XSTATE RESOURCES LIMITED — Capital/Financing Update 2023

Jul 18, 2023

ABN 96 009 217 154

Announcement to ASX

==> picture [151 x 68] intentionally omitted <==

19 July 2023

Asset Sale – Alberta Plains, Canada

Highlights

• XST sells its 35% Working Interest in the Alberta Plains oil and gas project

• XST will realise net considera�on circa A$1.2m[1]

Xstate Resources Limited ( ASX:XST ) (“ Xstate ” or “ the Company ”) is pleased to advise that its wholly owned Canadian subsidiary, Xstate Energy Limited (“ Xstate Energy ”), has entered into an agreement to sell 100% of its working interest in the Alberta Plains Project Assets in Alberta, Canada (“ the Project ”) to Blue Sky Resources Limited (“ Blue Sky ”) for a considera�on of C$1,575,000 (approximately A$1,750,000).

The sale agreement is noted as being subject to the Company receiving any and all requisite approvals, if required, specifically from regulators (ASX) and shareholders. There are no other condi�ons precedent to be fulfilled in order for the transac�on to progress. The comple�on date of the transac�on is 60 days from execu�on of the agreement.

C$492,965. As a result, the transac�on will net proceeds of C$1,082,035 (approximately A$1,200,000) payable to Xstate Energy in rela�on to the Alberta Plains Project opera�ons.

This release was approved by the Board of the Company

Andrew Childs

Execu�ve Chairman

Xstate Resources Limited

About Xstate Resources Limited:

Xstate Resources (ASX Code: XST) is an ASX listed company focused on the oil and gas sector. The Company has oil and associated gas production interests in Alberta Canada and Austria, and exploration assets located in the Sacramento Basin, California. Xstate is presently pursuing new opportunities in the oil and gas sector globally.

1

Using AUD/CAD exchange rate of AUD 100 = CAD 90

www.xstateresources.com.au