Delek : Participation in a tender for the purchase of exploration rights for oil and/or natural gas in Cyprus

Tel Aviv, July 24, 2016. Delek Group (TASE: DLEKG, US ADR: DGRLY) ('the Company') announces that pursuant to what was stated in the Annual Reports of Avner Oil Exploration Limited Partnership and Delek Drilling Limited Partnership ('the Partnerships') to December 31, 2015 that were published on March 28, 2016 ('Annual Reports'), concerning the assessment of participation in an additional Tender for the grant of exploration licenses in the Exclusive Economic Zone of Cyprus, on July 22, 2016, the Partnerships submitted a Bid for the Tender that was published by the Government of Cyprus for the purchase of exploration rights for oil and/or natural gas in the Exclusive Economic Zone of Cyprus ('the Bid' and the 'Tender', respectively), due to the synergy of the Partnerships' activity in the fields of exploration, development, production and marketing of natural gas in the eastern basin of the Mediterranean.

The Bid was submitted by a Consortium including the Partnerships and Capricorn Oil Limited, which is defined as the operator in the Consortium (jointly 'the Partners' and 'the Consortium' respectively), in accordance with the principles established between the Partners in the agreement fixing the terms of the Bid.

To the best of the Partnerships' knowledge, Capricorn Oil Limited is a wholly owned (100%) subsidiary of Cairn Energy PLC, a public oil company registered for trading on the London stock exchange under the symbol CNE.L, which is involved in the exploration, development and production of natural gas and oil, and acts as operator for deep water oil assets in various places around the world.

It is not expected that the Tender results will be published before Q4 2016.

Percentage holdings in the consortium are as follows:

Capricorn Oil Limited 50%
Delek Drilling Limited Partnership 25%
Avner Oil Exploration - Limited Partnership 25%

Warning of forward looking information: The above estimates concerning the Tender are forward looking information in the meaning of the term in section 32A of the Securities Law, for which there can be no certainty that it will take place, in whole or in part, in the manner stated or in any other manner, and it may take place in a manner materially different, and in particular there can be no certainty that the Partnerships or the consortium will meet the terms required in the Tender and no certainty that the Partnerships Bid will win the Tender based on the terms set in the Bid or other terms. Winning is subject inter alia to agreement between the Partners and the Government of Cyprus on the terms of a license agreement and receipt of approval of the competent bodies and the authorizations required in law, if such will be required.

This is a convenience translation of the original HEBREW immediate report issued to the Tel Aviv Stock Exchange by the Company on July 24, 2016.

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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