Xcite Energy Limited ("Xcite Energy" or the "Company") GBP 20 million Increase in Equity Line

ABERDEENSHIRE, UK--(Marketwire - December 17, 2010) - This Announcement Is Not for Release, Publication or Distribution in or Into the United States.

Xcite Energy (TSX-V: XEL) (LSE: XEL) (AIM: XEL) announces that it has increased its Standby Equity Distribution Agreement ("SEDA") with YA Global Master SPV Ltd ("Yorkville") by £20 million to £60 million. This is subject to TSX Venture Exchange approval.

In connection with this SEDA increase, the Company will pay Yorkville a fee of £200,000, of which £100,000 will be payable when any part of this increase is accessed by the Company and £100,000 will be paid on 27 September 2011.

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. 

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)20 7012 2000
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