Xcite Energy Limited ("Xcite Energy" or the "Company") Exercise of Share Warrants

ABERDEENSHIRE, UNITED KINGDOM--(Marketwire - January 4, 2011) - This Announcement Is Not for Release, Publication or Distribution in or Into the United States.

The Company (TSX-V: XEL) (LSE: XEL) (AIM: XEL) announces that application has been made for the admission to AIM ("Admission") of 150,000 new ordinary shares without par value in the Company ("Ordinary Shares"), pursuant to the exercise of warrants. The new Ordinary Shares shall rank pari passu with the Company's existing issued Ordinary Shares and dealings are expected to commence on January 6, 2011.

Following Admission, the Company's enlarged issued share capital will comprise 158,603,998 Ordinary Shares with one voting right per share. There are no shares held in treasury. The total number of voting rights in the Company is therefore 158,603,998.

This figure of 158,603,998 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.

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