Ithaca Energy Inc
LSE : IAE

August 11, 2008 11:03 ET

Ithaca Energy Announces Closing of Cdn$75 Million Equity Financing

FOR:  ITHACA ENERGY INC.

AIM, TSX VENTURE SYMBOL:  IAE

August 11, 2008

Ithaca Energy Announces Closing of Cdn$75 Million Equity Financing

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - Aug. 11, 2008) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Ithaca Energy Inc. ("Ithaca") (TSX VENTURE:IAE)(AIM:IAE), an independent oil & gas company with
exploration and development assets in the UK sector of the North Sea, is pleased to confirm the
closing of its previously announced marketed equity financing. Ithaca has issued 50,000,000 common
shares at a price of Cdn$1.50 per common share for gross proceeds of Cdn$75,000,000. RBC Capital
Markets Inc. and Tristone Capital Inc. acted as co-lead agents for a syndicate that included
FirstEnergy Capital Corp., Canaccord Capital Corporation, Fraser Mackenzie Limited and Research
Capital Corporation.

Ithaca intends to use the net proceeds of the Offering to fund ongoing Jacky and Athena project
development, the completion of the Beatrice and Stella acquisitions and for general working capital
purposes. Ithaca anticipates that this financing, combined with the recently announced US$240 million
bank financing, will be sufficient to fund Ithaca through to first production on both its Jacky and
Athena projects expected at the end of this year and at the end of 2009, respectively.

The 50,000,000 new shares will begin trading on the TSX Venture Exchange Inc. effective today. In
addition, application has been made to the London Stock Exchange for these new shares to be admitted
to trading on AIM with admission expected to take place on August 13, 2008. Following the issue of
these shares, the total number of shares in issue will be 162,261,975.

As part of the new equity issue, Directors of the Ithaca have subscribed for new common shares at a
price of Cdn$1.50 as follows:

/T/

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Director                                  Position     Number of new common
                                                      shares subscribed for
---------------------------------------------------------------------------
John Summers                              Chairman                   86,700
---------------------------------------------------------------------------
Lawrie Payne               Chief Executive Officer                   75,000
---------------------------------------------------------------------------
Frank Wormsbecker                         Director                   30,000
---------------------------------------------------------------------------
Brad Hurtubise                            Director                   30,000
---------------------------------------------------------------------------

/T/

In addition, Iain McKendrick, Ithaca's Chief Operating Officer and Steven Turner, Ithaca's Chief
Financial Officer have subscribed for 40,000 common shares and 20,000 common shares respectively, each
at a price of Cdn$1.50 per common share.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy the
securities in any jurisdiction. The common shares may be offered or sold in other eligible foreign
jurisdictions and to U.S. buyers on a private placement basis pursuant to an applicable exemption from
registration requirements in Rule 144-A or Regulation D of the United States Securities Act of 1933,
as amended.

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 except as required by applicable securities laws.


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FOR FURTHER INFORMATION PLEASE CONTACT:

Ithaca Energy Inc
Lawrie Payne
CEO
+44 (0) 207 590 3027
Email: lpayne@ithacaenergy.com

OR

Ithaca Energy Inc
Steven Turner
CFO
+44 (0) 1224 652 151
Email: sturner@ithacaenergy.com

OR

Pelham Public Relations
Charles Vivian
+44 (0) 207 743 6672
Email: charles.vivian@pelhampr.com

OR

Pelham Public Relations
Philip Dennis
+44 (0) 207 743 6363
Email: philip.dennis@pelhampr.com

OR

Nabarro Wells & Co Ltd.
Marc Cramsie
+44 (0) 207 634 4858
Email: marc.cramsie@ambrian.com

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


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