Memorandum of Understanding for Sale of Oil & Gas Interests in Ecuador

    
    /THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO
    U.S. PERSONS./TSX: "ISR"
    Common Shares: 16,096,084
    

CALGARY , Oct. 31 /CNW/ - International Sovereign Energy Corp. ("ISR" or the "Company") announces that, further to its previous press releases of September 29, 2009 and October 15, 2009 concerning a non-binding letter of intent to sell its oil and gas interests in Ecuador , a Memorandum of Understanding has been executed and the parties are working diligently on finalizing a Purchase and Sale Agreement with a scheduled closing date on or before November 30, 2009 .

International Sovereign Energy Corp. is an oil and gas exploration development and production company with offices in Calgary , Alberta and Islamabad , Pakistan and is active in the exploration and development of hydrocarbon reserves in western Canada .

Reader Advisories

Forward-Looking Statements: This news release contains certain forward-looking statements including management's assessment of future plans and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. These statements include the expectation that the purchase will be carried out in the manner set out in the MOU. This is based on a number of assumptions and risks including: satisfactory due diligence, risks inherent in doing business in Ecuador which risks include but are not limited to changes in hydrocarbon law or otherwise in the regulatory environment; the ability to negotiate a definitive agreement on terms satisfactory to the Company; the ability of the purchaser to obtain the necessary financing; the ability of the Company to buy out its 10% partner in Ecuador ; and other assumptions and risks typical of a sale of this nature. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, readers are cautioned that the foregoing list of factors is not exhaustive. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

For further information: Eugene N. Hretzay, President & CEO, T: [phone], F: [phone], E: [email protected]