XSTATE RESOURCES LIMITED — Capital/Financing Update 2017

Jan 16, 2017

ABN 96 009 217 154

Electronic lodgement

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17 January 2017

ASX Limited

Subscription Agreements deposit update

Xstate Resources Limited provides the following update in relation to the deposit to be received for the subscription of $25 million of shares in the company by overseas investors, as advised to the market on 28 December 2016.

A deposit of 5% of the amount to be raised, being A$1,250,000, was to be paid by the subscribers.

Xstate is in possession of a copy of a signed overseas transfer form signed by Maybank for the transfer of A$1,250,000 to Xstate’s Australian bank account.

Xstate’s corporate advisors to this transaction, Sanston Securities, have advised that the completed offshore funds transfer form must be approved by the Indonesian Government, as with all large overseas transfers.

The Board have been advised this is normal practice, however it is not possible to confirm when such approval will be granted for the transfer.

The investors and Sanston Securities are attempting to expedite this process.

At this stage Xstate has no reason to believe the deposit will not be received, and will advise the market once it is received.

For and on behalf of the Board of Xstate Resources Limited

For further details please contact:

Cosimo Damiano David McArthur Managing Director Non Executive Director/Company Secretary Xstate Resources Limited Xstate Resources Limited Tel Office: +61 8 9423 3200 Tel Office: +61 8 9423 3200 Email: cosimodamiano@xstate.com.au Email: david.mcarthur@broadwaymgt.com.au

About Xstate Resources Limited

Xstate Resources (ASX Code: XST) is an ASX listed company focused on the oil and gas sector. The Company has existing gas exploration assets located in the Sacramento Basin, California and minor associated gas production.

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