Drawdown on Equity Line

ABERDEENSHIRE--(Marketwire - November 30, 2011) -

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                         TSX-V, LSE-AIM: XEL



1 December 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 GBP2.0 million (CAD$3.2 million). This draw down has been undertaken at a price of GBP1.1025 (CAD$1.764) per share and will result in the issue of 1,814,059 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 1,814,059 Ordinary Shares the total Ordinary Shares in the Company
in issue will be 190,810,070.
ENQUIRIES:

Xcite Energy Limited                               +44 (0) 1483 549 063
Richard Smith                Chief Executive
                             Officer
Rupert Cole                  Chief Financial
                             Officer

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


Morgan Stanley (Joint Broker)                      +44 (0) 20 7425 8000

Andrew Foster                Managing Director

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


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


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Source: Xcite Energy Limited