Xcite Energy Limited ("Xcite Energy" or the "Company") Reserves Assessment Process Update

Xcite Energy Limited

(TSX-V: XEL) (LSE: XEL) (AIM: XEL) 

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Following the successful Bentley 9/3b-6 well test in December 2010, the Company's 100% subsidiary, Xcite Energy Resources Limited ("XER"), has been working on a Reserves report that will update the RPS Energy Competent Person's report dated February 2009.

TRACS, part of the AGR Group, was appointed as the independent third party engineers to undertake the Reserves report on behalf of XER in the second half of 2010 and RPS Energy will continue to advise the Company to optimise the report.

The success of the Bentley 9/3b-6 well test requires XER to re-assess all material aspects of the reservoir model as the starting point for the input to the Reserves report. The information and data available from the well is still in the process of being received and collated and the Company intends to use as much of this material as possible for input to the Reserves report.

The Reserves report will be focused on the First Stage Production ("FSP") of the Bentley field, for which the work programme is underway and the Rowan jack-up rig has been contracted. The Reserves report will assess reserves in connection with the FSP only, while also providing a further update to the resources on a field-wide basis.

The Company expects the completion of the Reserves report to be around the end of March 2011, but will take the time necessary to maximise the value of the report.

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES

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ENQUIRIES: Xcite Energy Limited [phone] Richard Smith Chief Executive Officer Rupert Cole Chief Financial Officer Arbuthnot Securities Limited (Nomad and Broker) [phone] Antonio Bossi Director Pelham Bell Pottinger [phone] Mark Antelme Director Henry Lerwill Paradox Public Relations [phone] Jean-Francois Meilleur Consultant