Award of Share 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

8 July 2014

Xcite Energy Limited

("Xcite Energy" or the "Company")

Award of Share Options

The Company announces the award of 150,000 options to purchase ordinary shares in the Company to Mr. Henry G. Wilson, following his appointment to the Board of Directors in May 2014.

The options were granted under the terms of the Company's Stock Option Plan by reference to the closing price on the TSX-V of the Company's ordinary shares on 7 July 2014 and will vest immediately. All options will have an exercise price of £0.68 (CAD$1.25) per ordinary share and carry a term of five years from the date of award. Mr. Wilson now holds a total of 150,000 share options.

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.