News Releases

December 22 , 2006

TSX: "ISR"
Shares Outstanding: 13,253,796

PRIVATE PLACEMENT FINANCING

International Sovereign Energy Corp. (the “Company”) is pleased to announce that it will raise up to $1,500,000.00 through a non-brokered private placement to arm’s length third parties of up to 666,667 Units of securities of the Corporation at the price of $2.25 per Unit.  Each Unit consists of one flow-through common share and a warrant to purchase one half of one common share (on a non flow-through basis).  Two warrants are required to purchase one common share, and the exercise price of the warrants is $2.75 per common share until November 30, 2007, and $3.25 per common share between December 1, 2007 and November 30, 2008.  The warrants expire on November 30, 2008.  This private placement is subject to regulatory approval.  The Corporation currently has 13,253,796 shares issued and outstanding and will have 14,253,796 shares issued and outstanding if the maximum number of Units is purchased under this private placement and all warrants issued in connection therewith are exercised.

The proceeds of the placement will be used for Corporation’s Canadian operations, which use shall be Canadian Exploration Expenses that qualify as Canadian Exploration Expenses for the purposes of the Income Tax Act (Canada) and which will be renounced in favour of the purchasers of the Units no later than December 31, 2006.  Shares issued under this private placement will be subject to applicable hold periods.  The shares to be issued under this private placement do not result in a change in control or a control-voting block.

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

For further information, please contact:

Omair Choudhry

Chief Financial Officer

Tel:   (604) 684-7372

Fax:   (604) 684-2407

Or visit our website at www.isove.com

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Certain information provided in this press release contains forward-looking statements that by their nature are subject to numerous risks and uncertainties and readers are cautioned that actual results may vary considerably from those forecasted.