IOG.L Regulatory News (IOG)

5 March 2010

San Leon Energy plc

("San Leon" or the "Company")

Island Oil & Gas plc

("Island")

Amendment to Conditions of Recommended Acquisition of

Island Oil & Gas plc by San Leon Energy plc

Further to the announcement of 25 February 2010 (the "2.5 Announcement"), regarding the acquisition of Island by San Leon (the "Acquisition"), to be effected by means of a scheme of arrangement (the "Scheme"), San Leon and Island announce an amendment to the conditions of the Acquisition (the "Conditions").

In addition to the Conditions, which have been set out in Appendix 1 of the 2.5 Announcement, San Leon and Island have agreed that the Acquisition will also be conditional upon the following condition being satisfied:

·; the admission of the New San Leon Shares to be issued in connection with the Acquisition to trading on AIM becoming effective in accordance with the AIM Rules or, if San Leon and Island so determine and subject to the consent of the Panel, the London Stock Exchange agreeing to admit such shares to trading on AIM subject only to (i) the allotment of such shares and/or (ii) the Scheme becoming effective.

This condition is a requirement pursuant to Rule 24.9 of the Irish Takeover Rules. The Irish Takeover Panel (the "Panel") has given its consent to San Leon and Island to make this amendment to the terms of the 2.5 Announcement. At the request of the Panel, a copy of this announcement has been posted to all Island shareholders.

Other than as described in this announcement, all defined terms set out in the 2.5 Announcement shall apply to this announcement.

For further information contact:

San Leon Energy plc + 353 1291 6292

Oisin Fanning, Chairman

Philip Thompson, Chief Executive Officer

Island Oil & Gas plc + 353 1631 3755

Paul Griffiths, Director

Carl Kindinger

Arbuthnot Securities Ltd (Financial adviser to San Leon) + 44 20 7012 2000

Nick Tulloch

Alasdair Younie

Davy Corporate Finance (Financial adviser to Island) + 353 1679 6363

Anthony Farrell

The Island Directors accept responsibility for the information contained in this announcement, except for the information for which responsibility is taken by the San Leon Directors. To the best of the knowledge and belief of the Island Directors (who have taken all reasonable care to ensure that such is the case) the information contained in this announcement for which they are responsible is in accordance with the facts and does not omit anything likely to affect the import of such information.

The San Leon Directors accept responsibility for the information contained in this announcement relating to San Leon, the directors of San Leon, related trusts and any persons connected with them. To the best of the knowledge and belief of the San Leon Directors (who have taken all reasonable care to ensure that such is the case) the information contained in this announcement for which they are responsible is in accordance with the facts and does not omit anything likely to affect the import of such information.