Iteration Energy Ltd. announces review of strategic alternatives to maximize
shareholder value

/NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/

CALGARY, Feb. 4 /CNW/ - Iteration Energy Ltd. (TSX - ITX) ("Iteration" or the "Company") announces that its Board of Directors has initiated a process to identify, examine and consider a range of strategic alternatives available to Iteration, with a view to maximizing shareholder value. This process could result in a sale of the Corporation, a sale of a material portion of the Corporation's assets, or a corporate reorganization, among other alternatives. The Company has engaged FirstEnergy Capital Corp. and Scotia Waterous Inc. as co-financial advisors to assist in this strategic review process.

Brian Illing, Iteration's Chief Executive Officer said, "We believe the Company's portfolio of assets and opportunities are not reflected in Iteration's share price. Iteration has a diverse portfolio with an abundant inventory of drilling opportunities that are economical in today's prevailing commodity prices."

The Board of Directors has therefore determined that it is an appropriate time to assess the range of strategic options available to Iteration to maximize shareholder value.

Iteration does not intend to disclose developments with respect to the strategic review process unless and until the Board of Directors has approved a definitive transaction or strategic option, unless otherwise required by law or disclosure of which is deemed appropriate. The Company cautions that there are no guarantees that the strategic review will result in a transaction or if a transaction is undertaken, as to its terms or timing.

Additional Information:

Iteration is an Alberta based corporation engaged in the business of exploring for and developing oil and natural gas reserves in Western Canada and acquiring natural resource properties. Iteration's common shares are listed on the Toronto Stock Exchange under the symbol "ITX". Other information about the Company, including the Annual Information Form for the 2008 year, is available through the internet on the Company's website at www.iterationenergy.com and on the Company's SEDAR profile at www.sedar.com.

    
    Advisory Regarding Forward-Looking Statements
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This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward looking statements and information concerning a strategic review process, potential transactions and strategic options.

Forward-looking statements and information are based on Iteration's current beliefs as well as assumptions made by and information currently available to Iteration concerning anticipated financial performance, business prospects, strategies and regulatory developments. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general, such as operational risks in development, exploration and production delays or changes in plans with respect to exploration or development projects or capital expenditures, the uncertainty of reserve estimates, the uncertainty of estimates and projections relating to reserves, production, costs and expenses, health, safety and environmental risks, commodity price and exchange rate fluctuations, marketing and transportation, loss of markets, environmental risks, competition, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, ability to access sufficient capital from internal and external sources, failure to obtain required regulatory and other approvals, and changes in legislation, including but not limited to tax laws, royalties and environmental regulations. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release concerning these times. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Iteration's, operations or financial results are included in Iteration's Annual Information Form for the year ended December 31, 2008 filed with applicable securities regulatory authorities and available on the SEDAR website (www.sedar.com) and on Iteration's website (www.iterationenergy.com).

The forward-looking statements and information contained in this press release are made as of the date hereof and Iteration undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

%SEDAR: 00002576E

SOURCE ITERATION ENERGY LTD.

For further information: For further information: Iteration Energy Ltd., Mr. Brian Illing, President and CEO, (403) 261-6883; FirstEnergy Capital Corp., Nick Johnson, Managing Director, Corporate Finance, (403) 262-0617; Scotia Waterous Inc., Mike Jackson, Managing Director, Investment Banking, (403) 298-4096

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ITERATION ENERGY LTD.

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