Ithaca Energy Inc.
TSX VENTURE : IAE
AIM : IAE

Ithaca Energy Inc.

June 18, 2008 10:57 ET

Ithaca Energy Inc. Announces Awarding of 450,000 Share Options Under the Company's Stock Option Plan and the Exercise of 557,500 Share Options

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - June 18, 2008) -

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

Ithaca Energy Inc ("Ithaca Energy") (TSX VENTURE:IAE)(AIM:IAE), a Canadian independent oil and gas company with exploration and development assets in the UK North Sea, announces that on February 5th, 2008, in accordance with the Company's Stock Option Plan, the Board of Directors approved the granting of 450,000 share options to Steven Turner, the Chief Financial Officer, at a price of CDN$3.65. The options have been granted, effective from March 21st, 2008 and are exercisable for a period of four years from that date. One-third of the options will vest at the end of each of the first, second and third years from the effective date.

Ithaca Energy also announces that on December 13th, 2007, Bradley G. Gunn, who was the Chief Financial Officer and a director of Ithaca Energy at the time, exercised 200,000 options at a price of CDN$2.32. In addition, a further 27,500 options were exercised by other option holders on this date, and a further 330,000 options were exercised on January 30th, 2008. Accordingly, Ithaca Energy had issued and allotted a total of 557,500 common shares, and which are included in the total number of 112,261,975 common shares in issue as of March 31st, 2008, as disclosed in the interim financial statements prepared to March 31st, 2008 as announced on May 28th, 2008.

Application has been made for these 557,500 common shares to be admitted to trading on AIM. These common shares will rank pari passu with the existing common shares in the Company and trading of these shares on AIM is expected to commence on June 24th, 2008.

The Ithaca Energy Inc. 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.

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.

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