Xcite Energy Limited ("Xcite Energy" or the "Company") Drilling Contract for "Rowan Norway" N-Class Jack-Up Rig

ABERDEENSHIRE, UK--(Marketwire - February 14, 2011) - Xcite Energy is pleased to announce that its 100% subsidiary, Xcite Energy Resources Limited ("XER") (TSX-V: XEL) (LSE: XEL) (AIM: XEL), has entered into a binding drilling contract with British American Offshore Limited("BAOL"), part of Rowan Companies, Inc. for the N-Class "Rowan Norway", a harsh environment, deep water jack-up unit, designed and built for simultaneous drilling and production, which is currently under construction.

The Rowan Norway is expected to be used to commence the first stage production of the Bentley field, the planning for which is currently being undertaken. XER expects the Rowan Norway to be made available in the fourth quarter of 2011.

Neither 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 ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES

Contact Information:

ENQUIRIES:

Xcite Energy Limited
+44 (0) 1330 826740
Richard Smith
Chief Executive Officer
Rupert Cole
Chief Financial Officer

Arbuthnot Securities Limited
(Nomad and Broker)
+44 (0) 207 012 2000
Antonio Bossi
Director

Pelham Bell Pottinger
+44 (0) 207 861 3232
Mark Antelme
Director

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