Mandatory redemption offer to secured bondholders

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA OR TO ANY U.S. PERSON, OR IN OR INTO ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO RELEASE, PUBLISH OR DISTRIBUTE THIS DOCUMENT.

30 January 2017

IGas Energy Plc (AIM: IGAS)

Mandatory redemption offer to secured bondholders

Under the terms of its secured callable bonds (ISIN NO0010673791) (the "Bonds"), IGas Energy Plc (the "Company") announces a mandatory redemption offer (the "Redemption Offer") to holders of the Bonds. Pursuant to the terms of the Bonds, the Company is required to invest $15 million per annum in its conventional hydrocarbon assets. For the year ended 31 December 2016, investment totalled c. $12.7 million and therefore pursuant to the terms of the Bonds, the Company has today launched the Redemption Offer in the amount of c. $ 2.3 million.

The Redemption Offer will expire on 1 March 2016 at 16:00 CET, and settlement is expected to occur on 8 March 2016.

A letter setting out the detailed terms of the Redemption Offer will be sent to eligible bondholders and published on Nordic Trustee ASA's website www.stamdata.no.

ABG Sundal Collier ASA is retained as manager for the Redemption Offer.

For further information please contact:

IGas Energy plc

Tel: +44 (0)20 7993 9899

Stephen Bowler, Chief Executive Officer

Julian Tedder, Chief Financial Officer

Ann-marie Wilkinson, Director of Corporate Affairs

Investec Bank plc (NOMAD and Joint Corporate Broker)

Tel: +44 (0)20 7597 4000

Sara Hale/Jeremy Ellis/George Price

Canaccord Genuity (Joint Corporate Broker)

Tel: +44 (0)20 7523 8000

Henry Fitzgerald-O'Connor

Vigo Communications

Tel: +44 (0)20 7830 9700

Patrick d'Ancona/Chris McMahon

Disclaimers

This announcement has been prepared by the Company exclusively for information purposes. It does not constitute or include any recommendation by the Company (or any other person) regarding the securities of the Company or as to the merits of any transaction or the making of any investment decision. It does not constitute or include any confirmation or commitment by the Company (or any other person) regarding the present or future value of the business of the Company, its securities, its affiliates or any of the Company's or their assets.

This announcement is not intended to and does not constitute or form part of any offer to sell or subscribe for or any invitation to purchase or subscribe for any securities or the solicitation of any vote or approval in any jurisdiction.

The release, publication or distribution of this announcement in, into or from jurisdictions other than the United Kingdom may be restricted by law or regulation and therefore any persons who are subject to the laws or regulations of any jurisdiction other than the United Kingdom should inform themselves about, and observe, any applicable requirements.

There are matters set out within this announcement that are forward-looking statements. Such statements are only predictions, and actual events or results may differ materially. For a discussion of important factors which could cause actual results to differ from forward-looking statements, refer to the Company's Annual Report and Accounts for the nine months to 31 December 2015. The Company does not undertake any obligation to update publicly, or revise, forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.