Exercise 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

25 January 2013

Xcite Energy Limited

("Xcite Energy" or the "Company")

Exercise of Share Options

The Company announces that application has been made for the admission to AIM ("Admission") of 931,000 new ordinary shares without par value in the Company ("Ordinary Shares"), pursuant to the exercise of share options by a former employee of Xcite Energy Resources Limited. The new Ordinary Shares shall rank pari passu with the Company's existing issued Ordinary Shares and dealings are expected to commence on 28 January 2013.

Following Admission, the Company's enlarged issued share capital will comprise 291,811,000 Ordinary Shares with one voting right per share. There are no shares held in treasury. The total number of voting rights in the Company is therefore 291,811,000.

This figure of 291,811,000 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.