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Ithaca Energy Inc.

Completion of Premium Equity Placing - Investment by Delek Group

20 October 2015

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) ("Ithaca" or the "Company") reports that it has completed the previously announced US$66 million equity investment in the Company by DKL Investments Limited ("DKL"), a wholly owned subsidiary of Delek Group Ltd. ("Delek").

The investment was completed via a non-brokered private placement of 81,865,425 Common Shares in the capital of the Company (the "Placing") at CAD$1.05 per share (the "Placing Price"), equivalent to £0.53 per share. This represents a 19% premium to the CAD$0.88 per share closing price on the Toronto Stock Exchange ("TSX") on 8 October 2015, the day prior to announcement of the Placing. As of the same date, the Placing Price represents a 39% premium to the 5 day volume weighted average price ("VWAP") and a 51% premium to the 30 day VWAP.

Following completion of the Placing, the Company has 411,384,045 Common Shares issued and outstanding, with one voting right per Common Share. This represents all the outstanding voting securities of the Company. On a fully diluted basis the Company has 432,837,265 Common Shares in issue, which includes 21,453,220 Common Shares under option.

Application has been made to the London Stock Exchange for the 81,865,425 Common Shares issued to DKL to be admitted to trading on AIM. Admission of the shares is expected to occur on 21 October 2015.

In accordance with the terms of the Investment Agreement entered into between the Company and DKL, DKL has nominated Mr Joseph Asaf Bartfeld, President & Chief Executive Officer of Delek, and Mr Yosef Abu, Chief Executive Officer of Delek Drilling Ltd. as Non-Executive Directors and members of the Ithaca Board of Directors with immediate effect (subject to standard TSX procedures with respect to the approval of these Non-Executive Directors).

AIM Schedule 2 Information

In relation to the appointment of Mr Bartfeld and Mr Abu as Non-Executive Directors, Ithaca confirms that there is no further information to be disclosed under paragraph (g) of Schedule 2 of the AIM Rules for Companies save as disclosed below:

- 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.

About Delek

The Delek Group, Israel's dominant integrated energy company, is the pioneering leader of the natural gas exploration and production activities that are transforming the Eastern Mediterranean's Levant Basin into one of the energy industry's most promising emerging regions. Having discovered Tamar and Leviathan, two of the world's largest natural gas finds since 2000, Delek and its partners are now developing a balanced, world-class portfolio of exploration, development and production assets.

Enquiries:

Ithaca Energy

Les Thomas lthomas@ithacaenergy.com +44 (0)1224 650 261

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

Forward-looking statements

Some of the statements and information in this press release are forward-looking. Forward-looking statements and forward-looking information (collectively, "forward-looking statements") are based on the Company's internal expectations, estimates, projections, assumptions and beliefs as at the date of such statements or information, including, among other things, assumptions with respect to production, drilling, construction and maintenance times, well completion times, risks associated with operations, future capital expenditures, continued availability of financing for future capital expenditures, regulatory approval requirements, future acquisitions and dispositions and cash flow. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. When used in this press release, the words and phrases like "anticipate", "continue", "estimate", "expect", "may", "will", "project", "plan", "should", "believe", "could", "target", "in the process of" and similar expressions, and the negatives thereof, whether used in connection with operational activities, the expected admission for trading of the Common Shares issued under the Placing, and other planned transactions and arrangements to be completed under the Investment Agreement and the receipt of regulatory and other approvals therefor, are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations, or the assumptions underlying these expectations, will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These forward-looking statements speak only as of the date of this press release. 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.

Additional information on these and other factors that could affect Ithaca's operations and financial results are included in the Company's Management's Discussion and Analysis for the quarter ended June 30, 2015, and the Company's Annual Information Form for the year ended December 31, 2014 and in reports which are on file with the Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an available exemption from the registration requirements thereof. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.