The Concerned Shareholders of International Sovereign Energy Corp. ("ISR") Respond to ISR Management



    TORONTO, June 13 /CNW/ - In response to the Proxy Circular dated June 3,
2008 distributed by Eugene Hretzay and Sharad Mistry (the "Concerned
Shareholders") the management of International Sovereign Energy Corp ("ISR")
distributed a response dated June 10, 2008 (the "Management Response"). The
Management Response fails to deal with the key issue at hand, and that is the
chronic underperformance of ISR. As a result, the Concerned Shareholders urge
you to ignore management's attempt at continued entrenchment at the expense of
ISR Shareholders. Vote your YELLOW proxy today.
    The Concerned Shareholders nominees for the ISR Board are a group of
experienced business people who have turned around underperforming companies
in the past. They also have valuable corporate finance experience. However, as
the Management Response points out, the Concerned Shareholders slate lacks oil
and gas experience. The position of the Concerned Shareholders is that the
real issue is not the lack of oil and gas experience, but that the Concerned
Shareholder nominees have the necessary mix of skills to unlock the potential
value of the Company.
    Consider the following examples of chronic underperformance by the
current ISR team:

    
    1. Last year ISR lost $334,370 during an unprecedented boom in oil
       prices. If last year's results are a metric then current directors and
       management are either lacking in pragmatic experience in the oil and
       gas sector or have modest capabilities in strategic and business
       building guidance.

    2. This largely same group of management and directors is also
       responsible for the $5.2 million loss at Azure Resources Corporation
       for the year end June 30, 2007 (for the nine months ended March 30,
       2008 they've managed to lose another $4.3 million).

    3. An independent report of McLeod Petroleum Consulting Ltd. dated
       March 24, 2008 commissioned by ISR states, among other things, that
       the estimated value of ISR assets is, " mitigated by: ...the scattered
       nature of the assets; small working interests; high proportion of
       natural gas assets, and the high proportion of heavy oil." (thus
       making it less valuable than light sweet crude because of further
       refining).
    

    This is what "experience" has produced. ISR bought these properties,
which evidences a questionable track record in buying. As we know, whether you
are in oil and gas, real estate or building a sports team your success is
based on your ability to buy right. This independent report shows how poorly
their vaunted "experience" has served them.
    The Concerned Shareholders note from ISR's March 27, 2008 MD&A that: "At
the year-end the Company had the capability to produce an additional 250
barrels of oil equivalent per day from its Berwyn (Alberta) field, however,
due to third party pipeline constraints was unable to do so." Do experienced
oil and gas people drill wells without making proper arrangements to get it to
market? You do the math at today's prices and consider the revenue lost
because of this blunder.
    So how did current ISR management respond to these issues? They are
seeking your approval for a sale of a majority of the Company's domestic
producing oil and gas properties. ISR management is seeking this approval even
though they have not engaged an investment banking firm or selling agent, have
no potential buyers on the horizon (at least not that they have disclosed) and
have not set out the relevant terms or parameters (including price) of this
purported transaction. Is this their grand strategic plan?
    The Management Response says we have no forward plan. We do have a plan -
a plan that will move ISR past the dismal results of the past. We propose to
form an independent committee of outside experts, one such individual being
Mr. David Quinn, former VP Operations of ISR, to audit and examine the current
state of affairs. This committee will not only audit the oil and gas assets
but will also initiate a thorough audit of ISR's operational, financial and
organizational status. After the completion of a full and thorough audit, the
independent committee will then recommend various strategic options available
to the new Board. Based on these recommendations, the new Board will develop a
forward-thinking strategic plan in order to realize the true value of the
Company, which should reflect in the share prices - something that ISR has not
prepared to date. It is simply prudent to investigate first and then based on
that review to formulate our plan.
    We feel that finding oil and gas is best left to the professionals on
staff. The problem is to restore credibility in the market so that funding can
be obtained to complete the Pakistan and Ecuador projects, which need an
additional $10-12 million, and to purchase quality properties elsewhere. The
current ISR board has no plan or market credibility to accomplish this. All
they have demonstrated is an inability to manage projects resulting in many
broken promises and missed deadlines. Project and cost management are skills
our nominees have amply demonstrated in the past.
    The Concerned Shareholders are also of the view that the recent sudden
increase in the share price of ISR is a temporary aberration. It is not a
coincidence that the ISR share price stayed almost flat for one and a half
years and then suddenly increased within the last 90 days. The Concerned
Shareholders believe that the share price increase is a vote of confidence to
the incoming Board by long suffering ISR Shareholders. We believe that
shareholders are anticipating the ouster of the current incompetent board and
management and are buying up ISR shares, hopeful that the new Board will bring
about long overdue and necessary positive changes.

    VOTE THE YELLOW PROXY TODAY.





For further information:

For further information: If you have any questions in connection with
your YELLOW proxy, please call Kingsdale Shareholder Services Inc. at
1-800-775-5159 or (416) 867-2272 (collect calls accepted) and they will assist
you

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EUGENE HRETZAY

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