XSTATE RESOURCES LIMITED — Interim / Quarterly Report 2025

Apr 29, 2025

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ABN 96 009 217 154
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30 April 2025

Announcement to ASX Electronic lodgement

MARCH 2025 QUARTERLY ACTIVITIES REPORT

Xstate Resources Limited ( ASX:XST ) ( Xstate , XST or the Company ) is pleased to provide the Quarterly Activities Report for the quarter ending 31 March 2025.

DIONA PROJECT AND RE-QUOTATION

Over the past quarter, the Board continued its stated objectives of identifying a project to facilitate the re-quotation of the Company’s shares and on the 7 April 2025, the Company announced that it had signed a deal to acquire a 51% working interest in the Diona block of ATP 2077, currently owned by Elixir Energy Limited[1] .

As announced, the Company now needs to re-comply with Chapters 1 and 2 of the ASX Listing Rules and will be shortly issuing a Prospectus targeting a minimum capital raise of $1.5m. As part of the recompliance process, the Company will have to secure at least 300 applications from new or existing shareholders at a minimum parcel size of $2,000. Existing shareholders will be offered priority entitlement to 50% of the maximum capital raise. The Company will provide further updates on timing as the Prospectus is finalized.

Managing Director, Andrew Bald commented:

“The Diona project is an excellent project that will both facilitate the re-quotation of our shares and gives the Company an excellent, low technical risk project, our first as majority working interest holder and operator.

We have the funding to drill the well which is expected to be approximately $2.6m[2] . We will, of course, work closely with Elixir on getting this well drilled as soon as possible after re-quotation on ASX and are aiming to drill in the 3[rd] quarter of 2025, most likely towards the end of that quarter.

The technical team have done an excellent job analysing the data and believe there is excellent potential for both gas and liquids. With multiple targets, this is a great cornerstone project for us.”

ACTIVITIES

The Company’s activities during the quarter were predominantly focused on securing the Diona project however, on the 7 February 2025, the Company announced the disposal of its interests in the Crest Jinn wells (Canada) whereby the Company received a 3% overriding royalty on 25% of all production operations on the existing and any future wells drilled on the 10,240 gross acres over which the working interest was held.

The Crest Jinn assets were not cashflow accretive and it was the Board’s considered decision that it would be in all parties’ best interests to dispose of these assets.

• 1 See ASX Announcement dated 7[th] April 2025.

• 2 Plus completion which would be paid in proportion to our working interest of 51% / 49% (XST/EXR)

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

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The Company retains its interests in the Anshof project (Austria) and in the USA (California) however the Board is constantly reviewing the Company’s portfolio and looking for opportunities to enhance or monetise its projects.

FINANCIAL

The Company’s cash balance upon conclusion of the quarter decreased to A$3.276m, down $196,000. Whilst this outflow was higher than the previous quarter (Q4 2024 outflow $143,000) the increase can be directly attributed to legal and technical fees incurred that directly relate to the Diona acquisition.

OPERATIONS

AUSTRIA: ANSHOF PRODUCTION (20% WI)

Production for the December Qtr from the Anshof-3 well totalled:

Oilproduction in Austria(bbl)	March 2025	December 2024
Gross to JV(before royalty)	6,473	8,548
Net to XST(before royalty)	1,295	1,709

CALIFORNIA: SACRAMENTO BASIN PRODUCTION (VARIOUS WIs)

There were no changes to the Company’s Californian based assets during the quarter with exception to the identification from Australian Oil Company Limited ( ASX:AOK ) that all the leases associated with the Alvares project had expired (as reported in their 2024 Annual Report[3] ).

Accordingly, we have updated our tenement schedule to reflect a Nil working interest in the Alvares project. It is noted that no exploration expenditure has been incurred on the Alvares project for several years and the Company does not consider the information to be material or market sensitive.

No changes to the Sacramento project with the Company continuing to maintain its leases in the Sacramento Basin during the quarter. Xstate has working interests (WI) of between 10% and 33% in oil and gas leases.

Oil and Gasproduction in California(mcf1)	March 2025	December 2024
Gross Gas	20,192	22,283
Net XST(after Royalty)	2,023	2,260

1 mcf – Thousand Cubic feet gas

CORPORATE

On 7 April 2025, it was announced that Mr Andrew Bald had been appointed as the Company’s Managing Director. Mr Bald’s focus is now on leading the Company through the re-quotation process on ASX and our imminent maiden drilling program at the Diona project.

Concurrently, Mr Andrew Childs’ role as Chairman has transitioned such that it will be performed in a Non-executive capacity.

3 See ASX announcements platform for AOK Annual report, release dated 31 March 2025

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XSTATE TENEMENT LISTING

	XSTATE RESOURCES LIMITED – TENEMENT LIST AS AT 31 MARCH 2025	XSTATE RESOURCES LIMITED – TENEMENT LIST AS AT 31 MARCH 2025	XSTATE RESOURCES LIMITED – TENEMENT LIST AS AT 31 MARCH 2025	XSTATE RESOURCES LIMITED – TENEMENT LIST AS AT 31 MARCH 2025	XSTATE RESOURCES LIMITED – TENEMENT LIST AS AT 31 MARCH 2025	XSTATE RESOURCES LIMITED – TENEMENT LIST AS AT 31 MARCH 2025
	Project name		Region	Category		Working Interest (WI)
	Anshof 3 Farmin		Austria	Exploration		20%
	Dempsey 1-15 Well		California	Exploration Appraisal	&	10%
	Dempsey Trend (Includes Borba)	-	California	Active leasing prospects	3 large	33%
	Rancho Capay Field		California	Production		10%
	Malton field		California	Production		30%
	East Rice East Creek Field		California	Production		10%
	Los Medanos Gas Field		California	Production		10%
	Dutch Slough Field		California	Production		30%

LISTING RULE 5 DISCLOSURES

LR 5.4.1 : Exploration expenditure during the quarter totaled $nil.

LR 5.4.2 : No production expenditure payments were incurred during the quarter.

LR 5.4.3:

• No petroleum tenements acquired or disposed of during the quarter;

• Petroleum tenements held at quarter end identified in the above table;

• No farm-in or farm-out agreements entered into during the quarter; and

• No farm-in or farm-out agreements current in earn-in stage.

LR 5.4.4 : Not applicable.

LR 5.4.5 : Payments to related parties totaled $86k. These were in respect of Directors’ salaries and superannuation payments, for rent of office lease to a Director related entity and for additional consulting work performed on an ad hoc basis over and above normal Directors’ duties.

This release was approved by the Board of the Company

Andrew Bald

Managing Director

Xstate Resources Limited

Tel Office: +61 8 9435 3200

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ABOUT XSTATE RESOURCES LIMITED

Xstate Resources ( ASX:XST ) is an ASX listed company focused on the oil and gas sector. The Company has existing oil and gas assets located in the California in the United States of America, oil production assets in Austria and until February 2025, Alberta, Canada. In April 2025, the Company acquired its Diona project located in the Surat Bowen basin of South-West Queensland.

LEASES

US and Canadian exploration is conducted on leases granted by Mineral Right owners, including the respective Governments and private individuals or groups. Leases can vary in size from very small parcels (part of an acre) to large landholdings (covering a few square miles). Leases generally are for 5 years and rentals are paid annually. There are no firm work commitments associated with the leases. Some leases are ‘Held By Production’ (HBP) and royalties are paid to mineral right owners in lieu of rentals. XST has not listed all it leases as it is impractical and not meaningful for potential project value assessment in a conventional natural gas play. A detailed listing of leases may also lead to a loss of competitive advantage and consequent reduced value to XST shareholders.

COMPETENT PERSON

The technical information provided has been supervised and reviewed in detail by XST’s Competent Person, Mr Greg Channon, who is also a Non-Executive Director of the Company. Mr Channon is a qualified geoscientist with over 35 years of oil and gas industry experience and a member of the American Association of Petroleum Geologists and the South East Asian Exploration Society and is a graduate of the Australian Institute of Company Directors. He is qualified as a competent person in accordance with ASX listing rule 5.41. Mr Channon consents to the inclusion of the information in this report in the form and context in which it appears.

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Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity Xstate Resources Limited ABN Quarter ended (“current quarter”) 96 009 217 154 31 March 2025

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	- - - - (47) (196) - 26 - (52) - -	- - - - (47) (196) - 26 - (52) - -
	(269)	(269)
2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) tenements (c) property, plant and equipment (d) exploration & evaluation (e) investments (f) other non-current assets	- - - - - -	- - - - - -

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
2.2 Proceeds from the disposal of: (a) entities (b) tenements (c) property, plant and equipment (d) investments (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	- - - - - - - -	- - - - - - - -
	-	-
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- - - - - - - - -	- - - - - - - - -
	-	-
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above)	3,555 (269) - -	3,555 (269) - -

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	(10)	(10)
	3,276	3,276
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	3,276 - - -	3,555 - - -
	3,276	3,555
6. Payments to related parties of the entity and their associates		Current quarter $A'000
6.1 Aggregate amount of payments to related parties and their associates included in item 1 86 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.		86
		-

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

7. 7.1 7.2 7.3 7.4 7.5 7.6	Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 Loan facilities Credit standby arrangements Other (please specify) Total financing facilities Unused financing facilities available at quarter end - Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
8.	Estimated cash available for future operating activities		$A’000
8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8	Net cash from / (used in) operating activities (item 1.9) (269) (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) - Total relevant outgoings (item 8.1 + Item 8.2) (269) Cash and cash equivalents at quarter end (item 4.6) 3,276 Unused finance facilities available at quarter end (item 7.5) - Total available funding (item 8.4 + item 8.5) 3,276 00 Estimated quarters of funding available (item 8.6 divided by item 8.3) 12.18 Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. If item 8.7 is less than 2 quarters, please provide answers to the following questions: 8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?		(269) - (269) 3,276 -
			3,276
			00
			12.18
	Answer: N/A
	8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
	Answer: N/A
	8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?
	Answer: N/A
	Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Date: 30 April 2025

Authorised by: Board of Directors

(Name of body or officer authorising release – see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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