AmeraMex International Inc. (AMMX)

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Shareholder Letter (Got it Yesterday when I signed up for email alerts.)

Dear Fellow Shareholder,

The management team and I want to thank you for your ongoing belief in and commitment to AmeraMex over these past transitional years. In return, we are dedicated to increasing shareholder equity through growth of revenue and profitability. We pledge to communicate the status of projects, successes and losses, to our shareholders in a timely manner. I am pleased to provide you an overview of 2013 and of the 2014 first quarter. Our U.S. goals for 2014 are to expand sales of new equipment and our rental business parallel with growing our international market, particularly in Africa and South America. We will do this by focusing on our core business strengths and by taking advantage of entrepreneurial opportunities as they present themselves.

Update on Niger activities/opportunities
We have just received the Memorandum of Agreement (MOA) from Niger for 3,000 trucks with a gross value of r $300+ million over a three-year period. With the MOA, which establishes the terms and conditions of the Agreement, we along with three representatives of the Niger government will travel to China. The trip is necessary to review the truck inventory as outlined in the AmeraMex proposal and referred to in the MOA. The next step will be the development of the Agreement for signature.

We also have a second opportunity in Niger, a 20 megawatt solar system. We have selected a solar company in Hawaii to provide the equipment and expertise for the initial system. It is our understanding that the MOA for the solar system will arrive in the near future. We believe these agreements will provide AmeraMex additional opportunities within Africa.

Revenue Increased 79 Percent in 2013
The company reported revenue of approximately $6.1 million with gross profit of $2.6 million compared to revenue of approximately $3.4 million with gross profit of $2.4 million for the year ended December 31, 2012.

Net Income Improved 362 Percent in 2013
The company reported net income for the year of approximately $.485 million compared to net income of $.105 million for the year ended December 31, 2012. This is due in part to a decrease in operating and financial expenses.

Stronger Balance Sheet in 2013
Cash and cash equivalents increased from $33,119 in 2012 to $817,208 in 2013. Total Assets increased from $892,250 in 2012 to $2.7 million in 2013.

SEC audit status
The company has interviewed auditing firms in the Bay area that have a good understanding of our industry. We will not renew the audit process until all the monies have been set aside to complete the audit in a timely manner.

Order delays for farming and railroad project
While management and its partners continue an ongoing dialogue with responsible agencies, the railroad construction project has been delayed for at least two years; therefore, management will focus of projects closer to being finalized.

Project funding
Management is working with a New York-based financing company and a China-based equipment financing group to provide funding for current and future projects.

Crude oil project
Management is collaborating with an oil drilling company to form an alliance with the government of The Congo for in-country drilling of crude oil. We have excellent contacts in The Congo and when asked about a drilling alliance, we contacted a company with drilling expertise to provide the necessary equipment and knowledge – one of our entrepreneurial opportunities.

African partners
We are working with partners that have businesses in both The Congo and Niger. These partners are AmeraMex’s day-to-day connection to the countries government officials. Management has visited both countries on many occasions and believes there are multiply opportunities. The goal is to get our foot in the door with one project and others will follow.

U.S. marketplace for sales and rental
The U.S. market for new equipment has shown some growth but the rental market is beginning to take off as construction and logistics companies prefer rental of necessary equipment versus capital outlay. We recently finalized a rental agreement for seven loaded container handlers that were in the lot of 18 handlers purchased in September 2013. The initial 12-month period is expected to generate revenues of $1.3 million. After 12 months, the handlers still have a resale value of $200,000 each. There are several other units currently on rent that will bring much better profit when we do sell them since the rental income will reduce the acquisition cost by the paid-in monthly rental.

$2 million equipment bid from U.S. port
The bid has not been awarded as all ports within the purchasing group must be in agreement and have monies allocated to purchase the equipment.

Progress marketing refurbished equipment
The market for refurbished equipment continues to grow and all but one of the 18 refurbished container handlers purchased in September 2013 have been sold (10 units) or rented (seven units). This was a very profitable transaction for AmeraMex.

Acquisition strategy
We had identified several candidates for an acquisition/merger strategy to provide equipment diversity, supplement support locations and expand sales territories. When the U.S. economy began to falter, a decision was made to table the acquisition strategy and put our efforts into expanding the company’s international presence in resource-rich countries. The decision has been hugely successful.

We have not reported our first quarter for 2014 but I can assure you that we will be reporting continued revenue growth and increased profitability. The entire management team is confident that 2014 will see continued success for the company and its shareholders. On closing, if you are not receiving our emailed news releases or invitations to participate in our shareholder update conference calls, please email your name, home address and current email to Marty Tullio at [e-mail].

Again, thank you for your continued support!
Sincerely yours,

Lee Hamre
CEO
AmeraMex International