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

ABERDEENSHIRE, UNITED KINGDOM--(Marketwire - March 22, 2011) - This Announcement Is Not for Release, Publication or Distribution in or Into The United States.

Xcite Energy Limited ("Xcite Energy" or the "Company") (TSX-V: XEL) (LSE: XEL) (AIM: XEL) -- The Company announces that application has been made for the admission to AIM ("Admission") of 18,225 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 25 March 2011.

Following Admission, the Company's enlarged issued share capital will comprise 161,643,899 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 161,643,899.

This figure of 161,643,899 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
Richard Smith
Chief Executive Officer
Rupert Cole
Chief Financial Officer
+44 (0) 1483 549 063

Arbuthnot Securities Limited
(Nomad and Broker)
Antonio Bossi
Director
+44 (0)20 7012 2000

Pelham Bell Pottinger
Mark Antelme
Director
Henry Lerwill
+44 (0) 20 7861 3232

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