Xcite Energy Limited - Drawdown on Equity Line

ABERDEENSHIRE--(Marketwire - Apr 18, 2011) -

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR
                    INTO THE UNITED STATES

                     TSX-V, LSE-AIM: XEL



18 April 2011



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

                        Drawdown on Equity Line


Xcite Energy announces that it has drawn down on its Standby Equity
Distribution Agreement ("SEDA") with YA Global Master SPV Ltd
("Yorkville") in the amount of GBP6 million (CAD$9.42 million). This
draw down has been undertaken at a price of GBP3.3398 (CAD$5.24) per
share and will result in the issue of 1,796,514 ordinary shares of no
par value in the capital of the Company (the "New Ordinary Shares") to
Yorkville.

Subject to the terms of the SEDA and except in accordance with Canadian
securities laws and with prior written approval of the TSX Venture
Exchange, the shares issued to Yorkville under this draw down 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 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.

ENQUIRIES:

Xcite Energy Limited                               +44 (0) 1483 549063
Richard Smith               Chief Executive
                            Officer
Rupert Cole                 Chief Financial
                            Officer


Arbuthnot Securities                              +44 (0)20 7012 2000
Limited
(Nomad and Broker)
Antonio Bossi               Director

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

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.





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

END