Ithaca Energy Inc.
TSX VENTURE : IAE
AIM : IAE

Ithaca Energy Inc.

September 23, 2010 11:25 ET

Ithaca Energy Inc.: Challenger Minerals Earn In to Stella Development Completes

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - Sept. 23, 2010) -

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Ithaca Energy Inc. (TSX VENTURE:IAE)(AIM:IAE) and its wholly owned subsidiary Ithaca Energy (UK) Limited ("Ithaca" or the "Company"), an independent oil & gas company with exploration, development and production assets in the UK sector of the North Sea, announces that pursuant to the Earn In agreement signed on October 27, 2009 between Ithaca and Challenger Mineral (North Sea) Limited ("CMI") the transaction has now completed.

The Earn In concerned the Stella appraisal well drilled in Q1 2010, whereby CMI has paid 27% of gross Stella appraisal costs in exchange for an 18% equity interest in the Stella and Harrier discoveries, thereby carrying a part of Ithaca's share of drilling costs. In addition, due to the successful appraisal of Stella, CMI shall now disproportionately fund a further Stella or Harrier development well.

The revised equities in the Stella and Harrier fields (Blocks 29/10a and 30/6a (Chalk Layers and Younger) are: Ithaca (50.33%), Dyas UK Limited (31.67%) and CMI (18.00%).

Forward-looking statements:

Some of the statements in this press release 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, including, without limitation, the development of Stella and Harrier, estimates of oil and gas reserves and associated future development plans of the Company. When used in this press release, the words "expects," "believes," "anticipate," "plans," "may," "will," "should", "scheduled", "targeted", "estimated" and similar expressions, and the negatives thereof, whether used in connection with the development plans, hydrocarbon composition or otherwise, 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, including the risk that the Stella and Harrier projects may not proceed on the terms described herein or at all and the risk that the future benefits and anticipated production by the Company are not realized. 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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