SOURCE: Xcite Energy Limited

August 21, 2012 11:13 ET

Closing of third stage of Private Placing

ABERDEENSHIRE, UNITED KINGDOM--(Marketwire - Aug 21, 2012) -



21 August 2012

Xcite Energy Limited

("Xcite Energy" or the "Company")

Closing of third stage of Private Placing

Xcite Energy is pleased to announce that it has closed the third and
final stage of its private placing (the "Placing") with Global Resource
Funding Partners LLC ("Global Resource"), previously announced on 13
June 2012.

The Placing

The Placing has occurred in three stages. The third stage, which closed
today, provides the Company with gross proceeds of GBP 8,346,240
(CAD 12,953,364) through the issuance of 12,000,000 units (each, a"Unit")
at a price of GBP 0.69552 per Unit.

Each Unit comprises one ordinary share in the capital of the Company
(a"Share") and one-half of one ordinary share purchase warrant
(a"Warrant"). Each whole Warrant issued pursuant to the third stage of
the Placing is exercisable for one additional Share at 120% of the Unit
price per share for three years from the date of issue. The exercise
price of the Warrants issued in the third stage of the Placing is
GBP 0.8346.

The Warrants are subject to a forced exercise provision at the
Company's option, provided:

(i) the VWAP per Share on AIM for 15 consecutive trading days on
average is greater than 170% of the applicable exercise price, and;

(ii) the average daily trading volume of the Shares on AIM during
such 15 consecutive trading days is greater than 1,000,000 Shares per

If such criteria are met, the Company may require Global Resource to
exercise the Warrants within 10 business days from the date of such
notice or the Warrants will lapse.

Additional Information

Octagon Capital Corporation ("Octagon") acted as advisor to the Company
with respect to the Placing. A fee in the amount of 4.5% of the gross
proceeds of each stage of the Placing is payable by the Company to
Octagon at closing of each of the respective stages of the Placing.

The closing of each stage of the Placing is subject to final acceptance
from the TSX-V. Except in accordance with Canadian securities laws and
with the prior written approval of the TSX-V, the Shares underlying the
Units and the Shares issuable upon exercise of the Warrants may not be
sold or otherwise traded on or through the facilities of the TSX-V or
otherwise in Canada or to or for the benefit of a Canadian resident
until the date that is four months and one day from the date of issue.

Application has been made for admission to AIM of the 12,000,000 Shares
underlying the Units issued in this third stage of the Placing
("Admission"), and dealings are expected to commence on 22 August 2012.
The Shares shall rank pari passu in all respects with the Company's
existing issued ordinary shares of no par value. At Admission, Global
Resource and its members in the aggregate will hold a total of 6.79% of
the Company's current issued share capital, together with 16,250,000

Total Voting Rights

Following Admission, the Company's enlarged issued share capital will
comprise 290,280,000 Shares with one voting right per share. There are
no shares held in treasury. The total number of voting rights in the
Company is therefore 290,280,000. At Admission there will be a total of
16,600,000 outstanding warrants to subscribe for Shares.

This figure of 290,280,000 Shares may be used by shareholders in the
Company as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a change
in their interest in, the share capital of the Company under the
Financial Service Authority's Disclosure and Transparency Rules.

This press release shall not constitute an offer for sale of the
securities referenced herein in the United States. The securities
offered have not been and will not be registered under the U.S.
Securities Act of 1933, as amended, or any state securities laws and
may not be offered or sold in the United States absent registration or
an exemption from those registration requirements.


Xcite Energy Limited                                +44 (0) 1483 549

Rupert Cole                  Chief Executive

Oriel Securities (Joint Broker and Nomad)           +44 (0) 207 710

Emma Griffin                 Partner

Michael Shaw                 Partner

Morgan Stanley (Joint                               +44 (0) 207 425
Broker)                                             8000

Andrew Foster                Managing Director

Pelham Bell Pottinger                               +44 (0) 207 861

Mark Antelme                 Director

Henry Lerwill                Associate Director

Paradox Public Relations                            +1 514 341 0408

Jean-Francois Meilleur       Consultant

Global Resource Funding Partners LLC                +1 617 927 1288

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

Forward-Looking Statements

Certain statements contained in this announcement constitute
forward-looking information within the meaning of securities laws.
Forward-looking information may relate to the Company's future outlook
and anticipated events or results and, in some cases, can be identified
by terminology such as "may", "will", "should", "expect",
"plan","anticipate", "believe", "intend", "estimate", "predict",
"target","potential", "continue" or other similar expressions concerning
matters that are not historical facts. These statements are based on
factors and assumptions including expected growth, results of
operations, performance and business prospects and opportunities. While
the Company considers these assumptions to be reasonable based on
information currently available to us, they may prove to be incorrect.
Forward-looking information is also subject to certain factors,
including risks and uncertainties that could cause actual results to
differ materially from what we currently expect. These factors include
risks associated with the oil and gas industry (including operational
risks in exploration and development and uncertainties of estimates oil
and gas potential properties), the risk of commodity price and foreign
exchange rate fluctuations and the ability of Xcite Energy to secure
financing. Additional information identifying risks and uncertainties
are contained in the Company's annual information form dated 26 October
2010 and in the interim Management's Discussion and Analysis for Xcite
Energy for the three and six month periods ended 30June 2012 filed
with the Canadian securities regulatory authorities and available at . The Company disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result of
new information, future events or otherwise, except as required under
applicable securities regulations.

                    This information is provided by RNS
          The company news service from the London Stock Exchange


Contact Information