Xstate Resources Limited advised the results of the Competent Person's Report (CPR) undertaken by independent consultants RISC. RISC was engaged to provide an independent reserve and resource assessment for the Anshof field located within the ADX-AT-II license for exploration, production and gas storage in Upper Austria (Molasse Basin). The RISC CPR has an effective date of 1 October 2022.

XST holds a 20% participating interest in the Anshof field, with ADX holding the remaining 80% and is the Operator. The Anshof field was discovered by the Anshof-3 well which was drilled, evaluated and cased in January 2022. Commercial crude oil production from the Eocene oil reservoirs at the Anshof-3 well was announced on the 24th of October 2022 after the effective date of the RISC CPR.

Eocene oil at Anshof is a high quality (32° API) sweet crude. The scope of the RISC CPR does not include the shallower Miocene sandstone gas intervals encountered in the well. The RISC CPR was conducted in accordance with SPE-PRMS 2018 with an effective date of 1 October 2022.

The 1P, 2P and 3P Reserves have been classified as Undeveloped Reserves (Development Justified) and additional 3C Contingent Resources (Development Pending) have also been identified. The Operator, ADX's, estimation of likely well performance including production and recoverablevolume per well due to factors such as expected reservoir thickness and quality at future well locations and high angle well design is significantly higher than RISC has estimated. ADX is planning for 5 production wells in the P50 case and 3 and 23 wells in the P90 and P10 cases respectively.

Any well performance improvements, particularly in relation to oil recovery per well would reduce the number of production wells required to fully develop the field and improve the field economics. The ADX-AT-II exploration license is situated in the in the Molasse Basin, Austria. The Anshof field is situated within ADX-AT-II, where XST has a 20% interest in the discovery area.

The Anshof oil field was discovered by the Anshof-3 well which was drilled over the December 2021 to January 2022 period. The well intersected a 6 m gross, 2.1 m net oil reservoir interval in the primary Eocene objective. Mapping of the Anshof structure was completed using modern 3D seismic.

Reservoir parameters as well as oil quality was estimated from the Anshof-3 well and surrounding Eocene reservoir analogue wells. The field oil-water contact (OWC) range was estimated in the P90 case at a depth of 1581mSSTVD from the oil-down-to in the Anshof-3 well from which oil has been produced to surface. For the P10 OWC case a depth of 1940mSSTVD was taken from the HGN-001 well where oil shows were intersected.

The oil-down-to intersection from the PK-005 well on the western edge of the Anshof structure (a third-party well which produces oil) supports P50 OWC case depth of 1720mSSTVD and forms the basis for the Operator's development planning.