FOR:  ITHACA ENERGY INC.

TSX VENTURE, AIM SYMBOL:  IAE

July 23, 2010

Ithaca Files Final Prospectus

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

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

Ithaca Energy Inc. (TSX VENTURE:IAE)(AIM:IAE) ("Ithaca" or "the Company") announces that, further to
the announcements made on July 7, July 9 and July 14, 2010, the Company's Final Prospectus has been
filed with the Alberta Securities Commission and is publically available on www.sedar.com. The Company
has received conditional approval of the TSX Venture Exchange for the listing of the shares issued
under each of the previously announced bought deal offering and UK private placement, subject to
standard filing requirements. In addition, application has been made to the London Stock Exchange for
admission of all such shares to trading on AIM. Closing and listing/admission are scheduled for July
28, 2010.

Forward-looking statements

This news release contains certain forward-looking statements, which include assumptions with respect
to (i) completion of the bought deal offering; (ii) completion of the private placement; and (iii)
listing of shares. 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:
Philip 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 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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Ithaca Energy Inc.