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SHAREHOLDERS UPDATE 12 AUGUST 2010

As shareholders are aware, Irvine Energy plc ("Irvine" or "the Company") has been involved in a dispute with its US operator, Metro Energy Inc ("Metro"). The dispute has been the subject of litigation in the District Courts of Kansas and Oklahoma which was finally concluded on 6 April 2010.

Metro and a related company ("Metro Group") initiated proceedings against Wattle Energy Corporation ("Wattle"), Pinon Energy LLC ("Pinon"), Halcyon Nominees (USA) Inc ("Halycyon") (each together with Irvine, the "Irvine Group") and GasRock Capital LLC ("GasRock") (the provider of Irvine's debt finance) in which it claimed US$3,479,332 together with interest. Each of Halcyon, Wattle and GasRock filed responses to Metro's claim. In addition, GasRock claimed all amounts owed by Wattle and Pinon under the Credit Agreement dated 28 May 2008 together with outstanding interest and penalties.

On 12 February 2010, the Metro Group, the Irvine Grop, GasRock and various other connected parties entered into the Settlement Agreement and Mutual Release ("Settlement Agreement"). The Settlement Agreement was made in accordance with the procedures of the District Courts of Kansas and Oklahoma and the litigation in those Courts was concluded on 6 April 2010 and 1 March 2010 respectively. Amongst other things, the Settlement Agreement provided that:

• all Metro Group claims against the Irvine Group were released in consideration of the Irvine Group transferring its Kansas assets to the Metro Group; and
• all GasRock claims against the Irvine Group were released in consideration of the Irvine Group transferring its Oklahoma assets to a third party nominated by GasRock.

As a result, the Irvine Group no longer has material assets in the US and, consequently, each of its US subsidiaries will be wound up in due course. Irvine Energy plc is to become a shell company with no subsidiaries.

Prior to entering into the Settlement Agreement, the Company sought to raise further funds through asset sales. However, the environment for the sale of such assets has been poor and the Company was unable to conclude a transaction capable of raising sufficient funds to settle the claims of the Metro Group and GasRock.

Further update and financial statements for the year 2009 will be issued in the
near future.