Cessation to be a Reporting Issuer and AGM

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

LSE-AIM: XEL

31 March 2016

Xcite Energy Limited

("Xcite Energy" or the "Company")

Cessation to be a Reporting Issuer and Annual General Meeting

Xcite Energy announces that the Alberta Securities Commission, as principal regulator, and the securities regulatory authority or regulator in each of Alberta, British Columbia, Saskatchewan, Manitoba, Ontario, Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador, have confirmed that Xcite Energy is no longer a reporting issuer in any jurisdiction in Canada.

Xcite Energy will no longer be required to file financial statements and other continuous disclosure documents with Canadian securities regulatory authorities, however Canadian security holders will continue to have access to all financial statements and other continuous disclosure documents required to be filed by the Company in the United Kingdom pursuant to its quotation on AIM. All continuous disclosure documents of the Company are available on the Company's website at www.xcite-energy.com.

This decision does not affect the Company's trading on AIM or reporting obligations in the United Kingdom, but its governance will now be primarily directed by its Articles of Association ("Articles"). Under its Articles, the Company shall hold an annual general meeting ("AGM") not more than fifteen months after the holding of the last preceding AGM, and at least 21 clear days' notice of such meeting will be given to shareholders. Shareholders will be informed of the date of the next AGM in due course which, in any event, will be held no later than Friday, 12 August 2016.

Notes to Editors

Xcite Energy (LSE-AIM: XEL) is an oil appraisal and development company with a portfolio of heavy oilfield assets in the Northern North Sea in the UK. Xcite Energy holds a 100% working interest in the Bentley field; a heavy oil field with 2P recoverable reserves of 267 MMstb, making Bentley one of the largest undeveloped oilfields in the UK Continental Shelf.