Statement re Announcement by Pareto Securities

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA), AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA OR JAPAN

5 July 2016

IGas Energy Plc ("IGas" or "The Company")

Statement re Announcement by Pareto Securities

IGas notes the announcement yesterday by Pareto Securities AS, on behalf of an undisclosed client, regarding the result of a tender offer for USD 165 million senior secured bonds. The announcement can be viewed at http://www.newsweb.no/newsweb/search.do?messageId=405405.

The Company also notes the posting of an acquisition of senior secured bonds with a nominal value of $38.42 million at a price of 75 cents per bond on the Oslo Stock exchange.

IGas continues its active discussions and will provide further updates as appropriate.

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