ABERDEENSHIRE, UK--(Marketwire - January 14, 2011) - Xcite Energy announces that its 100% subsidiary, Xcite Energy Resources Limited ("XER"), (TSX-V: XEL) (LSE: XEL) (AIM: XEL) has entered into an extension to the binding letter of intent ("LOI") with British American Offshore Limited ("BAOL"), part of Rowan Companies, Inc. for the N-Class "Rowan Norway" jack-up rig.

The LOI has been extended by mutual consent to 31st January 2011 with no amendment to the existing termination fee payable by XER in the event it does not enter into a definitive agreement by this date.

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