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Press Release

Yorkville Advisors completes proprietary equity financing deal with Xcite Energy Ltd.

(London/New Jersey, 30 September 2010) Yorkville Advisors, LLC (Yorkville), the US-based investment manager to an alternative investment fund, is pleased to announce that it has entered into a £20 million Standby Equity Distribution Agreement (SEDA) on behalf of one of its funds with AIM listed Xcite Energy Ltd. (“Xcite Energy”) (AIM:XEL), an exploration and development company focused on heavy oil resources in the North Sea. The deal was advised out of London.

Xcite Energy intends to use funding from the SEDA judiciously and prudently to assist in its future working capital requirements and to progress towards the first stage production of the Bentley field without delay. The Company aims to become a significant independent heavy oil producer in the North Sea by 2014.

Pioneered 9 years ago by Yorkville, a SEDA offers companies a low risk, cost effective way of optimising their capital structure in pursuit of their growth strategy. The SEDA will enable Xcite Energy for up to 36 months from signing of the agreement, to withdraw discretionary funds of up to £20 million in tranches pursuant to the terms of the SEDA, in exchange for the issue of new equity.  The newly issued shares will be priced relative to the prevailing market price at the time of each drawdown. 

Rupert Cole, CFO, Xcite Energy, said: "Working with Yorkville has been a good example of a highly collaborative approach, which will provide the company with financing at times that suit its needs. Yorkville’s financial capacity and flexibility will allow us to move forward rapidly at an important time in our corporate development. We view Yorkville as a long term business partner with genuine alignment of goals, which fully reflects the Xcite Energy approach to its oil field development partners."

Brian Kinane, Managing Director, Yorkville Advisors UK, explained: "We are pleased to become a financial partner of Xcite Energy given the potential of the Bentley field, the Xcite business model and the strong management capability. The SEDA commitment of £20M represents the starting point in our support of Xcite's journey to becoming a major North Sea oil producer."

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About Yorkville Advisors and Yorkville Advisors UK
Yorkville Advisors UK, LLP (Yorkville UK) is the London-based sub-advisor to the New Jersey, US-based Yorkville Advisors, LLC (“Yorkville”), which is the investment manager to an alternative investment fund.

Founded in January 2001 by Mark Angelo, Yorkville specialises in providing innovative debt and equity investments and financing in publicly listed companies worldwide in a variety of sectors including energy, mining, technology media & telecommunication (TMT), healthcare and shipping.

Yorkville tailors its financings to each company’s need and offers a mix of debt structures, bridge financings, asset backed loans, equity facilities and, in some cases, equity injections.

Yorkville has offices in Jersey City, New Jersey; Jupiter, Florida; Denver, Colorado; London and Hong Kong. The firm also has a joint venture agreement in Italy.