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 its UK Subsidiary, Iona Energy Company (UK) Limited, has signed a
binding Sales and Purchase Agreement for the purchase of its partners'
interests, MPX Resources (30%) and Sorgenia (35%), in the Orlando Oil field
("Orlando Sale and Purchase Agreement") in exchange for the payment of
historical costs and future payments out of production. Under a transition
agreement, Iona will become the effective Operator immediately. Iona expects
final Field Development Plan approval for the field in Q3 2012 with a first oil
target date of Q3 2013. As a result of this transaction, Iona will:




--  Increase its working interest from 35% to 100%; 
--  Gain Operatorship of the asset and control of potential development
    synergies with its 100% owned Kells Development; 
--  Add a Proved plus Probable ("2P") reserve volume of 7.2 MMbbls of Brent
    quality crude oil, giving Iona an Orlando Net 2P reserve volume of 11
    MMbbls of oil;(1) 
--  Acquire 2P reserves at approximately $6.7/bbl of historical development
    cost plus an effective acquisition cost of $4.0/bbl; 
--  Assume all past capital expenditures for income tax sheltering purposes;
--  Add Pre-Tax Net Present Value, discounted at 10% ("NPV10"), of USD$264
    million and Post-Tax NPV10 of USD$121 million;(1) 
--  Assume all Orlando development contracts with respect to equipment and
    services; and 
--  Grow total 2P reserves to 22.1 MMboe, with a Pre-Tax NPV10 of over
    USD$804 million(2).



The Orlando Oil field lies in the UK sector of the North Sea within Block 3/3b,
approximately 10 km north east of the Ninian Central Platform and was
successfully appraised with the 3/3b-11 (1989) and 3/3b-13 (2012) and sidetrack
wells. Based on its previous NI 51-101 reserve report effective Dec 31, 2011 at
100% working interest Iona calculates Proved ("1P") reserves for the field of
6.8 MMbbls, Proved plus Probable ("2P") reserves of 11.1 MMbbls, and Proved plus
Probable plus Possible ("3P") reserves of 16.2 MMbbls. Early analysis by Iona of
the results of the 3/3b-13 well and sidetrack are consistent with previously
reported year end reserve volumes. Iona intends to update its NI 51-101 Orlando
reserve report upon Orlando Field Development Plan approval by the UK's
Department of Energy and Climate Change ("DECC").


It has been agreed within the Orlando Sale and Purchase Agreement that upon
Orlando Field Development approval by DECC, Iona will refund to Sorgenia and
MPX, their historical costs of the Orlando Development to-date, approximating
USD$48.25 million. Future staged payments will be made by Iona to Sorgenia and
MPX commencing six months after first production from Orlando. The first payment
will be USD$ 7.0 million with additional payments of USD$7.0 million, USD$7.0
million, USD$4.0 million, and USD$4.0 million made every six months thereafter
respectively, amounting to a total payment of USD$29.0 million over 3 years. The
final completion of the sale is conditional on the approval of the assignment of
the license interests and operatorship by DECC. Request to approve this
assignment has already commenced and it is expected that transfer of the license
interest and operatorship will occur before December 31st 2012.


Iona's Chief Executive Officer, Neill Carson commented: "The acquisition of our
partners' interests in Orlando makes sense as Iona will now operate both key
developments, Orlando and Kells, to realize operational and portfolio synergies
that are uniquely offered to Iona due to our dominant ownership in these
satellite developments. A first oil date in 2013 is important to us and Iona is
well placed to achieve this through having an advanced FDP, Environmental
Statement, pipeline surveys, ownership of critical equipment such as subsea
trees, and pipeline procurement contracts."


Notes:

(1) Based on reserves and net present value information attributed to the
Orlando field by Iona's reserves evaluators, Gaffney Cline & Associates Ltd.
("GCA") using forecast prices and costs effective as of December 31, 2011 (as
disclosed in Iona's Form 51-101F1 for the year ended December 31, 2011.).


(2) Based on reserves and net present value information attributed to Iona's
interests in the Orlando and Trent & Tyne fields by GCA, using forecast prices
and costs effective as of December 31, 2011 (as disclosed in Iona's Form
51-101F1 for the year ended December 31, 2011.), together with reserves and net
present value information attributed to Iona's interests in the Kells field by
GCA, using forecast prices and costs effective as of March 31, 2012 (as
disclosed in Iona's press release dated June 7, 2012).


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


About Iona Energy:

Iona Energy Inc. and its wholly owned subsidiary Iona Energy Company (UK)
Limited (collectively, "Iona" or the "Company"), 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 the completion of the acquisition of Iona's partners'
interests in the Orlando field, Iona's plans with respect to development of the
Orlando property, 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 reserves, production, first oil, 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, including without
limitation, the risk that Iona does not complete the acquisition for any reason,
including the risk that DECC does not approve the assignment of the licenses
and/or operatorship. 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
MMbbls  millions of barrels                MMcf    million cubic feet
MMboe   million barrels of oil equivalent