Minerco Inc (fka MINE)

[Sooah]

Key notes to MINE 10Q for period ended April 30, 2013

First of all, as I have stated offline with a few, this 10Q release was expected to take the stock down so this should not surprise. Take this opportunity to collect more shares this week. NITE/CDEL open, you saw, yes? The V's. VFIN 0027. Yesterday's news release intentionally did not hit the proper wires, instead it hit today right before the 10Q release to finish off this round of selling. Note PUMA came in on the bid aggressively right at news and 10Q release too. Take note of all MM line-up again. This is SO textbook, there is no need to even watch MINE on a daily basis anymore. It does what I think it will and that is GOOD(RED is ok, don't get spooked).

To the 10Q: what we want to monitor every quarter is this section here below vs. the share structure. We expect dilution--make no mistake about it--but it is important to look at the rate of dilution. We increased ~ 600 million shares:

LIABILITIES AND STOCKHOLDERS’ DEFICIT
1) Reduction in Derivative Liability:
We have reduced derivative liability (DL) from $3.08 million to $787K which is positive, but you will note that the reduction was in part due to write downs and DL being marked to market. DL are inversely indexed to the Company's common stock, and for the quarter, we are seeing a book gain. We want to see the DL completely eliminated before the Company records any revenues and/or we see significant advancement in share price because future increases in share price actually causes a book loss. It's best that the derivatives are completely settled, either via conversion or repayment for this reason.

2)Convertible Note Payable - related party $584,299
I am very curious to see how Vanis will handle this issue. The majority of company's debt is actually owed to Vanis and Messina (former CEO and CFO), although Messina's portion has been assigned to Vanis. In short, MINE was a very expensive shell and to me, it borders unconscionable on the part of Vanis--$584,299 for a failed alternative energy shell? C'mon. I think Powers should renegotiate a fairer write down of this related party debt and make it a fixed, long term note instead of a convertible note. A bit ridiculous IMHO.

So, we basically wrote down another half of old debt for an increase of 600 million shares. This increase (or rate of increase) whether reasonable to you or not, is something you need to decide for yourself. The number seems huge but the impact is actually also a 50% reduction of losses to shareholder's equity which for the quarter is $1.69 million compared to $3.49 million at July 2012.

For nine month ended comparisons, we actually show a small book gain (again due to the D/L) of $680,184 for 2013 vs a loss of $3 million in 2012. Net losses on a basic/diluted basis were 0 for nine month ended 2013 vs. a loss of 13c per share in 2012.

We are moving in the right direction and making significant progress on the beverage side of Level 5. It appears the company is due to record yet another significant milestone shortly based on project timeline. This announcement seems imminent actually. This is the Company's main focus as is ours at this time! The focus should not be the daily share price fluctuation--they are meaningless in terms of the direction that the company is taking. The direction of the company is very clear.

So when people scream 'more'dilution, try to direct them to facts. Write downs and conversion of legacy debt are actually making the books look nice and improving shareholder equity! What a surprise, LOL.

Next 10Q will SURPRISE HUGE so I hope all will be here as we see MINE/L5/PB make the critical turn!

Best to all,