Acquisition of Oil Producing Assets in Canada

• Remaining Proved (1P) Reserves (net of Royalties) is 4.4 million barrels (100%) with 0.66 million barrels net to Xstate (Estimated by Independent Auditor at 31 December 2019); • Production is Cash Flow positive at current oil price; • Potential to grow production and reduce OPEX through early operational activity; • Acquisition fully funded through placement of 362 million XST shares at 0.25c pe