XSTATE RESOURCES LIMITED — Board/Management Information 2011

Mar 14, 2011

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XState Resources Limited

XState Resources Limited ABN 96 009 217 154 Registered office Postal address 41 Stirling Highway PO Box 985 Nedlands WA 6009 Nedlands WA 6909 Tel: +61 8 9423 3200 Website Fax: +61 8 9389 8327 www.xstate.com.au

15 MARCH 2011

ASX Limited

Electronic lodgement

CHAIRMAN’S LETTER

Please find attached a letter from the Chairman of XState Resources Limited.

For and on behalf of the Board.

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XState Resources Limited ABN 96 009 217 154 Registered office Postal address 41 Stirling Highway PO Box 985 Nedlands WA 6009 Nedlands WA 6909 Tel: +61 8 9423 3200 Website Fax: +61 8 9389 8327 www.xstate.com.au

Dear Shareholders,

It is with great pleasure that I have accepted an invitation to join the Board of XState as its Chairman. I am looking forward to working with the XState team to progress the Company’s ambitious aspirations.

To kick things off I recently completed a review of the company’s assets and I have concluded that XState has an unparalleled future in front of it. I have been very impressed by the high quality of the management and staff, and the quality and depth of the Company’s assets.

Our assets are in a proven hydrocarbon basin, with open access to substantial gas processing and transportation infrastructure; we are on the doorstep to the energy hungry EU market; and we have great partners and mega-major neighbours. I think it is fair to characterise XState as being “the smallest house on the best street in town.”

In particular, I am very excited about the 3 gas discoveries in our acreage and the many “high chance of success” targets in the Prospects and Leads inventory. I have spent a substantial part of my career successfully monetising gas fields internationally and it is now my goal to use this extensive expertise to make XState a significant gas producer. Any oil we discover along the way will be the “cream on the cake.”

So, in conjunction with your Board, I have set the goal:

“For XState to become a significant gas producer utilising existing infrastructure to access the energy hungry and high priced European Union market through a development of our gas discoveries and through prudent exploration of the Company’s extensive Prospects and Leads inventory in the Mediterranean Pelagian Basin”

I look forward to working as part of the XState team to bring this goal to fruition in the next few years and to adding substantial shareholder value to our Company.

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David Whitby Chairman

XState Resources Limited