ABERDEENSHIRE, UNITED KINGDOM--(Marketwire - Feb 1, 2012) -

 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION TSX-V, LSE-AIM: XEL 1 February 2012 Xcite Energy Limited ("Xcite Energy" or the "Company") Exercise of Share Warrants The Company announces thatapplication has been made for the admission toAIM("Admission")of30,325 newordinaryshareswithout par valuein the Company ("Ordinary Shares"), pursuant to the exercise ofwarrants.The newOrdinarySharesshall rank pari passu with the Company's existing issued Ordinary Shares and dealings are expected to commence on7 February 2012. Following Admission, the Company's enlarged issued share capital will comprise209,800,749 Ordinary Shareswith one voting right per share.There areno shares held intreasury.The total number of voting rights in the Company is therefore209,800,749. This figure of209,800,749 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. ENQUIRIES: Xcite Energy Limited +44 (0) 1483 549 063 Richard Smith Chief Executive Officer Rupert Cole Chief Financial Officer Oriel Securities (Joint Broker and +44 (0) 207 710 7600 Nomad) Emma Griffin Partner Simon Edwards Partner Morgan Stanley (Joint Broker) +44 (0) 207 425 8000 Andrew Foster Managing Director Pelham Bell Pottinger +44 (0) 207 861 3232 Mark Antelme Director Henry Lerwill Account Director Paradox Public Relations +1 514 341 0408 Jean-Francois Meilleur Consultant 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. Oriel Securities, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Xcite Energy and for no one else in connection with the subject matter of this announcement and will not be responsible to anyone other than Xcite Energy for providing the protections afforded to its clients or for providing advice in connection with the subject matter of this announcement. Morgan Stanley, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Xcite Energy and for no one else in connection with the subject matter of this announcement and will not be responsible to anyone other than Xcite Energy for providing the protections afforded to its clients or for providing advice in connection with the subject matter of this announcement. This information is provided by RNS The company news service from the London Stock Exchange END