XSTATE RESOURCES LIMITED — Share Issue/Capital Change 2010

Jul 6, 2010

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XState Resources Limited ABN 96 009 217 154

Registered office Postal address Level 2 PO Box 985 45 Stirling Highway Nedlands WA 6909 Nedlands WA 6009 Tel: +61 8 9423 3200 Website Fax: +61 8 9389 8327 www.xstate.com.au

7 July 2010

ASX Limited

Dear Sirs

Xstate Resources Limited confirms that a 1:3 consolidation of capital has been carried out and confirms that holding statements have been despatched.

The issued capital following the 1:3 consolidation is as follows:

18,359,864 Fully Paid Ordinary Shares 66,667 Options exercisable at $0.24 on or before 21/01/2013 116,667 Options exercisable at $1.50 on or before 30/04/2012 116,667 Options exercisable at $1.95 on or before 30/04/2012 116,667 Options exercisable at $2.25 on or before 30/04/2012 9,179,932 Options exercisable at $0.24 on or before 30/06/2013

Yours faithfully

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David McArthur Company Secretary

S:/Administration/Xstate/ASX Announcements/019 Consolidation of Capital.docx