Xcite Energy Drawdown on Equity Line Agreement

ABERDEENSHIRE--(Marketwire - Mar 2, 2012) -

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART
DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO
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SUCH JURISDICTION

                        TSX-V, LSE-AIM: XEL

2 March 2012

                       Xcite Energy Limited
                 ("Xcite Energy" or the "Company")

                 Drawdown on Equity Line Agreement

Xcite Energy announces that it has drawn down on its Equity Line
Agreement (the "facility") with Esousa Holdings, LLC ("Esousa") dated
16 December 2011 in the amount of GBP10.9 million (CAD$17.1 million).
This draw down has been undertaken at a price of GBP1.38 (CAD$2.17) per
share and will result in the issue of 7,912,891 ordinary shares of no
par value in the capital of the Company (the "New Ordinary Shares") to
Esousa. This funding will be used as future working capital for the
Company and to progress towards first oil from the Bentley field.

Subject to the terms of the facility and except in accordance with
Canadian securities laws and with prior written approval of the TSX
Venture Exchange, the New Ordinary Shares may not be sold or otherwise
traded on or through the facilities of the TSX Venture Exchange 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 will be made for the admission to AIM("Admission")of the
New Ordinary Shares upon conditional approval of the share issue by the
TSX Venture Exchange. The New Ordinary Shares will rank pari passu
with the Company's existing issued ordinary shares (each, an "Ordinary
Share").

Subject to approval by the TSX Venture Exchange, following the issue of
the 7,912,891 New Ordinary Shares the total Ordinary Shares in the
Company in issue will be 231,066,678.

ENQUIRIES:                                          

Xcite Energy Limited                           +44 (0) 1483 549 063
Richard Smith           Chief Executive Officer
Rupert Cole             Chief Financial Officer

Oriel Securities                               +44 (0) 20 7710 7600
(Joint Broker and Nomad)
Emma Griffin            Partner
Michael Shaw            Partner

Morgan Stanley                                 +44 (0) 20 7425 8000
(Joint Broker)
Andrew Foster           Managing Director

Pelham Bell Pottinger                          +44 (0) 20 7861 3232
Mark Antelme            Director
Henry Lerwill           Account Director

Paradox Public Relations                       +1 514 341 0408
Jean-Francois Meilleur  Consultant

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
release.

Oriel Securities which is authorised and regulated in the United
Kingdom by the Financial Services Authority, is acting exclusively for
Xcite Energy and for no one else in connection with the subject matter
of this announcement and will not be responsible to anyone other than
Xcite Energy for providing the protections afforded to its clients or
for providing advice in connection with the subject matter of this
announcement.

Morgan Stanley which is authorised and regulated in the United Kingdom
by the Financial Services Authority, is acting exclusively for Xcite
Energy and for no one else in connection with the subject matter of
this announcement and will not be responsible to anyone other than
Xcite Energy for providing the protections afforded to its clients or
for providing advice in connection with the subject matter of this
announcement.



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

END