News Releases

December 29 , 2006

TSX: "ISR"
Shares Outstanding: 13,915,084

FLOW-THROUGH FINANCING COMPLETED

International Sovereign Energy Corp. (the “Company”) announces that it has closed its previously announced non-brokered private placement to arm’s length third parties consisting of 661,288 units of securities at a price of $2.25 per unit for total gross proceeds of $1,487,900. 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 01, 2007 and November 30, 2008. The flow-through shares issued are subject to a four month hold period expiring April 30, 2007. The proceeds received by the Company from the sale of the flow-through Common Shares will be used for the Company’s Canadian operations, which use shall be Canadian Exploration Expenses that qualify as Canadian Exploration Expenses for purposes of the Income Tax Act (Canada) and which will be renounced in favor of the holders with an effective date no later than December 31, 2006.

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.