Xcite Energy Limited ("Xcite Energy" or the "Company") Drawdown on Equity Line

| Source: Xcite Energy Ltd Xcite Energy Ltd

ABERDEENSHIRE, UK--(Marketwire - February 23, 2011) - 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 drawn down on its Standby Equity Distribution Agreement ("SEDA") with YA Global Master SPV Ltd ("Yorkville") in the amount of £5 million (CAD$7.975 million). This draw down has been undertaken at a price of £3.38 (CAD$5.40) per share and will result in the issue of 1,480,754 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.

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

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