Island Oil &Gas PLC - Exercise of Warrants

28 April 2006

Island Oil ∓ Gas plc

EXERCISE OF WARRANTS

Island Oil ∓ Gas plc ("Island" or the "Company") is pleased to announce that, following the exercise of 1,291,943 warrants issued in connection with the Company's December 2005 placing, it has issued and allotted a further 1,291,943 new Ordinary Shares of €0.01 each in the capital of the Company at the subscription price of Stg£0.70 per share, raising Stg£904,360.10. To date, approximately 79.86% of warrants have been exercised at this stage in the process.

Island has applied for these new Ordinary Shares to be admitted to trading on the AIM market of the London Stock Exchange (LSE: LSE.L - news) and trading in these shares is expected to commence on 5 May 2006. The new Ordinary Shares will rank pari passu with the existing Ordinary Shares of the Company and will increase the number of shares in issue to 63,945,071.

Enquiries:

Lisa J Newman MCIPR MIRS

Newman Consulting

Tel: +44(0)1252 878682

Ends.