XSTATE RESOURCES LIMITED — Capital/Financing Update 2012

Sep 19, 2012

ABN 96 009 217 154

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XState Resources Limited

Head office Postal address 208 Bagot Road PO Box 805 Subiaco WA 6008 Subiaco WA 6904 Tel: +61 8 9381 4215 Website Fax: +61 8 9381 9386 www.xstate.com.au

20 September 2012

ASX Limited Electronic lodgement

Xstate to Realise up to US$1.375 million from Tunisian Assets Sale

Xstate has reached preliminary agreement to sell its 10% participating interests in the Chorbane permit, and its 10% participating interest in the Kerkouane and Pantelleria permits in Tunisia and Italy to the Gulfsands Petroleum Group.

The completion of this transaction is subject to a number of conditions, including finalization of formal Sale and Purchase Agreements and various regulatory approvals, including Xstate shareholder approval, and joint venture approvals. Accordingly, the timing and certainty of completion of these transactions is at present difficult to predict and appropriate announcements as to the progress of each transaction will be made in due course.

The transaction will result in the receipt of US$ 875,000 cash on closing representing sale consideration of US$675,000 and reimbursement of joint venture expenditures of US$200,000, and potentially a further payment of a US$ 500,000 cash bonus upon first production resulting from the drilling of the next exploration well on the Kerkouane Permit. The next exploration well is expected to be selected from a number of advanced exploration prospects that have been developed on 3D seismic data in the Dougga Gas and Condensate discovery area of the Kerkouane Permit.

This sale is consistent with the change in strategy advised in the recently released (September 4, 2012) Company presentation in which Xstate advised it had reduced administrative costs and was seeking to realize value from its Tunisian assets as a part of changing its focus to other oil and gas opportunities.

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Xstate has been and continues to actively seeking new assets to revitalize the company and is pursuing mergers, assets acquisition and acreage applications over areas where Xstate management and advisors have extensive oil and gas exploration and development experience.

The documentation for a meeting of shareholders to approve the sale of the company’s primary assets will be released separately and will contain additional detail.

Any questions should be addressed to the Company’s managing director , Gary Jeffery, on 0417312367.

For and on behalf of the Board

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