LONDON, UNITED KINGDOM and CALGARY, ALBERTA–(EMWNews – July 23, 2008) –

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

Ithaca Energy Inc (“Ithaca Energy” or the “Company”) (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 announce it has engaged RBC Capital Markets and Tristone Capital Inc. to act as joint bookrunners of a marketed offering (the “Offering”) of common shares (“Shares”) of the Company. Aggregate gross proceeds from the Offering are anticipated to be approximately US$70,000,000.

The Shares will be offered in all of the provinces of Canada (excluding Quebec) by way of short form prospectus and in the United Kingdom and the United States on a private placement basis. A preliminary short form prospectus with respect to the Offering has been filed with the securities regulatory authority in each of the provinces of Canada (excluding Quebec).

The Company 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.

Closing of the Offering is subject to certain conditions, including, but not limited to, receipt of all necessary securities regulatory approvals (including the approval of the TSX Venture Exchange Inc.).

Lawrie Payne, Chief Executive Officer, said, “The proceeds of this offering will be used to close the acquisitions of Stella and Beatrice and to fund development expenses related to Jacky and Athena. We believe it will fully fund the company through to first production from Athena assuming Jacky first oil is delivered on schedule and available borrowings under the new debt facility remain in-line with initial estimates.”

This news release shall not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction. The Shares will not be registered under US Securities Act of 1933, as amended, and may not be offered or sold in the United States, absent registration or an applicable exemption from registration requirements.

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.