Norvarg Appraisal Well Update

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

Ithaca Energy Inc.

Norvarg Appraisal Well Update

24 June 2013

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) ("Ithaca" or the "Company") announces that the appraisal well (7225/3-2) being drilled on the Norvarg discovery, located in PL535 in the Norwegian sector of the Barents Sea, has confirmed the presence of hydrocarbons in the Kobbe formation based on the results of wire line logs and formation tests and cores.

The partnership has decided to perform a drill stem test (DST) on the well to assess the quality of the Kobbe reservoir and the volume potential in the northeastern part of the Norvarg closure.

Appraisal drilling operations commenced on 25 April 2013. The well is being drilled using Ocean's Leiv Eiriksson semi-submersible rig. The well is located in 377 metres of water, approximately 275 kilometres north of the Hammerfest LNG plant on Melkøya.

The partners in the licence are Total E&P Norge (operator - 40 per cent interest), North Energy (20 per cent), Ithaca Petroleum Norge (13 per cent), Statoil (10 per cent*), Det Norske (10 per cent*), and Rocksource Exploration Norway (7 per cent).

* Pending government approval.

Licence Round Award

Ithaca is pleased to also announce the award of licence PL535B in the 22nd Licensing Round on the Norwegian Continental Shelf. The licence, which covers part of Block 7225/2, is an extension of the existing PL535 licence in which the Norvarg discovery is located. The licence work programme will follow that of PL535, with both licences having the same partners and working interests.

Enquiries:

Ithaca Energy:

Iain McKendrick, CEO [email protected] +44(0) 1224 650 261

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

FTI Consulting:

Billy Clegg [email protected] +44 (0) 207 269 7157

Edward Westropp [email protected] +44 (0) 207 269 7230

Georgia Mann [email protected] +44 (0) 207 269 7212

Cenkos Securities plc:

Jon Fitzpatrick [email protected] +44 (0) 207 397 8900

Neil McDonald [email protected] +44 (0) 131 220 6939

RBC Capital Markets:

Tim Chapman [email protected] +44 (0) 207 653 4641

Matthew Coakes [email protected] +44 (0) 207 653 4871

About Ithaca Energy:

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) is an oil and gas operator focused on North Sea production, appraisal and development activities. The Company's strategy is centred on building a highly profitable North Sea oil and gas company by maximising production and cashflow from its existing assets, the appraisal and development of existing discoveries on properties held by the Company and the delivery of additional growth via acquisitions and licence round participation.

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

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, well completion times, 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, production forecasts, budgetary figures contained in the corporate presentation, 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 and 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 and included in this press release should not be unduly relied upon. These forward-looking statements speak only as of the date of this announcement. 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.

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