Delek : Update on Negotiation with Woodside Petroleum to Purchase Rights in Leviathan Project

Tel Aviv, March 30, 2014. Delek Group (TASE: DLEKG, OTCQX: DGRLY) ("the Company") Further to that stated in the immediate report dated February 9, 2014 (Ref. 2014-01-035527), with regard to signing a non-binding memorandum of understanding ("MOU") with Woodside Energy Mediterranean Pty. Ltd. ("Woodside") to join the Leviathan project, in order to reach a binding agreement for the transfer of the rights in Leviathan to Woodside in accordance with the principles outlined in the MOU until March 27, 2014 ("binding agreement"), an immediate report was published by the Company's gas subsidiaries - Delek Drilling Limited Partnership and Avner Oil Exploration Limited Partnership (together "the Partnerships") whom reported that since the required approvals and / or clarifications by the tax authorities were not obtained according to Woodside's satisfaction, it was not possible to sign a binding agreement according to the above mentioned date.

The partners in the Leviathan project and their holdings:

Noble Energy Mediterranean Ltd. 39.66%

Delek Drilling - Limited Partnership 22.67%

Avner Oil Exploration - Limited Partnership 22.67%

Ratio Oil Exploration (1992) - Limited Partnership 15%

This is a convenience translation of the original HEBREW immediate report issued to the Tel Aviv Stock Exchange by the Company on March 30, 2014.

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 37 TCF.

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

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

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