Vivakor evaluating acquisitive, organic growth opportunities

Vivakor is pleased to provide a Shareholder Update, from its Chairman and Chief Executive Officer James Ballengee. “I write to you today with gratitude, pride and excitement. Gratitude and pride for the dedication and support of our employees, partners and shareholders in our accomplishments to date, and great excitement for the value I see for us in the path ahead. Since our strategic acquisition in Q3 2022 of our two gathering facilities, Silver Fuels Delhi in Louisiana and Colorado City close to Midland, Texas, the Company has had several significant milestones in the growth of our business. In Q4 of 2022, I was appointed as Chairman and CEO of the Company. I am an established energy industry entrepreneur having successfully sold three oil and gas companies over the past several years for an aggregate value of approximately $1 billion. With my relationships and track record, I believe I am well-positioned to maximize the value of Vivakor’s patented technologies and business opportunities. In Q1 of 2023, we added two new independent members to the Company’s Board of Directors that also have oil and gas experience to support our Company’s endeavors, namely John R. Harris and Albert Johnson. In addition, we added an additional independent member to our Board of Directors, David Natan to chair our Audit Committee, and added Tyler Nelson, our Chief Financial Officer, to our Board of Directors both of which strengthen the accounting experience on our Board of Directors…Due to our successful trial results, the Company was able to borrow $1.9 million USD from DIC to move the RPC that was originally located in Utah (RPC II) to Kuwait so that both RPCs may work on the project in Kuwait. RPC II is currently en route to Kuwait and is expected to arrive before the end of the year. The Company is expecting to receive a license fee of $20 per ton and operational costs of the RPC are expected to be covered by DIC. Management is expecting the RPCs to process as much as 40 tons per hour based on the volume of feedstock supplied. Overall, we believe that the KERP project contains as much as 26 million tons of contaminated material. We plan to maximize the RPC technology with partners and capital from the Middle East for the purpose of creating a low-risk revenue and profit stream for the Company. With the successful trials, and the movement of RPCII to Kuwait, we believe the first steps have been accomplished in this endeavor. The RPCs have been financed via Special Purpose Vehicles that were structured to allow the SPV investors of the RPCs to take advantage of the depreciation and participate in the gross revenue from oil sales. Currently, the SPV participants receive up to 25% of the gross revenues from oil sales. Management feels that in the current financial market it would make sense to continue these types of financings to accelerate the Company’s expansion of RPCs for current and future projects. This enables the Company to have access to capital that will be less dilutive in nature to the Company shareholders and decrease the need for capital from the current markets that tends to be very dilutive in nature and, together with extreme warrant coverage, has negatively impacted many companies’ market capitalizations. At such time, when the Company has sufficient cashflows or access to less dilutive capital, it can then exercise its right to buy out the SPV investors, if one exists, and collect all of the revenues being generated from the RPCs. The Company has moved RPC II from the Utah site but still maintains the lease for the property in Utah. We believe this is still an opportunity for the Company and plan to explore it at a later date. The RPC Houston project has hit many significant milestones. In Q4 of 2022, the Company finalized the lease of approximately 3 three acres close to Lake Houston. In Q1 of 2023 an SPV closed its offering, netting approximately $13.7 million for the manufacture of facilities to process up to 40 tons of material at the Houston site. We were able to prepare the facility to process and store both the tank bottom sludge and other contaminated soil that it will be receiving along with the cleaned soil and recovered oil from its remediation process. In addition, the Company, in Q2 2023, closed on a $2.2 million debt financing to expand the Houston site to add a washout facility. The addition of the washout capability will allow Vivakor’s Houston facility to offer a full-service remediation center for the producers of the tank bottom sludge. With this addition of the wash plant, we anticipate customers will be able to drop off contaminated waste for remediation into sellable, reclaimed oil, and have their trucks and containers cleaned for reuse in the same facility. Construction of the RPC in Houston is nearly complete and the wash plant is in the latter stages of construction. We are currently waiting on permits from the Texas Railroad Commission and the EPA to allow us to operate the facility. We anticipate those to be approved in the near future and to begin processing samples shortly after receiving the permits. We believe the Houston site provides a tremendous opportunity for the Company. The current, estimated going rate for accepting hazardous waste such as tank bottom sludge is $400-$500 per ton and current wash fees can run as much as $2,000 per truck with all of its containers. Once the waste is taken in, we believe that we will be able to recover and reuse at least 1.3 barrels of oil per ton of waste. It is our goal to set up similar facilities in the years to come and reclaim and recycle millions of barrels of oil per year. Overall, management will endeavor to apply technologies to assist the world in its transition to green energy and in that process will deploy different strategies and assets needed to accomplish this goal. If you have any questions, please see our filings with the SEC.”