News Releases

May 29, 2008

Shares Outstanding:  13,928,084

TSX: “ISR”                                                                                            

ASSET SALE

International Sovereign Energy Corp. (the “Company”) reports that its Board of Directors has approved a management plan to seek buyers for the majority of the Company’s domestic producing oil and gas properties.  To give effect to the plan, the Company intends to retain a leading Calgary-based selling agent to market the Company’s producing properties.  The contemplated sale, being a majority of the assets of the Company, is subject to regulatory and 2/3 majority shareholders approval.

Management and the Board of Directors of the Company have put forward this plan as they believe that the full value of the Company’s producing assets have not, for some time, been reflected in the trading range of the Company’s shares.  Management of the Company views the market conditions as optimum for this sale, noting the high price of oil, rising prices for natural gas, and a recent decrease in the number of producing oil and gas assets for sale in the marketplace, and is confident that this course of action represents the best prospect for realizing value for the shareholders of the Company.  The Company will retain any minor producing assets that do not attract offers meeting the valuation of those assets.

The Board of Directors of the Company has resolved to declare a dividend of 90% of the net sale proceeds received by the Company to the shareholders.  The remaining 10% of the net sales proceeds will be retained by the Company and used to fund its on-going activities/projects.  The Company will retain prospective oil and gas lands that are currently non-producing and that have exploratory potential.  The Company will also retain its interests in Pakistan and its interest in the Charapa concession in Ecuador.

The combined impact of the asset sale and dividend, and the retention of funds and prospective properties allow shareholders to realize value now and to retain a position in the Company as it continues to seek growth opportunities.

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.

Forward-looking statements:  This news release contains certain forward-looking statements, including management’s assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company’s control.  The Company’s actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of these events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive there from.  Additional information on the Company’s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).  All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements.  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.