Valor Energy Corp (fka VLEN)

[edfei2000]

During April 2007, the Holders of the Company's convertible notes (the
"investors") proposed that the Company hire a consultant designated by the
investors. The Company declined the proposal, deciding instead to conserve
resources for addressing specific needs of the Company. On April 25, 2007, the
investors filed with the Company a letter claiming an Event of Default as
defined in the terms of the notes. On April 29, 2007, the Company and the
investors agreed to cancel the claim of Event of Default and increase the
discount percentage on the notes from 70% to 75%.