Xcite Energy Limited - Exercise of Warrants

ABERDEENSHIRE, UNITED KINGDOM--(Marketwire - Jul 5, 2012) -

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                         TSX-V, LSE-AIM: XEL



5 July 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 first
stage of the private placement announced on 16 December 2011. As a
result, the Company will issue 7,501,677 ordinary shares of no par
value in the Company ("the New Ordinary Shares") to Socius on or around
10 July 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 7,501,677 New Ordinary Shares, the issued
share capital of the Company will comprise 265,780,000 ordinary shares.

ENQUIRIES:

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

Oriel Securities                                   +44 (0) 207 710 7600
(Joint Broker and Nomad)
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            Associate 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.



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

END