Ivernia Announces Early Conversion of All Outstanding Convertible Notes

TORONTO, ONTARIO -- (Marketwire) -- 12/10/10 -- Ivernia Inc. ('Ivernia' or the 'Company') (TSX: IVW) is pleased to announce that the four holders of its US$37.4 Million ('M') in outstanding senior secured convertible notes (the 'Notes') have exercised their option under the terms of the Notes and fully converted the Notes in exchange for an aggregate of 340 M common shares of Ivernia.

US$38.4M in Notes were originally issued during the period from March to May, 2009, carrying a coupon of 8% per annum and each dollar of principal was convertible into 9.091 common shares of the Company. In December of 2009 and January of 2010, Ingalls and Snyder LP ('I&S'), converted a total of US$1.0M of Notes in exchange for 9,090,010 shares.

Under the terms of the Notes, Sentient Global Resources Fund II, L.P. and Sentient Global Resources Fund III, L.P. (collectively known as 'Sentient'), I&S, OppenheimerFunds Inc. ('Oppenheimer') and Rossport Metals and Mining Fund LP ('Rossport') will exchange the remaining US$37.4M in principal of Notes for the following numbers of shares:

               ----------------------------------------------
                                             Number of Shares
               ----------------------------------------------
               Sentient                           190,000,001
               I&S                                 95,454,456
               Oppenheimer                         45,454,546
               Rossport                             9,090,010
               ----------------------------------------------
               Total                              340,000,003
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Alan De'ath, President and CEO of Ivernia commented: 'I am pleased to acknowledge this strong vote of confidence from four of our major shareholders. The early conversion of the notes serves both to simplify our capital structure and strengthen our balance sheet going into 2011. The early conversion adds immediate shareholder value in terms of significant coupon savings, and I believe reflects the note holders' long-term commitment to Ivernia as we ramp-up to full production at the Magellan Mine and pursue implementation of our corporate growth strategy.'

Following the conversion, the Company will have 529,290,131 shares issued and outstanding and 533,491,796 on a fully diluted basis. The Company has agreed to pay interest up to and including December 31, 2010 of US$2.03M to the holders and will make that payment as previously scheduled on April 27, 2011. As a result of the early conversion, the Company will save approximately $7M in coupon payments that would have been incurred over the period from January 1, 2011 to their April 27, 2013 maturity.

About Ivernia:

Ivernia is an international base metal mining, exploration and development company. The Company is the sole owner and operator of the Magellan Mine in Western Australia, which restarted operations in early 2010 and is ramping up to full production. When target production levels are achieved the mine is expected to be a significant pure lead producer, accounting for approximately 2% of annual global lead mine production.

Ivernia trades under the symbol 'IVW' on the Toronto Stock Exchange. Additional information on Ivernia is available on the Company's website at www.ivernia.com and at SEDAR at www.sedar.com.

Forward-Looking Statements

Certain statements contained in this release constitute forward-looking information within the meaning of securities laws. All statements included herein (other than statements of historical facts) which address activities, events or developments that management anticipates will or may occur in the future are forward-looking statements, including statements as to the following: future targets and estimates for production, capital expenditures, operating costs, cash costs, Mineral Resources and Ore Reserves, recovery rates, grades and prices; business strategies and measures to implement such strategies; competitive strengths; estimated goals and plans for Ivernia's future business operations; and other such matters. Forward-looking statements are often, but not always, identified by the use of words such as 'seek', 'anticipate', 'contemplate', 'target', 'believe', 'plan', 'estimate', 'expect', and 'intend' and statements that an event or result 'may', 'will', 'can', 'should', 'could' or 'might' occur or be achieved and other similar expressions. These statements are based upon certain reasonable factors, assumptions and analyses made by management in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. However, whether actual results and developments will conform with management's expectations is subject to a number of risks and uncertainties, including factors underlying management's assumptions such as metal price volatility, lead carbonate concentrate treatment charges, exchange rates, regulatory proceeding and litigation, single mineral property, Resources and Ore Reserves, health and safety, environmental factors, mining risks, metallurgy, labour and employment regulations, government regulations, insurance, refinancing risk, dependence on key personnel, constraints on cash flow and nature of mineral exploration and development.

Additional factors and considerations are described in the Company's 2009 AIF under 'Description of the Business of the Company - Doing Business in Australia' and elsewhere in this release and in other documents filed from time to time by Ivernia with Canadian securities regulatory authorities. While Ivernia considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. These factors may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and there can be no assurance that the actual results or developments anticipated by management will be realized or, even if substantially realized, that they will have the expected results on the Company. Undue importance should not be placed on forward-looking information nor should reliance be placed upon this information as of any other date. Except as required by law, while it may elect to, Ivernia is under no obligation and does not undertake to update this information at any particular time.

Contacts:

Ivernia Inc.

Fiona Childe, Vice President,

Investor Relations & Corporate Communications

(416) 867-9298

(416) 867-9384 (FAX)
fiona@ivernia.ca