LETTER TO SHAREHOLDERS

Dear Shareholder:
Many exciting events have occurred over the past six months towards building NMEX.

Kathis Energy created Two Private Placement Drilling funds:
* 1. a $5,250,000 drilling fund for 8 wells in central west Texas (Drilling Rig secured with plans to be drilling by June 1).
* 2. a $30,000,000 drilling fund for 25 wells in south Texas.
Completed a CSMAT Survey on the Winnemucca Mountain Gold Property

Hotel & Resort Development in Mexico

NMEX Signs MOU on Caribbean Resort Property - Since signing the MOU with Pemer Bacalar SAPI DE CV on approximately 25 hectares (61 acres+/-), a due diligence team went to meet with legal counsel in Mexico and to visit the property. The Property is a part of the COSTA Maya and is located near the recently discovered Ichkabal Mayan ruins and is situated in BACALAR LAGOON on the Caribbean coast of the Yucatan Peninsula.

Nearly 10 million people visited the state of Quintana Roo last year, according to the Tourism Secretariat of Quintana Roo. A definitive agreement is now being prepared to finalize the terms of the joint venture. It is called the lake of seven colors because of the white sandy bottom that gives the effect of having so many shades of blue, as you can see in the photos below. This is a
fresh-water lake fed by underground cenotes, but it does look like the ocean.

NMEX & it’s JV partner have engaged the services of CallisonRTKL Architectural firm to design a 40 room Boutique hotel, Spa & Wellness center with 40 luxury villas & 50 high-end condos on the Bacalar acreage. CallisonRTKL is a global architecture, planning and design practice. Here is a link to see some of their award-winning Hotel designs.

www.callisonrtkl.com/hotel-of-the-future/projects/

NMEX Gold Exploration in Nevada

Winnemucca Mountain Gold Property - The Winnemucca Mountain Property (the “Property’) covers an area of over 2600 acres, and is located in Humboldt County, in northwestern Nevada. Humboldt County is the second largest gold producing county in the United States and hosts numerous past and producing gold mines, including the Getchell (Barrick/Newmont), Marigold (Goldcorp), Lone Tree (Newmont), and Twin Creeks (Newmont). The Property is located about 16 miles northwest of the Lone Tree Mine and 20 miles southeast of the historic Sleeper open pit mine operated by Amax Gold from 1986 to 1996. Recent exploration at Sleeper has identifed an additional resource of over 5 Million ounces of gold and in excess of 60 million ounces of silver.

Gold and silver were frst discovered in the Winnemucca Mining District in 1863, and during the 1860’s several smelters were constructed in the area. Modern exploration began in the 1980’s with mapping, geochemical sampling, geophysics and drilling conducted by several companies including St. Joe, Cordex, Tenneco, and Sante Fe Pacifc Gold (now “Newmont”). By the mid-1990’s over 52,000 feet of drilling had been completed. A large percentage of this drilling was done in the Swordfsh Target on the property, which is currently being evaluated by the company as a potentially minable deposit.

A CSAMT geophysical survey conducted in January 2018 over the Swordfish Gold & Silver Deposits outlined a major NNE structure correlating with the mapped vein system, offset by a series of sub-parallel structures. Further exploration including drilling is recommended with the focus of defining the potential of one million plus ounces of gold equivalent on the Property. Northern Minerals and Exploration Ltd. currently is in the process of negotiating a new agreement on the Winnemucca Mountain Property.

NMEX forms wholly own subsidiary Kathis Energy

2018 Drilling Programs

33 Wells $35,250,000

In December 2017, NMEX launched a wholly subsidiary Kathis Energy LLC, for identifying & drilling low-risk oil conventional investment opportunities in Texas. NMEX owns 100% of Kathis Energy. Kathis offers Upstream Oil & Gas Investment Opportunities for the Family Office, Registered Investment Advisor (RIA), Wealth Management & Accredited Investors. Drilling Conventional Wells in Proven Oil Fields. Kathis Energy’s niche is to go back into prematurely abandoned or plugged out oil fields that were substantial producers and recover the significant oil reserves that were left behind. Drilling new vertical wells in these prospective areas, utilizing today’s logging and completion techniques, is a conservative approach to building cash flow with potential for significant return on investment.

Kathis Energy has two funding campaigns:
(1) a $5,250,000 drilling fund for 8 wells in Central West Texas
(2) a $30,000,000 drilling fund for 25 wells in South Texas

To learn more about our drilling
programs! Call Kathis Energy:
(833) 528-4471

Did you know that up to 100% of a investment the 1st year & 5% over a 5 year period ?

Kathis Energy Drilling Fund 1: We have taken a very conservative approach to identifying drilling prospects for Kathis. All of our projects have excellent geological support. The drilling locations are direct offset wells in overlooked proven fields. These fields were discovered in the 1970’s-1980’s and were never fully developed after the collapse of crude oil prices. Kathis estimates approximately 100,000 – 200,000 bbls of recoverable reserves per well.

Kathis Energy Drilling Fund 2: Dr. Kumar, Kathis Energy's Director of Reservoir Engineering, has a legacy of extensive and top-tier knowledge in
reservoir and petroleum engineering spanning over 40 plus years. Dr. Kumar has evaluated more than 500 oil fields in Texas using his stringent 15 point qualifying matrix to identify oil fields that were prematurely abandoned oil fields left significant recoverable oil reserves behind. Out of the 500 oil fields he studied, he identified 20 oil fields with significant recoverable remaining reserves. He estimates an average of 5,000,000 bbls recoverable per oil field.

Kathis Energy Drilling Fund 2 - Dr. Kumar’s Projects

7 Key Points for Kathis Energy Fund 2, LP

Low cost in-field shallow to medium depth vertical wells - not high risk horizontal or wildcatting plays; drilling in proven areas with documented
evidence of significant recoverable hydrocarbons left in the ground.

Excellent established infrastructure already in place, including: roads, utilities, manpower and available oil field service companies and equipment.

The EUR, estimated ultimate recovery, CAPEX or capital expenditure and OPEX or operating expenses fall within Dr. Kumar’s stringent parameters
to maximize the current and future net asset value of these prospective fields.

Conservative production rates indicate less than 24 month return of investment capital at $50 oil along with IDC & TDC first year write off of
approximately 95%.

In determining the ideal drilling locations, "look alike" fields were found with multiple pay zones that met all Dr. Kumar's selection criteria.

High estimated ultimate oil recovery with low historical water production.
Improvements in oil field technology coupled with historical production data provides tools for recovering oil and gas overlooked or left behind.