FOR:  ITHACA ENERGY INC.

TSX VENTURE, AIM SYMBOL:  IAE

July 9, 2010

Ithaca Energy Inc. Announces Success of Concurrent Private Placement

LONDON, UNITED KINGDOM and CALGARY, CANADA--(Marketwire - July 9, 2010) -

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

As previously announced, Ithaca Energy Inc. ("Ithaca" or "the Company") (TSX VENTURE:IAE)(AIM:IAE) has engaged
Cenkos Securities plc ("Cenkos") and CIBC as placing agents and joint bookrunners to sell on a reasonable
endeavours basis common shares of Ithaca to purchasers in the United Kingdom.

The Company is pleased to announce that Cenkos has now conditionally placed, with investors in the United
Kingdom, 45,062,284 common shares of Ithaca (the "Placing Shares") at a price of GBP 1.07 per common share
(approximately equivalent to C$1.70 per common share) for aggregate gross proceeds of approximately GBP 48.2
million (approximately equivalent to C$77 million) (the "Placing"). The Placing is not underwritten.

As also previously announced, the Company has entered into an agreement with a syndicate of underwriters led by
CIBC (collectively, the "Underwriters") pursuant to which the Underwriters have agreed to purchase, on a
"bought deal" basis, 47.6 million common shares (the "Bought Deal Shares") of Ithaca at a price of C$1.70 per
common share for aggregate gross proceeds of C$81 million (the "Bought Deal").

The combination of the proceeds from the Placing and the Bought Deal (in total, approximately US$150 million
(gross)), together with debt made available from the recently announced Bank of Scotland facility and
anticipated cash flows, means that all of the Company's projects are anticipated to be fully funded through to
first production.

Application will be made for the admission of the Placing Shares to trading on AIM. Closing of the Placing is
expected to occur on July 28, 2010. Closing of the Placing is conditional, amongst other things, upon
conditional listing of the Placing Shares and the Bought Deal Shares on the TSX Venture Exchange and admission
to trading on AIM as well as favourable market conditions. The Placing and the Bought Deal are inter-
conditional upon one another.

Reader Advisory

This news release contains certain forward-looking statements, which include assumptions with respect to (i)
completion of the Bought Deal; (ii) completion of the Private Placing; (iii) use of proceeds; and (iv) future
operations and adequacy of funding therefore. The reader is cautioned that assumptions used in the preparation
of such information may prove to be incorrect. All such forward-looking statements involve substantial known
and unknown risks and uncertainties, certain of which are beyond Ithaca's control. Such risks and uncertainties
include, without limitation, risks associated with oil and natural gas exploration, development, exploitation,
production, marketing and transportation, loss of markets, volatility of commodity prices, currency
fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers,
inability to retain drilling rigs and other services, delays resulting from or inability to obtain required
regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of
general economic conditions in the UK, Canada, the United States and globally, industry conditions, changes in
laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they
are interpreted and enforced, increased competition, the lack of availability of qualified personnel or
management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations
of companies with respect to announced transactions and the final valuations thereof, and obtaining required
approvals of regulatory authorities. Ithaca's actual results, performance or achievements could differ
materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no
assurances can be given that any of the events anticipated by the forward-looking statements will transpire or
occur, or if any of them do, what benefits, including the amount of proceeds, Ithaca will derive therefrom.
Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking
statements, whether written or oral, attributable to Ithaca or persons acting on its behalf are expressly
qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements
contained in this news release are made as at the date of this news release and Ithaca does not undertake any
obligation to update publicly or to revise any of the included forward-looking statements, whether as a result
of new information, future events or otherwise, except as may be required by applicable securities laws.

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FOR FURTHER INFORMATION PLEASE CONTACT:

Ithaca Energy
Iain McKendrick
CEO
+44 (0) 1224 650 261
imckendrick@ithacaenergy.com

OR

Ithaca Energy
Graham Forbes
CFO
+44 (0) 1224 652 151
gforbes@ithacaenergy.com

OR

Ithaca Energy
Nick Muir
CXO
+44 (0) 1224 650 267
nmuir@ithacaenergy.com

OR

Pelham Bell Pottinger Public Relations
Phillip Dennis
+44 (0) 207 861 3919
pdennis@pelhambellpottinger.co.uk

OR

Pelham Bell Pottinger Public Relations
Elena Dobson
+44 (0) 207 861 3147
edobson@pelhambellpottinger.co.uk

OR

Cenkos Securities plc
Joe Nally
+44 (0) 207 397 8900
jnally@cenkos.com

OR

Cenkos Securities plc
Jon Fitzpatrick
+44 (0) 207 397 8900
jfitzpatrick@cenkos.com

OR

Cenkos Securities plc
Ken Fleming
+44 (0) 131 220 6939
kfleming@cenkos.com

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

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Ithaca Energy Inc.