Ivanhoe Energy to Increase Private Placement to Cdn.$88 Million

    CALGARY, June 17 /CNW/ - Ivanhoe Energy Inc. (TSX: IE; NASDAQ:   IVAN)
announced today that it is increasing the private placement announced on
June 6 to Cdn.$88 million due to significantly increased expressions of
interest from institutional investors. The price for the offering has been set
at Cdn.$3.00 per special warrant. Ivanhoe Energy announced on June 6 that it
was intending to raise up to Cdn.$50 million.
    Private placement allocations based on expressions of interest received
to date remain subject to completion of formal documentation. The proceeds
will be used by Ivanhoe Energy to make the initial payment of Cdn.$30 million
required under the company's agreement with Talisman Energy Canada to acquire
Talisman's interests in three leases in the Athabasca oil sands region in the
Province of Alberta, Canada, which was announced on May 29, 2008. Ivanhoe
Energy plans to use the balance of the funds for general working capital
purposes and for its planned development activities on the oil sand leases.
    Subject to regulatory approval and satisfaction of all conditions
precedent, the private placement is expected to close contemporaneously with
the closing of the acquisition of the oil sand leases.
    The securities offered will not be or have not been registered under the
United States Securities Act of 1933 and may not be offered or sold in the
United States absent registration or an applicable exemption from registration

    FORWARD-LOOKING STATEMENTS: This document includes forward-looking
statements, including forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
include, but are not limited to, statements concerning the Company's intention
to raise up to Cdn.$88 million by way of a private placement of special
warrants convertible into common shares and its agreement with Talisman to
acquire all of Talisman's working interest in three oil sand leases and other
statements which are not historical facts. When use in this document, the
words such as "could", "plan", "estimate", "anticipate", "intend", "may",
"potential", "should", and similar expressions relating to matters that are
not historical facts are forward-looking statements. Although the Company
believes that its expectations reflected in these forward-looking statements
are reasonable, such statements involve risks and uncertainties and no
assurance can be given that actual results will be consistent with these
forward-looking statements. Important factors that could cause actual result
to differ from these forward-looking statements include the possibility that
the company will be unable to raise financing or that the conditions of the
closing of the transaction with Talisman are not fulfilled and other risks
disclosed in Ivanhoe Energy's Annual Report on Form 10-K filed with the U.S.
Securities and Exchange Commission on EDGAR and the Canadian Securities
Commissions on SEDAR.

For further information:

For further information: Bill Trenaman, E-mail: bill@ivancorp.com,
Phone: (604) 331-9834

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