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 that the Company proposes the issuance of a Senior Secured Callable
Bond Issue of USD 250-300 million (the "Bond Issue") in order to refinance its
current Senior Secured Borrowing Base Facility (the "BBF") of which
approximately USD 139 million of debt is drawn, and to partially retire its
existing structured energy derivative transaction ("Structured Derivative
Transaction"). Additional proceeds of the Bond Issue will enable the Company to
fund the delivery of its Orlando and Kells projects to first oil, as well as
mature and accelerate its other pipeline of development opportunities. 


The Company has initiated a process for a potential refinancing of its existing
BBF and the Structured Derivative Transaction through a bond issue. As such,
Pareto Securities has been appointed by Iona as Sole Manager and Bookrunner of
the Bond Issue.


The bond will be issued by Iona Energy Company (UK) Limited (the "Issuer"), a
subsidiary owned 100% by Iona, with proceeds expected to be available by early
July 2013. The security package attached to the Bond will include a parent
company guarantee from Iona, a charge over the shares of the Issuer and its
subsidiary Iona UK Huntington Limited, as well as a charge over the Issuer's
interests in the Huntington, Trent & Tyne, Orlando, Kells and West Wick assets. 


The Bond Issue will provide the Company with enhanced financial flexibility
through improved access to cash flow from its producing assets, Huntington and
Trent & Tyne, and increased debt financing for its upcoming development
expenditures, while offering general terms and conditions which are less
restrictive than those of the BBF.


Neill Carson, Iona's CEO commented: "We commenced a rapid ramp-up in production
from early Q2 2013 through the start-up of the Huntington field. Whilst first
cargos have been sold, ramp-up operations continue at Huntington with the recent
onset of gas compression, export, and water injection. Strong well and reservoir
performance has indicated that ramp up from approximately gross 10,000 bbls/d to
full production capacity of gross 30,000 bbls/d and 27 MMcf/d is expected to be
reached within weeks once the facility gas export systems are fully
commissioned. This production represents significant cash flow and it is
important that we optimize our ability to access this income in order to
maintain our production growth and accelerate the development of our portfolio
of operated discoveries. The proposed Bond Issue provides Iona with the
opportunity to achieve its objectives in this respect." 


About Iona Energy

Iona Energy is an oil and gas exploration, development and production company
focused on oil and gas development 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, timing and use of proceeds of the Bond
Issue 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 expected production rates of the Huntington field. 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 Bond Issue is
delayed or does not close, or the risk that operational delays at Huntington
occur. 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.


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


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


Iona Energy Inc.
Graham Heath
Interim Chief Financial Officer
+44 7508 932986


Iona Energy Inc.
Dave Ricciardi
Investor Relations
403 978 4894

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