Ithaca Energy Inc. : Exercise of Share Options

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Not for Distribution to U.S. Newswire Services or for Dissemination in the United States

Ithaca Energy Inc.

Exercise of Share Options

17 January 2014

Ithaca Energy Inc.  (TSX: IAE, LSE AIM: IAE) ("Ithaca" or the "Company") announces that certain Directors and Officers have increased their shareholdings in the Company. The Directors and Officers exercised a portion of their share options, resulting in an aggregate increase in their shareholdings of 403,333 Common Shares after taking into account shares sold, as described below.

On 16 January 2014the following Directors and Officers exercised the number of options set forth below at prices ranging between C$0.25 -C$2.25 per Common Share:

Jack Lee                                Director                               100,000

Brad Hurtubise                      Director                               200,000

John Summers                     Director                               333,333

Frank Wormsbecker             Director                               200,000

Jay Zammit                            Director                              100,001

John Woods                          Officer                                 600,000

On the same day, the following Directors and Officers sold the following number of shares at a price of £1.45 per Common Share.

Brad Hurtubise                      Director                               115,000

John Summers                     Director                                215,000

Frank Wormsbecker             Director                               100,000

Jay Zammit                            Director                               100,001

John Woods                          Officer                                  600,000

Where applicable, the balance of shares acquired following completion of the transactions reported above has been retained by each of those Officers in order to increase their individual shareholdings.

A further 981,667 options have also been exercised by other employees of the Company.

As a result of the option exercises reported above, the Company has issued a total of 2,515,001Common Shares and has applied for such Common Shares to be admitted to trading on AIM. Each new Common Share will rank paripassu with the existing Common Shares and admission to trading on AIM is expected to occur on 24 January 2014.

Nick Muir, an Officer of the Company, also sold 295,000 shares on 16th January at a price of £1.45 per Common Share.

Summary

Following completion of all the transactions noted above, the revised shareholdings of the relevant Directors and Officers of the Company are as follows:

		No. of shares  held	% of voting rights represented by shares held
Jack Lee	Director	1,100,000	0.34%
Brad Hurtubise	Director	260,000	0.08%
John Summers	Director	408,033	0.13%
Frank Wormsbecker	Director	350,000	0.11%
Jay Zammit	Director	525,000	0.16%
NickMuir	Officer	20,105	0.01%
John Woods	Officer	309,105	0.10%

The Company now has 326,148,621 Common Shares outstanding with one voting right per Common Share. There are no Common Shares held by Ithaca in treasury. The total number of voting shares in the Company is therefore 326,148,621. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the UK Financial Services Authority's Disclosure and Transparency Rules.

The total number of shares under option is now 19,243,566 Common Shares, representing approximately 5.6% of total shares outstanding and under option.Fully diluted, the Company now has 345,392,187 CommonShares on issue.

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Enquiries:

Ithaca Energy

Graham Forbes                     [e-mail] [phone]

Richard Smith                        [e-mail]                        [phone]

FTI Consulting

Edward Westropp                  [e-mail]       [phone]

Georgia Mann                         [e-mail]             [phone]

Cenkos Securities

Neil McDonald                        [e-mail]                         [phone]

Beth McKiernan                      [e-mail]                        [phone]

RBC Capital Markets

Tim Chapman                        [e-mail]                       [phone]

Matthew Coakes                    [e-mail]                  [phone]

About Ithaca Energy

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) is a North Sea oil and gas operator focused on the delivery of lower risk growth through the appraisal and development of UK undeveloped discoveries, the exploitation of its existing UK producing asset portfolio and a Norwegian exploration and appraisal business centred on the generation of discoveries capable of monetisation prior to development.  Ithaca's strategy is centred on generating sustainable long term shareholder value by building a highly profitable 25kboe/d North Sea oil and gas company. For further information please consult the Company's website www.ithacaenergy.com.

Not for Distribution to U.S. Newswire Services or for Dissemination in the United States

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This information is provided by RNS

The company news service from the London Stock Exchange

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