Xcite Energy Limited Pricing of Offering of Ordinary Shares

ABERDEENSHIRE, UK -- (Marketwire) -- 03/10/10 -- This Announcement Is Not for Release, Publication or Distribution in or Into the United States.

                          Xcite Energy Limited
                    ("Xcite Energy" or the "Company")
                 Pricing of Offering of Ordinary Shares

Xcite Energy ( TSXV:XEL) ( XEL) ( XEL), a developer of heavy oil assets in the UK North Sea, announced today that it has priced the equity financing described in the Company's preliminary short form prospectus dated February 5, 2010.

The Company has entered into an agency agreement dated March 9, 2010 with Octagon Capital Corporation and CIBC World Markets Inc. as agents, and Arbuthnot Securities Limited as special selling agent, in respect of the offering of ordinary shares in the capital of the Company (each an "Ordinary Share") contemplated by the Company's preliminary short form prospectus dated February 5, 2010. Under the terms of the agency agreement, the Company will offer Ordinary Shares for sale pursuant to the short form prospectus at prices of: (i) C$0.62 per Ordinary Share to subscribers in North America; and (ii) £0.40 per Ordinary Share to subscribers in the United Kingdom, to raise aggregate gross proceeds of approximately C$38,422,884 (£24,982,559 based on an exchange rate of C$1.00:£0.6502).

The Company anticipates filing a final short form prospectus on March 10, 2010 and anticipates closing the offering on or about March 18, 2010. Closing of the offering is subject to customary conditions, including the approval of the TSX Venture Exchange.

The net proceeds of the offering, together with US$4 million in funds committed to the Company by Challenger Minerals (North Sea) Limited, are anticipated to be used primarily to fund the drilling and flow testing of the 9/3b-R pre-development well on the Company's Bentley oil field. The balance of the net proceeds of the offering will be used for general working capital purposes.

The Ordinary Shares have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "Securities Act"), and, may not be offered, sold or delivered, directly or indirectly, in the United States or to or for the account or benefit of any U.S. person unless the securities are registered under the Securities Act or an exemption from the registration requirements of the Securities Act is available. This press release does not constitute an offer to sell or solicitation of an offer to buy any securities, nor shall there by any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful.

Neither 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 December 8, 2009 and in the annual Management's Discussion and Analysis for Xcite Energy dated March 26, 2009 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.