XSTATE RESOURCES LIMITED — Capital/Financing Update 2017

Oct 24, 2017

ABN 96 009 217 154

25 October 2017

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Announcement to ASX

NOTICE UNDER SECTION 708A OF THE CORPORATIONS ACT 2001

Xstate Resources Limited advises that it has issued 62,698,179 fully paid ordinary shares to sophisticated investors, as outlined in the announcement on 20 October 2017.

The Company gives this notice pursuant to Section 708A(5)(e) of the Corporations Act 2001 (Cth) (“Act”).

The shares were issued without disclosure to investors under Part 6D.2 of the Act.

As at the date of this notice, the Company has complied with:

• (a) The provisions of Chapter 2M of the Act as they apply to the Company; and

• (b) Section 674 of the Act.

As at the date of this notice there is no information that is excluded information for the purposes of Sections 708A(7) and 708A(8) of the Act.

For and on behalf of Xstate Resources Limited

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David McArthur Company Secretary

Level 1, 31 Cliff Street, Fremantle WA 6959 | Tel + 61 8 9435 3200 | Fax +61 8 6444 7408 | www.xstate.com.au