Xcite Energy Limited ("Xcite Energy" or the "Company") TR-1: Notification of Major Interest in Shares

   Xcite Energy Limited (TSX-V: XEL) (LSE: XEL) (AIM: XEL)

For filings with the FSA include the annex For filings with issuer exclude the annex

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  1. Identity of the issuer or the underlying   XCITE ENERGY (CDI)
issuer of existing shares to which voting
rights are attached:
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  2. Reason for the notification     (please tick the appropriate box
or boxes)
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  An acquisition or disposal of voting rights                             X
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  An acquisition or disposal of financial instruments which may result
in the acquisition of shares already issued to which voting rights are
attached
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  An event changing the breakdown of voting rights
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  Other (please specify): ___________
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  3. Full name of person(s) subject to the       Ignis Investment Services
notification obligation:                               Limited
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  4. Full name of shareholder(s) (if
different from 3.):
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  5. Date of the transaction and date on                 02/12/2010
which the threshold is crossed or reached if
different:
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  6. Date on which issuer notified:                      03/12/2010
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  7. Threshold(s) that is/are crossed or                     4%
reached:
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8.Notified details: Nominee holdings
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A: Voting rights attached to shares
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Class/typeSituation previous  Resulting situation after the triggering
of shares to the              transaction
if        triggering
possible  transaction
using
the ISIN
CODE
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          Number    Number    Number of Number of         % of
          of        of        shares    voting rights     voting
          Shares    Voting                                rights
                    Rights
                    viii
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                              Direct    Direct Indirect   Direct Indirect
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B2942B1                                        6,010,494         3.79%
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B: Financial Instruments
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Resulting situation after the triggering transaction xii
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Type of   Expiration  Exercise/   Number of voting              % of
financial date        Conversion  rights that may               voting
instrument            Period/     be acquired if                rights
                      Date        the instrument
                                  is exercised/ converted.
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C: Financial Instruments with similar economic effect to Qualifying
Financial Instruments
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Resulting situation after the triggering transaction
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Type of   Exercise    Expiration  Exercise/   Number of      % of voting
financial price       Date        Conversion  voting         rights
instrument                        period      rights
                                              instrument
                                              refers to
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                                                             Nominal  Delta
                                                             ---------------

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Total (A+B+C)
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Number of voting rights            Percentage of voting rights
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6,010,494.00                       3.92%
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9. Chain of controlled undertakings through which the voting rights and/or
the financial instruments are effectively held, if applicable:
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Vidacos Nominees Ltd (6,010,494.00 3.79%)




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Proxy Voting:
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10. Name of the proxy holder:
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11. Number of voting rights proxy holder will cease to
hold:
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12. Date on which proxy holder will cease to hold voting
rights:
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13. Additional       Percentage calculation based on Issued Share Capital of
information:         158,543,277 (based on FTS 03/12/10)
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14. Contact name:          Jean Birrell
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15. Contact telephone     [phone]
number:
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Contact: Jean Birrell 0141 222 8226