Presentation re: Recommended Offer for Valiant

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

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN OR INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.

Ithaca Energy Inc.

Ithaca Offer for Valiant Petroleum plc

 Recommended Offer by the Board of Valiant Petroleum plc

1 March 2013

Ithaca Energy Inc. (the "Company") (TSX: IAE, LSE AIM: IAE) announces that it has reached agreement on the terms of a recommended acquisition under which Ithaca Energy Holdings (UK) Limited, a wholly-owned subsidiary of the Company, will acquire the entire issued and to be issued share capital of Valiant Petroleum plc (the "Acquisition").

A presentation summarising the Acquisition is available on the Company's website, www.ithacaenergy.com, and the terms and conditions of the Acquisition are described in the announcement issued pursuant to Rule 2.7 of the City Code on Takeovers and Mergers in the United Kingdom.

Enquiries:

Ithaca Energy:

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

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

Cenkos Securities plc:

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

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

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

About Ithaca Energy:

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) and its wholly owned subsidiary Ithaca Energy (UK) Limited ("Ithaca" or "the Company"),is an oil and gas operator focused on production, appraisal and development activities on the United Kingdom Continental Shelf. The Company's strategy is centred on building a highly profitable North Sea oil and gas company by maximising production and cash flow 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.

Forward-looking statements

Some of the statements in this announcement are forward-looking. Forward-looking statements include statements regarding the intent, belief and current expectations of Ithaca Energy Inc. or its officers with respect to various matters. When used in this announcement, 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 the Acquisition or otherwise, are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to known and unknown risks and uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements or information. 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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