XSTATE RESOURCES LIMITED — Capital/Financing Update 2017

Oct 17, 2017

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MARKET RELEASE

18 October 2017

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 Friday, 20 October 2017, or when the announcement is released to the market.

Security Code: XST

Ben Secrett

Senior Adviser, Listings Compliance (Perth)

Level 40, Central Park 152-158 St Georges Terrace Perth WA 6000

ASX Compliance Pty Limited ABN 26 087 780 489

www.asx.com.au Customer service 13 12 79

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XState Resources Limited ABN 96 009 217 154

Registered office Postal address Level 1 PO Box 584 31 Cliff Street Fremantle WA 6959 Fremantle WA 6160 Tel: +61 8 9435 3200 Website Fax: +61 8 6444 7408 www.xstate.com.au

18 October 2017

Jeremy Newman Senior Adviser, Listings Compliance (Perth) ASX Limited Level 40, Central Park 152-158 St George's Terrace Perth WA 6000

Dear Jeremy,

TRADING HALT REQUEST

Xstate Resources Limited (“Xstate”) requests a halt in trading in its securities from the commencement of trading today, 18 October 2017.

The trading halt is requested pending an announcement to the market in relation to a capital raising by the Company.

For the purposes of Listing Rule 17.1, Xstate provides the following information:

• (a) Xstate requests the trading halt from 18 October 2017 to the commencement of trading on 20 October 2017; and

• (b) Xstate is not aware of any reason why the trading halt should not be granted.

Yours sincerely

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David McArthur Company Secretary