CALGARY, ALBERTA–(EMWNews – July 29, 2008) – Excelsior Energy Limited (TSX VENTURE:ELE) (“Excelsior” or “the Company”) is pleased to announce the completion of an updated independent evaluation of bitumen resources on Excelsior’s Hangingstone property (“Hangingstone” or “Hangingstone Asset”), near Fort McMurray, Alberta. The report was prepared to provide an independent assessment of the results of a 26 well core drilling program at Hangingstone completed in March, 2008. Excelsior has a 75% working interest in 39 contiguous sections of oil sands rights in the Hangingstone Asset.

The resource estimates were prepared by McDaniel & Associates Consultants Limited (“McDaniel”). The McDaniel report (“the Report”) was prepared using assumptions and methodology guidelines outlined in the Canadian Oil and Gas Evaluation Handbook and in accordance with National Instrument 51-101. The effective date of the evaluation is July 1, 2008. The Report incorporates the McDaniel price deck as at July 1, 2008 in the forecast price scenario.

The Report represents the first evaluation of the Hangingstone Asset prepared by McDaniel. Readers are cautioned that the Report cannot be compared to the Hangingstone evaluation prepared as at December 31, 2007 because of differences in methodology.

“The discipline of the McDaniel methodology supports the resource base” commented Robert Bailey, COO and Vice President, Engineering of Excelsior, “The report confirms the commercial potential of the Hangingstone Asset and provides a strong base for continued delineation. Excelsior is working towards a 10,000 bopd SAGD demonstration project application at Hangingstone in Q2, 2009.”

Discovered and Undiscovered Petroleum Initially-in-Place

McDaniel has recognized best estimate Discovered Petroleum Initially-in-Place of 1.587 billion barrels on the Hangingstone Asset in proximity to well control (Excelsior working interest share) with a low estimate of 1.107 billion barrels and a high estimate of 2.072 billion barrels. The area included in Discovered Petroleum Initially-in-Place assignments, based on well control, amounts to approximately 50% of Hangingstone gross lands. Generally, McDaniel’s methodology for the assignment of Discovered Petroleum Initially-In-Place requires a minimum delineation density of one well per square mile.

McDaniel has determined additional prospectivity in an Undiscovered Petroleum Initially-in-Place assignment. The Report assigns 3.041 billion barrels of best estimate Discovered and Undiscovered Petroleum Initially-in-Place to the Hangingstone Asset (Excelsior working interest share) with a low estimate of 2.281 billion barrels and a high estimate of 3.801 billion barrels.

Contingent Resources

The Report assigned Contingent Resources to Hangingstone based on the well delineation density achieved as of March, 2008. Best estimate Contingent Resources were estimated at 119.0 MMbbls (Excelsior working interest share before royalty); low estimate Contingent Resources were estimated at 83.7 MMbbls and high estimate Contingent Resources were estimated at 165.9 MMbbls. The assigned Contingent Resources are further categorized as economic.

The Report estimated that Excelsior’s best estimate Contingent Resources would generate $1.360 billion of future net revenue with a net present value before income tax discounted at 8% (“NPV8”) of $283 million after deduction of $1.988 billion in future capital requirements and abandonment costs of $37.8 million.

McDaniel calculates Contingent Resources based on that portion of Discovered Petroleum-Initially-in-Place that meets the requisite minimum qualitative and quantitative criteria to be exploited using conventional SAGD technology.

The Contingent Resource volumes have not been classified as Reserves at this time pending further delineation drilling, development planning and regulatory applications.

Share Value based on Contingent Resource and Common Shares Outstanding

On a per share basis the estimated NPV8 for best estimate Contingent Resources equates to $2.60 per Excelsior common share outstanding, the estimated NPV8 for the high estimate Contingent Resources equates to $5.62 per Excelsior common share outstanding. The estimated NPV8 for the low estimate Contingent Resources equates to $0.87 per Excelsior common share outstanding. There are approximately 108.8 million Excelsior common shares outstanding.

Prospective Resources

McDaniel also assigned Prospective Resources to Hangingstone. Best estimate Prospective Resources were estimated at 86.0 MMbbls (Excelsior working interest share before royalty); low estimate Prospective Resources were estimated at 55.1 MMbbls and high estimate Prospective Resources were estimated at 110.7 MMbbls.

The Report estimated that Excelsior’s best estimate Prospective Resources would generate $0.841 billion of future net revenue with an NPV8 of $126 million after deduction of $1.766 billion in future capital requirements and abandonment costs of $40.2 million.

McDaniel calculates Prospective Resources based on that portion of Undiscovered Petroleum-Initially-in-Place that is expected to meet the requisite minimum qualitative and quantitative criteria to be exploited using conventional SAGD technology.

The Prospective Resource volumes have not been classified as Contingent Resources at this time pending additional delineation drilling.

Incremental Share Value based on Prospective Resource and Common Shares Outstanding

On a per share basis, the estimated NPV8 for best estimate Prospective Resources equates to $1.16 per Excelsior common share outstanding, the estimated NPV8 for the high estimate Prospective Resources equates to $2.28 per Excelsior common share outstanding. The estimated NPV8 for the low estimate Prospective Resources equates to $(0.13) per Excelsior common share outstanding. There are approximately 108.8 million Excelsior common shares outstanding.

Summary Tables

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                    Summary of Discovered and Undiscovered
                         Petroleum Initially-in-Place
                       Hangingstone, Gross Company Share
                     McDaniel & Associates - July 1, 2008
                             (Billions of barrels)
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                                           Low           Best          High
                                      Estimate       Estimate      Estimate
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Discovered Petroleum
 Initially-in-Place                      1.107          1.587         2.072
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Discovered and Undiscovered
 Petroleum Initially-in- Place           2.281          3.041         3.801
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                Summary of Contingent and Prospective Resources
                         Hangingstone, Gross Company Share
                       McDaniel & Associates - July 1, 2008
                               (Millions of barrels)
----------------------------------------------------------------------------
                                           Low           Best          High
                                      Estimate       Estimate      Estimate
----------------------------------------------------------------------------
Contingent Resources                      83.7          119.0         165.9
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Prospective Resources                     55.1           86.0         110.7
----------------------------------------------------------------------------



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                 Summary of Net Present Value Before Income Tax
                 Hangingstone, McDaniel & Associates - July 1, 2008
                        Contingent Resources - Forecast Price
----------------------------------------------------------------------------
                         Discount at 0%     Discount at 8%   Discount at 10%
----------------------------------------------------------------------------
                     Millions    $ Per   Millions   $ Per   Millions  $ Per
                         of $    Share       of $   Share       of $  Share
----------------------------------------------------------------------------
Low Est.                  796     7.32         95    0.87         33   0.30
----------------------------------------------------------------------------
Best Est.               1,360    12.50        283    2.60        178   1.64
----------------------------------------------------------------------------
High Est.               2,448    22.50        612    5.62        438   4.02
----------------------------------------------------------------------------



----------------------------------------------------------------------------
                 Summary of Net Present Value Before Income Tax
               Hangingstone, McDaniel & Associates - July 1, 2008
                      Prospective Resources - Forecast Price
----------------------------------------------------------------------------
                         Discount at 0%     Discount at 8%   Discount at 10%
----------------------------------------------------------------------------
                     Millions    $ Per   Millions   $ Per   Millions  $ Per
                         of $    Share       of $   Share       of $  Share
----------------------------------------------------------------------------
Low Est.                  288     2.65        (14)  (0.13)       (34) (0.31)
----------------------------------------------------------------------------
Best Est.                 841     7.73        126    1.16         70   0.64
----------------------------------------------------------------------------
High Est.               1,249    11.48        248    2.28        164   1.51
----------------------------------------------------------------------------

Definitions:

1) Discovered Petroleum Initially-in-Place

– Defined as that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. The recoverable portion of Discovered Petroleum Initially-in-Place includes production, reserves, and contingent resources; the remainder of the volume is unrecoverable.

2) Undiscovered Petroleum Initially-in-Place

– Defined as that quantity of petroleum that is estimated, on a given date, to be contained in accumulations yet to be discovered. The recoverable portion of Undiscovered Petroleum-Initially-in-Place is referred to as Prospective Resources; the remainder is classified as unrecoverable.

3) Contingent Resource

– Defined as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Economic contingent resources are those contingent resources that are currently economically recoverable.

4) Prospective Resource

– Defined as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development.

5) Low Estimate

– Defined as a conservative estimate of the quantity that will actually be recovered from the accumulation. If probabilistic methods are used, this term reflects P90 confidence level.

6) Best Estimate

– Defined as the best estimate of the quantity that will actually be recovered from the accumulation. If probabilistic methods are used this term is a measure of central tendency of the uncertainty distribution (P50).

7) High Estimate

– Defined as an optimistic estimate of the quantity that will actually be recovered from the accumulation. If probabilistic methods are used the term reflects a P10 confidence level.

About Excelsior Energy

Excelsior is active in oil sands exploration and appraisal in the Hangingstone and West Surmont areas near Fort McMurray, Alberta. Excelsior holds a 75% working interest in 39 contiguous sections at Hangingstone and will own a 75% working interest in an additional 19 contiguous sections at West Surmont upon completion of its farm-in obligations. The Company also holds minor interests in gas production in Alberta.

The Company strategy is to capture oil and gas appraisal and development opportunities where we can leverage Management’s diverse international experience and field development expertise. This includes heavy oil reservoir engineering and development of complex fields. The scale of the oil sands resource opportunity in Alberta complements Excelsior’s international portfolio and strategy.

Estimations of reserves and future net revenue discussed in this press release constitute forward looking statements. See “Forward Looking Statements” below.

Forward Looking Statements: This press release contains forward-looking statements. Management’s assessment of future plans and operations, expected production levels, operating costs, capital expenditures, the nature of capital expenditures, methods of financing capital expenditures, future engineering reports and the timing of increases in production may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, the Company’s actual results may differ materially from those expressed in, or implied by, the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect the Company’s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward looking statements contained in this press release are made as at the date of this press release and the Company does not undertake any obligation to update publicly or to revise any of the included forward looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

The reserves and future net revenue in this press release represent estimates only. The present value of estimated future net cash flows and the share value based on the net present value referred to herein should not be construed as the current market value of estimated crude oil and natural gas reserves attributable to the Company’s properties. Resources do not constitute, and should not be confused with, reserves. No bitumen reserves have been recovered within any of the Company’s project areas and there is no assurance that any commercial oil sands projects will be developed. Estimates of Excelsior’s in-place bitumen “Discovered Resources”, “Undiscovered Resources”, “Contingent Resources” and “Prospective Resources” are forward-looking statements. Further classification is dependent on, among other things, additional feasibility studies and pilot testing and are inherently uncertain and are generally considered more uncertain than estimates of reserves. Future estimates of recoverable resources and actual recoverable resources will differ and may differ materially from the estimate of in-place Discovered Resources or other resources. The commercial viability of discovered and undiscovered resources is affected by numerous factors which are beyond the Company’s control and which cannot be predicted, such as the potential for further financing, environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.