International Sovereign Energy Corp. March 31, 2012 Results with Business Update

International Sovereign Energy Corp. March 31, 2012 Results with Business Update

Calgary, Alberta CANADA, May 25, 2012 /FSC/ - International Sovereign Energy Corp. (ISR.H - TSX Venture), ("ISR" or the "Company") announces its operating and financial results for the three months ended March 31, 2012. These filings are available for review at www.sedar.com

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Balance Sheet Highlights                March 31,       December 31,
                                            2012             2011
                                             $                 $
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    Cash                                 4,501,710         3,091,739
    Accounts receivable                    120,330           431,337
    Investment                           7,183,872         3,767,253
    Assets held for sale                     -             1,378,927
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    Accounts payable and                   540,575           726,723
    accrued liabilities                    
    Liabilities held for sale                 -            1,684,264
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Shareholders' Equity                   11,377,455         6,394,544
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Highlights:

The Company completed the sale of all its interest in land and production, of its Marwayne property, on January 16, 2012.  

The shares issued by Legend Oil and Gas Ltd. (`legend`), to the Company as partial consideration of the purchase price are to be adjusted if the volume weighted average trading price of Legend shares falls below certain price thresholds at the end of certain periods, within two months of the registration becoming effective.  As of March 31, 2012 ISR was entitled to additional 4,282,680 shares, which resulted in an unrealized gain of $3.4 million.  At the end of the restriction period, May 17, 2012 the total amount of shares issuable under the volume weighted average trading price provision to ISR is 21,250,247, bringing the total number of shares owned by ISR of Legend to 24,902,763 or 32.5% of outstanding shares. It is not certain when or if the Company will be able to sell its Legend shares or the consideration that it will be able to receive upon any such sale.  Legend shares are considered highly speculative and there is no certainty that Legend shares will continue to be listed for trading on the OTCBB or on any other form of quotation system or stock exchange.  Additional shares issued will be subject to sale restrictions.  

Wi2Wi Corporation:

ISR announced on March 12, 2012, that it had entered into a binding letter of intent with Wi2Wi Corporation ("Wi2Wi"), pursuant to which ISR will acquire all of the issued and outstanding shares of Wi2Wi by issuing to the shareholders of Wi2Wi that number of ISR common shares representing 80% of the issued and outstanding ISEC common shares after giving effect to the transaction (the "Proposed Transaction").

The Proposed Transaction is expected to be effected by way of a Plan of Arrangement, which ISR and Wi2Wi are in the process of preparing.  A comprehensive press release with further particulars relating to the Proposed Transaction will follow.

Completion of the Proposed Transaction is subject to obtaining all necessary shareholder, court and regulatory approvals and certain other terms and conditions, including but not limited to, TSXV approval, completion of satisfactory due diligence investigations and the entering into of definitive agreements.  

There can be no assurance that the Proposed Transaction will be completed as proposed or at all.  The TSXV has in no way passed upon the merits of the Proposed Transaction and has neither approved nor disapproved the contents of this press release.

For further information, please contact:

Sharad MistryChief Executive Officer
Chief Financial Officer
T: [416] 844-7955
F: [403] 264 ? 7035
E: smistry@isove.com


Reader Advisories

Forward-Looking Statements:  This news release contains certain forward-looking statements, including management's assessment of future plans and operations, and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. 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 assurances can be given that any of the 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. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect 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).  

This news release contains "forward-looking statements" within the meaning of applicable securities laws relating to, among other things, the Proposed Transaction. Readers are cautioned not to place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements. Completion of the Proposed Transaction described herein is dependent on a number of factors and is subject to a number of risks and uncertainties, and it is not certain that the Proposed Transaction will be completed. Factors that could cause actual results to differ materially include, but are not limited to, changes in the Com0pany`s or Wi2Wi's business, general business, economic and competitive uncertainties and delay or failure to receive board, shareholder or regulatory approvals.

Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Corporation undertakes no obligation to update forward-looking statements and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.  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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release is not for dissemination in the United States or to U.S. persons.

Common Shares: 16,096,084


To view this press release as a web page, click onto the link below:
www.usetdas.com/PR/internationalsovereign25052012.htm



Source: International Sovereign Energy Corp. (ISR.H - TSX-V) http://www.isove.com
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