XSTATE RESOURCES LIMITED — Capital/Financing Update 2014

Feb 13, 2014

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MARKET RELEASE

14 February 2014

Xstate Resources Limited

TRADING HALT

The securities of Xstate Resources Limited (the “Company”) will be placed in Trading Halt Session State at the request of the Company, pending the release of an announcement by the Company. Unless ASX decides otherwise, the securities will remain in Trading Halt Session State until the earlier of the commencement of normal trading on Tuesday, 18 February, 2014 or when the announcement is released to the market.

Security Code: XST

Elizabeth Harris Principal Adviser, Listings Compliance (Perth)

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XState Resources Limited

Registered office Level 2 55 Carrington Street Nedlands WA 6009 Tel: +61 8 9423 3200 Fax: +61 8 9389 8327

ABN 96 009 217 154

Postal address PO Box 985 Nedlands WA 6909

Website www.xstate.com.au

14 February 2014

Elizabeth Harris Adviser-Listings (Perth) ASX Limited 2 The Esplanade Perth WA 6000

Dear Elizabeth,

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 pending an announcement regarding a capital raising which is expected to be made no later than the commencement of trading on 18 February 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