XSTATE RESOURCES LIMITED — Capital/Financing Update 2025

Sep 17, 2025

ABN 96 009 217 154

Electronic lodgement

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18[th] September 2025

Announcement to ASX

Diona 1: Project Update

Xstate Resources Limited (ASX:XST) ( Xstate or the Company ) is pleased to provide the attached update in relation to the imminent drilling of the Diona-1 well next week.

Key dates are:

• Associated drilling equipment will start to arrive this Saturday, 20[th] September 2025

• Drilling spud date expected to be Friday 26[th] September 2025

This announcement has been authorised for release by the Board of Directors.

Andrew Bald Managing Director

About Xstate Resources Limited:

Xstate Resources (ASX Code: XST) is an ASX listed company focused on the oil and gas sector. The Company holds exploration assets located in Queensland, Australia. The Company additionally holds exploration assets in the Sacramento Basin, California.

www.xstateresources.com.au

Diona-1 Well Program Update

Andrew Bald (Managing Director) bald@xstateresources.com.au Xstate Resources Limited (ASX:XST) Sept 2025 www.xstateresources.com.au

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Milestones

• Drilling Contract signed with Ventia on 12[th] September

• Shares re-listed on 16[th] September

• Cellar and Conductor Pipe installed

Coming Up

• Ventia Rig 101 due to be mobilised on Sunday 21[st] September

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• Rig to arrive at well pad week of 22[nd] September

• Spud date forecast for 26[th] September

• Drilling to top of Showgrounds formation (2,300m) expected to take 6-7 days

• Drilling to total depth of 2,600m expected to take 10 days (ETA 6-8[th] October)

Installation of the Conductor pipe at Diona-1

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DIONA PROJECT Precis

• Proven hydrocarbon province

• Multiple producing fields nearby

• High profile and upcoming ASX neighbours

• High chance of success at 55%[1]

• Shallow target 2,300m

• Low cost drilling at $2.7m

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• Very close to infrastructure including pipeline and processing plant

Diona-1 well pad

• Current high gas prices support positive economics

• Well to be drilled in week of 22[nd] September 2025

1 Per one or more horizons, see Prospective Resources Statement on Slide 9

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THE XSTATE STORY The Xstate Story

Farming into Diona block in Farming into Diona block in Surat-Bowen basin, QLD, The Diona Prospect has a total un-risked mean Queensland, Australia, previously 100% owned by Elixir Energy Ltd (ASX prospective resource of currently owned by Elixir Code EXR) 12.5 billion standard Energy Ltd (ASX Code EXR) cubic feet equivalent[1] Xstate to acquire 51% ~~interest in Elixir’s 369km[2]~~ Diona block (part of ATP 2077)

Xstate is re-listing as Extensive geoscience studies characterize the drilling Operator in the proven opportunity as low risk with 55% COSSurat-Bowen Basin[1] Neighbours include:

• AGL

Extensive geoscience studies • Santos Xstate to accelerate work ~~characterize the drilling • BP program as Operator and~~ opportunity as low risk with • Omega sole fund drilling of an 55% COS[2] • Elixir exploration well, Diona-1, The Diona Prospect has a total un-risked mean • Bridgeport expected to spud in third quarter calendar 2025 prospective resource of 12.5 billion standard cubic feet equivalent[2] 05

Xstate has acquired a 51% interest in Elixir Energy’s 369km[2] Diona block (part of ATP 2077) 01 03

Xstate has re-listed as the Operator in the 02 proven Surat-Bowen Basin. Neighbours include AGL, Santos, Shell, Omega, Elixir, Bridgeport

Xstate’s accelerated work program as Operator will 06 sole fund drilling of exploration well, Diona-1, expected to spud in week commencing 22[nd] Sept 2025

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1 51% to Xstate equivalent to 6.4Bscfe net

1 per one or more horizons, see Prospective Resources Statement on Page 92 per one or more horizons 2 51% to Xstate equivalent to 6.4Bscfe net

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u
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Diona - Location

• Premium Hydrocarbon country

• Proximal to numerous other oil and gas discoveries in the Showgrounds Formation

• Surrounded by Waggamba, Taylor, Silver Springs, Louise and Alton fields

  • 70km west of Omega’s Canyon-1 and Canyon-2

  • 12km west of Waggamba gas field (100% AGL)

  • 11km east of Taylor oil and gas field

• Very close to infrastructure

  • <200m to Waggamba pipeline

  • 15km east of Silver Springs gas processing plant

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 4-way dip closed anticline with stratigraphic upside

Diona - Geology

• Situated on a structural nose plunging into source rock

depo-centre

 Structural trap covers 1.0 km[2]

• Stratigraphic trap covers 13.7 km[2]

• Unrisked 100% Gross Mean Prospective Resource 12.5 BCFE

• Technical Risking of any one horizon: 55%[1]

• Depth to Target[2] 2300m

1 per one or more horizons

2 estimated depth to top of target

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Diona - Prospectivity

• Diona prospect targets 3 stacked reservoir objectives at

Showgrounds, Upper Tinowon and Wallabella Sandstone levels all of which can be tested via a single vertical exploration well

• The Tinowon and Wallabella Sandstone targets have additional

• stratigraphically trapped upside associated with the inferred

• pinch-out of these two reservoirs against the eastern flank of the Wunger Ridge

• Diona is well located for hydrocarbon charge due to its position on

• a prominent east-southeast nose that plunges down into the prognosed Permian source kitchen.

• Gas-condensate is considered the most likely hydrocarbon phase,

but oil is a possibility

• At least 3 additional prospects identified and being matured

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Diona - Prospectivity

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721500 731500 741500
Diona - Prospectivity
Prospect B:
• 1.7km [2] closure at primary target Showgrounds Sandstone level
• Promising opportunity with gas or light oil potential
Diona • Reprocessed seismic will be used to refine mapping and define additional potential
at Tinowon & Wallabella Sandstone levels
Southern Leads: Areas with poor existing seismic data quality, but with potential for
material new prospects to emerge from reprocessing
Waggamba
Prospect B
Waggamba play: Reprocessing may provide insights into the poorly understood trapping
A’ configuration of the Waggamba Field and allow analogue prospects to be identified in
the adjacent Diona Sub-block
A A Prospect B A’
Southern
Leads
(indicative)
Showgrounds
Bandanna
Tinowon?
Wallabella?
1 km Basement
10km
6947600 6947600
6937600 6937600
6927600 6927600
TWT (ms)
6917600 6917600
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Waggamba play: Reprocessing may provide insights into the poorly understood trapping configuration of the Waggamba Field and allow analogue prospects to be identified in the adjacent Diona Sub-block

Top Showgrounds Formation Depth (m)

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Diona – Pros ective Resources p

	Hydrocarbon Type	Reservoir Objective	Gross Unrisked Prospective Resource				Pg	Pd
			1U	2U	3U	Mean
	Gas Equivalent (Bscfe)	Showgrounds	0.9	1.9	4.1	2.3	39%
		Tinowon	0.3	3.1	15.7	6.1	20%
		Wallabella	0.2	2.1	10.6	4.1	16%
		Probabilistic Sum	0.7	2.7	12.2	5.1	55%	85%
		Arithmetic Sum

*6.4 net to Xstate

Prospective Resources Cautionary Statement

1. These estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery (Pg) and a risk of development (Pd). Further exploration, appraisal and evaluation is required to determine the existence of a significant quantity of potentially movable hydrocarbons.

2. These Prospective Resources have been calculated probabilistically using a Monte Carlo simulation methodology for the three individual reservoir targets and have then been combined probabilistically (incorporating the impact of risk and risk dependencies) to determine the Prospective Resources for the entire prospect.

3. 1U, 2U and 3U refer to the low estimate, best estimate, and high estimate respectively and are respectively equal to the P90, P50 and P10 scenarios that are output from the probabilistic volumetric assessment.

4. Gas-equivalent Prospective Resources have been calculated in Billion standard cubic feet equivalent (Bscfe) using a conversion factor of 1 barrel condensate = 6000 cubic feet of gas.

5. These Prospective Resource only consider the most likely case hydrocarbon phase scenario (gas with condensate) and do not consider the possibility of oil.

6. The risk of development, Pd, has been assessed in relation to the probabilistic resource ranges for the entire prospect rather than for each individual reservoir target.

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DEAL TERMS

• XST acquired a 51% interest in the Diona Sub-Block of ATP 2077

• XST has paid a $250,000 non-refundable deposit to Elixir

• XST is the operator 1

• XST’s accelerated work program – drilling in week of 22[nd] Sept 2025 2

• Market Cap: $5.2m 3

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Vendor

Elixir Energy (ASX: EXR) is an oil and gas explorer in Queensland

Active in adjacent blocks with Project Grandis (deep unconventional gas) Market Capitalization: $40m

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Capital Structure

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$0.021 251 million
Ordinary shares on issue
Share price
$5.28 million
$2.74 million
Market capitalization
Drilling costs
23 million Nil
Unlisted options Debt
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DIONA PROJECT Overview

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12.5 billion cubic
feet
100% Gross un-risked mean
prospective resource
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369 km[2]

Covering Diona sub-block of ATP 2077

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Ill
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• Each dot is a well
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15 km $13.00 per 1,000 cubic feet To Silver Springs Gas Facility Current wholesale gas price ex Wallumbilla

2,300m Target formation depth

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XST Team

Greg Channon, Non-Exec Chairman Qualifications: BSc.(Hons)	Mr Channon is a geologist with over 35 years of global oil and gas experience in a variety of technical and leadership roles. During his career, Mr Channon has worked with a range of E&P companies including Delhi, Santos, Fletcher Challenge Energy, Shell, Swift Energy, BrightOil and Pathfinder. He has lived and worked in Australia, New Zealand, USA, Hong Kong, China and Africa. Mr Channon has a large range of diverse oil and gas expertise, including exploration, operations, development, production, economics, commercial negotiations, new ventures, business development and IPO start-ups. He has sat on the Board of Directors of companies listed on the ASX, NYSE, TSX and HKSE.
Andrew Childs, Non-Exec Director Qualifications: BSc.	Mr Childs is a petroleum geologist with over 35 years of Oil and Gas experience, working in Technical and Commercial roles for small to mid-capped Companies listed on the ASX, AIM and TSX markets. Mr Childs is formerly Non-executive Chairman of Australian Oil Company Limited (formerly Sacgasco Limited) and formerly Non- executive Director of ADX Energy Limited.
Andrew Bald, Managing Director Qualifications: BEc. (Hons)	Mr Bald has over 35 years of experience in financial markets, director of numerous ASX listed companies including from 2013 through 2016, as managing director of Burleson Energy, an oil and gas explorer with production in Texas, USA. His private corporate advisory group, Panthea Capital, has been assisting junior ASX listed resource and oil and gas companies raise capital for over 20 years.
Jordan McArthur, Company Secretary	Mr McArthur is a Chartered Accountant and was appointed to the position of Company Secretary on 17 April 2018. Mr McArthur has 14 years corporate and financial experience in Australia and the United Kingdom.
Michael Andronov, Operations Manager Qualifications: B.Eng. in Mechanical Engineering, Masters in Petroleum Engineering	Mike has 30 years of experience in the Oil and Gas sector with a background in Petroleum Engineering and Wells, working on Convectional and Unconventional plays. His experience has been gained whilst working for Exploration & Production Operating Companies, the Service Sector and Consultancy Firms. During his career he has held technical roles and team lead positions in challenging Offshore and Onshore projects, mostly focussed on Drilling & Completion Engineering. He has also managed large multi- disciplinary subsurface and engineering teams responsible for field appraisal, development, project management and due diligence in CBM projects. His international experience includes the North Sea, North Africa, the Caribbean and Australasia.

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Non-Core Assets

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California Austria
20% WI in the Anshof Oil
10-30% WI in various gas
producing properties in the Discovery
Sacramento Basin
2023 Production: 14.7 2023 Production: 5,960
million cubic feet of gas barrels
2023 Reserve: Nil 2023 2P Reserve: 1,000,000
barrels
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Summary

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Game-changing Prospect with Pathway to early strategy for high chance of production Xstate technical success

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Re-listed Sept Preparing to drill 2025 in Sept 2025

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DISCLAIMER AND IMPORTANT INFORMATION ABOUT THIS PRESENTATION

• Summary of information: This presentation contains general and background information about the Diona opportunity in Queensland, Australia as at the date of the presentation and should not be considered to be comprehensive or to comprise all the information that an investor should consider when making an investment decision. The information is provided is in summary form and should not be considered comprehensive or complete. The data was compiled using open file information, IP of the executives and Directors of Xstate Resources Ltd and information provided to Xstate Resources Ltd by the Vendors.

• Not financial product advice: This presentation is not financial product, investment advice or a recommendation to acquire securities and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment, decision investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs, and seek legal, taxation and financial advice appropriate to their jurisdiction and circumstances.

• Disclaimer: Xstate Resources Ltd and its related bodies corporate and each of their respective directors, agents, officers, employees and advisers expressly disclaim, to the maximum extent permitted by law, all liabilities (however caused, including negligence) in respect of, make no representations regarding, and take no responsibility for, any part of this presentation and make no representation or warranty as to the currency, accuracy, reliability or completeness of any information, statements, opinions, conclusions or representations contained in this presentation. In particular, this presentation does not constitute, and shall not be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of Xstate Resources Ltd.

• Future performance: This presentation contains certain forward-looking statements and opinion. The forward-looking statements, opinion and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements, including projections, forecasts and estimates, are provided as a general guide only and should not be relied on as an indication or guarantee of future performance and involve known and unknown risks, uncertainties and other factors, many of which are outside the control of Xstate Resources Ltd. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward looking statements or other forecast.

• Risks: An investment in shares in Xstate Resources Limited is subject to investment and other known and unknown risks, some of which are beyond the control of Xstate Resources Ltd.

• Not an offer: This presentation is not, and should not be considered as, an offer or an invitation to acquire securities in Xstate or any other financial products and neither this document nor any of its contents will form the basis of any contract or commitment. This presentation is not a prospectus. Offers of securities in Xstate Resources Ltd will only be made in places in which, or to persons to whom it would be lawful to make such offers. This presentation must not be disclosed to any other party and does not carry any right of publication. Neither this presentation nor any of its contents may be reproduced or used for any other purpose without the prior written consent of Xstate Resources Ltd.

• No Distribution in the US: This presentation is not an offer of securities for sale in the United States. Any securities to be issued by Xstate have not been and will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act") and may not be offered or sold in the United States absent registration or an exemption from registration under the US Securities Act. No public offer of the securities is being made in the United States and the information contained herein does not constitute an offer of securities for sale in the United States. This presentation is not for distribution directly or indirectly in or into the United States or to US persons.

• Monetary values: Unless otherwise stated, all dollar values are in Australian dollars (A$). The information in this presentation remains subject to change without notice.

• No distribution: Distribution of this presentation may be restricted by law. Persons who come into possession of this presentation should seek advice on and observe any such restrictions. Any failure to comply with such restrictions may constitute a violation of applicable securities laws.

• Prospective Resources: The information in this presentation that relates to Prospective Resources for Xstate Resources Ltd is based on, and fairly represents, information and supporting documentation reviewed by Greg Channon, BSc Hons, a Director of Xstate Resources Ltd. Mr Channon has over 35 years of relevant experience, is a member of the American Association of Petroleum Geologists and the Petroleum and Exploration Society of Australia, and consents to the publication of any resource assessments contained herein. The Prospective Resource estimates are consistent with the definitions of hydrocarbon resources that appear in the Australian Stock Exchange Listing Rules. Conversion factors: 6 Bscf gas equals 1 MMboe; 1 bbl condensate equals 1 boe.

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