April 14, 2009 – Calgary, AB– Iteration Energy Ltd. ("Iteration" or the "Company") (TSX: ITX)

is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Cormark Securities Inc. pursuant to which the underwriters have agreed to purchase 39,100,000 common shares ("Common Shares") at an issue price of $1.28 per Common Share by way of prospectus offering for gross proceeds to Iteration of approximately $50 million (the Offering").

Iteration has also granted the underwriters an option (the "Over-Allotment Option") to purchase up to an additional 5,865,000 Common Shares to cover over-allotment, if any, for additional gross proceeds of up to approximately $7.5 million. The Over-Allotment Option is exercisable in whole or in part for a period of 30 days following closing of the Offering.

The Offering is scheduled to close on or about May 6, 2009 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange. Proceeds of the Offering will be used to fund Iteration’s 2009 capital program, reduce current bank indebtedness and for general corporate purposes. The Common Shares will be offered in certain provinces of Canada by way of a short form prospectus. Credit Facility Update

Iteration is currently in the process of negotiating a renewal of its credit facilities with a syndicate of four major Canadian chartered banks, which facility will mature on April 30, 2009. The Company anticipates that it will finalize a borrowing base credit facility of $260 million in addition to a $25 million supplemental credit facility. The supplemental credit facility is expected to be subject to repayment in October 2009. The Company estimates that prior to the equity financing its current net debt, including working capital deficit, is approximately $285 million.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute

an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in

any jurisdiction in which such offer, solicitation or sale would be unlawful.