Island Oil & Gas plc

Grant of Share Options 

Island Oil & Gas plc ("Island" or the "Company") (LSE:IOG) announces that 1,000,000 Share Options (the "Options") have been granted by the Company at an exercise price of £0.30 pence per share.   The Options may be exercised in whole or in part at any time up to 13 May 2015.

The number of Options granted are as follows:            

As a result of the Options granted, the total number of Options over ordinary shares held by Directors is 3,400,000 and divided between Directors as follows:            

15 May 2008

Further information:

Island Oil & Gas plc

Paul Griffiths

Karl Prenderville                                                   Tel: +353 1 6313755

www.islandoilandgas.com

Davy (NOMAD and broker)

Anthony Farrell                                                    Tel: +353 1 679 6363

Landsbanki (UK broker)

Simon Robinson                                                   Tel: +44 (0)207 426 9000

College Hill (Financial PR)

Paddy Blewer                                                      Tel: +44 (0)20 7457 2020

Nick Elwes                    

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