Results for the 3 & 6 Month Periods Ended 30 June

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TSX-V, LSE-AIM: XEL

25 July 2012

Xcite Energy Limited

("Xcite Energy" or the "Company")

Results for the 3 and 6 Month Periods Ended 30 June 2012

Xcite Energy announces its results for the 3 and 6 month periods ended 30 June 2012.

Highlights

v Net loss in the current period of £0.2 million comparable with previous quarters. Further increase in net asset value due to the current well drilling operations as the Bentley field development programme continues. Increased investment in operational team headcount reflecting increased activity levels.

v Cash of £81.8 million as at 30 June 2012, following net new equity capital and debt financing of £40.3 million in the three month period. Included in cash balances are amounts held in escrow of £59.1 million relating to the Bentley Phase 1A work programme.

v Signing of a US$155 million reserves-based lending facility with a leading group of five lending institutions to provide a substantial part of the Phase 1B work programme funding requirement.

v Issue of US$50 million of unsecured 14% loan notes to a Canada-based investment management firm, with a term of 360 days.

v Successful drilling of a mother bore and two lateral wells on Bentley, with the upper lateral providing over 2,200 feet of reservoir section positioned at the top of the reservoir, and the lower lateral with over 2,000 feet reservoir section positioned nearer to the oil water contact.

v Since the period end, the Company announced that it had successfully installed smart completions equipment and down hole pumps in the wells, culminating with the successful commencement of the pre-production flow test on 9 July 2012 and the planned shut-in period and pressure build-up test on 11 July 2012. This planned shut-in period and pressure build-up test is designed to obtain key information about the Bentley reservoir and the mobility of its fluids.

v On 19 July 2012, the Company announced that, following the successful pressure build-up test, the flow test has continued as planned and a stabilised flow rate of 2,900 barrels of oil per day has been comfortably achieved, which was well within the operational performance of the reservoir.

The following tables summarise the Group's financial performance in the 3 and 6 months ended 30 June 2012 and the comparatives for the 3 and 6 months ended 30 June 2011. The Group had no trading revenue in any of these periods.

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 26 October 2010 and in the annual Management's Discussion and Analysis for Xcite Energy dated 22 March 2012 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.

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.