Toronto Stock Exchange: XRG

(All Amounts in $US unless otherwise stated)

KNOXVILLE, TN, July 27, 2011 /PRNewswire/ – Xinergy Ltd., (TSX:XRG and XRG.WT)
(“Xinergy” or the “Company”), a US Central Appalachian producer of high
quality coal, today announced that its wholly owned subsidiary, Xinergy
of Virginia, Inc. has acquired True Energy, LLC (“True Energy”) an
active high volatility metallurgical surface mining operation in
south-western Virginia.

Bernie Mason, Xinergy’s President, said, “We are pleased to close on the
True Energy transaction and add this operation to our growing portfolio
of quality Central App assets. The team in Virginia is currently
producing approximately 10-12 thousand tons per month and we believe we
can increase that production to 200-240 thousand tons annually with
limited capital expenditure.”

Reserves Estimate and Transaction Details

Based on information provided by the previous owner and due diligence,
the Company believes there are approximately 4 million tons of
metallurgical reserves on the property. The Company has already begun
the process to produce a reserve estimate compliant with NI43-101
standards, which will be filed within 45 days. The aggregate purchase
price for True Energy was $18 million cash. Commenting on the deal,
Xinergy’s Chief Financial Officer, said, “The addition of an active
metallurgical operation with additional reserves is a great transaction
for our company and will be accretive to earnings in Q3 and beyond.”

Qualified Person

Jack Hagewood, PE, Regional Manager for the Company has reviewed and
confirmed the scientific and technical information within this news
release relating to reserve estimates and serves as the Qualified
Person as defined in National Instrument 43-101.

About Xinergy Ltd.

Headquartered in Knoxville, Tennessee, Xinergy Ltd., through its wholly
owned subsidiary Xinergy Corp. and its subsidiaries, is engaged in coal
mining in eastern Kentucky, West Virginia and Virginia. Currently,
Xinergy sells high quality coal to electric utilities and industrial
companies throughout the south-eastern United States. For more
information, please visit www.xinergycorp.com.

Forward-Looking Information

This release contains “forward-looking information” that includes
information relating to future events and future financial and
operating performance, including management’s assessment of Xinergy’s
future outlook. Forward-looking information should not be read as a
guarantee of future performance or results and will not necessarily be
accurate indications of the times at, or by which, that performance or
those results will be achieved. Forward-looking information is based on
information available at the time it is made and/or management’s good
faith belief as of that time with respect to future events, and such
information is subject to risks and uncertainties that could cause
actual performance or results to differ materially from those expressed
in or suggested by the forward-looking information. Important factors
that could cause these differences include but are not limited to:
changes in contracted sales, the business of the Company may suffer as
a result of uncertainty surrounding the coal market; the Company may be
adversely affected by other economic, business, and/or competitive
factors; the worldwide demand for coal; the price of coal; the price of
alternative fuel sources; the supply of coal and other competitive
factors; the costs to mine and transport coal; the ability to obtain
new mining permits; the costs of reclamation of previously mined
properties; the risks of expanding coal production; the ability to
bring new mines on line on schedule; industry competition; the
Company’s ability to continue to execute its growth strategies; and
general economic conditions. These and other risks are more fully
described in the Company’s filings with the Canadian Securities
Administrators, including its Annual Information Form for the year
ended December 31, 2010, available on SEDAR at www.sedar.com. You should not put undue reliance on any forward-looking information.
We assume no obligation to update forward-looking information to
reflect actual results, changes in assumptions or changes in other
factors affecting forward looking information, except to the extent
required by applicable securities laws. If we do update one or more
forward-looking information, no inference should be drawn that we will
make additional updates with respect to those or other forward-looking
information.

SOURCE Xinergy Ltd.