Xcite Energy Regulatory News (XEL)

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TSX-V, LSE-AIM: XEL

1 July 2014

Xcite Energy Limited

("Xcite Energy" or the "Company")

Settlement of Senior Secured Bond and Admission of New Shares

Xcite Energy is pleased to announce the settlement of its previously announced US$135 million senior secured bond issue (the "Bonds") issued by its 100% UK subsidiary Xcite Energy Resources Limited ("XER") and the admission of 11,616,875 new shares (the "Shares") in the Company. The settlement date for the Bonds was 30 June 2014 (the "Settlement Date") and they will mature on 30 June 2016.

Rupert Cole, CEO of Xcite Energy commented:

"Completion of this financing is very positive for us as we now have the flexibility and additional resources to work with our development partners towards submission of a field development plan. Having de-risked the reservoir and simplified the development plan, we are further defining the project costs and schedule in order to address two of the key issues facing many projects in the North Sea. We are also working to reduce the upfront cash requirements of the project to minimise the funding requirements for FDP, and we shall continue to evaluate the financing options available for the first phase development, including discussions with potential partners."

Total Voting Rights

Following admission of the Shares ("Admission"), the Company's enlarged issued share capital will comprise 308,730,421 Shares with one voting right per share. There are no shares held in treasury. The total number of voting rights in the Company following Admission will therefore be 308,730,421. At Admission there will be a total of 17,250,000 outstanding warrants and 25,652,000 outstanding options to subscribe for shares.

This figure of 308,730,421 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 Financial Conduct Authority's Disclosure and Transparency Rules.

Forward-Looking Statements

Certain statements contained in this announcement constitute forward-looking information within the meaning of securities laws, including, but not limited to, information relating to the settlement of the Bonds and Shares, and admission to AIM of the Shares. 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. 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.