ABERDEENSHIRE--(Marketwire - Mar 2, 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 2 March 2012 Xcite Energy Limited ("Xcite Energy" or the "Company") Drawdown on Equity Line Agreement Xcite Energy announces that it has drawn down on its Equity Line Agreement (the "facility") with Esousa Holdings, LLC ("Esousa") dated 16 December 2011 in the amount of GBP10.9 million (CAD$17.1 million). This draw down has been undertaken at a price of GBP1.38 (CAD$2.17) per share and will result in the issue of 7,912,891 ordinary shares of no par value in the capital of the Company (the "New Ordinary Shares") to Esousa. This funding will be used as future working capital for the Company and to progress towards first oil from the Bentley field. Subject to the terms of the facility and except in accordance with Canadian securities laws and with prior written approval of the TSX Venture Exchange, the New Ordinary Shares 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 conditional 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 (each, an "Ordinary Share"). Subject to approval by the TSX Venture Exchange, following the issue of the 7,912,891 New Ordinary Shares the total Ordinary Shares in the Company in issue will be 231,066,678. ENQUIRIES: Xcite Energy Limited +44 (0) 1483 549 063 Richard Smith Chief Executive Officer Rupert Cole Chief Financial Officer Oriel Securities +44 (0) 20 7710 7600 (Joint Broker and Nomad) Emma Griffin Partner Michael Shaw Partner Morgan Stanley +44 (0) 20 7425 8000 (Joint Broker) Andrew Foster Managing Director Pelham Bell Pottinger +44 (0) 20 7861 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