Israel Petroleum Company Announces Mira and Sarah Licenses Resource Evaluation and Project Update

DENVER, September 4, 2010 - Israel Petroleum Company (IPC) is pleased to announce today the results
of the Prospective Resource Evaluation Report (the "Report") prepared by
Chapman Petroleum Engineering Ltd. ("Chapman") on the two prospects located
on the Mira and Sarah Drilling Licenses, offshore Israel, in which IPC owns a
13.609% working interest. The report was prepared at the request of IPC in
order to determine the value of the prospects before and after consideration
of geologic risk. The Report, effective August 1, 2010, was prepared in
accordance with National Instrument 51-101 Standards of Disclosure for Oil
and Gas Activities ("51-101"), issued by the Canadian Securities
Administrators, and this release is issued in accordance with the disclosure
requirements of Section 5.9 of such standards. Based on the potential size of
the gas accumulations defined in the Report along with the results of the 3-D
seismic survey over the Sarah and Mira licenses, IPC is moving forward with
its partners in identifying the best locations for drilling the first two
wells. Preliminary results of the 3-D seismic survey, as well as the actual
3D survey have been submitted to the Petroleum Commissioner at Israel's
Ministry of National Infrastructures in accordance with Israeli regulations.

The Report states that the best estimate of gross prospective sales gas
resources for the prospect on the Mira License is 4.24 TCF and 1.47 TCF for
the prospect on the Sara License, for a total 5.71 TCF. These estimates are
for 100% of the working interest in each license. IPC's interest is 13.609%.
The following table provides best, low and high estimates of gross
prospective sales gas resources for each prospect on an 8/8ths basis.

                   Gross Prospective Resources

                       Best         Low          High
                     Estimate     Estimate     Estimate
                       TCF          TCF          TCF
    Mira Prospect      4.24         3.03         5.45
    Sarah Prospect     1.47         1.05         1.89
          TCF is a trillion cubic feet of natural gas

The low estimate is considered to be a conservative estimate of the
quantity that will actually be recovered while the high estimate is
considered to be an optimistic estimate. The best (or median) estimate is
considered to be the most likely estimate of the quantity that will actually
be recovered.

The Report also provides an economic valuation of IPC's working interest
position of 13.609% in both prospects assuming a successful ultimate recovery
of these resources. For the Mira Prospect, using a discount rate of 10%,
IPC's 13.609% net present value (NPV) on an unrisked basis ranges from a low
of US$477 million to a high of US$1.02 billion with an unrisked NPV of US$746
million as the most likely case. As for the Sarah Prospect, using a discount
rate of 10%, unrisked, IPC's 13.609% net present value ranges from US$190
million to US$405 million with an unrisked NPV of US$298 million as the most
likely case. This economic evaluation assumes a gas price of US$5.50/Mcf,
unescalated over the life of the project.

Chapman states, "Based on our analysis, after consideration of risk, we
have concluded that the potential of these prospects is of sufficient merit
to justify the work program being proposed, and we therefore recommend and
support Israel Petroleum Company's participation." The proposed work program
is the drilling of one exploration well on each license as required by the
terms of the Licenses.

The Mira Prospect is a large structure initially mapped with 2D seismic
and targeting the same reservoir zone as the Tamar Field discovered in early
2009 while Sara, also initially identified on 2D is on the same structural
trend as the 2009 Dalit discovery and targeting the same reservoirs. 3-D
seismic confirms both prospects and will define the drilling location for
prospects on both Mira and Sarah Licenses. Tamar Field, with reported
reserves of 8.4 TCF, is approximately 30 miles directly to the north of the
Mira Prospect and the Sarah Prospect is approximately 10 miles due south of
Dalit Field with 0.8 TCF in reported reserves.

The Sarah and Mira Licenses are adjoining blocks located approximately 30
to 60 miles, respectively, offshore Israel in the Mediterranean Sea. The
Licenses are each 154 square miles in area and to date are undrilled. A 3D
seismic survey contracted to WesternGeco was completed in late 2009 and fully
covers both Licenses. Initial fast track PSTM processing was done by
WesternGeco and now CGG Veritas is doing PSDM processing on the 3D volume
PSDM processing will help fine tune the drilling locations for both prospects
on both licenses. IPC and its partners are starting the process of selecting
a drilling contractor and attendant services companies to undertake the two
well drilling program in 2011.

Definition of 51-101

Under National Instrument 51-101 Standards of Disclosure for Oil and Gas
Activities ("51-101"),, prospective resources are those quantities of
petroleum estimated, as of a given date, to be potentially recoverable from
undiscovered accumulations by application of future development projects.
Prospective resources have both an associated chance of discovery and a
chance of development. There is no certainty that any portion of the
resources will be discovered. If discovered, there is no certainty that it
will be commercially viable to produce any portion of the resources.

Chapman Petroleum Engineering Ltd.

Chapman Petroleum Engineering Ltd., founded in 1985, is a Canadian
consulting firm providing comprehensive petroleum engineering, geological,
geophysical and management services covering the full spectrum of the oil &
gas industry, domestically and internationally.

Their services include reserve and economic evaluations and resource
assessments, acquisition analyses, specialized technical studies, property
exploitation and resource management, and representation for regulatory and
legal purposes. They have previously acted as technical advisors to the
Government of Israel and have conducted similar resource evaluations in many
petroleum basins around the world.

About the Consortium

The Sarah and Mira Drilling Licenses are held by a consortium comprised
of IPC's subsidiary I.P.C. Oil and Gas (Israel) Ltd. (13.609%), Emanuelle
Energy Ltd. (24.161%), Emanuelle Energy Oil and Gas Limited Partnership
(19.161%), Modiin Energy Limited Partnership (19.282%), and four other
entities. IPC is owned 76.79% by Israel Oil and Gas Corporation, a subsidiary
of Bontan Corporation Inc. and 23.21% by International Three Crown Petroleum,
LLC. IPC is managed and operated by H. Howard Cooper of International Three
Crown Petroleum, LLC.

Cautionary Note to U.S. Investors

This news release and the Report contain references to "prospective
resources" (as defined above), which do not qualify as, and should not be
confused with, reserves. Under rules of the U.S. Securities and Exchange
Commission ("SEC"), reserves are estimated remaining quantities of oil and
gas and related substances anticipated to be economically producible, as of a
given date, by application of development projects to known accumulations. In
addition, there must exist, or there must be a reasonable expectation that
there will exist, the legal right to produce or a revenue interest in the
production, installed means of delivering oil and gas or related substances
to market, and all permits and financing required to implement the project.
The SEC permits oil and gas companies, in their SEC filings, to disclose only
"proved," "probable" and "possible" reserves. Prospective resources have a
great amount of uncertainty as to their existence and economic and legal
feasibility. There is no assurance that prospective resources will ever
convert into possible, probable or proved reserves under SEC standards. U.S.
investors are cautioned not to assume that all or any part of a resource
exists, or is economically or legally recoverable.

Forward-Looking Statements

This news release includes forward-looking statements within the meaning
of the U.S. federal and Canadian securities laws. Any such statements reflect
IPC's current views and assumptions about future events and financial
performance. IPC cannot assure that future events or performance will occur.
Important risks and factors that could cause actual results or events to
differ materially from those indicated in our forward-looking statements
include, but are not limited to, the following: the effect of economic and
political developments in Israel and in the Mideast; the reliance on the
working interest owners, as well as third-party consultants and contractors,
to develop the project; the ability of IPC to raise sufficient capital to
demonstrate to the MNI adequate financial capability and to satisfy its
obligations for the costs of drilling and development; the risk that the
final interpretation of the seismic and other data may show or suggest, or
that drilling may ultimately demonstrate, that either or both of the licenses
contain no, or noncommercial amounts of, hydrocarbons; the volatility in
commodity prices for crude oil and natural gas; the presence or
recoverability of estimated resources; the potential unreliability or other
effects of geological and geophysical analysis and interpretation;
exploration and development, drilling and operating risks; competition for
development of the Project; environmental risks; government regulation or
other action, including the potential change in tax and royalty provisions
under active consideration by the Israeli government that could significantly
adversely impact project economics and the commercial viability of drilling
one or both prospects; potential disruption from terrorist activities or
warfare in the region or at the Project site; general economic conditions;
limited market available in Israel for oil and gas that may be found in
commercial quantities; other risks associated with the exploration and
development of international offshore projects in several thousand feet of
water; and other risks identified by the press releases and securities
filings of the other working interest owners in Israel, Canada, and other
jurisdictions in which such releases and filings are made. IPC assumes no
obligation and expressly disclaims any duty to update the information in this
news release.

    FOR FURTHER INFORMATION PLEASE CONTACT:
    Gillian Morris, Israel Petroleum Company, Limited, ph: +1-970-846-1953,
    email: gmorris@threecrownpetroleum.com,
    www.israelpetroleumcompany.com

Gillian Morris of Israel Petroleum Company, Limited, +1-970-846-1953, gmorris at threecrownpetroleum.com