FOR:  ITHACA ENERGY INC.

TSX VENTURE, AIM SYMBOL:  IAE

July 12, 2010

Ithaca Signs Facility Agreement for US$140 Million

LONDON, UNITED KINGDOM and CALGARY, CANADA--(Marketwire - July 12, 2010) -

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

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, is pleased to announce that, further to the announcement made on
April 22, 2010, it has signed and completed the Senior Secured Borrowing Base Facility agreement for up to
US$140 million with the Bank of Scotland Plc, part of Lloyds Banking Group, as Lead Arranger. The loan term is
up to five years and in accordance with normal industry borrowing base facilities.

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," "anticipate," "plans," "may,"
"will," "should", "scheduled", "targeted", "estimated" and similar expressions, and the negatives thereof,
whether used in connection with the expected transaction completion date 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.
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.

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

OR

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

Neither TSX Venture nor it's 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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Ithaca Energy Inc.