Xcite Energy Limited (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

9 August 2012

Xcite Energy Limited

("Xcite Energy" or the "Company")

Award of Options

Xcite Energy announces the award of 1,050,000 options to purchase ordinary shares of the Company to four new members of the Xcite Energy Resources Limited Management and Project Team.

The options were granted under the terms of the Company's share option scheme by reference to the closing price on the TSX of the Company's ordinary shares on 8 August 2012 and will vest in three tranches. A total of 250,000 vest immediately, 550,000 on the first anniversary and the balance of 250,000 on the second anniversary of the date of grant.

All options have an exercise price of £0.80 (CAN$1.25) per ordinary share and carry a term of five years from the date of award.

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.