XCITE ENERGY : Memorandum of Understanding with AIBEL AS

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION

TSX-V, LSE-AIM: XEL

4 July 2014

Xcite Energy Limited

("Xcite Energy" or the "Company")

Memorandum of Understanding with AIBEL AS

Xcite Energy announces that its 100% subsidiary, Xcite Energy Resources Limited ("XER"), has entered into a Memorandum of Understanding ("MOU") with Aibel AS ("Aibel"), which sets out the principles for executing the Engineering, Procurement and Construction of the Ove Arup & Partners ("Arup") designed self-installing ACE platform selected for the Bentley field .

Aibel will work with AMEC, the international engineering and project management company, acting as XER's Project Management Contractor, to deliver the ACE platform.  XER believes that the combination of the AMEC, Arup and Aibel project management, engineering, and construction experience will deliver a quality and cost effective asset.

Rupert Cole, CEO of Xcite Energy, commented:

"We are very pleased to have Aibel, with its experience and expertise in offshore projects, join the Bentley development group for the construction of the ACE platform, which has significant economic benefits over the life of the field, including rapid deployment and ease of decommissioning. This further validates our strategy and development plan as we continue to refine the project costs and reduce future schedule risk through the early involvement of our development partners, prior to submission of a field development plan."

Notes to Editors

AIBEL is a leading service company in the oil and gas industry. The company is also established within renewable energy.

Around 6,000 employees are engaged in work both onshore and offshore. Aibel has eight offices in Norway. In addition, the company has operations in Thailand, Singapore, the UK, Denmark and Egypt.

AMEC (LSE: AMEC) is a leading supplier of consultancy, engineering and project management services to its customers in the world's oil and gas, mining, clean energy, environment and infrastructure markets. Our 27,000 people design, deliver and maintain strategic and complex assets in around 40 countries worldwide. See amec.com.

Arup is the creative force at the heart of many of the world's most prominent projects in the built environment and across industry. From 90 offices in 38 countries our 11,000 planners, designers, engineers and consultants deliver innovative projects across the world with creativity and passion.

For further information about the ACE platform and related services, please visit:http://www.arup.com/Services/Oil_and_Gas_Engineering.aspx

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 risks associated with the oil and gas industry (including operational risks in exploration and development and uncertainties of estimates oil and gas potential properties), the risk of commodity price and foreign exchange rate fluctuations and the ability of Xcite Energy to secure financing. 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.

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.