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LONDON, UNITED KINGDOM and CALGARY, CANADA--(Marketwire - March 22, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Ithaca Energy Inc. (TSX VENTURE:IAE)(AIM:IAE) announces today that drilling of the J03 well on Jacky has been temporarily suspended due to mechanical issues on the Energy Enhancer jack-up drilling unit. Additionally, the Beatrice Alpha workover well, A28, is now anticipated to return to stable production in early April.

The drilling unit has been positioned over the Jacky platform to drill well 12/21c-J03 ("the well" or "J03"). Mechanical issues relating to cementing of the initial casing section and the drilling mud handling system occurred onboard the Energy Enhancer during the drilling of the 'top hole section' section of the well. Production from the existing Jacky well J01 (and Beatrice Bravo), was temporarily suspended, as is normal practise during the early phase of drilling, but given additional issues with the rig, production was suspended for an extended period totalling 22 days. Production from J01 has been reinstated today while certain rig equipment is repaired. The rig has been on zero day rate and will remain so until the repair is complete. Drilling is scheduled to recommence in approximately 7 days, after which operations are approximately scheduled to last a further 60 days.

In addition, at Beatrice Alpha, production start up from work over well A28 has been delayed to allow the completion to be re-run following failure of a downhole packer. The A28 well is now expected to commence flowing and stabilise in early April.

The suspension of production at Jacky and the later commencement of A28 reinstatement are together anticipated to reduce forecast Ithaca net production for Q1 2011 by approximately 20%. However, management estimate 2011 net average production for the Company is still expected to be between 5,500 and 6,000 barrels of oil equivalent per day, subject to successful well interventions at Beatrice, a successful Jacky J03 well and first oil from the Athena field in Q4 2011.

Notes to oil and gas disclosure:

In accordance with AIM Guidelines, Hugh Morel, BSc Physics and Geology (Durham), PhD Hydrogeology (London) and senior petroleum engineer at Ithaca Energy is the qualified person that has reviewed the technical information contained in this press release. Dr Morel has 30 years operating experience in the upstream oil industry.

About Ithaca Energy:

Ithaca Energy Inc. and its wholly owned subsidiary Ithaca Energy (UK) Limited ("Ithaca" or "the Company"), is an oil and gas exploration, development and production company active in the United Kingdom's Continental Shelf ("UKCS"). The goal of Ithaca, in the near term, is to maximize production and achieve early production from the development of existing discoveries on properties held by Ithaca, to originate and participate in exploration and appraisal on properties held by Ithaca when capital permits, and to consider other opportunities for growth as they are identified from time to time by Ithaca.

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

Forward-looking statements

Some of the statements in this announcement are forward-looking. Forward-looking statements include statements regarding the intent, belief and current expectations of Ithaca Energy Inc. or its officers with respect to various matters. When used in this announcement, the words "expects," "believes," "anticipate," "plans," "may," "will," "should," "scheduled," "targeted," "estimated" and similar expressions, and the negatives thereof, whether used in connection with the estimated drilling times of the Jacky, J03 well, estimated production levels from existing and future development projects including the Jacky, J03 well, actual production levels from existing and future development projects, anticipated timing of the Jacky, J03 well and the Athena development, oil in place, hydrocarbon composition or otherwise, are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to risks and uncertainties that could cause actual outcome to differ materially from those suggested by any such statements. These forward-looking statements speak only as of the date of this announcement. 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.

Neither TSX Venture Exchange nor it's Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.