Xun Energy, Inc. (fka XNRG)

[4on4off]

Some great reading from answers to shareholders questions by XNRG CEO Jerry Mikolajczyk.

IT IS COMFORTING TO KNOW FROM THE FOLLOWING Q&A THAT OF THE ~891M SHARES ISSUED SINCE THE LAST QUARTERLY, 791M WERE ISSUED TO ECVI AS A RESULT OF THE 3A10. I SAY THAT BECAUSE OF THE SAFETY NET PRICE INCLUDED AS PART OF THE STIPULATION WITHIN THE 3A10, WHICH WILL BE SET BY XNRG EACH TRADING DAY. THIS WILL PROTECT SHAREHOLDERS FROM DOWNWARD PRESSURE ON THE PPS. THOSE SHARES, ALTHOUGH EXEMPT FROM REGISTRATION AND READILY TRADEABLE, WILL NOT BE ABLE TO BE SOLD BELOW THAT SAFETY NET PRICE.

Question #1: Are you able to clarify if any of the 876,405,000 shares issued are related to the recent 3(a)(10) stock for debt transaction that are to be issued in tranches to ECVI?

Response #1: The stock you refer to being issued of 876,405,000 shares is incorrect. As of February 2, 2015, the Company has issued and outstanding 8,092,658,163 common stock, which you will be able to verify in the November 30, 2014 10Q when filed later this month. Pacific Stock Transfer Company (PSTC) is in the process of correcting their files as they acquired Holladay Stock Transfer (HST) and the records transferred did not properly comply with PSTC policies of recording stock issued compared to how HST reported common stock issued.

The Company issued 891,045,000 common shares subsequent to November 30, 2014 which includes the following:

The Company issued 791,000,000 shares on December 17, 2014 pursuant to the Superior Court of Connecticut, Judicial District of Danbury Order for Approval of Stipulation for Settlement of Claims dated November 17, 2014. The issuance of the common stock was exempt from registration under Section 3(a)(10) of the Securities Act.

The Company requested to have the Safety Net Price in the stipulation to protect the shareholders from undue pressure and to prevent shorting of stock. Based on the latest shareholder report, the 791,000,000 shares issued to ECVI has not been deposited with the brokerage firm and remains in street name.[/I]

DISCLAIMER: SUBJECT TO SAFE HARBOR CLAUSE.

We thank you for your interest, support and faith in the Company.

Respectfully,

Xun Energy, Inc.
Jerry G. Mikolajczyk
President and CEO

THE FOLLOWING Q&A I FIND INTERESTING AS IT TOUCHES ON THE INTRICACIES OF A GIVEN PCT OF WHICH XNRG IS ACTIVELY SEEKING TO EXECUTE. ALSO NOTE THAT IF THIS MAZUT DEAL HAPPENS TO FALL THROUGH XNRG HAS OTHER EXIT BUYERS THAT WISH TO PURCHASE THE PRODUCT.

Question #1 and #2: SInce the Supplier and JV002 are at a standstill and no full update on when the MAzut deal will be in place how are the major CPN holders reacting to to this? Has anyone of them aproached the company with concerns?

Response #1 and #2: The Company is in communication with the CPN holders. Their sentiment is the same as with any other shareholder of the Company in that they are anxious to learn of the results of the new division when it happens and it becomes reportable. CPN holders are subject to insider trading rules as any other shareholder or trader.

Question #2: Will the Filings be submitted in the next 15 days or sooner?

Response #2: The November 30, 2014 10Q will be filed by the Company when it ready to be filed. We cannot give any filing date as of today.

Question #3: Can we expect any progress by end of second quarter or new avenues to explore.?

Response #3: Your question is forward looking and any response would need to be followed by disclaimers which no one likes to read.

We do not understand your question of "new avenues". However, we can respond that the Company is not looking into any new avenues outside of the new Marketing Division. We are working with many suppliers and funders. You must understand that physical commodity trades have many moving parts. Simple in form, complicated in process due to the many moving parts. Should one moving part fall out of place, it causes delays, terminates the transaction or causes the process to start over again. A good analogy is to compare it to one standing at a Bus Stop. "If you miss one, there is always another one coming!!"

The Company is risk adverse and will only engage in physical commodity trades that mitigate exposure, first to the Financier and second to the Company. Each commodity trade requires due diligence and in order to complete the proper due diligence, the Company has to engage in an order. Upon completion of its due diligence, the Company, if not satisfied, will terminate the order. Physical commodity trades in the petroleum sector is governed by the supply and price of the product and not the amount of money one has or the demand for it. With falling prices, the demand for certain products has increased. Even though the demand may have increased, refined petroleum products follow suit of Brent Crude oil pricing.

Commentary: You referenced the Mazut order. It has not closed. It is delayed again and the delay could cause it to terminate if it prolongs. The Company will not discuss the reasons for the delay as it is strictly out of our control at this time as we are not the title holder on the first lift and it is between the End Seller and the Exit Buyer for the first lift. Should it terminate, we have other Exit Buyers that wish to purchase the product.

THERE CAN BE NO ASSURANCE THAT MAZUT TRADE WILL CLOSE. THERE CAN BE NO ASSURANCE THAT THE TRADE WILL BE PROFITABLE OR THAT THE COMPANY WILL BE ABLE TO GENERATE SUFFICIENT REVENUES TO OPERATE PROFITABLY.

DISCLAIMER: SUBJECT TO SAFE HARBOR CLAUSE.

We thank you for your interest, support and faith in the Company.

Respectfully,

Xun Energy, Inc.
Jerry G. Mikolajczyk
President and CEO

ADDITIONALLY, THE FOLLOWING LINKED POST TO ANOTHER QUESTION ASNWERED BY XNRG CEO JERRY MIKOLAJCZYK INLCUDES SOME FLOW CHARTS THAT DETAIL THE MANY STEPS TO A GIVEN PCT.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=110665670