MMEX Resources Corp (MMEX)

[I FAR I]

MMEX RESOURCES CORPORATION Shareholder Update!

https://www.mmexresources.com/pdf/190812_Shareholder_Letter.pdf

MMEX RESOURCES CORPORATION
Shareholder Update
August 12, 2019

Dear Shareholders,

We would like to update you since our SEC 10K Annual Report filing on July 26, 2019.

Recent Disclosure Filings. Since our 10K filing the Company has filed three significant disclosure notices which include the following:

(i) 8K Preferred Shares. On August 1, 2019, the Company filed its 8K in which we announced that the Company issued to Maple Resources
Corporation, the owner of the Class B Shares, newly issued Preferred Shares with super voting rights of 51%. This was done in order to maintain and pledge the voting control of the Company under its obligations to one of its convertible debt holders. In addition, Maple Resources converted all of its B Shares to A Shares. Under the Preferred Shares provisions, Maple Resources (or, if applicable, the lender holding the pledge of those shares) maintains a 51% voting control irrespective of the amount of Class A Shares issued.

(ii) Pre-Schedule 14C Information Form. On August 5, 2019, we filed to propose an increase in the number of authorized shares of common stock from 12 billion to 25 billion shares. Since 2017, MMEX has financed its development and project expenses primarily through the issuance of convertible notes. Through April 30, 2019 (the end of our most recently completed fiscal year), we issued an aggregate of approximately 40,248,517 shares as a result of the conversion of approximately $2,653,457 principal amount of, and accrued interest on, such notes. Further, the terms of those notes require us to create a reserve out of our authorized common stock generally equal (depending on the note terms) to a multiple of four to six times the number of shares estimated to be issued upon the conversion of such notes. The creation of these reserves serves as a limit on our ability to have available authorized common stock for further financing purposes. Although we had approximately 9,638,594,037 authorized shares of Class A common stock which had not been issued as of July 31, 2019, all of those shares had been reserved by the holders of convertible notes and warrants and were therefore unavailable for future financings. As a result, we have
sought the share increase.

(iii) Form 4 Filing Statement of Changes in Beneficial Ownership. The Company’s two directors, Jack W. Hanks and Bruce N. Lemons, filed a
Form 4 on August 8, 2019. Both Directors invested funds into Company
convertible notes to be converted into Class A Shares when the authorized shares are approved and can be issued. The Company issued convertible notes to the members of the Board on conversion terms more favorable to the Company than other of its convertible notes, to wit: at a conversion rate of 110% of the lowest trading price at which shares of Class A shares have been issued pursuant to other convertible notes for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company. In addition, the convertible notes contain a 5% interest rate and require no reserve shares compared to 10% to 12% interest rates in the other convertible notes and the share reserve component from 4-times to 6- times of the amount of the note.

What do these Actions/Disclosures mean? The Directors took these actions to comply with its outstanding obligations to lenders to maintain voting control of the Company and to provide share liquidity for potential equity financing. With the super voting Preferred, the
holders of the Preferred have 51% of the voting shares irrespective of the outstanding amount of Class A Shares. The Class B shares with 10:1 voting rights have been converted into Class A Shares on a one-for-one basis and are no longer outstanding. The Directors are purchasing Class A shares thru convertible notes to provide working capital to the
Company as reflected in the Form 4s and will convert their convertible notes as soon as the additional Class A Shares are available to be issued.

Also, the increased share authorization would allow the Company to take prompt action with respect to corporate opportunities that may develop in the future, without the delay and expense of convening a special meeting of shareholders for the purpose of approving an increase in Company capitalization. Such opportunities might include, without limitation, issuance in public or private sales for cash as a means of obtaining additional capital for use in our business and operations, and issuance as part or all of the consideration required to be paid by us for acquisitions of other businesses or assets.

Project Development: As we disclosed in our 10K filed on July 26, 2019, we have several new initiatives we are considering. The summary is as follows:

¨ The addition of a 2nd CDU at our present site and potentially a 3rd CDU at another location
¨ Adding a crude by rail transportation and export component
¨ Adding a hydrotreater as separate component to produce transportation grade diesel
¨ Development of a terminal and storage facility on the Texas Gulf Coast
¨ Organization of a trading company for exporting physical petroleum products to Latin American markets
¨ Associated gas and gas liquids treating
¨ Development of a solar project to power the projects by solar energy

All of the foregoing would require financing and are subject to the risks and uncertainties set forth in our 10K and other SEC filings. We have taken the steps to give the Company maximum flexibility to act quickly to make decisions regarding any of the foregoing new initiatives and to use our share liquidity for project financing.

Financing: During the last weeks we have continued negotiations on our potential debt and equity financing. We project to issue more information very shortly.

"This is a great project. It has robust economics in it." - Jack Hanks

https://www.mmexresources.com/
MMEX RESOURCES
Leveraging Global Demand
for Energy Assets Located in the Americas.

Take care of the Pennies, Nickles & Dimes and the MMEX $$$$$$$$$$ will take care of THEMSELVE$!!!

You've Been BLESSED!!!