Ithaca Energy Regulatory News (IAE)

FOR: ITHACA ENERGY INC.

TSX, AIM SYMBOL: IAE

May 28, 2012

Ithaca Energy Inc.: Athena First Oil

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - May 28, 2012) -

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

Ithaca Energy Inc. (TSX:IAE)(AIM:IAE) announces the successful start-up of oil production from the Athena
field. The initial operations phase of the field is in line with management's expectations and proceeding as
planned. This involves bringing production from each well online and establishing stable performance of the oil
processing and water injection systems. The Company will issue a further announcement once stabilised
production rates have been established.

The Company, on behalf of all the Athena field co-venturers, thanks all the individuals and companies that have
contributed to this significant milestone in the development of the field; a list of some of the major
suppliers involved in the project is provided on the Company's website, www.ithacaenergy.com.

Joint Venture partners in the Athena field are: Ithaca, operator (22.5%), Dyas UK Limited (47.5%), EWE Energie
AG (20%) and Zeus Petroleum Limited (10%).

About Ithaca Energy

Ithaca Energy Inc. and its wholly owned subsidiary Ithaca Energy (UK) Limited ("Ithaca" or "the Company"), is
an oil and gas exploration, development and production company active in the United Kingdom's Continental Shelf
("UKCS"). The goal of Ithaca, in the near term, is to maximize production and achieve early production from the
development of existing discoveries on properties held by Ithaca, to originate and participate in exploration
and appraisal on properties held by Ithaca when capital permits, and to consider other opportunities for growth
as they are identified from time to time by Ithaca.

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 "anticipate", "continue", "estimate", "expect",
"may", "will", "project", "plan", "should", "believe", "could", "target" and similar expressions, and the
negatives thereof, whether used in connection with production and operation activities of the Athena field or
otherwise are intended to identify forward-looking statements. Such statements are not promises or guarantees,
and are subject to known and unknown risks and uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such forward-looking statements or information. 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.

FOR FURTHER INFORMATION PLEASE CONTACT:

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

OR

Ithaca Energy Inc.
John Woods
CDO
+44 (0) 1224 650 273
jwoods@ithacaenergy.com

OR

Ithaca Energy Inc.
Nick Muir
CTO
+44 (0) 1224 650 267
nmuir@ithacaenergy.com
www.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:
Rollo Crichton-Stuart
+44 (0) 207 861 3918
rcrichton-stuart@pelhambellpottinger.co.uk

OR

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

OR

Cenkos Securities plc:
Beth McKiernan
+44 (0) 131 220 6939
bmckiernan@cenkos.com

OR

RBC Capital Markets:
Tim Chapman
+44 (0) 207 653 4641
tim.chapman@rbccm.com

OR

RBC Capital Markets:
Matthew Coakes
+44 (0) 207 653 4871
matthew.coakes@rbccm.com

© 2012 - Marketwire