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SUMMARY OF PETRO-VICTORY'S PROSPECTIVE RESOURCES (Pre-drill) IN THE PIRITY BLOCK

Petro-Victory Energy Corp. has no reserves as of August 31, 2014, and Petro-Victory LLC has obtained an independent audit report of the Pirity Concession plus an addendum to such report as set in the RPS Audit Report dated May 19, 2014 and the RPS Audit Report Update dated July 28, 2014.

The Company’s prospective resources are assigned to the Pirity Concession, the Company’s most significant asset, as tabulated below. This table represents the probabilistic consolidation (summation) of the Company’s 36 percent working interest in all eight prospects evaluated by RPS as indicated on its Audit Report dated May 19, 2014.

Probabilistic Consolidation (Summation) of the Company’s 36 Percent Working Interest in All Eight Prospects

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Notes:

  1. Gross represents the Company’s 36 percent working interest given that President Energy’s earning obligations have been met under the Pirity Farm-Out.

  2. Net is the Company’s ultimate 36 percent working interest entitlement after government royalty and overriding royalty interests. President Energy has completed its earning obligations under the Pirity Farm-Out and has earned its 59 percent working interest and a third party has a 5 percent gross overriding royalty interest. The Jacaranda Paleozoic Prospect lies across the Pirity Concession and Demattei Concession boundary. Jacaranda Paleozoic Prospect results are presented as net using Pirity Concession on-block volumes. Accordingly, some portion of the resources may inure to the benefit of third parties. See “Directors and Executive Officers – Conflicts of Interest”.

  3. GPoS is “Geologic Probability of Success” and is the risk factor associated with the chance of discovery. It is the probability that a prospect will be successful and contain recoverable volumes of hydrocarbons. This chance does not include chance of development. If a discovery is made, there is no assurance that the discovery will be suitable for commercial development.

  4. Probabilistic summation of all prospects, assuming all prospects are successful and no dependency between prospects. The chance of achieving these probabilistic totals is extremely small.

  5. BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of six Mcf to one bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalent of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

  6. Probabilistic summation of all prospects, assuming at least one prospect is successful and no dependency between prospects.

RPS Cautionary Statements: There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. The estimate of recoverable resources (unrisked) includes prospective resources that have not been adjusted for risk based on the chance of discovery or chance of development. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development. Actual recovery is likely to be less and may be substantially less or zero.