Corporate Update & Q3 Results

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

15 November 2011

Xcite Energy Limited

("Xcite Energy" or the "Company")

Corporate Update and Results for the 3 months ended 30 September 2011

Xcite Energy is pleased to provide a corporate update and its results for the three months ended 30 September 2011.

The third quarter of 2011 and subsequent period has seen continued progress in the Company's technical and operational plans for the First Phase Development ("FPD") of the Bentley field. The Rowan Norway jack-up rig has arrived in Dundee and is currently undergoing final equipment testing, crew training and regulatory certification for operations, before it can be handed over to the Company and equipped for its deployment onto the Bentley field.

The Company continues its good progress with the approval process by the Department of Energy and Climate Change ("DECC") of a Field Development Plan for the Bentley field, to be consistent with the rig deployment timing. A final Environmental Statement for the planned FPD on the Bentley field has now been submitted in line with usual practice.

Financing discussions continue to progress satisfactorily and the Company's objective is to conclude these in a consistent timeframe with approval by DECC of a Field Development Plan for the Bentley field and the rig deployment.

The Company's unaudited Financial Results for the three months ended 30 September 2011 can be found at the following link:

http://www.rns-pdf.londonstockexchange.com/rns/0739S_-2011-11-14.pdf

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.

Morgan Stanley which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Xcite Energy and for no one else in connection with the subject matter of this announcement and will not be responsible to anyone other than Xcite Energy for providing the protections afforded to its clients or for providing advice in connection with the subject matter of this announcement.

Oriel Securities which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Xcite Energy and for no one else in connection with the subject matter of this announcement and will not be responsible to anyone other than Xcite Energy for providing the protections afforded to its clients or for providing advice in connection with the subject matter of this announcement.

Forward-Looking Statements

Certain statements contained in this announcement constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to the Company's future outlook and anticipated events or results and, in some cases, can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "target", "potential", "continue" or other similar expressions concerning matters that are not historical facts. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities. While the Company considers these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what we currently expect. These factors include risks associated with the oil and gas industry (including operational risks in exploration and development and uncertainties of estimates oil and gas potential properties), the risk of commodity price and foreign exchange rate fluctuations and the ability of Xcite Energy to secure financing. Additional information identifying risks and uncertainties are contained in the Company's annual information form dated October 26, 2010 and in the annual Management's Discussion and Analysis for Xcite Energy dated March 24, 2011 filed with the Canadian securities regulatory authorities and available at www.sedar.com. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.