Ithaca Energy Inc.
TSX VENTURE : IAE
AIM : IAE

Ithaca Energy Inc.

July 07, 2008 05:58 ET

Ithaca Energy Announces Response to Endeavour's Non-Binding Proposal

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - July 7, 2008) -

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Ithaca Energy Inc. (TSX VENTURE:IAE)(AIM:IAE), an independent oil & gas company with exploration and development assets in the UK sector of the North Sea, announces that its Board of Directors has unanimously determined that the unsolicited non-binding proposal (the "Proposal") received from Endeavour International Corporation to acquire all of the issued and outstanding shares of Ithaca is not in the best interests of Ithaca shareholders.

After careful consideration, including of the report and recommendation of a Special Committee of Independent Directors and in consultation with its financial and legal advisors, the Board of Directors has concluded that the Proposal does not recognize the value of Ithaca's assets and prospects. "Ithaca has a number of ongoing initiatives that will be concluded in the near term which we believe will provide greater value for Ithaca's shareholders" said John Summers, Chairman of Ithaca's Board of Directors.

RBC Capital Markets and Tristone Capital acted as financial advisors to the Special Committee in its review of the Proposal.

In accordance with AIM Guidelines, Lawrie Payne, MA Marine Geology (Alberta & Columbia) and CEO of Ithaca Energy is the qualified person that has reviewed the technical information contained in this press release.

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.

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

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