UNDEVELOPED FIELDS IN THE UK NORTH SEA

Xcite Energy Limited, operating out of Aberdeenshire, is engaged in the appraisal and

development of heavy oil resources. The Company has a 100% working interest in the

Bentley oil field in Block 9/3b. Recent 3D seismic interpretation has shown that the

Bentley field is one of the largest undeveloped fields in the U.K. sector of the North

Sea, with significant value uplift potential.

Bentley oil field - large undeveloped resource.

The Company holds a 100% ownership of the Bentley oil field, a large undeveloped

resource in the UK sector of the North Sea. Having successfully tested an appraisal

well in 2008, we believe that a pre-development well will upgrade resources into

reserves. Though the North Sea is considered a mature region, a recent estimate puts

its untapped oil reserves at around 30 billion barrels, a fifth higher than previous

projections. Additionally, the region has a strategic appeal, in the form of its close

proximity to the major European end markets.

Recent tests validate the potential reserves…

The 2009 Competent Person’s Report (“CPR”) has verified that the reservoir structure of

the core area field gives Contingent Resources of between 72 MMbbls and 166

MMbbls. The report confirms that the field has 70% probability of achieving commercial

success, a significant reduction in risk following the drilling of the 9/3b-5 well. The

Company’s recent evaluation of 3D seismic data has confirmed the potential of the

Bentley field, with the Stock Tank Oil Initially in Place (STOIIP) for the Bentley field

ranging between 521 MMbbls and 886 MMbbls, and the most-likely volumetric

measurement being 689 MMbbls. The recent 3D also verified that the upside reservoir

structure for the entire field gives Contingent Resources and Prospective Resources

of between 165 MMbbls and 324 MMbbls, including the CPR resources.

…and commercial viability of the Bentley oil field

Bentley crude oil characteristics closely match with heavy oil extracted from Alba and

Doba regions. Bentley crude has highly favourable qualities for refining to high grade

diesel, together with being highly aromatic and naphthenic in content, which favours the

production of naphthenic lube and high grade needle-coke. These traits increase Bentley

crude’s marketability to specialist manufacturers in the Northwest Europe, and create

potential for lower discount to crude prices.

Nearby fields reinforce Bentley’s oil producability

A number of heavy oil discoveries in the nearby region support the estimated commercial

flow rates from the Bentley oil field. Some (such as Bressay in the north-west and Mariner

in the south-west) of the fields in its vicinity have successfully conducted extensive

field tests, which reinforce the significant potential of resources in the area.