Houston Natural Resources Corp (HNRC)

[Beaver]

In the period ending September 30, 2013, the company issued 154,125,870 shares at a value of $0.10c per share as a deposit pursuant to a letter of intent. The company also issued 1,000,000 shares of common stock for legal and advisory services provided to the company. The company also issued 440,000 common shares for cash at $0.05c per share pursuant to the terms of convertible notes. The company subsequently issued 37,000,000 common shares for cash at $0.001.

On April 11, 2013, the Company issued 154,125,870 common shares to Ludvik Holdings and 5,000,000 shares of the Company’s Series A Preferred shares, with one hundred votes per share, in partial payment of the purchase of Ludvik Holding’s assets and business, subject to assumption of liabilities and obligations. The total purchase price is $21,062,587, with an unpaid balance of $650,000 to be paid in cash. On July 1, 2013 the company issued a Promissory Note to Ludvik for payment of the $650,000. The Note has been assigned to TCA Global Credit Master Fund LP.