June 7 Shareholder Letter

Dear Shareholders,
We would like to update you since our last Shareholder Letter on April 2, 2018.
Status of CDU Phase 1 Refinery Project Financing. We announced in our April 2, 2018 Shareholder Letter that we executed a Term Sheet with an international debt fund to finance our CDU Phase 1 Refinery Project. We are still in the due diligence process with the lender’s technical and finance team. Most of our delay has resulted from our EPC’s adjustments for increased project construction costs in West Texas. As you may know, the boom times have returned to the Permian Basin with significant cost increases in steel, cement and per diem construction worker rates. In addition, we added desalting equipment to the front-end design of the CDU Phase 1 plant to further enhance our ability to receive higher prices for our residual fuel product and that equipment has added to our capex cost. Our total capex costs are now projected to be in the range of $69,000,000 for Phase 1. We expect the due diligence and final documentation to be completed by the end of this month. MMEX will continue to raise equity funding for Phase 1 thru private placements and additional convertible debt placements.
Significant Tail Winds for Refining. Refining industry fundamentals are more favorable than they have been in a number of years. Today, the take-away capacity of crude pipelines from the Permian Basin to the Texas Gulf Coast is constrained to ship more crude oil. The discount price to WTI posted prices is in the $10 plus per Bbl range. The ability to purchase our feedstock at these discounts adds to our normal “crack spread” and we are pushing to start construction and get into commercial operation as soon as possible to take advantage of this arbitrage. Our decision to locate our refinery on the Texas Pacifico-South Orient Railroad, allowing us to go by rail to the Texas Gulf Coast is now a major strategic advantage and in addition to product distribution we are also being approached for crude oil storage and transportation services as an adjunct to our refining capabilities.

Will they even make the new shareholder letter a sticky?

I don’t know what the exceptions are but steel is up roughly 20% right now.

The only bad part will be if the 8k shows up tomorrow with another toxic note. If one doesn’t show up tomorrow or next week then it will be positive. IMO

Another month

Seems to be people that don’t want to not have shares each day in case the news comes.

I’ve never told anyone to hold or be long. I’ve said to get ready cause this has a good chance of making a run and if somehow gets financed then a really good run and a person could end up holding free shares long term if they wanted. So why not have a position.

I don’t trade for other people. If they want to hold for 5 years then I wish them the best, if they flip for 20%-40% then good for them.

If it all falls through, that sucks but it happens.

I thought we were past the water well discussion.

Doesn’t even matter, you can have water trucks lined up all the way down highway day and night if you needed to.

If there is anything certain about lenders it is there are always delays. There are delays with 6 and 7 figure deals every time much less an 8 figure deal.

With that being said, personally I would of at least sent out an email blast to investors giving them an update as to when closing is projected if I missed the projected date.

But is what it is and we will see.

There last update of anything release is over a year old and then from 2016. Not like they are cranking out many headlines.

Pilot Thomas is a private company and the deal with MMEX is a drop in the bucket to them. If it happens and they can expand their supply then great. If it doesn’t then they will continue doing their business.

They aren’t going to release any information on their day to day operations or transactions and if the quote wasn’t true from Cassidy then we would have taken legal action against MMEX. That quote was the PR from Pilot Thomas and all they need to talk about it. To say MMEX just made it all up is asinine.

Blah blah blah with the sky is falling routine. PPS still trading in the same range for the last month. With an increase from .0024 to now the .004 range give or take a few points. Over the last two months.

Trading above the 50 sma into a bullish position.

Lol. Now private companies have to send out PR’s. Stretching.

Can you show me private companies in the oil field out here releasing PR’s about any contracts or agreements they have with other companies?

Majority want to keep their info private, keep pricing private, trade secrets private.

Executive summary has been removed from the home page of the website. Possibly being updated with the latest information and financing news.

Getting close I believe.

Good buys in the afternoon. Seems to be same pattern most days lately.

Winter is coming!

I mean news is coming.

Have a good weekend. Big news on the horizon. No massive dumping like some predicted. People waiting to see because they know news is coming.

I know right. Trading at .0028 - .0032 last month to trading at .0038 - .0043. What a death spiral.

Work has been getting done behind the scenes the last couple months and we soon will hear all about it.

Then the real work begins.

Will we get an after hours update for a crazy Friday or have to wait a little longer? Time will tell.

Possible after hours news today. I wouldn’t take the chance of not having shares by close today.

Cheap insurance because if it hits she is gone.

Good bounce off support levels this afternoon. Any day now.

They used to not regulate you on stocks but I haven’t been trading any non reporting for a few years and didn’t realize they had made the change. So they hosed me on this deal. I’ll have to make an account with etrade I guess.

GLA

Thanks Fidelity for not letting me buy this stock Wednesday because non reporting is too risky. Congrats to everyone who isn’t on a controlling trading platform.

They are running out of ideas and the only things they can come up is trying to put down a 25% gain.

He has his shares for next week, no one on this board is dumb enough to at least not have a small amount of shares for possible big news.

Good day today. Have a good holiday weekend. Could be well on our way with huge news by this time next week.

Ever think that they don’t want to be in the refinery business? Why does Exxon or Chevron have any vendors at all? They should just build everything they need themselves.

Trading thin in the mid 3’s to mid 4’s.

Close above the 50 would be a good ending to the week. But I won’t complain if it wants to make a better run than that today.

Based on the executive summary, a 5 year agreement for 100% or ~4,000 bbls of diesel product with Pilot Thomas.

Yesterday you said the cdu unit couldn’t refine any other those products. Now they have companies in place to purchase most of it.

Now you say that doesn’t matter and we will see if they get financed. I think that is positive movement on your side. Nice!!

Here’s to those bluest of blue skies.

So many companies involved with a plan in place.

Get ready cause it is hard to hold on to the outside of the rocket when it takes off. Get on the inside while you still can.

So you’re saying the Phase I CDU is going to be built. Nice!!

So you’re saying your calculator doesn’t go that high either! How exciting.

A deal that the president and CEO from Pilot Thomas has said he is excited about is worth so much we can’t get our calculators to tell us how big the number is.

Can you do the math for me on how much money the Pilot Thomas agreement is worth once up and running?

100% of their diesel production which is going to roughly be 4,200 bbls per day.

Last report for wholesale prices for diesel #2 was from feb 2018 at $1.972 per gallon.

42 gallons in a barrel. My calculator is having trouble going that high.

Yeah no one confirming the agreement other than the president and CEO of Pilot Thomas. But what does he know?

Phase 1: 10,000 BPD Crude Distillation Unit
Output: Diesel #2, Naphtha and Residual (ATB's)

176,400 gallons.

Fat fingered it.

That is 176,200 gallons per day and wholesale prices for #2 diesel is around $2 per gallon and climbing. You do the math.

Nice bounces off higher support level. Creating a new base here instead of at .003.

You missed the boat by 5 years. Dropped to nothing ever since.

I’m really surprised this hasn’t had a reverse split yet honestly.