Excelsior Announces Second Quarter 2010 Results

Excelsior Energy Limited (TSX VENTURE:ELE) ("Excelsior" or the "Company")
announces it has filed financial statements and management's discussion and
analysis for the three and six month periods ended June 30, 2010 and 2009. These
materials can be found online at www.sedar.com. 


"The $26 million financing in June allows the Company to move ahead and confirm
the full potential of its Hangingstone property" said Dr. David Winter,
Excelsior's President and Chief Executive Officer. "We will be drilling an
aggressive delineation core well program this winter that will further delineate
the areas identified with commercial development potential in the western and
northern areas of the Hangingstone property and also appraise thick pay areas
with less well density in the north east and central part of Hangingstone. The
programs are designed to provide sufficient well density to support our
reservoir characterization work that will underpin an application for an initial
10,000 bopd SAGD project. The initial 10,000 bopd SAGD development will be the
first of several development areas planned to realize the full potential at
Hangingstone." 


Second Quarter 2010 Highlights



--  Excelsior raised gross proceeds of $25,999,760 in non-brokered private
    placement financings in June, 2010 (the "Financings"). Pursuant to the
    Financings Excelsior issued 41,666,667 units at a price of $0.36 per
    unit comprised of two common shares (priced at $0.18 per common share
    and in some instances one of the common shares was issued on a flow-
    through basis)and two common share purchase warrants with a three year
    term each at an exercise price of $0.30; 10,416,166 units at a price of
    $0.48 per unit comprised of two common shares (priced at $0.235 per
    common share and in some instances both of the common shares were issued
    on a flow-through basis) and two common share purchase warrants with a
    five year term each at an exercise price of $0.32; 27,777,777 common
    shares at a price of $0.18 per common share; and 4,166,666 common shares
    at a price of $0.24 per common share. Proceeds from the Financings are
    intended to be used for further delineation of the Corporation's
    property in the Hangingstone area of Alberta and for general corporate
    purposes. The Company issued in aggregate 136,110,113 common shares, of
    which 41,346,309 were issued on a flow-through basis, and 104,165,668
    common share purchase warrants in connection with the Financings. The
    Company currently has 280,755,755 common shares outstanding. 



The Financings brings the involvement of a significant investor group into
Excelsior who have a track record of value creation in junior companies and have
demonstrated significant access to capital markets which will be key as
Excelsior moves forward in developing its Hangingstone asset. With the
completion of the Financings Mr. Jeff Scott and Mr. Verne Johnson joined the
Board of Excelsior.




--  The Company has a commitment to renounce $8,020,658 of eligible
    expenditures to subscribers of its flow-through shares issued as part of
    the units comprising the Financings and incur the related expenditures
    by December 31, 2011.  

--  The Company had positive working capital of $25.3 million at June 30,
    2010 and no debt. 



Outlook



--  The Company will continue to delineate the resource potential at
    Hangingstone this winter to provide the necessary geological control to
    support an initial 10,000 bopd SAGD project application and to add new
    areas of resource. The initial SAGD 10,000 bopd project will be the
    first step to production and to realizing the ultimate potential through
    a multi-phase development of the Hangingstone property. Implementing the
    initial SAGD 10,000 bopd oil sands development project will require
    significant capital and is dependent on successful equity and/or debt
    financings. 



Selected Information



----------------------------------------------------------------------------
($'s except weighted           Three Months Ended          Six Months Ended
 average shares)                          June 30,                  June 30,
----------------------------------------------------------------------------
                                2010         2009         2010         2009 
----------------------------------------------------------------------------
Gas revenue                        -        4,462            -       10,615 
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Royalties                          -          (80)           -         (329)
----------------------------------------------------------------------------
Operating expenses              (279)      (4,644)        (537)      (8,839)
----------------------------------------------------------------------------
  Net gas revenue               (279)        (262)        (537)       1,447 
----------------------------------------------------------------------------
Interest and other                                                          
 income                        8,180        2,505        9,736       30,484 
----------------------------------------------------------------------------
General and                                                                 
 administrative expense      514,637      274,650      803,324      536,264 
----------------------------------------------------------------------------
Net loss and                                                                
 comprehensive loss       (1,130,061)    (337,730)  (1,464,805)    (748,530)
----------------------------------------------------------------------------
Loss per share (basic                                                       
 and diluted)                  (0.01)           -        (0.01)       (0.01)
----------------------------------------------------------------------------
Capital expenditures                                                        
----------------------------------------------------------------------------
  Petroleum and natural                                                     
   gas properties (cash)      83,743      824,279      113,718    8,563,640 
----------------------------------------------------------------------------
Cash flows                                                                  
----------------------------------------------------------------------------
  Cash flows used in                                                        
   operations               (500,735)     (23,679)    (838,590)    (433,051)
----------------------------------------------------------------------------
  Cash flows used in                                                        
   investing                 (54,714)  (2,366,592)     (98,643) (10,688,377)
----------------------------------------------------------------------------
  Cash flows from                                                           
   financing              24,904,739            -   24,902,994            - 
----------------------------------------------------------------------------
  Change in cash and                                                        
   cash equivalents       24,349,650   (2,390,271)  23,965,761  (11,121,428)
----------------------------------------------------------------------------
  Cash and cash                                                             
   equivalents,                                                             
   beginning of period     1,181,075    5,016,900    1,564,964   13,748,057 
----------------------------------------------------------------------------
  Cash and cash                                                             
   equivalents, end of                                                      
   period                 25,530,725    2,626,629   25,530,725    2,626,629 
----------------------------------------------------------------------------
Basic and diluted                                                           
 weighted average number                                                    
 of shares outstanding   169,932,809  143,060,590  157,241,566  143,060,590 
----------------------------------------------------------------------------



About Excelsior

Excelsior is an early stage, oil sands company with 58 operated sections on two
contiguous blocks in the Hangingstone and West Surmont areas of the Athabasca
Oil Sands Region near Fort McMurray, Alberta. The properties contain
high-quality, bitumen reservoirs which will be exploited using in-situ recovery
methods. The bitumen resources are anticipated to be initially developed using
SAGD ("Steam Assisted Gravity Drainage"). The Company has also developed a
proprietary in situ combustion technology ("Combustion Overhead Gravity
Drainage" or "COGD") which has potential to improve economic and environmental
impact in the development and recovery of heavy oil and bitumen. An application
for an experimental pilot project to field demonstrate the COGD technology was
submitted in the second quarter of 2009. Project approval is expected in the
latter half of 2010 with subsequent implementation and commissioning in early
2011. Excelsior's strategy is to capture oil and gas appraisal and development
opportunities where we can leverage Management's diverse international
operating, heavy oil and field development expertise with developing
technologies to produce oil and gas.


Forward Looking Information

This press release contains forward-looking statements and forward-looking
information within the meaning of applicable securities laws. The use of any of
the words "expect", "anticipate", "continue", "estimate", "objective",
"ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and
similar expressions are intended to identify forward-looking statements or
information. More particularly and without limitation, this press release
contains forward-looking statements and information concerning: anticipated
regulatory approvals, expectations regarding the Company's future operations,
including drilling of further core wells on the Company's Hangingstone property
and the further delineation of such property, development of the Company's
bitumen resources using SAGD or COGD, fulfillment of "flow-through" commitments,
expectations regarding cash flows relating to operations on the Hangingstone
property, further operations regarding a proposed COGD pilot program, the
sufficiency of its current funding to meet planned expenditure requirements,
joint venture opportunities and financing arrangements.


The forward-looking statements and information in this press release are based
on certain key expectations and assumptions made by Excelsior, including
expectations and assumptions concerning: prevailing commodity prices and
exchange rates; applicable royalty rates and tax laws; future drilling results
and production rates; reserve and resource volumes; the success obtained in
drilling new wells; the sufficiency of budgeted capital expenditures in carrying
out planned activities; the availability and cost of labour and services; and
the receipt, in a timely manner, of regulatory approvals. Although Excelsior
believes that the expectations and assumptions on which such forward-looking
statements and information are based are reasonable, undue reliance should not
be placed on the forward-looking statements and information because Excelsior
can give no assurance that they will prove to be correct. 


Since forward-looking statements and information address future events and
conditions, by their very nature they involve inherent risks and uncertainties.
Actual results could differ materially from those currently anticipated due to a
number of factors and risks. These include, but are not limited to the risks
associated with the oil and gas industry in general such as: operational risks
in development, exploration and production; delays or changes in plans with
respect to exploration or development projects or capital expenditures; the
uncertainty of reserve and resource estimates; the uncertainty of estimates
relating to production, costs and expenses; health, safety and environmental
risks; commodity price and exchange rate fluctuations; marketing and
transportation or petroleum and natural gas and loss of markets; environmental
risks; competition; incorrect assessment of the value of acquisitions; failure
to realize the anticipated benefits of acquisitions; ability to access
sufficient capital from internal and external sources; failure to obtain
required regulatory approvals; and changes in legislation, including but not
limited to tax laws, royalty rates and environmental regulations. 


Readers are cautioned that the foregoing list of factors is not exhaustive.
Additional information on these and other factors that could affect the
operations or financial results of Excelsior are included in reports on file
with applicable securities regulatory authorities and may be accessed through
the SEDAR website (www.sedar.com).


The forward-looking statements and information contained in this press release
are made as of the date hereof and Excelsior undertakes no obligation to update
publicly or revise any forward-looking statements or information, whether as a
result of new information, future events or otherwise, unless so required by
applicable securities laws.