Xun Energy, Inc. (fka XNRG)

[4on4off]

Response to Texas Falls Project question by XNRG CEO Jerry Mikolajczyk.

Question #1: Sir, can we shareholders get an update on the Falls Project? It seems that the deal should have completed before the end of 2014. Is it still a "go"?

Response #1: The Texas Falls project has temporally stalled out. With the price of WTI dropping constantly over the last several months all parties, including the Company, pulled back and is taking a wait and see approach. The Texas Falls project will be revisited once the WTI price stabilizes. Oil and Gas lease valuations are based on production, net cash flow from the production and proven reserves. With WTI coming down, the valuation for the Texas Falls Project has dropped considerably and is not in tune with the asking price by the Sellers of the Texas Falls Project. Banks finance based on valuation and cash flow. If the purchase price is greater than the valuation, the Company has to cover the difference. Currently the Company is not in the position to fund the difference.

THERE ARE NO ASSURANCES THAT THE COMPANY WILL CLOSE ON THE TEXAS FALLS OIL AND GAS LEASES AND IF THE COMPANY DOES CLOSE ON THE TEXAS FALLS OIL AND GAS LEASES, THERE ARE NO ASSURANCES THAT THE TEXAS FALLS OIL AND GAS LEASES WILL BE PROFITABLE.

Question #2: Will the company commence with purchasing and drilling in Texas as noted and very much anticipated?

Response #2: With the current price of WTI, there are some great offers that have surfaced as a result of the lower WTI price. As stated earlier, oil and gas lease valuations are based on production, net cash flow from the production and proven reserves. With lower WTI prices, an oil and gas lease is now valued at 30% to 60% lower than what they were valued at a year ago!! Some oil and gas leases that were economical a year ago are not economical today with WTI price being lower than the production costs.

Texas is a target zone for acquisitions of oil and gas leases. Our current focus is on the physical commodity trades in the Xun Oil Marketing Division to generate cash flow for the Company. While this is happening, we are constantly evaluating oil and gas projects as they are presented to us.

DISCLAIMER: SUBJECT TO SAFE HARBOR CLAUSE.

We thank you for your support and faith in the Company and its management.

Respectfully,

XUN ENERGY, INC.
Jerry G. Mikolajczyk
President and CEO