XSTATE RESOURCES LIMITED — Capital/Financing Update 2011

Mar 3, 2011

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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

3 March 2011

ASX Limited

Electronic Lodgement

CLEANSING PROSPECTUS OFFER CLOSED

XState Resources Limited confirms that the offer under the 708A Cleansing Prospectus dated 28 February 2011 has closed, with no shares issued pursuant to the Prospectus.

The Prospectus was issued for the purpose of removing secondary trading restrictions following the recent issue of 10 million shares, as detailed in the Prospectus.

For and on behalf of the Board