N E W S R E L E A S E

Not for Distribution to U.S. Newswire Services or for Dissemination in the United States

Ithaca Energy Inc. (the “Company”) Director’s DealingLondon, UK - Calgary, Canada, July 5, 2011 – Ithaca Energy Inc. (TSX Venture: IAE, LSE AIM: IAE) was notified today that on July 5, 2011, Iain McKendrick, Ithaca’s CEO, acquired

30,000 common shares in the Company at a price of GBP £1.46 per common share.

Following this transaction, Iain McKendrick’s total revised beneficial holding in the Company is 130,490 common shares, representing approximately 0.05 per cent of the issued share capital of the Company.

Enquiries:

Ithaca Energy:

Graham Forbes, CFO

Nick Muir, CXO

gforbes@ithacaenergy.com

nmuir@ithacaenergy.com

+44 (0) 1224 652 151

+44 (0) 1224 650 267

Pelham Bell Pottinger:

Phillip Dennis

Elena Dobson

pdennis@pelhambellpottinger.co.uk

edobson@pelhambellpottinger.co.uk

+44 (0) 207 861 3919

+44 (0) 207 861 3147

Cenkos Securities plc:

Jon Fitzpatrick

jfitzpatrick@cenkos.com

+44 (0) 207 397 8900

Beth McKiernan

bmckiernan@cenkos.com

+44 (0) 131 220 6939

Neither the TSX Venture Exchange nor its Regulatory Service Provider (as that term is defined in the policies of the TSX Venture Exchange) does not accept responsibility for the adequacy or accuracy of this news release.

-ENDS-