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Ithaca Energy Inc.

Officer Appointment & Grant of Share Options

5 January 2016

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) ("Ithaca" or the "Company") announces the appointment of Dr Richard Smith as Chief Commercial Officer, effective 1 January 2016. In accordance with the Company's existing Stock Option Plan, the Board of Directors ("Board") has also approved the grant of 12,000,000 share options (the "Options") to employees, Officers and certain Directors of the Company. The Board has also approved the award of 400,000 shadow options (the "Shadow Options") to the two most recently appointed Non-Executive Directors of the Company.

Officer Appointment

Dr. Smith has held the position of Corporate Development Manager at Ithaca for the last five years. He has over 19 years of experience in the oil and gas industry and wider energy sector, in various senior business development, corporate strategy and commercial positions. Prior to joining Ithaca, he spent eight years with TOTAL S.A. working in the company's UK North Sea business and at its head office in France.

Share Options

The Options have been granted effective 5 January 2016 (the "Effective Date") and may be exercised for a period of four years from that date. One third of the Options will vest on each of the first, second and third anniversary of the Effective Date. The Options have an exercise price of C$0.55, which was the closing price on the Toronto Stock Exchange on 4 January 2016.

Of the recipients, a total of 6,400,000 Options were granted to Directors and Officers as follows:

The Company currently has 411,384,045 Common Shares in issue with one voting right per Common Share. There are no Common Shares held in treasury. The total number of voting shares in the Company is therefore 411,384,045.

The total number of shares under option is now 30,816,206 Common Shares, representing approximately 7.0% of total shares outstanding and under option. The weighted average price of the total shares under option is C$1.32.

Fully diluted, the Company now has 442,200,251 Common Shares on issue. 

Shadow Options

Shadow Options have been granted to the following Non-Executive Directors, with effect from the Effective Date. The Shadow Options follow the same terms as the Company's existing Stock Option Plan, with the exception that they do not result in the issuance of any new Common Shares by the Company upon exercise as the options are cash settled.

- ENDS -

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 and the exploitation of its existing UK producing asset portfolio. 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.

Enquiries:

Ithaca Energy

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

Richard Smith rsmith@ithacaenergy.com +44 (0)1224 652 172

FTI Consulting

Edward Westropp edward.westropp@fticonsulting.com +44 (0)203 727 1521

Tom Hufton tom.hufton@fticonsulting.com +44 (0)203 727 1625

Cenkos Securities

Neil McDonald nmcdonald@cenkos.com +44 (0)207 397 8900

Nick Tulloch ntulloch@cenkos.com +44 (0)131 220 6939

RBC Capital Markets

Daniel Conti daniel.conti@rbccm.com +44 (0)207 653 4000

Matthew Coakes matthew.coakes@rbccm.com +44 (0)207 653 4000