Trell Oil Discovery

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

Ithaca Energy Inc.

Trell Oil Discovery

21 February 2014

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) ("Ithaca" or the "Company") announces that the TOTAL E&P Norge AS ("TOTAL") operated exploration well 25/5-9 on the "Trell" Prospect in licence PL102 F/G in the Norwegian North Sea has discovered oil in the Paleocene Heimdal Formation. The well intersected 19 metres of net pay in excellent quality Heimdal reservoir, in a location close to existing infrastructure. Wireline logs and pressure data have confirmed a hydrocarbon contact and samples of oil and water were acquired for further analysis. Preliminary estimates made by the Operator place the size of the discovery at between 3.1 and 12.5 million barrels of recoverable oil.

Ithaca entered into an agreement with TOTAL in December 2013 to acquire a 10% working interest in licences PL102 F/G. Completion of the transaction is currently progressing through the normal regulatory consents. The agreement is consistent with Ithaca's strategy in Norway of gaining access to lower risk exploration opportunities capable of monetisation prior to development.

The PL102 F/G licensees are TOTAL 40%, (operator), Petoro 30%, Lotos Exploration and Production Norge 10%, Det Norske Oljeselskap 10% and Ithaca 10%.

The well was drilled to 2240 metres true vertical depth subsea and encountered a 21 metre gross oil column. The discovery was made in a mature area of the Norwegian North Sea, within approximately 10 kilometres of the Heimdal production hub.

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Enquiries:

Ithaca Energy

Les Thomas [email protected] +44 (0)1224 650 261

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

FTI Consulting

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

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

Cenkos Securities

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

Beth McKiernan bmckiernan@cenkos.com +44 (0)131 220 9778

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 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.

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, construction times, well completion times, risks associated with operations, 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, budgetary figures, 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 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.

The well results disclosed in this press release have been prepared by TOTAL, as Operator of licence PL102 F/G, and represent that quantity of petroleum that is estimated, as of a given date, to be recoverable from the Trell accumulation, prior to production. There is no certainty that the discovery will be commercially viable to produce any portion of the resources.

In this press release, information prepared by TOTAL has been provided with respect to the Trell Prospect which, but for Ithaca's interest in the well, would be considered "analogous information" as defined in applicable securities laws. This information is derived from publicly available information sources. Please note that some of this data may not have been prepared by independent qualified reserves evaluators or auditors and the preparation of any estimates may not be in strict accordance with Canadian Oil & Gas Evaluation Handbook.

Regardless, of potential variance, Ithaca believes that the provision of this information is relevant to Ithaca's activities, given its positions and operations (either ongoing or planned) in the area in question; however, readers are cautioned that there is no certainty that any development of the relevant properties will be successful or occur.

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, 2012, and the Company's Annual Information Form for the year ended December 31, 2012 and in reports which are on file with the Canadian securities regulatory authorities and may be accessed through the Company's profile on the SEDAR website (www.sedar.com).