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Announcement: Meridian Preferred Stock Private Placement

MERIDIAN ENERGY GROUP, INC.
ANNOUNCEMENT REGARDING THE PRIVATE PLACEMENT
OF MERIDIAN PREFERRED STOCK
Wednesday, October 10th, 2018

Meridian anticipates making several important announcements regarding the Davis Refinery and other major projects over the next several weeks. This stream of announcements is expected to include, but not be limited to, the following:

(1) Selection of, and completion of a contract with, a major design-construction firm for the next phase of Davis project design and procurement under an arrangement that is intended to culminate in the anticipated completion with that same contractor of a comprehensive engineering, procurement and construction (“EPC”) agreement under which Davis will be built.

(2) Completion of an agreement with a substantial domestic refined products distribution and marketing firm under which that firm will purchase the entire production of gasoline and diesel fuel from the Davis Refinery.

(3) Execution of an agreement establishing the site location and a crude supply and logistics relationship for Meridian’s second major refinery located in another major shale basin.

(4) A term sheet for the provision of financial advisory and placement services with a major investment banking firm.

Once these milestones are achieved, the pace of the Davis Refinery project will accelerate substantially towards the full project financing later in 2018. As this occurs, Meridian cannot afford to lose a single day’s worth of momentum on Davis, the Company will be taking steps to expedite its Preferred Offering to ensure that the necessary war-chest is in place. Among other things:

Once the milestones listed above are achieved the Company will increase the Offering Price to a level above the $10.00 base level;

The Company anticipates that it will increase the Offering Price as of Friday, November 2nd, 2018 based on even partial success on meeting the above milestones; and,

The Company anticipates that it will limit the number of shares that will be sold at the $10.00 per share Offering Price to 2.5mm shares out of the total of 6mm shares of Preferred Stock included in the Offering.