News Releases

Date: December 16

CommonShares:  16,096,084

TSX: “ISR”                                                                                            

International Sovereign Energy Corp. and Palliser Oil & Gas Corporation
Announce Discontinuance of Merger Discussions

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Calgary, Alberta: December 16, 2009 - International Sovereign Energy Corp. (TSX: ISR) ("ISR") and Palliser Oil & Gas Corporation ("Palliser"), a private Alberta based oil and natural gas exploration company, announce that they have terminated a letter of intent dated December 6, 2009 ("LOI") as outlined in the press release of December 7, 2009, due to valuation issues.

About Palliser Oil & Gas Corporation
Palliser, a privately held corporation based in Calgary, Alberta, has been engaged in the business of exploring for, developing and producing oil and natural gas, and acquiring oil and natural gas properties in western Canada since it commenced operations November, 2005. Since commencing operations, Palliser has concentrated on exploration and development drilling of prospects in its core areas, including the greater Lloydminster heavy oil area in both Saskatchewan and Alberta and the natural gas area of Granlea, Alberta. Palliser's current operations are directed predominantly towards heavy oil prospects.

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

The TSX has neither approved nor disapproved the contents of this press release.

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