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Ithaca Energy Inc.

Stella Schedule Update

25 November 2016

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) ("Ithaca" or the "Company") provides an update on the status of the on-going Stella field commissioning programme and the expected schedule for start-up of production.

Activities on the offshore commissioning programme for the FPF-1 floating production facility are well advanced and preparation for start-up of the Stella field is on-going. During routine inspections, faults on a number of electrical junction boxes on the vessel's processing facilities have been identified and a programme of necessary repairs is underway.  All other preparations are on plan. Start-up is now anticipated in early January 2017, upon completion of this additional work.

Les Thomas, Chief Executive Officer, commented:

"The safety and integrity of the facility is paramount and we must ensure that everything is done meticulously in advance of the introduction of hydrocarbons into the facility. Although any delay to start-up at this stage is frustrating, the value of a thorough inspection programme has been proven and we look forward to completion of this work and the imminent start-up of production."

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Enquiries:

Ithaca Energy

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

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

Kim Camilleri kim.camilleri@fticonsulting.com +44 (0)203 727 1349

Cenkos Securities

Neil McDonald nmcdonald@cenkos.com +44 (0)207 397 1953

Nick Tulloch ntulloch@cenkos.com +44 (0)131 220 9772

Beth McKiernan bmckiernan@cenkos.com +44 (0)131 220 9778

RBC Capital Markets

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

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.

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, required regulatory, partner and other third party approvals, commodity prices, future capital expenditures, continued availability of financing for future capital expenditures, 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", "on track" ,"set to" and similar expressions, and the negatives thereof, whether used in connection with operational activities, the planned activities and durations associated with the FPF-1 offshore commissioning programme, the anticipated timing of Stella first hydrocarbons, production forecasts, projected operating costs, anticipated capital expenditures and capital programme, anticipated effects of securing access to the GSA oil export pipeline and the expected timing of securing such access, portfolio investment opportunities, expected tax horizon of the Company, planned maintenance shutdowns and the effects thereof, or otherwise, 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 Discussion and Analysis for the three and nine month periods ended 30 September 2016 and the Company's Annual Information Form for the year ended 31 December 2015 and in reports which are on file with the Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).

This Announcement Contains Inside Information