Delek : Gas Supply Agreement with IEC

Tel Aviv, April 21, 2015. Delek Group (TASE: DLEKG, OTCQX: DGRLY) ("the Company") announces further to the immediate report of April 14, 2015 (Ref. No: 2015-01-077968); attached is an immediate report being reported by the Coompany's gas subsidiaries, Delek Drilling Limited Partnership and Avner Oil Exploration Limited Partnership (together: the "Partnerships") regarding the decision of IEC's Board of Directors to partially exercise its option relating to the period from 2020 to the end of the agreement period, as set out in Section 1.7.13(D)(4) of the Company's 2014 Periodic report dated March 30, 2015 (Ref. No: 2015-01-067483).

Further to section 7.13.4(D) of the Partnerships' periodic report of December 31, 2014, which was published on March 18, 2015 (Ref. No: 2015-01-054505) ("the Periodic Report") regarding the agreement between the Tamar Project Partners, including the Partnerships ("the Tamar Partners"), and the Israel Electric Corporation Ltd. ("IEC" and "the Agreement", respectively) and the Partnerships' immediate report of April 14, 2015 (Ref. No: 2015-01-077833 regarding the option to increase the quantities supplied under the Agreement, the Partnerships announces as follows:

On April 16, 2015, IEC announced to the Tamar partners that its Board of Directors resolved to partially exercise the option to increase the quantities of gas that it will consume in the period from 2020 to the end of the agreement period.

The expected implication of this partial exercise is that as from January 1, 2020, the contractual quantity will increase only partially (compared to the original quantity), the take or pay quantity will be 3 BCM per annum and the maximum total quantity to be supplied (for the entire contract period) will be approximately 87 BCM (compared to 99 BCM if the option had been exercised fully and approximately 82.5 BCM if it had not been exercised at all).

Due to the present gas supply agreements from the Tamar Project, as set out in section 7.13.4(B) of the Periodic report, and based on the Partnerships' estimates regarding the projected demand for natural gas supply from the Tamar project, the Partnerships believe that such partial exercise of the option (as opposed to full exercise) does not materially affect the projected discounted cash flow from the Tamar project included in section 7.4.9 of the Periodic report.

It should be noted that as of the report date, the documents required for such exercise of the option have not yet been signed between the parties and the Partnerships believe that they are expected to be signed soon, after receiving the approval of the authorized organs of the Tamar Partners.

Forward looking information : The above information regarding the Partnerships' estimations with respect the effect of exercising the option on the discounted cash flow and signing of the required documents related to partial exercise of the option and receiving the approval of the authorized organs of the Tamar Partners is forward looking information, as defined in the Securities Law, 1968, and there can be no certainty that it will materialize, in whole or in part, in the above or any other manner, and especially that these documents will be signed.

The Tamar project partners and their rate of holdings are as follows:

Noble Energy Mediterranean Ltd. 36.00%

Isramco Negev 2 Limited Partnership 28.75%

Avner Oil Exploration - Limited Partnership 15.625%

Delek Drilling - Limited Partnership 15.625%

Dor Gas Exploration Limited Partnership 4.00%

This is a convenience translation of the original HEBREW immediate report issued to the Tel Aviv Stock Exchange by the Company on April 19, 2015.

About The Delek Group

The Delek Group, Israel's dominant integrated energy company, is the pioneering leader of the natural gas exploration and production activities that are transforming the Eastern Mediterranean's Levant Basin into one of the energy industry's most promising emerging regions. Having discovered Tamar and Leviathan, two of the world's largest natural gas finds since 2000, Delek and its partners are now developing a balanced, world-class portfolio of exploration, development and production assets with total gross natural gas resources discovered since 2009 of approximately 40 TCF.

In addition, Delek Group has a number of assets in downstream energy, water desalination, and in the finance sector.

For more information on Delek Group please visit www.delek-group.com

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