Ithaca Energy Inc.
TSX VENTURE : IAE
AIM : IAE

Ithaca Energy Inc.

August 21, 2006 02:02 ET

Ithaca Energy Announces Awarding of Share Options Under the Company's Stock Option Plan

LONDON, ENGLAND, and CALGARY, ALBERTA--(CCNMatthews - Aug. 21, 2006) - Ithaca Energy Inc. (AIM:IAE)(TSX VENTURE:IAE) -

NOT FOR RELEASE IN THE UNITED STATES OR DISTRIBUTION TO US NEWS SERVICES

This announcement does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares or other securities of Ithaca Energy Inc., nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of Ithaca Energy Inc.

The securities of Ithaca have not been registered under the US Securities Act 1933, as amended, or any state securities law, and they may not be offered or sold in the United States unless an exemption from registration is available.

Ithaca Energy Inc. of Calgary, Alberta (AIM:IAE)(TSX VENTURE:IAE), announces that on August 20, 2006, in accordance with the Company's Stock Option Plan, the Board of Directors approved the granting of 2,102,500 share options to Directors and Employees at a price of CDN $2.32 which was the closing price on the TSX Venture Exchange on Friday, August 18, 2006. The options shall be granted effective August 20, 2006 and are exerciseable for a period of 3 years from that date. One half of each grant will vest immediately, the other half one year from the date of the grant.



Of the recipients, a total of 1,390,000 share options were granted to
Directors as follows:

Lawrence Payne CEO and Director 330,000
Neill Carson COO and Director 330,000
Brad Gunn CFO and Director 330,000
John Summers Chairman and Director 100,000
Frank Wormsbecker Director 100,000
Michael Nobbs Director 100,000
Jay Zammit Director 100,000


The Ithaca securities have not been registered under the US Securities Act of 1933, as amended, or any state securities law, and they may not be offered or sold in the United States unless an exemption from registration is available.

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

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 "expects," "believes," "anticipates," "plans," "may," "will," "should" and similar expressions, and the negatives thereof, are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to risks and uncertainties that could cause actual outcome to differ materially from those suggested by any such statements. 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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

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