Norwegian business expected in Q3-2015."

Further Information

Both RBL facilities are based on conventional oil and gas industry borrowing base financing terms, with loan maturities in September 2018, and are available to fund on-going development activities and general corporate purposes.

The combined interest rate of the two bank debt facilities, fully drawn, is LIBOR +3.4% (previously 3.2%) prior to Stella coming on-stream, stepping down to LIBOR +2.9% (previously 2.9%) after Stella production has been established.

The overall fully drawn weighted average debt costs of the business including the unsecured senior notes remains under 5%.

The banks in the debt syndicate are: BNP Paribas, Scotiabank, Deutsche Bank AG, Lloyds Bank, Royal Bank of Scotland, Barclays Bank PLC, Commonwealth Bank of Australia, Skandinaviska Enskilda Banken AB (publ), Société Générale and NIBC.

- ENDS -

Enquiries:

Ithaca Energy

Graham Forbes [email protected] +44 (0)1224 652 151

Richard Smith [email protected] +44 (0)1224 652 172

FTI Consulting

Edward Westropp [email protected] +44 (0)203 727 1521

Tom Hufton [email protected] +44 (0)203 727 1625

Cenkos Securities

Neil McDonald [email protected] +44 (0)207 397 8900

Nick Tulloch [email protected] +44 (0)131 220 6939

RBC Capital Markets

Daniel Conti [email protected] +44 (0)207 653 4000

Matthew Coakes [email protected] +44 (0)207 653 4000

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 targeting 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.

Forward-looking statements

Some of the statements and information in this press release are forward-looking. Forward-looking statements and forward-looking information (collectively, "forward-looking statements") are based on the Company's internal expectations, estimates, projections, assumptions and beliefs as at the date of such statements or information, including, among other things, assumptions with respect to production, drilling, construction times, well completion times, risks associated with operations, future capital expenditures, continued availability of financing for future capital expenditures, future acquisitions and cash flow. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. When used in this press release, the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "plan", "should", "believe", "could", "target" and similar expressions, and the negatives thereof, whether used in connection with operational activities, drilling plans, production forecasts, potential developments or otherwise, are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations, or the assumptions underlying these expectations, will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These forward-looking statements speak only as of the date of this press release. Ithaca Energy Inc. expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based except as required by applicable securities laws.

Additional information on these and other factors that could affect Ithaca's operations and financial results are included in the Company's Management's Discussion and Analysis for the year ended December 31, 2014, and the Company's Annual Information Form for the year ended December 31, 2014 and in reports which are on file with the Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).