Mr. Rupert Cole reports

XCITE ENERGY LIMITED ANNOUNCES AWARD OF OPTIONS

Xcite Energy Ltd. has awarded 6.7 million options to purchase ordinary shares of the company to all members of the Xcite Energy Resources PLC management team and staff, and to the board of directors.

The options were granted under the terms of the company's share option scheme by reference to the closing price on the TSX Venture Exchange of the company's ordinary shares on Aug. 18, 2014, and vest immediately. This award is made in recognition of the substantial progress made in 2014 to refinance the company, the formation of the Bentley development partner group, and the work to define and derisk the costs and schedule for the field development plan.

All options have an exercise price of 64 British pence ($1.17) per ordinary share and carry a term of five years from the date of award.

Following these option awards, the directors of the company have the number of ordinary shares under option listed in the table.

                                 OPTIONS

                            Option 
                         award now               Ordinary shares 
                        being made                  under option

Timothy Jones              200,000                       790,000
Gregory Moroney            100,000                       690,000
Scott Cochlan              100,000                       790,000
Henry Wilson               100,000                       250,000
Stephen Kew                650,000                     4,071,000
Rupert Cole                650,000                     4,071,000
Andrew Fairclough          850,000                     2,100,000