ABERDEEN, SCOTLAND -- (Marketwire) -- 03/01/13 -- Ithaca Energy Inc. (TSX VENTURE: IAE) (LSE: IAE)

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NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART,
DIRECTLY OR INDIRECTLY IN OR INTO OR FROM ANY JURISDICTION WHERE TO DO
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SUCH JURISDICTION.

1 March 2013

                     RECOMMENDED ACQUISITION OF
                       VALIANT PETROLEUM PLC
                               BY
                 ITHACA ENERGY HOLDINGS (UK) LIMITED
           (A WHOLLY-OWNED SUBSIDIARY OF ITHACA ENERGY INC.)

(TO BE EFFECTED BY MEANS OF A SCHEME OF ARRANGEMENT UNDER PART 26 OF
THE COMPANIES ACT 2006)

- The Boards of Ithaca Energy Inc. ("Ithaca") and of Valiant
Petroleum plc ("Valiant") are pleased to announce that they have
reached agreement on the terms of a recommended acquisition under which
Ithaca Energy Holdings (UK) Limited ("Ithaca Bidco") will acquire the
entire issued and to be issued share capital of Valiant (the"Acquisition").
The Acquisition is to be effected by means of a
Court-sanctioned scheme of arrangement under Part 26 of the Companies
Act.

- Under the terms of the Acquisition, Valiant Shareholders will be
entitled to receive 307 pence in cash and 1.33 Ithaca Consideration
Shares for each Valiant Share held at the Scheme Record Time.

- Based on the Closing Price of an Ithaca Share of C$1.97 (126
pence) on 28 February 2013, the Acquisition values the entire issued
and to be issued share capital of Valiant at approximately GBP203
million (equivalent to approximately US$309 million and C$318 million)
and each Valiant Share at approximately 475 pence.

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