XST Acq Interest in 2 Oil Discoveries and Multiple Prospects

• Ground Floor Deal with Blue Sky Resources – Red Earth Area Operator. • 25% Working Interest (WI) acquired in 2 discoveries, and 10,240 gross acres of underexplored and highly prospective leases. • Located adjacent to Xstate’s existing Red Earth Oil Assets. • Acquisition includes: o 2 discovery wells- both completed and ready to be brought into production. o 10 prospects identified analogous to d