Drawdown on Equity Line

ABERDEENSHIRE, UNITED KINGDOM -- (MARKET WIRE) -- 10/25/11 --

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR
                        INTO THE UNITED STATES

                          TSX-V, LSE-AIM: XEL



25 October 2011



                           Xcite Energy Limited
                    ("Xcite Energy" or the "Company")


                          Drawdown on Equity Line

Xcite Energy announces that it has drawn down on its Standby Equity
Distribution Agreement ("SEDA") with YA Global Master SPV Ltd
("Yorkville") as announced on 28 September 2010 in the amount of GBP3.20
million (CAD$5.15 million). This draw down has been undertaken at a
price of GBP1.18 (CAD$1.90) per share and will result in the issue of
2,707,504 ordinary shares of no par value in the capital of the Company
(the "SEDA Ordinary Shares") to Yorkville. This funding will be used as
future working capital for the Company and to progress towards first
oil from the Bentley field.

Subject to the terms of the SEDA and except in accordance with Canadian
securities laws and with prior written approval of the TSX Venture
Exchange, the SEDA Ordinary Shares may not be sold or otherwise traded
on or through the facilities of the TSX Venture Exchange or otherwise
in Canada or to or for the benefit of a Canadian resident until the
date that is four months and one day from the date of issue.

Application will be made for the admission toAIM("Admission")ofthe
SEDAOrdinaryShares upon approval of the share issue by the TSX
Venture Exchange.The SEDAOrdinaryShareswill rank pari passu with
the Company's existing issued ordinary shares (each, an "Ordinary
Share").

Subject to approval by the TSX Venture Exchange, following the issue of
the 2,707,504 Ordinary Shares the total Ordinary Shares in the Company
in issue will be 186,827,754.

ENQUIRIES:
Xcite Energy Limited                             +44 (0) 1483 549 063
Richard Smith                Chief Executive
                             Officer

Rupert Cole                  Chief Financial
                             Officer


Oriel Securities (Joint Broker and Nomad)        +44 (0) 20 7710 7600
Emma Griffin                 Partner
Simon Edwards                Partner

Morgan Stanley (Joint                            +44 (0) 20 7425 8000
Broker)
Andrew Foster                Managing Director

Pelham Bell Pottinger                            +44 (0) 20 7861 3232
Mark Antelme                 Director
Henry Lerwill

Paradox Public Relations                         +1 514 341 0408
Jean-Francois Meilleur       Consultant



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.

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.

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.



                    This information is provided by RNS
          The company news service from the London Stock Exchange

END

Contacts:
RNS
Customer
Services
0044-207797-4400
Email Contact
http://www.rns.com

Source: Xcite Energy Limited