XSTATE RESOURCES LIMITED — Capital/Financing Update 2021

Feb 8, 2021

9 February 2021

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ABN 96 009 217 154
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Announcement to ASX

Alberta Plains Production Acquisition Closing and Reactivation Commencement

Xstate Resources Limited (ASX: XST) is pleased to report that it has closed on the acquisition of a 10% Working interest ( WI ) in oil and gas producing assets (“ Alberta Plains Assets ”) in southern Alberta, Canada. Plans for the acqusistion were previously reported on 28 January 2021. The Assets consists of oil and gas fields and associated production equipment, located between Edmonton and the USA border (Refer to Map Below).

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Location of Main Asset Properties in Alberta, Canada

Current production is around 100 BOPD and steps are currently being taken to bring selected wells back into production at an expected gross (100%) rate of 500 BOPD. The cost to Xstate of these reactivation activities is AUD$85,000. Xstate is pleased to advise that the funds required for the reactivation program have been remitted to the operator, Blue Sky Resources, and reactivation of the wells in underway.

For and on behalf of the Board of Xstate Resources Limited

For further details please contact:

David McArthur

Managing Director Xstate Resources Limited Tel Office: +61 8 9435 3200

Level 1, 31 Cliff Street, Fremantle WA 6160 | Tel + 61 8 9435 3200 | www.xstateresources.com.au