ADX ENERGY LTD — Capital/Financing Update 2011

Jun 20, 2011

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ABN 96 009 217 154

21 June 2011

ASX Limited

Electronic lodgement

Sidi Dhaher Started Rig Mobilisation

• Drilling Rig mobilisation commenced on June 20, 2011

• Drilling of the 300+ million barrel potential Sidi Dhaher Prospect expected to commence in early July

Xstate Resources Limited (ASX: XST) advises that as at 20:00 GMT on Monday, 20 June 2011 the mobilization of the camp and rig equipment for the Sidi Dhaher exploration well has commenced.

Road clearance, traffic control and road safety measures are to be provided by the Tunisian authorities.

Once the rig mobilization is completed, rig up and equipment testing will start immediately in order to enable drilling operations to start as soon as possible. The Operator expects that drilling could start early July.

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Figure 1: Sidi Dhaher – Surface Location ready for Drilling Rig

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Figure 2: Sidi Dhaher – Cementing Surface Conductor Pipe ready for rig arrival

“We are pleased to see the rig being moved, and look forward to the imminent drilling of the Sidi Dhaher prospect. It is rare for shareholders to get the opportunity to participate in the drilling of a large oil and gas prospect with up to six separate and vertically stacked prospective reservoirs, all of which have produced oil nearby”, according to Gary Jeffery Managing Director of Xstate Resources Limited .

208 Bagot Road, Subiaco WA 6008 Tel + 61 8 9381 4215 Fax +61 8 9381 9386 www.xstate.com.au

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ABN 96 009 217 154

Sidi Dhaher Prospect Summary

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Figure 3: Sidi Dhaher Prospect Geological Section showing six separate, vertically‐stacked targets for oil and gas

The key attributes of the Sidi Dhaher prospect are:

• Potential for over 300 Million barrels of recoverable prospective oil resource in just the two primary reservoir zones[1] .

• The well is anticipated to intersect 6 prospective reservoir zones; all of which produce oil and gas from fields within 50 kilometres of Sidi Dhaher.

• The estimated cost to drill the well is approximately $6 million and the well is planned to take around 30 days to drill.

• 1 in 3 chance of Geologic Success[1] .

• The prospectivity of Sidi Dhaher is also supported by the presence of coincident hydrocarbon indicator anomalies, namely:

  • Seismic Flat Spots, on all 2D seismic lines crossing the prospect at the shallowest

  • reservoir level; these are interpreted to be potential Direct Hydrocarbon Indicators (“DHI”). Seismic flat spots are often the seismic expression of the interface between hydrocarbons and underlying water zones in good reservoir rocks; and

  • Surface Petroleum Geochemical “Microseepage” Anomalies across the prospect

  • area. Such anomalies are often present above oil and gas fields.

1 Isis Petroleum Consultants Report May 2010

For further information visit www.xstate.com.au or contact:

Xstate Resources Limited

Gary Jeffery (Managing Director)

• T: +61 8 9381 4215

208 Bagot Road, Subiaco WA 6008 Tel + 61 8 9381 4215 Fax +61 8 9381 9386 www.xstate.com.au