Mr. Roger Ramshaw reports

RESULTS OF ANNUAL AND SPECIAL MEETING AND CHAIRMAN'S OPENING REMARKS

Xcite Energy Ltd. has released the results of its annual and special meeting held on May 16, 2013.

The holders of ordinary shares of the company approved the following matters at the annual and special meeting, with votes in favour shown in brackets as a percentage of total votes cast:

1. The reappointment of the following nominated directors to the board of directors of the company and for them to continue in office in accordance with the company's articles of association:
   • Rupert E. Cole (98.9 per cent);
   • Scott R. Cochlan (95.8 per cent);
   • Timothy S. Jones (94.9 per cent);
   • Stephen A. Kew (99.8 per cent);
   • Gregory J. Moroney (96.3 per cent);
   • Roger S. Ramshaw (95.5 per cent);
2. The reappointment of BDO LLP as auditor for the ensuing year and the authorization for the directors of the company to fix its remuneration (99.9 per cent);
3. A resolution to ratify and confirm the stock option plan of the company dated Sept. 26, 2007, as amended (94.6 per cent);
4. A resolution to ratify and confirm the existing shareholder rights plan of the company dated Nov. 30, 2010, as amended (96.6 per cent).

At the annual general meeting on May 16, 2013, Roger Ramshaw, chairman, made the following opening remarks: "Two thousand twelve saw the safe and successful conclusion of the preproduction well test on the Bentley field, which concluded in mid-September. This was a very significant achievement, for a company of our size, to manage a $250-million offshore work program safely, on budget and on time, over a 10-month period. We produced 150,000 barrels of Bentley crude, blended it offshore and successfully sold it through our marketing partner BP. We also captured significant quantities of data over the course of the test, which has provided the evidence to update our reserves report so comprehensively and given us a high degree of confidence in the new field development plan for Bentley. From any perspective, this is something of which we can be very proud.

"The real impact of the 2012 well test is an increase in confidence in how the field might be developed. The test encompassed all aspects from drilling, through processing and flow assurance, to blending and offtake to market. We have been able to implement all the lessons learnt into a more robust and efficient field development plan. The months of analysis and modelling following the well test, together with the interpretation of our new 3-D seismic over Bentley, have resulted in far greater certainty in the field and its development plan, as evidenced by the recent and substantial increase in recoverable reserves and asset value.

"Our 2P reserves for Bentley now stand at 250 million barrels, with a discounted net present value after tax of approximately $2.2-billion. This represents an increase of over 116 per cent against the previously reported 2P reserves of 116 million barrels.

"Heavy oil fields generally have long production lives, and Bentley is no exception with a 35-year reserves profile out to the year 2050, reflecting the current design life of facilities used in the North Sea. TRACS, our independent reserves auditor, recognizes that there is additional economic production from Bentley of a further 20 years beyond this initial period (out to the year 2070) and has assigned a further 46 million barrels of contingent resources to this 20-year period. We believe that, by more detailed work on areas such as optimizing the field and extending field life, there is the potential to access these resources and deliver further low-risk upside.

"We also have other areas of potential future growth through the implementation of enhanced oil recovery techniques on the field, as well as exploration on adjacent assets, including those awarded in the recent 27th licensing round. These are at an early stage and we would expect to progress them systematically, as we have always done.

"Not surprisingly, we are greatly disappointed by the share price performance, especially following the great result we have delivered, but we will continue to move forward and focus on what we can control, which is the development of Bentley. Securing funding is a critical element of this and we have recently begun a farm-out process to find a suitable partner. We believe it should be possible to materially increase our RBL (reserves-based lending) facility as a result of the reserves upgrade, and will be engaging with our existing and new banks to progress this. We will also be resubmitting an updated FDP in the coming months.

"We believe heavy oil's time has come in the North Sea, as evidenced by the very significant investments currently being made by Statoil (and partners) into the Bressay field just to the north of Bentley, the Mariner field to the south of Bentley, and EnQuest and partners' expected commitment to develop the Kraken field to the west of Bentley. Together, these fields represent very substantial sources of future long-term oil production from the North Sea, which as currently forecast, would make substantial long-term contributions to the U.K. economy.

"Finally, I would once again like to thank all of the Xcite team for their hard work, expertise and dedication to this outstanding Bentley project, which the board has been very pleased and proud to be part of over the last few years."

For further details, please see the management proxy circular dated April 9, 2013, available on the company's website and at SEDAR.

We seek Safe Harbor.