Excelsior Energy Limited has recently completed a transaction whereby it has sold the shares of its wholly owned subsidiary, Excelsior Energy North Sea Limited, to an Alberta private company (NorthseaCo).

NorthseaCo is presently a wholly-owned subsidiary of Excelsior. Excelsior will manage NorthseaCo pursuant to a services agreement. NorthseaCo will manage and fund the work program in the 100% owned License P.1500, Blocks 16/1a and 16/6c, and intends to pursue near term production and development opportunities in the North Sea through acquisitions and participation in licensing rounds. In connection with the restructuring, NorthseaCo intends to issue up to 25% of its common shares on a non-brokered private placement basis for gross proceeds of $1,000,000.

The private placement will be comprised of 4,000,000 units (the "Units") issued at a subscription price of $0.25 per Unit. Each unit will consist of one common share in the capital of the NorthseaCo and one half of a common share purchase warrant of NorthseaCo. Each whole Warrant will entitle the holder thereof to acquire one Common Share at a price of $0.60 per Common Share. The Warrants will expire two years from the date of the closing of the private placement. It is presently anticipated that certain insiders of the Company, including management and directors will participate in the private placement to a maximum level of 50% of the Units being sold. The private placement is expected to close on or about April 21, 2008 and will be subject to applicable hold periods under applicable securities laws. The proceeds will be used to fund ongoing technical work and business development activities of NorthseaCo. On completion of the private placement NorthseaCo will have 16,000,000 shares issued and outstanding (18,000,000 shares on a fully diluted basis).

"This transaction gives us the structure and opportunity to execute an aggressive international strategy and add shareholder value from assets which we believe are currently undervalued within Excelsior," said David Winter, President and CEO of Excelsior. "We look forward to applying our extensive international experience and expertise to expand the asset base of NorthseaCo and build a successful junior oil company active in the North Sea."