ABERDEENSHIRE, UNITED KINGDOM--(Marketwire - January 18, 2011) - Xcite Energy Limited (TSX-V: XEL) (LSE: XEL) (AIM: XEL)

For filings with the FSA include the annex
For filings with issuer exclude the annex 

1. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attached:   XCITE ENERGY (CDI)
2. Reason for the notification     (please tick the appropriate box or boxes)  
An acquisition or disposal of voting rights   X
An acquisition or disposal of financial instruments which may result in the acquisition of shares already issued to which voting rights are attached  
An event changing the breakdown of voting rights  
Other (please specify): ___________  
3. Full name of person(s) subject to the notification obligation:   Ignis Investment Services Limited    
4. Full name of shareholder(s) (if different from 3.):  
5. Date of the transaction and date on which the threshold is crossed or reached if different:   13/01/2011
6. Date on which issuer notified:   18/01/2011
7. Threshold(s) that is/are crossed or reached:   3%
8.Notified details: Nominee holdings
A: Voting rights attached to shares
Class/type of shares Situation previous to the triggering transaction Resulting situation after the triggering transaction
if possible using
Number of Shares Number of Voting Rights viii Number of shares Number of voting rights % of voting rights
Direct Direct  Indirect Direct Indirect
B2942B1         4,634,494   2.92%
B: Financial Instruments
Resulting situation after the triggering transaction xii
Type of financial instrument Expiration date Exercise/ Conversion  Period/ Date Number of voting rights that may be acquired if the instrument is exercised/ converted. % of voting rights
C: Financial Instruments with similar economic effect to Qualifying Financial Instruments
Resulting situation after the triggering transaction
Type of financial instrument Exercise price Expiration Date Exercise/ Conversion period Number of voting rights instrument refers to % of voting rights
          Nominal Delta
Total (A+B+C)
Number of voting rights Percentage of voting rights
4,634,494.00 2.92%
9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held, if applicable:   
Vidacos Nominees Ltd (4,634,494 2.92%)
Proxy Voting:
10. Name of the proxy holder:  
11. Number of voting rights proxy holder will cease to hold:  
12. Date on which proxy holder will cease to hold voting rights:  
13. Additional information: Percentage calculation based on Issued Share Capital of 158,703,998
14. Contact name:       Jean Birrell
15. Contact telephone number:      0141 222 8226

Note: Annex should only be submitted to the FSA not the issuer

Annex: Notification of major interests in shares

A: Identity of the persons or legal entity subject to the notification obligation
Full name (including legal form of legal entities)  
Contact address (registered office for legal entities)  
Phone number & email      0141 222 8286
Other useful information (at least legal representative for legal persons)      Stephanie Griffin
B: Identity of the notifier, if applicable
Full name      Jean Birrell
Contact address      50 Bothwell Street, Glasgow, G2 6HR
Phone number      0141 222 8226
Other useful information (e.g. functional relationship with the person or legal entity subject to the notification obligation)      Public Relations Manager
C: Additional information
The submission of this disclosure is late due to a change in Share Capital not being updated on 11th January 2011 on Bloomberg, therefore it was not noticed that the 3% threshold had been crossed until the share capital change was made today.

For notes on how to complete form TR-1 please see the FSA website.

Contact Information:

Jean Birrell
Public Relations Manager
0141 222 8226