XSTATE RESOURCES LIMITED — Capital/Financing Update 2010

Jun 21, 2010

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XState Resources Limited ABN 96 009 2 1 7 154

Registered office Postal address L e vel 2 PO Box 985 4 5 Stirling High w ay Nedlands W A 6909 N e dlands WA 6009 Tel: +61 8 942 3 3200 Website Fax: +61 8 938 9 8327 www.xstate.com.au

22[nd] June 2 0 10

ASX Limited

CLOSING DATE FOR PRIORITY OFFER ACCEPTANCES

Following shareholder e n quiries, Xst a te Resource s Limited wi s hes to confi r m that the c losing date f o r shareholder s to accept th e “Priority Offer” to roun d up to a par c el of 10,000 shares (on a p ost 1:3 capi t al consolidati o n basis) is 5. 0 0pm (WST) on Wednes d ay 23 June 2 0 10.

Up to 1,000,000 shares ( w ith 500,000 options to b e issued for n o additional c onsideration on the basis o f 1 option for every 2 shar e s subscribe d : such optio n s to be liste d ) have been a llocated for s hareholders to increase the i r holding to 10,000 share s .

The Compa n y also wish e s to confirm that the issu e price of 20 cents per sh a re (and 1:2 a t taching opti o n per above) is on a post 1:3 consolidation basis.

The effecti v e pre-conso l idation pric e of the issu e would be 6 .67 cents p e r share (an d 1:2 attachi n g option). T h is compares with a pre-c o nsolidation p rice of 10 c ents per sha r e at the tim e trading in t h e Company’s shares was s u spended on 10 June 2010.

Shareholde r s with any q u eries are urg e d to contact David McAr t hur on Ph: ( 0 8) 9423 320 0 .

Yours faith f ully XSTATE RESOURCES LIMITED

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DAVID MCARTHUR Director