TSX.V: ADL

A TSX-V Listed Oil and Gas Company Exclusively Focused on the East Mediterranean

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Corporate Presentation July 2012

TSX.V: ADL

Forward Looking Statements Certain statements contained in this presentation, and in certain documents incorporated by reference in

this presentation, constitute "forward-looking statements". All statements other than statements of historical fact contained in this presentation, including, without limitation, those regarding the Corporation's future financial position and results of operations, strategy, plans, objectives, goals and targets, future developments in the markets where the Corporation participates or is seeking to participate, and any statements preceded by, followed by or that include the words "believe", "expect", "aim", "intend", "plan", "continue", "will", "may", "would", "anticipate", "estimate", "forecast", "predict", "project", "seek", "should" or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Corporation's expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements. Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to, those discussed under "Risk Factors" in the short form prospectus to which this presentation relates. Management provides forward-looking statements because it believes they provide useful information to readers when considering their investment objectives and cautions readers that the information may not be appropriate for other purposes. Consequently, all of the forward-looking statements made in this presentation are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Corporation. These forward-looking statements are made as of the date of this presentation and the Corporation assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law.

The forward-looking statements in this presentation are based on numerous assumptions regarding the

Corporation's present and future business strategies and the environment in which the Corporation will operate in the future, including assumptions regarding expected yields, future prices, business and operating strategies, and the Corporation's ability to operate its production facilities on a profitable basis.

Some of the risks which could affect future results and could cause results to differ materially from those

expressed in the forward-looking statements contained herein, including risks associated with the Corporation, such as lack of revenue, risks associated with the Corporation's business, such as the failure to obtain or maintain necessary licenses, and risks associated with the common shares of the Corporation, such as stock market volatility.

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Source: USGS, Levant Basin

TSX.V: ADL

The Opportunity

East Mediterranean

The host of the two largest worldwide gas discoveries of this decade

Oil could be the next natural resource headline story for Israel

USGS estimates Levant Basin 122TCF gas, 1.7BBbL oil*

Noble Energy estimates on deep Leviathan targets 1. 17% pos. 3BBbl oil 2. 8% pos. 1.2BBbl oil

Syrian Arc extends from Syria to Egypt -current East Med production and MMBOE reserves

Regional demand for oil - Israel currently imports 230,000 BOPD

Adira Energy

Pure & exclusive exposure to the offshore oil and gas discovery region, East Mediterranean

Looking for oil where it has already been found

Major working interest and operator of three offshore licenses

Two NI 51- 101 Resource Reports complete on Gabriella and Yitzhak licenses with million barrels of oil equivalent

Samuel license with blue sky potential

Licenses close to infrastructure, near shore, and technically routine

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* Source: USGS. Estimates may not be NI 5I 101 compliant

TSX.V: ADL

27 Years with Noble Energy, 8 Years Exclusive Focus East Med Region Former Vice President of Europe and Mediterranean, Noble Energy Led team responsible for Tamar Field offshore Israel discovery - largest global conventional gas

discovery in 2009 with over 8 Tcf announced to date

Increased Nobles offshore Eastern Mediterranean portfolio which included the discovery of the Leviathan and Block 12 in Cyprus (increased acreage from 600,000 gross to 3,000,000 gross)

Former Vice President Latin America and Asia, Noble Energy Gas to power in Ecuador, heavy oil in China

Former International Exploration Manager, Noble Energy Increased Noble Energys international portfolio from 8% to over 57% of corporate resources

Includes successful exploration in Equatorial Guinea , Israel, North Sea, China, and other areas

Exploration in: Argentina, Australia, China, Denmark, Equatorial Guinea, Gabon, Ireland,

Netherlands, Norway, Portugal, Senegal, Spain, Suriname, United Kingdom, Vietnam

Geology degree, University of New Mexico

Background - Jeffrey E. Walter Chief Executive Officer

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TSX.V: ADL

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East Mediterranean Licenses

Legend Adira Blocks

Discovery Blocks

Gas Fields

3D Resources/ imminent drilling

Previous wells

Syrian Arc previous wells

Note: Estimates may not be NI 51-101 Compliant

TSX.V: ADL

Levant Basin

East Mediterranean Production

The Syrian Arc

Western Desert Production 99,000 BOPD (Apache)

Syrian Production 400,000 BOPD

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TSX.V: ADL

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NI 51- 101 Compliant Resource Report Netherland Sewell & Associates, Inc

Hydrocarbon Classification Best Estimate Gross

Oil Contingent (2C) (1)

Jurassic (44- 47 API) 110.1 MMBO

Condensate

Prospective p50 (2) Miocene 7.0 MMBO

Talme Yafe 4.7 MMBO

GevarAm 5.7 MMBO

Gas

Contingent (2C) Jurassic 110.1 BCF

Prospective p50 Miocene 257.1 BCF

Talme Yafe 174.7 BCF

GevarAm 209.3 BCF

Gabriella

(1)Contingent Resources : Those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable because of one or more contingencies. (2) Prospective Resources: There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. The full report entitled Estimates of Unrisked Contingent and Prospective Resources to the Adira Energy Ltd. Interest in Discoveries and Prospects located in Block 387 (Gabriella) Offshore Israel is located on SEDAR

Notes: MMBO = Millions of Barrels of Oil, BCF = Billion Cubic Feet of Gas

TSX.V: ADL

Hydrocarbon Classification Best Estimate Gross

Oil Prospective p50 (1)

Jurassic 79.1 MMBO

Condensate

Prospective p50

GevarAm 12.4 MMBO

Talme Yafe 13.2 MMBO

Gas

Prospective p50

Talme Yafe 486.7 BCF

GevarAm 457.4 BCF

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NI 51- 101 Compliant Resource Report Netherland Sewell & Associates, Inc

Yitzhak

Notes: MMBO = Millions of Barrels of Oil, BCF = Billion Cubic Feet of Gas

(1)Prospective Resources: There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. The full report entitled Estimates of Unrisked Prospective Resources to the Adira Energy Ltd. Interest in Certain Prospective Reservoirs located in Block 380 (Yitzhak) Offshore Israel is located on SEDAR

TSX.V: ADL

Gabriella Structure

Yitzhak Structure

Yitzhak

East Mediterranean Structural Ridge

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Gabriella & Yitzhak Structures

TSX.V: ADL

Target: Oil Jurassic fractured carbonates Target: Gas Cretaceous limestone and sands Miocene stratigraphic Target: Condensate Cretaceous limestone and sands Miocene stratigraphic Exploration: 511 Km Dual Azimuth 3D completed Jan 2011 by Adira (WesternGeco), Processing completed by CGG Veritas Prior Drilling: Yam Yafo-1 Well: Drilled in 90s to 5,823m tested 800 bopd (440

API) Drilling: Shallow water 120 to 200 meters. Floater Operator: Adira 15% WI plus 15% back-in option from Modiin Energy at

cost, plus ~10% ORRI and management fees, combined Partners: Brownstone Energy 15%, Modiin Energy 70%

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Gabriella Structure- Depth

Gabriella License (96,371 Acres)

3D seismic survey

COMPLETE

Processing & interpretation COMPLETE

Resource Report

COMPLETE

Procurement of long lead items and rig

contract IN PROGRESS

Spud well Q2/13

2C (Best Estimate) Contingent Oil (Jurassic): 110.1 MMBO

TSX.V: ADL

Target: Oil Mid Jurassic , Zohar- Fractured Carbonates Target: Gas Cretaceous Talme Yafe carbonates and sands Target: Condensate Cretaceous Talme Yafe carbonates and sands Exploration: 129 Km 3D completed by Adira (WesternGeco), processing completed by CGG Veritas Prior Drilling: Delta-1 Well drilled (off structure) in 1970s to 4,423m,TD in Upper Jurassic. Oil encountered in Mid Jurassic (Yam Yaffo1 and Yam 2- Gabriella/Shemen) Zohar formation tested

for oil in Yam Yafo-1 (4,890m 4,995m) and Yam-2 Well (5,315m) interesting & significant structural high

Drilling: Shallow water 140 to 200 meters. Floater Co-Operator: Adira 60% WI, up to 4.5% ORRI from AGR & Ellomay Partners: Brownstone Energy 15%, AGR 5%, Ellomay 20%

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p50 (Best Estimate) Prospective Oil (Jurassic): 79.1 MMBO

Yitzhak Structure- Depth

Yitzhak License (31,689 Acres)

3D seismic survey

COMPLETE

Processing & interpretation COMPLETE

Resource Report

COMPLETE

Procurement of long lead items and rig

contract IN PROGRESS

Spud well Q3/13

TSX.V: ADL

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Capital Structure, December 31, 2011

Shares Issued & Outstanding 101.8M

Warrants 15.1M

ESOP 10 M

Fully Diluted Shares 126.9M

Financings to Date Proceeds

Sept 2009 8.0m units at $0.25 (half warrant at $0.50 expired) $2.5M USD

Nov 2010 27.5m units at $0.40 (half warrant at $0.55) Warrants expire December 2013

$11M USD

Feb 2011 10.5m shares at $0.62 $6.5M CAN

Adira Energy TSX.V: ADL (OCTBB, US: ADENF, Frankfurt: AORLB8)

Holdings

Management + Board 30%

Institutional 40%

Retail 30%

Market Capitalization $22M (*)

Average Daily Volume (TSX) - 2012 113,000

(*) As of April 5, 2012

Analyst Coverage

Cormark Securities

Clarus Securities

GMP Securities

TSX.V: ADL

Dennis Bennie - Chairman, Independent Director Co-Founder Adira Energy. Founder and CEO of XDL Capital; Co-founder, Former Chairman and CEO of Delrina Corporation; former Chairperson of Canada Israel Political Affairs Committee (CJPAC). Richard P. Crist Independent Director Over 42 years of oil and gas experience, with a broad range of managerial and technical expertise that includes 25 years in corporate and senior management roles. Prior to being appointed an officer of Gasco Energy where he is currently employed, he has held various senior managerial positions including Executive Vice President Business Development for Delek US, Executive Vice President, Business Development for Elk Resources, a privately held, Denver-based oil and gas company. Mr. Crist earned his degree as an engineer of geophysics with a minor in geology from the Colorado School of Mines in Golden, Colo. He is a member in good standing of the Society of Exploration Geophysicists and the American Association of Petroleum Geologists and is a Certified Petroleum Geologist. Sheldon Inwentash - Independent Director A Chartered Accountant with over 20 years experience in investment industry. Chairman and CEO of Brownstone Energy and also the Chairman and CEO of Pinetree Capital Ltd., a Canadian investment company with a portfolio of investments primarily in the resource and energy sectors. Alan Friedman - Executive Vice President - Corporate Development, Director Co-Founder Adira Energy. Senior roles in resource public market sector and emerging markets covering acquisitions, disposals, financings and investor communications. Over the decade, has managed or facilitated numerous successful transactions (IPO & RTO) on TSX and TSX-V and financings in excess of $100m. Various roles in TSX companies, Afriore Ltd., Talon Metals Corp. and Auryx Gold Corp (recently sold to B2 Gold in excess of $150mm). Colin Kinley Director 31 years international expertise in energy project management and new energy companies development. Served as a Senior Executive to several E & P companies & oilfield service companies and is specialized in frontier resource development. Director and CEO of Manx Energy Inc. - an Company developing Heavy Oil in Canada, Director of Excelsior Minerals and CEO of Kinley Exploration LLC, leading a team providing professional, technical and oversight to international resource companies within the upstream sector. Jeffrey E Walter Director and Chief Executive Officer

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Board of Directors

TSX.V: ADL

Jeffrey E Walter - Chief Executive Officer Oil and Gas executive with over 30 years in the industry, 27 of which with Noble Energy. Was Vice President for the Europe and Mediterranean business group based in London and led teams responsible for recent world class discoveries in Israel and was responsible for the initial success of the Mari B and Noa fields.

Gadi Levin - Chief Financial Officer Chartered Accountant with experience in the public and private equity markets, spanning multiple jurisdictions including North America, Europe and Israel. Bachelor of Commerce degree in Accounting and Information Systems and MBA from Bar Ilan University in Israel. Has a Chartered Accountant Designation.

Alan Friedman - Executive Vice President - Corporate Development, Director

Moshe Politi - Chief Geologist 39 years of experience, specializing in the integration of multi-disciplinary aspects of geology and geophysics into viable prospects in various environments: onshore, offshore, shallow and deep prospects, structurally complex (overthrust) and stratigraphic plays focused in the East Mediterranean. Bachelor and Master Degrees in Geology from The Hebrew University in Jerusalem and is currently engaged in his PhD studies in Jerusalem.

Alon Polishuk - VP of Contracts Administration and Regulations Over 5 years in Government Services of Israel. Extensive experience in project management, business development and expertise in legal analysis and critical examination. Specializes in Law and was admitted to the Israel Bar in 2001. Holds a BA, Business (Finance) from the Arison School of Business, as well as LLE, Radzyner School of Law, Interdisciplinary Center, Herzliya.

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Management

TSX.V: ADL

Capitalizing on Undiscovered Potential: Levant Basin

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TSX.V: ADL

Brownstone Energy Inc (Formerly Brownstone Ventures) (Gabriella, Yitzhak, Samuel) A Canadian-based, TSX-V listed, energy-focused company with direct interests in oil and gas assets around the world. Brownstone has

the right, subject to certain conditions, to earn a 15% Working Interest in Adiras offshore blocks for three years.

Pinetree Capital Ltd (Samuel) A Canadian-based, TSX listed diversified investment, financial advisory and merchant banking firm focused on investing in early stage

resource companies. 10% Working Interest in the Samuel block.

GeoGlobal Resources Inc (Samuel) AMEX listed, Canadian- based resource and operating company engaged in the exploration and development of petroleum and natural

gas reserves internationally. 42% Working Interest in the Samuel block.

Ellomay Oil and Gas 2011 LP (Yitzhak) Israeli public company whose shares are listed on the NYSE Amex stock exchange, which focuses its business in the energy and

infrastructure sectors worldwide. Assets include ten photovoltaic plants in Italy with an aggregated capacity of approximately 11 MW and holdings in Dorad, Israel's largest private power plant. 20% Working Interest in the Yitzhak block

AGR Group ASA (Yitzhak) Headquartered in Norway with operations and offices in Europe, Middle East, Commonwealth of Independent States (Russia,

Azerbaijan and Kazakhstan), Asia Pacific and Americas, is a leading provider of essential services and technologies to the international petroleum industry. AGR operates in the areas of construction and managing of drilling programs, exploration, development, production and project maintenance. 5% Working Interest in the Yitzhak block

Modiin Energy Limited Partnership (Gabriella) Tel Aviv- based oil and gas investment group. farmed-in 70% interest in the Gabriella License. Adira has a back-in option from Modiin

of 15% of the Modiin working interest at cost, for a period of six months after a discovery. Adira operating royalty from Modiin of 4.25% Combined (ORRI ) royalty of 4.5%, increases to 10.5% after cost recover

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License Partners

TSX.V: ADL

Corporate Office:

Canada 120 Adelaide Street West, Suite 1204 Toronto, Ontario M5H 1T1

Israel Office:

12 Abba Hillel Silver, 12th Floor Ramat Gan, 52506

Canada: Alan Friedman Exec. Vice President, Corporate Development +1 416 250 1955 Julia Maxwell Manager, Investor Relations info@adiraenergy.com +1 416 361 2211 Israel: Gadi Levin Chief Financial Officer +972 (0) 3 373 0166

www.adiraenergy.com info@adiraenergy.com

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Contact Information

http://www.adiraenergy.com/

Slide Number 1Forward Looking StatementsThe OpportunitySlide Number 4East Mediterranean LicensesSlide Number 6Slide Number 7Slide Number 8Slide Number 9Slide Number 10Slide Number 11Slide Number 12Slide Number 13Slide Number 14Capitalizing on Undiscovered Potential: Levant BasinSlide Number 16Slide Number 17