Xcite Energy Regulatory News (XEL)

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

13 June 2012

Xcite Energy Limited

("Xcite Energy")

Bentley Phase 1A Operational Update

Xcite Energy is pleased to announce that the 9/3b-7z well has reached target depth of 9,646 ft (measured depth) on the Bentley Field.

A reservoir section in excess of 2,000 ft has been drilled with 100% net pay and sand control screens have been run successfully. The top reservoir, at 3,609 ft true vertical depth, is higher than previously encountered in any part of the field to date, thereby giving an oil column depth of approximately 121 ft. Geo-steering was again used successfully in the reservoir section to place nearly 100% of the wellbore in the target range of within 5ft to 12 ft from the roof of the reservoir.

The remainder of the planned operations, including installation of the smart completion equipment (enabling individual laterals to be flowed, co-mingled or shut-in), the down-hole pumps and commissioning of the processing equipment will now be undertaken prior to the production test commencing.

Steve Kew, Exploration and Development Director, commented:

"We are pleased with the work programme to date and this marks the end of the drilling phase as the rig operations now focus on the completion and preparation for production testing, with the upper lateral now ideally positioned as the first production well for Phase 1B of the Bentley development programme. The additional oil column encountered will be assessed and modelled in due course, and augurs well as we move ahead with the work programme towards first oil on Bentley."

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.

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 for the period ended 31 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.