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) announces its
financial results for the three months and nine months ended September 30, 2012.



HIGHLIGHTS FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2012 

Financial



--  Cash and current restricted cash positions totaled CAD$69.8 million as
    at September 30, 2012. 

--  No short or long term debt as at September 30, 2012. 

--  Exploration and evaluation assets of CAD$79.6 million (December 31, 2011
    - CAD$28.2 million). 

--  Total assets of CAD$179.3 million (December 31, 2011 - CAD$72.1
    million). 

--  Q3 Net loss of CAD$2.2 million (or CAD$0.01 per share) resulting in a
    loss for the nine months ended Sept 30, 2012 of CAD$6.2 million. 



Operational 



--  Trent & Tyne net production to Iona during the three months ended
    September 30, 2012 was 1.1 MMscf/d and the average realized gas price
    was strong at $9.00/mcf. The decrease in recent production rates was
    largely attributed to interruptions as a result of the start up of
    drilling operations on the T6 well and the annual maintenance shutdown
    during most of September. 

--  During August 2012, the Ensco 80 jack-up rig commenced operations to
    side-track the Trent & Tyne T6 production gas well with first gas from
    the well expected during December 2012. 

--  Performed an engineering and portfolio review and advanced Orlando
    development ahead of the Kells Development. 

--  Installed process isolation valving and pipework on Ninian Central to
    allow future hook up and tie in of Orlando without need for shutdown of
    host platform process. 

--  Completed the Orlando Environmental Statement and consultation with the
    Department of Energy and Climate Change ("DECC"), another step closer to
    final Field Development Approval. 

--  Iona engaged Gaffney Cline & Associates ("GCA") to prepare an
    independent reserves report of the West Wick oil field, based on the
    draft Field Development Plan ("FDP") for West Wick prepared by CVPC (the
    "GCA West Wick Report"). The GCA West Wick Report has an effective date
    of December 31st, 2011. GCA has estimated net proved oil reserves ("1P")
    of 5.1 MMbbls, net proved plus probable oil reserves ("2P") of 9.71
    MMbbls and net proved plus probable plus possible oil reserves ("3P") of
    12.18 MMbbls. Using forecast prices and costs, GCA also estimates pre-
    tax net present value, discounted at 10% ("NPV10") of 1P reserves for
    West Wick of USD$146.6 million, NPV10 of 2P reserves for West Wick of
    USD$382.8 million, and NPV10 of 3P reserves for West Wick of USD$449.1
    million, as of December 31st, 2011. 



Acquisitions



--  Completion of the acquisition of an operated 58.73% interest in U.K.
    Block 13/21a containing the West Wick Oil Field from Centrica Venture
    Production Company ("CVPC"). DECC has also completed the license
    assignment. Under the terms of the sale and purchase agreement, Iona
    paid USD$5.1 million to CVPC. 



Corporate 



--  During September 2012, the UK Government announced the Brown Field
    Allowance ("BFA"), which is a new tax relief to encourage investment in
    older oil and gas fields. The BFA will shield up to GBP 250m of income
    in qualifying brown field projects, or GBP 500m for projects in fields
    paying Petroleum Revenue Tax, from the 32% Supplementary Charge rate
    (providing tax relief of up to GBP 80m or GBP 160m respectively). The
    Company welcomes this announcement and hopes to utilize it on its
    qualifying projects in the future. 

--  150,000 stock options granted during the third quarter of 2012. 



Post Quarter End



--  GCA completed an independent reserves report on the Orlando development
    project effective September 30, 2012 using GCA's forecast costs and
    prices. GCA reported 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%. 
    

--  Submitted a re-engineered Orlando FDP to DECC at the end of October with
    approval expected in the first half of 2013. 

--  Iona was awarded three UK North Sea Blocks at 100% working interest,
    including two oil discoveries from DECC. The three awarded Blocks, 3/7c
    (part), 3/8c, and 3/12 (part), are located in the Northern North Sea, to
    the south-west of the Ninian field and immediately adjacent to Iona's
    100% Block 3/8d which includes the to-be-developed "Kells" Oil and Gas
    field and the "Ossian" Oil discovery. 

--  Iona engaged TD Securities in London to market and manage a joint
    venture offering of working interests in both Orlando and Kells with bid
    due at the end of October. Iona is now in final negotiations with
    potential partners and expects to enter into binding legal agreements
    prior to the year-end. 



Reserves



--  The following table summarizes the Company's current estimated
    reserves(1) 

----------------------------------------------------------------------------
                         1P                  2P                  3P         
                ------------------------------------------------------------
                             Pre-tax             Pre-tax             Pre-tax
Asset              MMboe    NPV10 $m   MMboe    NPV10 $m   MMboe    NPV10 $m
----------------------------------------------------------------------------
Orlando              7.8       269.5    15.4       609.3    21.6       905.1
----------------------------------------------------------------------------
Kells                3.4        73.0     8.9       358.4    10.7       466.0
----------------------------------------------------------------------------
Trent & Tyne         0.7        -6.1     2.1        40.7     2.5        54.3
----------------------------------------------------------------------------
West Wick            5.1       146.6     9.7       382.8    12.2       449.1
----------------------------------------------------------------------------



(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. 


Further details on the above are provided in the Condensed Consolidated
Financial Statements and Management's Discussion and Analysis for the three and
nine months ended September 30, 2012, which have been filed with securities
regulatory authorities in Canada. These documents are available on the System
for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com and on
the Company's website at www.ionaenergy.com. 


Iona is an oil and natural gas acquisition, appraisal, and development
corporation active through its 100% wholly owned United Kingdom subsidiary, Iona
Energy Company (UK) Ltd. in the United Kingdom's Continental Shelf ("UKCS").


Forward-looking statements

Some of the statements in this announcement are forward-looking, including
statements regarding Iona's plans for the development of its properties,
anticipated effects of the UK small field allowance, and estimates of the net
present value of future net revenue of proved and probable reserves from Iona's
properties. Forward-looking statements include statements regarding the intent,
belief and current expectations of Iona 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 estimated production levels and future activity
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, including without limitation, the risk that
Iona's development plans change as a result of new information or events, and
the risk that drilling results differ materially from management's current
estimates. 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.


Note: "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.


Additionally, this press release uses certain abbreviations as follows:



Oil and Natural Gas Liquids    Natural Gas                                  
----------------------------   ---------------------------------------------
bbls     barrels               mcf      thousand cubic feet                 
Mbbls    thousand barrels      mcf/d    thousand cubic feet per day         
MMbbls   million barrels       scf      standard cubic foot                 
bbls/d   barrels per day       MMscf    millions of standard cubic feet     
bopd     barrels of oil per    MMscf/d  millions of standard cubic feet per 
         day                            day                                 
NGLs     natural gas liquids   Bscf     billion standard cubic feet         



FOR FURTHER INFORMATION PLEASE CONTACT: 
Iona Energy Inc.
Neill A. Carson
Chief Executive Officer
+011 (44) 7919 057989


Iona Energy Inc.
Brad G. Gunn
Chief Financial Officer
(403) 775-7442
info@ionaenergy.com
www.ionaenergy.com

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