ABERDEENSHIRE, UK--(Marketwire - December 24, 2010) - This announcement is not for release, publication or distribution in or into the United States.

The Company (TSX-V: XEL) (LSE: XEL) (AIM: XEL) announces that it has received communication yesterday of the sale of ordinary shares of nil par value ("Ordinary Shares") by overseas entities controlled by certain Directors of the Company.

The shares sold were as follows:

        Price   Number of Ordinary Shares sold
Richard E. Smith   Director   £3.837   1,101,666
Stephen A. Kew   Director   £3.837   1,101,666
Rupert E. Cole   Director   £3.837   1,101,666
             

Resultant shareholdings in overseas entities controlled by the respective Directors above are as follows:

        No of Ordinary Shares held   Percentage of Xcite Energy
Richard E. Smith   Director   5,198,334   3.28%
Stephen A. Kew   Director   5,212,619   3.29%
Rupert E. Cole   Director   5,198,334   3.28%
             

An early warning report will be filed on SEDAR and will be obtainable from the SEDAR website (www.sedar.com).

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.

Contact Information:

ENQUIRIES:

Xcite Energy Limited
+44 (0)1330 826740
Richard Smith
Chief Executive Officer
Rupert Cole
Chief Financial Officer

Arbuthnot Securities Limited
(Nomad and Broker)
+44 (0)20 7012 2000
Antonio Bossi
Director

Pelham Bell Pottinger
+44 (0) 20 7861 3232
Mark Antelme
Director
Henry Lerwill

Paradox Public Relations
+1 514 341 0408
Jean-Francois Meilleur
Consultant