XSTATE RESOURCES LIMITED — Capital/Financing Update 2017

Jul 12, 2017

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MARKET RELEASE

13 July 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 Monday, 17 July 2017 or when the announcement is released to the market.

Security Code: XST

Jeremy Newman Senior Adviser, Listings Compliance (Perth)

ASX Compliance Pty Limited ABN 26 087 780 489

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

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 First floor 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

13 July 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, 13[th] July 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 13[th] July 2017 to the commencement of trading on 17[th] July 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