Xcite Energy Limited - Exercise of Warrants

ABERDEENSHIRE--(Marketwire - May 29, 2012) -

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                       TSX-V, LSE-AIM: XEL




29 May 2012

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

                      Exercise of Warrants

Xcite Energy announces that Socius CG II, Ltd ("Socius") has exercised
on a cashless basis the warrants issued in connection with the second
stage of the private placement announced on 10 February 2012. As a
result, the Company will issue 6,449,599 ordinary shares of no par
value in the Company ("the New Ordinary Shares") to Socius on or around
1 June 2012.

Application has been made for the admission to AIM of the New Ordinary
Shares. The New Ordinary Shares will rank pari passu with the Company's
existing issued ordinary shares.

Following the issue of the 6,449,599 New Ordinary Shares, the issued
share capital of the Company will comprise 247,693,630 ordinary shares.


ENQUIRIES:
Xcite Energy Limited                             +44 (0) 1483 549 063
Richard Smith          Chief Executive Officer
Rupert Cole            Chief Financial Officer
Oriel Securities
(Joint Broker and
Nomad)                                           +44 (0) 207 710 7600
Emma Griffin           Partner
Michael Shaw           Partner
Morgan Stanley
(Joint Broker)                                   +44 (0) 207 425 8000
Andrew Foster          Managing Director
Pelham Bell Pottinger                            +44 (0) 207 861 3232
Mark Antelme           Director
Henry Lerwill          Account Director

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



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END