Xcite Energy Limited ("Xcite Energy" or the "Company") Results for the 3 Month Period Ended June 30, 2008

Market Wire, August, 2008

Xcite Energy (TSX-V: XEL) (AIM: XEL) is a heavy oil company focused on the development of discovered resources in the United Kingdom North Sea. The Company holds a 100% working interest in Block 9/3b, the Bentley field, one of the largest undeveloped heavy oil fields in the United Kingdom North Sea.

The Company is listed on the AIM Market of the London Stock Exchange (AIM) and the TSX Venture Exchange (TSX-V).

The Company today announces its financial and operational results for the 3 month period ended June 30, 2008 and its outlook for the remainder of 2008.

KEY HIGHLIGHTS

Operational

--  Successful appraisal well completed on Bentley in February 2008.

--  Commercial potential of the field confirmed and key objectives met.

--  Operational update in April 2008 highlighted forecast flow rate of
    over 4,000 barrels of oil per day from each single production well using
    existing technologies.

--  Strengthening of the XER team through management appointments as the
    Company continues to prepare for the planned early production system.
    

Financial

--  Cash balance as at June 30, 2008 was £4.83 million in line with
    budget.
    

2008 OUTLOOK

--  RPS Energy, independent reserves engineer, appointed to prepare an
    updated Competent Person's Report ("CPR"), which is expected to be
    completed in Q4 2008.

--  Programme remains on track to effectively and efficiently
    commercialise the Bentley field.

--  Preparation for Full Field Development Plan and early production
    system continues and will be announced in conjunction with the updated CPR
    in the second half of 2008.

--  Early production system to be completed within the anticipated
    timescale.

--  Data expected to be received in November 2008 from StatoilHydro's
    Bressay well, following the well data trade agreement entered into May
    2008.

--  Other identified business opportunities are currently being reviewed.
    

Richard Smith, Xcite Chief Executive Officer commented:

"The successful appraisal well on the Bentley field and the strengthening of the XER technical and commercial team has enabled us to make significant progress in the programme to commercialise Bentley. We look forward to an equally productive latter half of 2008."

The Company has also filed its Management Discussion and Analysis and Interim Unaudited Financial Statements. These documents can be found for viewing by electronic means on the System for Electronic Document and Analysis Retrieval at www.sedar.com .

The TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

Certain statements contained in this announcement constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to the Company's future outlook and anticipated events or results and, in some cases, can be identified by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "intend," "estimate," "predict," "target," "potential," "continue" or other similar expressions concerning matters that are not historical facts. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities. While the Company considers these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what we currently expect. These factors include changes in market and competition, governmental or regulatory developments and general economic conditions. Additional information identifying risks and uncertainties are contained in the Company's prospectus filed with the Canadian securities regulatory authorities, available at www.sedar.com . The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.

Below is the link to Management's Discussion and Analysis and Interim Consolidated Financial Statements:

http://www.rns-pdf.londonstockexchange.com/rns/8183B_-2008-8-21.pdf

ENQUIRIES: Xcite Energy +44 (0) 1330 826 740 Richard Smith Chief Executive Officer Rupert Cole Chief Financial Officer Thomas Weisel Partners (UK) Limited +44 (0) 20 7877 4300 Paul Colucci Managing Director Paul Newman Managing Director Strand Partners Ltd. +44 (0) 20 7409 3494 James Harris Director Warren Pearce Associate Director Pelham Public Relations +44 (0) 20 7743 6676 Alisdair Haythornthwaite Director Katherine Stewart Account Manager