Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) ('Ithaca' or the 'Company') reports that it has completed the previously announced US$66 million equity investment in the Company by DKL Investments Limited ('DKL'), a wholly owned subsidiary of Delek Group Ltd. ('Delek').

The investment was completed via a non-brokered private placement of 81,865,425 Common Shares in the capital of the Company (the 'Placing') at CAD$1.05 per share (the 'Placing Price'), equivalent to £0.53 per share. This represents a 19% premium to the CAD$0.88 per share closing price on the Toronto Stock Exchange ('TSX') on 8 October 2015, the day prior to announcement of the Placing. As of the same date, the Placing Price represents a 39% premium to the 5 day volume weighted average price ('VWAP') and a 51% premium to the 30 day VWAP.

Following completion of the Placing, the Company has 411,384,045 Common Shares issued and outstanding, with one voting right per Common Share. This represents all the outstanding voting securities of the Company. On a fully diluted basis the Company has 432,837,265 Common Shares in issue, which includes 21,453,220 Common Shares under option.

Application has been made to the London Stock Exchange for the 81,865,425 Common Shares issued to DKL to be admitted to trading on AIM. Admission of the shares is expected to occur on 21 October 2015.

In accordance with the terms of the Investment Agreement entered into between the Company and DKL, DKL has nominated Mr Joseph Asaf Bartfeld, President & Chief Executive Officer of Delek, and Mr Yosef Abu, Chief Executive Officer of Delek Drilling Ltd. as Non-Executive Directors and members of the Ithaca Board of Directors with immediate effect (subject to standard TSX procedures with respect to the approval of these Non-Executive Directors).

AIM Schedule 2 Information
In relation to the appointment of Mr Bartfeld and Mr Abu as Non-Executive Directors, Ithaca confirms that there is no further information to be disclosed under paragraph (g) of Schedule 2 of the AIM Rules for Companies save as disclosed below:

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About Ithaca Energy
Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) is a North Sea oil and gas operator focused on the delivery of lower risk growth through the appraisal and development of UK undeveloped discoveries and the exploitation of its existing UK producing asset portfolio. Ithaca's strategy is centred on generating sustainable long term shareholder value by building a highly profitable 25kboe/d North Sea oil and gas company. For further information please consult the Company's website www.ithacaenergy.com.