Mr. Rupert Cole reports

XCITE ENERGY LIMITED ANNOUNCES SETTLEMENT OF SENIOR SECURED BOND AND ADMISSION OF NEW SHARES

Xcite Energy Ltd. has settled its previously announced $135-million (U.S.) senior secured bond issue issued by its 100-per-cent U.K. subsidiary Xcite Energy Resources Ltd. and has secured the admission of 11,616,875 new shares in the company. The settlement date for the bonds was June 30, 2014, and they will mature on June 30, 2016.

Rupert Cole, chief executive officer of Xcite Energy, commented: "Completion of this financing is very positive for us as we now have the flexibility and additional resources to work with our development partners towards submission of a field development plan. Having derisked the reservoir and simplified the development plan, we are further defining the project costs and schedule in order to address two of the key issues facing many projects in the North Sea. We are also working to reduce the upfront cash requirements of the project to minimize the funding requirements for FDP, and we shall continue to evaluate the financing options available for the first-phase development, including discussions with potential partners."

Total voting rights

Following admission of the shares, the company's enlarged issued share capital will comprise 308,730,421 shares with one voting right per share. There are no shares held in treasury. The total number of voting rights in the company following admission will therefore be 308,730,421. At admission there will be a total of 17.25 million outstanding warrants and 25,652,000 outstanding options to subscribe for shares.

This figure of 308,730,421 shares may be used by shareholders in the company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the company under the Financial Conduct Authority's disclosure and transparency rules.

We seek Safe Harbor.