Xcite Energy Limited ("Xcite Energy" or the "Company") -- Extension of Letter of Intent for "Rowan Norway" N-Class Jack-up Rig

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

Xcite Energy (TSX-V: XEL) (LSE: XEL) (AIM: XEL) is pleased to announce that its 100% subsidiary, Xcite Energy Resources Limited ("XER"), has entered into an extension to the binding letter of intent ("LOI") with British American Offshore Limited ("BAOL"), part of Rowan Companies, Inc. for the N-Class "Rowan Norway", a harsh environment, deep water jack-up unit, designed and built for simultaneous drilling and production, which is currently under construction.

The LOI has been extended to 15th January 2011, in consideration for which the termination fee payable by XER in the event it does not enter into a definitive agreement by this date has been increased to US$4 million.

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.

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