FPF-1 Update

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

This Announcement Contains Inside Information

Ithaca Energy Inc.

FPF-1 Update

22 July 2016

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) reports that the "FPF-1" floating production facility has completed the required inclination test as planned and departed the Remontowa shipyard in Gdansk, Poland.  The vessel has been moved to a deep water location offshore Gdansk to undertake final marine system trials over the course of next week.  Upon completion of these trials, the FPF-1 will commence the tow to the Stella field.  A further update will be provided once towing operations have commenced.

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Enquiries:

Ithaca Energy

Les Thomas                           lthomas@ithacaenergy.com                     +44 (0)1224 650 261

Graham Forbes                     gforbes@ithacaenergy.com                      +44 (0)1224 652 151

Richard Smith                        rsmith@ithacaenergy.com                        +44 (0)1224 652 172

FTI Consulting

Edward Westropp                  edward.westropp@fticonsulting.com       +44 (0)203 727 1521

Tom Hufton                             tom.hufton@fticonsulting.com                  +44 (0)203 727 1625

Cenkos Securities

Neil McDonald                        nmcdonald@cenkos.com                         +44 (0)207 397 1953

Nick Tulloch                            ntulloch@cenkos.com                               +44 (0)131 220 9772

Beth McKiernan                      bmckiernan@cenkos.com                        +44 (0)131 220 9778

RBC Capital Markets

Daniel Conti                            daniel.conti@rbccm.com                          +44 (0)207 653 4000

Matthew Coakes                     matthew.coakes@rbccm.com                 +44 (0)207 653 4000

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.

Forward-looking Statements

Some of the statements and information in this press release are forward-looking. Forward-looking statements and forward-looking information (collectively, "forward-looking statements") are based on the Company's internal expectations, estimates, projections, assumptions and beliefs as at the date of such statements or information, including, among other things, assumptions with respect to production, drilling, construction and maintenance times, well completion times, risks associated with operations, future capital expenditures, continued availability of financing for future capital expenditures, future acquisitions and dispositions and cash flow. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect.  When used in this press release, the words and phrases like "anticipate", "continue", "estimate", "expect", "may", "will", "project", "plan", "should", "believe", "could", "target", "in the process of", "on track" ,"set to" and similar expressions, and the negatives thereof, whether used in connection with operational activities, remaining work activities prior to the FPF-1 being towed to the Stella field and the timing thereof, timing of commencement of towing the FPF-1 to the Stella field, timing of future FPF-1 updates, or otherwise, are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations, or the assumptions underlying these expectations, will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These forward-looking statements speak only as of the date of this press release.  Ithaca Energy Inc. expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based except as required by applicable securities laws. 

Additional information on these and other factors that could affect Ithaca's operations and financial results are included in the Company's Management Discussion and Analysis for the quarter ended 31 March 2016 and the Company's Annual Information Form for the year ended 31 December 2015 and in reports which are on file with the Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).