Excelsior Energy Limited declares the closing of a $1 Million private placement in its North Sea subsidiary, 1385302 Alberta Ltd. (NorthseaCo) as previously disclosed on April 9, 2008.

The private placement consisted of 4,000,000 units (the "Units") issued at a subscription price of $0.25 per Unit. Each unit consists of one common share in the capital of the NorthseaCo (a "Common Share") and one half of a common share purchase warrant (each whole warrant a "Warrant") of NorthseaCo. Each whole Warrant entitles 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. Certain insiders of the Company, including management and directors, participated in purchasing approximately 50% of the Units sold. The proceeds will be used to fund ongoing technical work and business development activities of NorthseaCo in the United Kingdom. After closing the private placement, NorthseaCo has 16,000,000 common shares issued and outstanding. Excelsior owns 75% of NorthseaCo (on a non-diluted basis) and will hold the shares corporately.

The Board of Directors of NorthseaCo will be comprised of Mr. Gerald Roe, Mr. Donald Copeland, Mr. Hussein Charanek, Dr. David Winter, Mr. Harley Winger, Mr. Richard Grafton and Mr. James Howe. Mr. Roe recently retired from Oilexco Incorporated where he served as Chief Operating Officer. Mr. Copeland is the president of Pangman International Limited, a private investment and consulting company. Mr. Copeland was a former director and Chairman of Oilexco Incorporated. Mr. Charanek is an independent businessman with financial interests in energy and experience in domestic and international capital markets. The remaining board members are representatives of the Excelsior Board.

David Winter has agreed to serve as Director and Chief Executive Officer of NorthseaCo. Mary Kennedy and Robert Bailey will serve as Chief Financial Officer and Chief Operating Officer respectively. Excelsior will manage the initial operations and corporate development of NorthseaCo through a services agreement. The Management team will be augmented with the growth of NorthseaCo.

David Winter, President and CEO of the Company commented, "We welcome the new Board members to the team and look forward to working with them. With their successful North Sea experience, and our extensive international experience and expertise we aim to expand the asset base of NorthseaCo and build a successful international oil company active in the North Sea." He added, "Restructuring the company allows Excelsior to focus on its oil sands development, and gives us the ability to independently and more effectively grow and finance North Sea activities. We plan to initiate a public company strategy for NorthseaCo in the near term."