Ithaca Energy Inc.
TSX : IAE
AIM : IAE

Ithaca Energy Inc.

March 01, 2012 02:00 ET

Ithaca Energy Inc.: Announcement Concerning Interest in the Company

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - March 1, 2012) -

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

Ithaca Energy Inc. ("Ithaca" or "the Company") (TSX:IAE)(AIM:IAE) announced on January 23, 2012, that it had received a confidential, non-binding proposal to acquire all of the outstanding shares of the Company (the "Proposal"). Ithaca also stated that discussions were at a preliminary stage and that there was no certainty that the approach would lead to an offer being made for the Company. Discussions continue regarding the Proposal.

The Company has also received unsolicited interest from a number of third parties. The Board of Ithaca believes that it is in shareholders best interests that the Company enters into discussions with all bona fide interested parties with a view to maximising shareholder value.

The Board is being advised by CIBC World Markets Inc ("CIBC") in this respect.

The Board wishes to stress that discussions with all parties are at a preliminary stage and there can be no certainty of an offer being made for the Company.

The Company does not intend to provide further updates unless an offer is made for the Company.

UK Takeover Code

The Company's registered office is in Canada. The UK Panel on Takeovers and Mergers has confirmed that the Company is not subject to the UK City Code on Takeovers and Mergers ("the Takeover Code") and accordingly the Company's shareholders will not be afforded any protection under the Takeover Code. The Company is subject to regulation under applicable Canadian securities and corporate laws and shareholders will therefore benefit from the protections of such laws.

A copy of this announcement will be available at www.ithacaenergy.com. The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.

Reader Advisory

Forward-looking statements

This news release contains certain forward looking statements. The reader is cautioned that all such forward looking statements involve substantial risks and uncertainties and the assumptions used in their preparation may not prove to be correct. Ithaca's actual results could differ materially from those expressed in, or implied by, these forward looking statements and accordingly, the forward looking statements are qualified by reference to these cautionary statements. The forward looking statements contained herein are made as at the date of this news release. Ithaca undertakes no obligation to update or publicly revise forward looking statements or information unless so required by applicable securities laws.

TSX notifications

Cenkos Securities plc, which is authorised and regulated in the United Kingdom by the Financial Services Authority under FSA number 416932, is acting exclusively as Nominated Adviser and Joint Broker to the Company and is not acting for or advising any other person and accordingly will not be responsible to any person other than the Company for providing advice in relation to the contents of this announcement. Neither Cenkos Securities plc nor any of its affiliates owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a customer of Cenkos Securities plc in connection with this announcement, any statement contained herein or otherwise.

This announcement is not intended to, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities whether pursuant to this announcement or otherwise.

Website: www.ithacaenergy.com.

The TSX accepts no responsibility for the adequacy or accuracy of this release.

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