Award of Options

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

21 June 2013

Xcite Energy Limited

("Xcite Energy" or the "Company")

Award of Options

Xcite Energy announces the award of an aggregate of 9,850,000 options to purchase ordinary shares of the Company to the Board of Directors, and to certain members of the Xcite Energy Resources Limited Management team and staff.

The options were granted under the terms of the Company's share option scheme by reference to the closing price on the TSX-V of the Company's ordinary shares on 20 June 2013 and will vest immediately. This award is made in recognition of the substantial upgrade in reserves, as announced by the Company in April 2013.

All options have an exercise price of £1.01 (CAN$1.62) per ordinary share and carry a term of five years from the date of award.

Following these option awards, the Directors of the Company have the following aggregate number of ordinary shares under option:

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.