Ithaca Closes $100 Million Financing Deal

Ithaca Energy Inc. (TSX VENTURE:IAE)(AIM:IAE) has closed its previously announced 'bought deal' financing. Ithaca has sold to a syndicate of underwriters 27,400,000 common shares at a price of CAD $3.65 per common share for gross proceeds of CAD $100,010,000. The syndicate was led by RBC Capital Markets and CIBC World Markets Inc. and included Research Capital Corporation, Tristone Capital Inc. and Fraser Mackenzie Limited. The underwriters have been granted an over-allotment option to purchase up to an additional 4,110,000 common shares on the same terms and conditions of this offering, exercisable in whole or in part up to 30 days following closing of the financing.

Ithaca intends to use the net proceeds of this offering to fund development of its Athena and Jacky oil projects, exploration on its UK exploration assets and to fund general working capital. The common shares issued pursuant to this offering will commence trading on the TSX Venture Exchange today.

Ithaca has made an application to the London Stock Exchange for 27,400,000 new shares to be admitted to trading on AIM and admission is expected to take place on November 26, 2007. Following the issue of these shares, the total number of shares in issue will be 111,704,475.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction. The common shares may be offered or sold in other eligible foreign jurisdictions and to U.S. buyers on a private placement basis pursuant to an applicable exemption from registration requirements in Rule 144-A or Regulation D of the United States Securities Act of 1933, as amended.