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 the following in relation to previously announced and newly completed
transactions:




--  The Company has closed its previously announced bought-deal private
    placement of common shares (the "Offering"). An aggregate amount of
    CAD$23 million was raised pursuant to the Offering. Casimir Capital Ltd.
    ("Casimir") acted as lead underwriter with National Bank Financial as a
    syndicate member; 
--  The Company has signed a Senior Secured Borrowing Base Facility for up
    to USD$250 million (the "BBF") with a group of three banks led by Bank
    of America Merrill Lynch, Lloyds TSB Bank plc, and BNP Paribas.
    Completion and utilization of the BBF is subject to satisfaction of
    standard conditions precedent; 
--  Iona has completed a USD$60 million structured energy derivative
    transaction ("Structured Derivative Transaction") with Britannic Trading
    Ltd. ("BTL"), a subsidiary of BP International Limited; 
--  The Company has also entered into a Marketing and Offtake Agreement with
    BP Oil International Limited; 
--  Iona has completed its sale of a 25% working interest in its UK North
    Sea Orlando and Kells fields to Volantis Exploration (the "Orlando/Kells
    Sale") for total gross proceeds of USD$34 million on close and pro-rata
    share of future staged payment obligations; 
--  Iona UK has delivered a letter to the UK's Department of Energy and
    Climate Change ("DECC") in support of the Orlando Field Development Plan
    and confirming adequate funds have been allocated to the development;
    and 
--  Proceeds from the Offering, the Structured Derivative Transaction, the
    completion of the Orlando/Kells Sale, and expected initial funds
    available for drawing of USD$139 million under the BBF, together with
    existing working capital will total in excess of USD$274 million. Net
    proceeds will be allocated to closing the Company's previously announced
    Huntington oil field acquisition from Carrizo Oil & Gas Ltd., completion
    of the acquisition of the Orlando interest from Sorgenia and MPX, and to
    fund capital expenditures of its existing property developments as
    previously announced. 



Neill Carson, Iona's CEO, commented: "the closing of these transactions enables
a step change in growth for our company on several fronts. We are confident in
achieving our production goal of over 7,000 boepd by mid 2013, when adding our
acquisition of Huntington near-term oil production to our existing gas
production at Trent & Tyne. We are committed to deliver on the development of
the Orlando oil field. We believe we have established the basis for an excellent
long term relationship with our funding partners."


Brad Gunn, Iona's CFO, added: "Completions of these financings are significant
achievements and we welcome our new partners to our development projects.
Financing of this magnitude is evidence of the confidence of the financial
community in Iona's strategy, assets, and team of seasoned executives and
employees. Iona sincerely appreciates the efforts and strong show of support of
its lenders and BTL." 


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.


The securities of Iona being offered have not been, nor will be, registered
under the United States Securities Act of 1933, as amended, and may not be
offered or sold within the United States or to, or for the account or benefit
of, U.S. persons absent U.S. registration or an applicable exemption from U.S.
registration requirements. This release does not constitute an offer for sale of
securities in the United States.


Forward-looking Statements

Some of the statements in this announcement are forward-looking, including
statements regarding the proposed terms of the Offering and anticipated closing
dates of various transactions of Iona. 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 the Offering.
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, including without limitation, the risk that
the transactions described herein do not close concurrently, are delayed for any
reason, or are not completed. 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.


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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