INA

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR DISSEMINATION IN
UNITED STATES


Iona Energy Inc. ("Iona" or the "Company") (TSX VENTURE:INA) is pleased to
announce today that its reserves evaluator, Gaffney Cline & Associates Ltd.
("GCA"), has completed an independent reserves report (the "GCA Report")
prepared in accordance with National Instrument 51-101 - Standards of Disclosure
for Oil and Gas Activities evaluating Iona's 100% owned Orlando development
project effective as of September 30, 2012 using GCA's forecast costs and
prices. GCA reports Orlando's Proved Reserves ("1P") of 7.83 million barrels of
oil ("MMbbls"), Proved plus Probable Reserves ("2P") of 15.37 MMbbls, and Proved
plus Probable plus Possible Reserves ("3P") of 21.56 MMbbls. Iona has calculated
a 15% increase in 1P Reserves, a 39% increase in 2P Reserves, and a 31% increase
in 3P Reserves attributed to Orlando, all based on GCA's previous report
effective December 31, 2011. Notably, the Pre-Tax Net Present Value of Cash
Flows discounted at 10% ("NPV10") of Orlando 2P Reserves has increased to
USD$609.3 million from USD$405.6 million, an increase of more than 50%.
Accordingly, the Post-Tax NPV10 valuation of Orlando 2P Reserves increased 50%
from USD$186.0 million to USD$278.6 million.


The increase in Orlando reserves, in conjunction with independent GCA reserves
reports covering Iona's interests in Kells (100% Iona), West Wick (58% Iona) and
Trent & Tyne (20% Iona), raises the Company's Proved plus Probable oil and gas
reserves from 31.7 MMboe to 36.0 MMboe with a summed total 2P Pre-Tax NPV10
reserves valuation up from USD$1.19 billion to USD$1.39 billion (total summed 2P
Post-Tax NPV10 reserve values increased from USD$625.9 million to USD$718.5
million). See note (1) below for further details regarding these calculations.


Since December 31st 2011, the 3/3-13 and sidetrack wells were drilled, which
enabled Iona to revise the Field Development Plan ("FDP") for Orlando based on
the reservoir data provided by these wells. The technical section of the FDP has
now been submitted to the Department of Energy and Climate Change following
earlier submission of the Environmental Statement ("ES"). Technical and economic
reserve inputs to the Final FDP have changed from those effective at 31st of
December 2011 based upon integration of the appraisal well results into an
updated field-wide interpretation.


On submission of the Orlando FDP, Iona engaged GCA to conduct an independent
reserves report of the Orlando Field, updating the reserves held by the Company
at Orlando as of September 30th 2012 to reflect the revised development plan.
The reserves for the Orlando Field as at September 30, 2012 are given in Table 1
below and are provided by GCA.


TABLE 1

SUMMARY OF GROSS OIL AND NET RESERVES AS AT 30th SEPTEMBER 2012



----------------------------------------------------------------------------
                                                 Proved+Probable+Possible 3P
    Proved 1P (MMbbls) Proved+Probable 2P(MMbbls)                   (MMbbls)
----------------------------------------------------------------------------
                  7.83                      15.37                      21.56
----------------------------------------------------------------------------



Table 2 given below summarizes GCA's evaluation of the Net Present Values of the
Proved, Proved plus Probable, and Proved plus Probable plus Possible Reserves
for Iona's 100% Working Interest in the Orlando field. The dollar amounts
appearing in this table have been expressed in millions of USD (US$ MM).


TABLE 2

NET PRESENT VALUES APPLICABLE TO A 100% WORKING INTEREST IN THE RESERVES OF THE
ORLANDO FIELD DISCOUNTED AT (% PER YEAR) AS AT 30th SEPTEMBER, 2012 (US$ MM)
(BEFORE INCOME TAXES)




----------------------------------------------------------------------------
ORLANDO                                             0%         5%        10%
----------------------------------------------------------------------------
Proved Undeveloped                          $    430.6 $    339.4 $    269.5
----------------------------------------------------------------------------
Total Proved                                $    430.6 $    339.4 $    269.5
----------------------------------------------------------------------------
Probable                                    $    583.2 $    439.2 $    339.8
----------------------------------------------------------------------------
Proved+Probable                             $  1,013.8 $    778.6 $    609.3
----------------------------------------------------------------------------
Possible                                    $    587.8 $    408.8 $    295.8
----------------------------------------------------------------------------
Proved+Probable+Possible                    $  1,601.6 $  1,187.4 $    905.1
----------------------------------------------------------------------------



NET PRESENT VALUES APPLICABLE TO A 100% WORKING INTEREST IN THE RESERVES OF THE
ORLANDO FIELD DISCOUNTED AT (% PER YEAR) AS AT 30th SEPTEMBER, 2012 (US$ MM)
(AFTER INCOME TAXES)




----------------------------------------------------------------------------
ORLANDO                                             0%         5%        10%
----------------------------------------------------------------------------
Proved Undeveloped                          $    236.1 $    183.9 $    143.8
----------------------------------------------------------------------------
Total Proved                                $    236.1 $    183.9 $    143.8
----------------------------------------------------------------------------
Probable                                    $    220.5 $    170.8 $    134.8
----------------------------------------------------------------------------
Proved+Probable                             $    456.6 $    354.7 $    278.6
----------------------------------------------------------------------------
Possible                                    $    224.8 $    156.1 $    113.0
----------------------------------------------------------------------------
Proved+Probable+Possible                    $    681.4 $    510.8 $    391.6
----------------------------------------------------------------------------



With the addition of the revised Orlando reserves, Iona now has(1):



--  Net 1P Reserves of 17.1 MMboe, 
--  Net 2P Reserves of 36.0 MMboe, and 
--  Net 3P Reserves of 46.9 MMboe.  
--  The corresponding value update as of September 30th 2012 sums Orlando
    (100%), Trent & Tyne (20%), Kells (100%) and West Wick (58%) Net 2P
    Reserves Before Tax Net Present Value, assuming a discount rate of 10%,
    to USD$ 1391.2 million.(1)



Note: 

(1) Based on: (a) Orlando reserves and net present value information prepared by
GCA (using forecast prices and costs) as of September 30, 2012; (b) Trent & Tyne
reserves and net present value information prepared by GCA (using forecast
prices and costs) as of December 31, 2011; (c) Kells reserves and net present
value information prepared by GCA (using forecast prices and costs) as of March
31, 2012, and (d) West Wick reserves and net present value information prepared
by GCA (using forecast prices and costs) as of December 31, 2011. The prior
estimate for Orlando reserves and net present value information was prepared by
GCA (using forecast prices and costs) as of December 31, 2011.


It should also be noted that on March 21st, 2012 the UK Government announced
that the "Small Field Allowance" would increase from GBP 75 million to GBP 150
million and that this positive tax effect has not been applied to the net
present values for Iona's Kells field due to the timing of the independent
engineering report on that field.


Iona's Chief Executive Officer, Neill Carson, commented: "This reserve and value
increase in Orlando, akin to the increase previously announced on Kells is a
good example of the lower risk nature of our assets, where we can add
significant value into the Company through partner acquisitions, low risk
drilling, and improved plans for our operated field developments. We are also
looking forward to the completion of our re-mapping engineering and work with
our independent reserve evaluators on our recently announced 100% award of the
two oil discoveries, Ronan and Oran, such that these reserves can also be
reported as significant additions to our portfolio."


Additional information relating to the Company is available on SEDAR at
www.sedar.com.


About Iona Energy:

Iona is an oil and gas exploration, development and production company focused
on oil and gas development and exploration in the United Kingdom's North Sea.


Forward-looking statements

Some of the statements in this announcement are forward-looking, including
statements regarding Iona's plans with respect to development of the Orlando
property, anticipated effects of the UK small field allowance, estimates of the
quantities of proved reserves, probable reserves, and possible reserves, as well
as estimates of the net present value of future net revenue of proved reserves,
probable reserves, and possible reserves. Forward-looking statements include
statements regarding the intent, belief and current expectations of Iona Energy
Inc. or its officers with respect to various matters, including Orlando
reserves, production, drilling activity or otherwise. When used in this
announcement, the words "expects," "believes," "anticipate," "plans," "may,"
"will," "should", "scheduled", "targeted", "estimated" and similar expressions,
and the negatives thereof, are intended to identify forward-looking statements.
Such statements are not promises or guarantees, are based on various assumptions
by Iona's management 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.
Iona 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. 


Notes Regarding Oil and Gas Disclosure

As used in this press release, "boe" means barrel of oil equivalent on the basis
of 6 mcf of natural gas to 1 bbl of oil. Boes may be misleading, particularly if
used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead. 


It should not be assumed that the present worth of estimated future net revenue
represents the fair market value of the reserves disclosed in this press
release. The reserve and related revenue estimates set forth in this press
release are estimates only and the actual reserves and realized revenue may be
greater or less than those calculated. The estimates of reserves and future net
revenue for individual properties may not reflect the same confidence level as
estimates of reserves and future net revenue for all properties, due to the
effects of aggregation.


As used in this press release, "possible reserves" are those additional reserves
that are less certain to be recovered than probable reserves. There is a 10%
probability that the quantities actually recovered will equal or exceed the sum
of proved plus probable plus possible reserves.


Additionally, this press release uses certain abbreviations as follows:



Oil and Natural Gas Liquids              Natural Gas             
-----------------------------------------------------------------
bbls  barrels                            Bcf   billion cubic foot
MMbblsmillions of barrels                MMcf  million cubic feet
MMboe million barrels of oil equivalent                          



FOR FURTHER INFORMATION PLEASE CONTACT: 
Iona Energy Inc.
Neill A. Carson
Chief Executive Officer
+011 (44) 1224 228400


Iona Energy Inc.
Brad G. Gunn
Chief Financial Officer
(403) 775-7442

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