XSTATE RESOURCES LIMITED — Capital/Financing Update 2014

Sep 25, 2014

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ABN 96 009 217 154

26 September 2014

Adviser-Listings (Perth) Australian Securities Exchange 2 The Esplanade Perth, WA, 6000.

Dear Sir/Madam,

RE: REQUEST FOR TRADING HALT

Xstate Resources Limited (the "Company") requests a halt in trading of the Company’s securities be granted by the Australian Securities Exchange with respect to its ordinary shares in accordance with Listing Rule 17.1.

The Company seeks a trading halt with effect from the commencement of trading on 26 September 2014 pending an announcement regarding a farm out which is expected to be made no later than the commencement of trading on 30 September 2014.

The Company is not aware of any reason why the trading halt should not be granted and is not aware of any other information required to be provided to the market or the ASX in relation to the trading halt.

Please call the undersigned should you have any further queries.

Yours sincerely

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David McArthur Company Secretary

Level 2, 55 Carrington Street, Nedlands WA 6009 Tel + 61 8 9423 3200 Fax +61 8 9389 8327 www.xstate.com.au