A TSX-V Listed Oil and Gas CompanyFocused on Onshore and Offshore Israel

Contact:

Colin Kinley, President & COOckinley@adiraenergy.com

Alan Friedman, EVP Corporate Developmentafriedman@adiraenergy.com

May, 2011

CAUTIONARY STATEMENT REGARDING FORWARDING-LOOKING INFORMATIONExcept for statements of historical fact relating to Adira Energy Ltd., Adira Energy Holdings Corp., Adira Energy Israel Ltd., Adira Energy Israel ServicesLtd., Adira Oil Technologies Ltd., Adira GeoGlobal Ltd. ("Corporations”), certain information contained herein, including statements regarding thevolume of well's natural gas reserves constitutes "forward-looking statements" within the meaning of the United States Private Litigation Reform Act of1995 or "forward-looking information" within the meaning of the Securities Act (Ontario) or Forward Looking Statements as defined under the IsraelSecurities' Law. Forward-looking statements are frequently characterized by words such as "target,” "plan,” "expect,” "project,” "intend,” “believe,”"anticipate," and other similar words or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on theopinions and estimates of management or advisors at the date the statements are made and are subject to a variety of risks, uncertainties and otherfactors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The factors include theinherent risks involved in the exploration and development of oil and gas properties, the uncertainties involved in interpreting drilling and seismic resultsand other geological data, fluctuating oil and gas prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertaintiesrelating to the availability and costs of financing needed in the future, the uncertainties inherent to conducting business in Israel, the availability ofsupplies, unexpected adverse climate conditions, the reliance on only a few key members of management, and other factors. The Corporationundertakes no obligation to update forward looking statements, if circumstances or advisor or management estimates or opinions should change. Thereader is cautioned not to place undue reliance on forward-looking statements.

DISCLAIMERThe information contained in this presentation is confidential and for internal use only. The contents are not to be reproduced or distributed to investors,the public or press. The information contained herein, while obtained from sources which we believe are reliable, is not guaranteed as to its accuracy orcompleteness. The contents of this documentation is for information purposes only and does not constitute an offer to sell or a solicitation to purchaseany securities referred to herein.

Estimates are based on geological, geophysical and other estimates received from third parties and/or advisors and serve, at this time, only asestimates whereby there is no certainty, as of yet, with regards them. No information contained in this presentation is compliant with NI-Policy 51-101requirements. The Corporations have not conducted estimates or independent evaluations of the said estimates. Any estimates are expected to beupdated as additional information is accumulated, including as a result of the continued analysis of the well proceeds, the conduction of production testsand the conduction of validation drilling, should they be conducted, and\or as a results of a variety of factors related to projects searching for, andproducing, natural gas.

None of the Corporations or any of the individuals associated thereto have independently confirmed or verified the information contained in thispresentation. The reader should take all reasonable actions to satisfy itself as to the accuracy of the information contained in the document.

Forward – Looking Statements

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Three offshore operated licenses One onshore operated license Sufficiently capitalized with access to additional capital World class technical leadership and support team Indication of resource potential, both on and offshore Carefully managed exploration strategy 3D geophysics now complete on two licenses 3D scheduled for 3rd license starting May 2011 Established Tel Aviv office, staff and local infrastructure TSX-V listed with Toronto office and executive presence Experienced and Professional Board of Directors

Adira Energy – Israel Opportunity

Unique opportunity to participate in newly discovered oil and gas basin - offshore Israel. TSX-V listed pure Israel play with world class operating team

and an impressive offshore portfolio.

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Dennis Bennie - Chairman, Independent DirectorCo-Founder Adira Energy. Founder and CEO of XDL Capital; Co-founder, Former Chairman and CEO of Delrina Corporation; former Chairperson ofCanada Israel Political Affairs Committee (CJPAC).

Colin Kinley - President, Chief Operating Officer, Director30 years of international resource exploration and development expertise. Founding member of Layne Energy and for 27 years Senior VP of LayneChristensen Company (NASDAQ). Key contributor to Layne’s significant growth from $4 to $58/share. Kinley has spent his career in integrated energyproject execution and has a keen sense of resource economics. Most recently, as CEO of Saber Energy, established over 40TCF Gas in Place inBotswana. Responsible for the establishment of multiple frontier resource exploration plays and developments.

Yael Reznik Cramer - Interim CEO, DirectorVP Business Development of BRM Group, (major shareholder of Adira Energy). Currently sits on the boards of Backweb and Schema. She is aCertified Public Accountant in Israel and holds a B.A degree in Accounting and Economics from the Hebrew University in Jerusalem and an MBA fromTel-Aviv University.

Alan Friedman - Executive Vice President - Corporate Development, DirectorCo-Founder Adira Energy. Senior roles in resource public market sector and emerging markets covering acquisitions, disposals, financings andinvestor communications. Over the past 10 years, has managed or facilitated numerous successful going public transactions (IPO & RTO) on TSXand TSX-V as well as facilitation of financings in excess of $100m. Various roles in TSX companies including Afriore Ltd., Talon Metals Corp. andAuryx Gold Corp.

Eli Barkat - Independent DirectorChairman and Co-founder of BRM, a recognized figure in the Israeli business community, with more than 20 years of entrepreneurial, investment and business management experience.

Sheldon Inwentash - Independent DirectorChairman and CEO of Brownstone Energy. More than 20 years of experience in the investment industry and a deep understanding of progressiveinvestment and financial management strategies. A Chartered Accountant, Mr. Inwentash is also the Chairman and CEO of Pinetree Capital Ltd., aCanadian investment company with a portfolio of investments primarily in the resource and energy sectors.

Board of Directors

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Glen Perry - Vice President40 years of exploration and development experience, specialized in drilling operations and project execution. Masters in Petroleum Engineering.Served as a Director, COO and President of Zion Oil and Gas in Israel. Prior experience includes; Consultant to Delek Drilling; Director of NationalPetroleum; Executive with Prairie Producing Company, Exxon and Energy Reserves Group.

Greg Embery - Vice President, Geology30 years of basin exploration, analysis and strategy development of new and developing oil and gas resource plays, focusing on unconventionalresources, tight sands, coalbed methane and shales. Experience in Africa, South America, US mid-continent, Rockies and San Juan Basin. Bachelorof Geology from Western State College of Colorado in 1978. Member of American Association of Petroleum Geologists and Rocky MountainAssociation of Geologists.

Moshe Politi - Chief Geophysicist / Geologist38 years of experience. Specialized in the integration of multi-disciplinary aspects and methodologies of geology and geophysics into viableprospects in various environments: onshore, offshore, shallow and deep prospects, structurally complex (overthrust) and stratigraphic plays.Received his Bachelor Degree in Geology from The Hebrew University in Jerusalem in 1972. Currently engaged in studies in Jerusalem for PhD.

Denny Johnson - Vice President, Exploration10 years of experience as Drilling Engineer and in operations management of gas exploration and development. Managed several multi-rig projectsfor Range Resources. Worked as Field Engineer for Schlumberger, specialized in directional and unconventional reservoir projects, Coal BedMethane, shale and tight gas sands.

Ariye Malaber - Senior VP, Drilling & Production40 years of experience as senior production and drilling supervisor. Extensive background in pipeline inspection and construction. Services, drillingand production supervisor for prior Hula Valley operations.

Colin Kinley - President, Chief Operating Officer, Director (as above)

Technical Team

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Adira Energy License Portfolio – Offshore and Onshore

Yitzhak (31,629 Acres) - OffshoreTarget: Oil Jurassic - Fractured Carbonates:4600m 15 SQ. Klm Closure (2D)Exploration: 129 Klm 3D Completed Jan 2011Drilling: Shallow Water 140 to 200 meters

Gabriella (96,371 Acres) - OffshoreTarget: Gas Plio/Pleistocene, Oligo/Miocene, Turbidites, Canyon Sands: 2500m Target: Oil Jurassic Fractured Carbonates: 4900m, 40 SQ. Klm Closure (2D)Exploration: 511 Klm Dual Axis 3D Completed Jan 2011Drilling: Shallow Water 140 to 200 meters

Samuel (89,205 Acres) - OffshoreTarget: Gas Plio/Pleistocene, Oligo/Miocene, Turbidites Canyon Sands:2000mTarget: Oil Lower Cretaceous Carbonates, 15 Klm Closure (200m Thickness)Exploration: 300 Klm 3D Scheduled May 2011Drilling: Shallow Water 40 to 100 meters

Eitan (31,060 Acres) - Onshore Hula ValleyTarget: Gas Pleistocene Sands, Lumachelle Conglomerates: 200mTarget: Gas CBM - Lignite and Sub-Bituminous Coal, 40m thickness @ 600m.Target: Gas CBM – Sub-Bituminous Coal, 20m thickness @ 1000m.Exploration: 42 Previously Drilled Wells (5 BCF Pr,2P 40BCF)*Not NI-51CompliantDrilling: Wheeled Access (Company Owned Rig)

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Offshore: Yitzhak License (31,629 Acres)

Target: Oil Jurassic - Fractured Carbonates:4600m 15 SQ. Klm Closure (2D)

Exploration: 129 Klm 3D Completed Jan 2011 by Adira (WesternGeco), Processing Underway by CGG Veritas

Resource Report: Currently underway by Gustavson AssociatesPrior Drilling: Delta-1 Well Drilled in 1970’s to 4423m, TD in Upper

Jurassic above oil encountered in Jurassic Bathonian inYam Yafo-1 (4890m – 4995m) and Yam-2 Well (5315m)Interesting & significant structural high: Jurassic from2D.

Drilling: Shallow Water 140 to 200 meters. Jack-Up or FloaterOperator: AdiraWorking Interest: 85%Partners: Brownstone Ventures 15%

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Offshore: Gabriella License (96,371 Acres)

Target: Oil Jurassic Fractured Carbonates: 4900m, 40 SQ. KlmClosure (2D)

Target: Gas Plio/Pleistocene, Oligo/Miocene, Turbidites, Canyon FilledSands: 2500m depth

Exploration: 511 Klm Dual Axis 3D Completed Jan 2011 by Adira (Western Geco), Processing Underway by CGG Veritas

Resource Report: Currently underway by Gustavson AssociatesPrior Drilling: Yam Yafo-1 Well was drilled in 90’s to 5823m and

tested 800 bpd oil (44-47 API). Technical and Financial challenges prevented commercial production.

Drilling: Shallow Water 140 to 200 meters. Jack-Up or FloaterOperator: AdiraWorking Interest: 15%, plus 15% back-in option upon discovery, at costPartners: Brownstone Ventures 15%, Modiin Energy 70%*

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Offshore: Samuel License (89,205 Acres)

Target: Gas Plio/Pleistocene, Oligo/Miocene, Turbidites, Canyon FilledSands: 2000m

Target: Oil Lower Cretaceous Carbonates: 15 Klm Closure (200mThickness) Jurassic High

Exploration: 300 Klm 3D Starting May 2011 (ARIS Nefterazvedka)Existing 2D indicates presence of gas

Resource Report: Currently underway by Gustavson AssociatesPrior Drilling: Yam-2 Well immediately west tested oil in JurassicDrilling: Shallow Water 40 to 100 metersOperator: Adira GeoGlobal (Adira Lead)Working Interest: 38.25%Partners: Brownstone Ventures 6.75%, Pinetree Capital 10%,

GeoGlobal Resources 45%

Low Cost Drilling, Low Infrastructure Costs, Low Pressure PipelineAccelerated Delivery to Market

Significant Field Potential Right at the Market

Onshore: Eitan License (31,060 Acres)

Hula Valley

Target: Gas Conventional Gas: Pleistocene Sands, LumachelleConglomerates: 200m

Target: Gas Unconventional Gas: Pleistocene, Lignite and Sub-Bituminous Coal, 40m thickness @ 600m andBituminous Coal, 20m thickness @ 1000m.

Exploration: 5 BCF Proven and Probable (2P) and 40 BCF 3P –Not NI-51 Compliant, 143 Klm 2D Seismic –Reprocessed Coring and Testing CurrentlyUnderway

Prior Drilling: 42 Previously Drilled Wells, Coal Prior tested at 200scft

Drilling: Wheeled Access (Company Owned Rig)Operator: AdiraWorking Interest: Eitan:100%

Good CBM/Conventional PotentialCurrent Drilling Program Underway

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Strategy

Lower Risk Offshore DrillingSpecifically targeted shallow water bench drilling. Drilling costs are much lower thancompetitive deep water exploration in the region. Shallow water drilling rigs operate atless than a third the cost of deep water rigs currently drilling in Israeli waters.Correspondingly AFE’s and risk are lower.

High Resource Potential – Oil and GasThe company has focused on maximizing shareholder value by strategic selection oflicenses with proven, prior analogous production and exploration. 2D and now 3Dseismic has already been completed on Gabriella and Yitzhak. Samuel has prior 2D, andAdira is currently mobilizing a 3D contractor for a May start-up.

Lower Infrastructure Costs – Near MarketYitzhak and Gabriella both offer significant oil targets that can be exploited with state ofthe art directional drilling technology and facilities costs that are fractional of deep water– increasing netbacks to interest holders. The gas targets in the Samuel license areimmediately below current pipeline infrastructure. Deliveries to market pose lessoperational, environmental and financial risk that the deep water targets.Delivery to market before deep water developments is achievable.

Economic FocusOil is purposefully selected as a resource target for the company for obvious high altitudeeconomics in the sector. Oil from shallow economically drilled locations beats deep waterhands down. On shore unconventional gas has an immediate market, costs are low andthe resource is long life suitable for power. The near to market gas targets in the shallowwaters on Samuel are anticipated to have substantially better economics per moleculethan the deep water gas finds plagued with explosive infrastructure costs, high pressureand highly technical delivery parameters and long time delivery schedules to market.

Gas and Oil to Market Now, When Israel Needs It

Financially Stable: 2010: Israel accepted as full member of the Organization for Economic Cooperation (OECD) Israel reclassified as a DEVELOPED market by MSCI Ranked highest in the region on the World Bank's Ease of Doing Business Index as well as in the World

Economic Forum's Global Competitiveness Report Second-largest number of start-up companies in the world (after the United States) Largest number of NASDAQ listed companies outside North America Global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis

with solid fundamentals - following years of prudent fiscal policy and a series of liberalizing reforms.*CIA Intelligence Report

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Israel: Economic Miracle in the Mid-East

Fiscal Strength:Standard and Poor's Foreign currency sovereign credit - “A”, Long-term local currency rating to - “AA”

Inflation: Estimated at 2.5% in 2011*Bank of Israel Growth: Estimated at 4% in 2010 and 3.8% in 2011 *Bank of Israel Employment : Estimated at 6% Unemployment in 2011 *Bank of Israel Land 22,100 Sq. Km *2009 OCDE Population 7.3 Million *2009 OCDE GDP Growth 4% in 2008, Grew by 0.5% in 2009 Expected to expand in 2010.

DP is 45% Exports. *CIA Intelligence Report

Technical Targets: Re-enter (3) shallow Conventional Wells on Eitan: Completed Drill conventional Sand Well, Drill and Wireline Core (1) CBM Well on Eitan: Underway Acquire existing 2D seismic data, reprocess and evaluate for Samuel, Yitzhak and Gabriella: Completed Complete preliminary detailed resource reports on all licenses and submit to Israeli Government:

Completed Complete 3D Survey (dual azimuth) on Gabriella: Completed – (Processing Underway CGG Veritas) Complete 3D Survey on Yitzhak: Completed – (Processing Underway – CGG Veritas) Complete 3D Survey on Samuel: Mobilizing May 2011, ARIS OBC Complete Resource Evaluation and Risking from Fast Track Processing – Underway Processing 3D and incorporation into Hydrocarbon Potential Reports: Planned Evaluation of prospects for drilling targets: Underway Detailed Drilling Planning: Underway, Prioritized by Prospect and Commodity Delivery Strategic selection and leveraged participation in new License/Permit applications based on technical

strength

Financial and Corporate: $11 Million capital raise December 2010, $6.5M, February, 2011: Complete Raise of additional capital for execution of work programs on offshore licenses: Q3 2011 Prepare documentation to participate in Israeli capital markets: Underway

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Adira Targeted Milestones

Brownstone Ventures Inc:A Canadian-based, TSX-V listed, energy-focused company with direct interests in oil and gasassets around the world. Brownstone has the right, subject to certain conditions, to earn a 15%Working Interest in Adira’s offshore blocks for three years.

Pinetree Capital Ltd:A Canadian-based TSX listed diversified investment, financial advisory and merchant bankingfirm focused on investing in early stage resource companies. Pinetree has a 10% WorkingInterest in Adira’s Samuel block.

GeoGlobal Resources Inc:GeoGlobal is an AMEX listed, Canadian based resources and operating company engaged in theexploration for and development of petroleum and natural gas reserves internationally. GeoGlobalhas a 45% Working Interest in the Samuel block.

Modiin Energy LP/GP:A substantial Tel Aviv based oil and gas investment group. Modiin has farmed-in a 70% interest inthe Gabriella License. Modiin carries Adira for the first US$8 million in exploration funding. Adirahas a back-in option of 15% of the Modiin rights at cost, until six months after a discovery. Adira operating royalty from Modiin of 3.75% for 24 months, increasing to 4.25% thereafter Combined (ORRI ) royalty of 4.5%, increases to 10.5% after cost recovery Adira as Operator is entitled to a 7.5% fee based on gross expenditures

License Partners

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Tamar (January 2009). Delek/Noble Energy (NYSE: NBL) Consortium made a significant discovery of naturalgas (approx. 8.4 TCF) off Haifa. This is a world-class discovery and as such has created increased drillingactivity and significant investor interest in the region.

Dalit (March 2009). Following Tamar, a second natural gas discovery offshore Israel identified more than 110feet of net pay. With the successes at Tamar and Dalit, a potentially substantial new resource basin with largeremaining exploration potential opened up. Additional 3D in the area in the second half of 2009 with potentialfor additional targets. Dalit is situated approx. 55 km northwest of Gabriella and 45km northwest of Yitzhak.

Leviathan (December 2010). Nobel recently announced the Leviathan gas discovery, West of Tamar,estimated at over 16 TCF of gas. The well halted for additional liner casing as it is being deepened for potentialdeeper oil targets. Leviathan is the largest gas discovery ever in Israel, and the largest offshore gas discoveryin the world over the past decade.

Israel Recent Discoveries

Heletz Oil Field - During the 1950’s, Israel discovered this on-shore field. Over the past 50 years it hasproduced cumulative 20 million barrels of Oil. It is essentially fully depleted.

Yam Tetis Field - The country’s only current domestic gas source. The Ministry of Infrastructure expects it tobe fully depleted in the next decade. The field’s .85 TCF was the largest find in the country, before Tamar .

EMG Consortium - An agreement for gas from Egypt to Israel provides for the sale of 1.7 billion cubic metersof gas per year, representing 20% of Israeli electricity current consumption ($5.50 - $5.75) per MMBtu

Current Oil and Gas Production

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2007

Source: Israel Natural Gas Authority

“Installed Capacity”

2010

Electricity Forecast: approximately 6 BCM (165-195 BCF) / year including IEC demand and IPPs’,including co-generation

Industrial/Commercial Sector Forecast: approximately. 3.5 BCM (90-105 BCF) / year, mainly through thedistribution infrastructure. (Additional smaller quantities to be used for transport and private heating)

Israel Energy Demand

Demand predicted to triple from 4 billion cubic meters annually to 12 billion cubic meters in 2016, aspower plants and industry rapidly switch from oil to gas

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Adira Energy: TSXV – ADL (OCTBB-US – ADENF, Frankfurt – AORLB8)

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Current Share StructureBasic Shares Outstanding 100.6 MM

Warrants 19.5 MM

Options 7.6 MM

Fully Diluted Shares Outstanding 127.5 MM

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Unique opportunity to participate in significant new Israeli Oil & Gas discovery fields.

Adira Energy

Significant License Portfolio

World Class Technical Expertise

TSX-V Listed: Access to Global Capital

Local Israeli Operations Office and Team

Strong Technical and Financial Partners

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