Ithaca Closes on C$75MM Equity Financing

Ithaca Energy Inc. has confirmed the closing of its previously announced marketed equity financing. Ithaca has issued 50,000,000 common shares at a price of C$1.50 per common share for gross proceeds of C$75,000,000. RBC Capital Markets Inc. and Tristone Capital Inc. acted as co-lead agents for a syndicate that included FirstEnergy Capital Corp., Canaccord Capital Corporation, Fraser Mackenzie Limited and Research Capital Corporation.

Ithaca intends to use the net proceeds of the Offering to fund ongoing Jacky and Athena project development, the completion of the Beatrice and Stella acquisitions and for general working capital purposes. Ithaca anticipates that this financing, combined with the recently announced US$240 million bank financing, will be sufficient to fund Ithaca through to first production on both its Jacky and Athena projects expected at the end of this year and at the end of 2009, respectively.

The 50,000,000 new shares will begin trading on the TSX Venture Exchange Inc. effective today. In addition, application has been made to the London Stock Exchange for these new shares to be admitted to trading on AIM with admission expected to take place on August 13, 2008. Following the issue of these shares, the total number of shares in issue will be 162,261,975.

In addition, Iain McKendrick, Ithaca's Chief Operating Officer and Steven Turner, Ithaca's Chief Financial Officer have subscribed for 40,000 common shares and 20,000 common shares respectively, each at a price of Cdn$1.50 per common share.