<SEC-DOCUMENT>0001144204-17-051664.txt : 20171006
<SEC-HEADER>0001144204-17-051664.hdr.sgml : 20171006
<ACCEPTANCE-DATETIME>20171006161237
ACCESSION NUMBER:		0001144204-17-051664
CONFORMED SUBMISSION TYPE:	424B3
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20171006
DATE AS OF CHANGE:		20171006

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			EnerJex Resources, Inc.
		CENTRAL INDEX KEY:			0000008504
		STANDARD INDUSTRIAL CLASSIFICATION:	CRUDE PETROLEUM & NATURAL GAS [1311]
		IRS NUMBER:				880422242
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B3
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-205069
		FILM NUMBER:		171127343

	BUSINESS ADDRESS:	
		STREET 1:		4040 BROADWAY, SUITE 425
		CITY:			SAN ANTONIO
		STATE:			TX
		ZIP:			78209
		BUSINESS PHONE:		(210) 592-1670

	MAIL ADDRESS:	
		STREET 1:		4040 BROADWAY, SUITE 425
		CITY:			SAN ANTONIO
		STATE:			TX
		ZIP:			78209

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MILLENNIUM PLASTICS CORP
		DATE OF NAME CHANGE:	20000525

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AURORA CORP
		DATE OF NAME CHANGE:	19990825
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B3
<SEQUENCE>1
<FILENAME>v476594_424b3.htm
<DESCRIPTION>FORM 424(B)(3)
<TEXT>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0; text-align: right"><B>Filed Pursuant to Rule 424(b)(3)<BR>
Registration Statement No. 333-205069</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>PROSPECTUS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="enrj_logo.jpg"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ENERJEX RESOURCES, INC. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 12pt"><B>298,188
Shares of Common Stock issuable upon conversion of Shares of</B></FONT><BR>
<FONT STYLE="font-size: 12pt"><B>Series B Preferred Stock offered by Selling Stockholders</B></FONT><BR>
<FONT STYLE="font-size: 12pt"><B>1,904,286 Shares of Common Stock issuable upon exercise of warrants</B></FONT><BR>
<FONT STYLE="font-size: 12pt"><B>offered by Selling Stockholders</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">We are registering
the resale from time to time by the selling stockholders identified in this prospectus or a supplement hereto of up to 2,202,474
shares of our common stock, which amount includes 1,904,286 shares to be issued to the selling stockholders only if and when they
exercise warrants held by them, and up to 298,188 shares of our common stock that are issuable upon conversion of 521.62076 shares
of Series B preferred stock currently held by certain of the selling stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">The selling stockholders
may offer the shares from time to time as each selling stockholder may determine through public or private transactions or through
other means described in the section entitled &ldquo;Plan of Distribution&rdquo; or in a supplement to this prospectus. Each selling
stockholder may also sell shares under Rule 144 under the Securities Act of 1933, as amended, if available, rather than under
this prospectus. The registration of these shares for resale does not necessarily mean that the selling stockholders will sell
any of their shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">We will not receive
any of the proceeds from the sale of the shares by the selling stockholders. We will receive gross proceeds from the exercise
of the warrants, if and when they are exercised.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">Our common stock is
listed on the NYSE American under the symbol &ldquo;ENRJ.&rdquo; On October 5, 2017, the last reported sale price of our common
stock on the NYSE American was $0.29.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 15pt"><B>Investing in our securities involves
significant risks. See &ldquo;Risk Factors&rdquo; beginning on page 11.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt"><B>NEITHER THE SECURITIES
AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR DETERMINED IF THIS
PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>The date of this prospectus is October
6, 2017. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>TABLE OF CONTENTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 91%; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 7%; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Page</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Special Note Regarding Forward-Looking
    Statements</FONT></A></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><A HREF="#a_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_001a"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Offering</FONT></A></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_001a">8</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_002"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risk Factors</FONT></A></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><A HREF="#a_002">11</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_003"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Use of Proceeds</FONT></A></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><A HREF="#a_003"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">22</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_003a"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Description of Capital Stock</FONT></A></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_003a">22</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_004"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Selling Shareholders</FONT></A></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><A HREF="#a_004"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">27</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_005"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Plan of Distribution</FONT></A></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><A HREF="#a_005"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">28</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_006"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Information with Respect to
    Registrant</FONT></A></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><A HREF="#a_006"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">29</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_007"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ownership of Certain Beneficial
    Owners and Management</FONT></A></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><A HREF="#a_007"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">30</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_008"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Experts</FONT></A></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><A HREF="#a_008"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">33</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_009"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Where You Can Find More Information</FONT></A></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><A HREF="#a_009"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">34</FONT></A></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 15pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt"><B>Neither we nor the
selling stockholders have authorized anyone to provide you with information different from that contained or incorporated by reference
in this prospectus or any accompanying prospectus supplement or free writing prospectus, and neither we nor the selling stockholders
take any responsibility for any other information that others may give you. This prospectus is not an offer to sell, nor is it
a solicitation of an offer to buy, the securities in any jurisdiction where the offer or sale is not permitted. You should not
assume that the information contained in this prospectus or any prospectus supplement or free writing prospectus is accurate as
of any date other than the date on the front cover of those documents, or that the information contained in any document incorporated
by reference is accurate as of any date other than the date of the document incorporated by reference, regardless of the time
of delivery of this prospectus or any sale of a security. Our business, financial condition, results of operations and prospects
may have changed since those dates.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">As permitted by the
rules and regulations of the Securities and Exchange Commission (the &ldquo;SEC&rdquo;), the registration statement of which this
prospectus forms a part includes additional information not contained in this prospectus. You may read the registration statement
and the other reports we file with the SEC at the SEC&rsquo;s website or at the SEC&rsquo;s offices described below under the
heading &ldquo;Where You Can Find More Information.&rdquo; Before investing in our securities, you should read this prospectus
and any accompanying prospectus supplement or free writing prospectus, as well as the additional information described under &ldquo;Where
You Can Find More Information&rdquo; and &ldquo;Information Incorporated by Reference.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">References to the &ldquo;Company,&rdquo;
&ldquo;EnerJex,&rdquo; &ldquo;we,&rdquo; &ldquo;our&rdquo; and &ldquo;us&rdquo; in this prospectus are to EnerJex Resources, Inc.
and its consolidated subsidiaries, unless the context otherwise requires. This document includes trade names and trademarks of
other companies. All such trade names and trademarks appearing in this document are the property of their respective holders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ABOUT THIS PROSPECTUS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">This document does
not constitute an offer to sell, or a solicitation of an offer to buy, any securities, in any jurisdiction in which, or from any
person to whom, it is unlawful to make any such offer or solicitation in such jurisdiction. The securities are not being offered
in any jurisdiction where the offer of such securities is not permitted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">This prospectus provides
you with a general description of the securities we may offer. Each time the selling stockholders offer a type or series of securities,
the selling stockholders will provide a prospectus supplement or free writing prospectus that will contain specific information
about the terms of the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">A prospectus supplement
or free writing prospectus may include a discussion of risks or other special considerations applicable to us or the offered securities.
A prospectus supplement or free writing prospectus may also add, update or change information contained in this prospectus. If
there is any inconsistency between the information in this prospectus and any related prospectus supplement or free writing prospectus,
you must rely on the information in the prospectus supplement or free writing prospectus. This prospectus may not be used to offer
or sell any securities unless accompanied by a prospectus supplement or free writing prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">This prospectus contains
summaries of certain provisions contained in some of the documents described herein, but reference is made to the actual documents
for complete information. All of the summaries are qualified in their entirety by the actual documents. Copies of some of the
documents referred to herein have been filed and are incorporated by reference as exhibits to the registration statement of which
this prospectus is a part, and you may obtain copies of those documents as described below under the heading &ldquo;Incorporation
of Certain Information by Reference&rdquo; and &ldquo;Where You Can Find More Information.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt"><B>We have not authorized
anyone to provide you with any information other than the information incorporated by reference or provided in this prospectus
or any prospectus supplement. We are not making an offer of these securities in any state or other jurisdiction where the offer
is not permitted. You should not assume that the information in this prospectus, any prospectus supplement or any document incorporated
or deemed to be incorporated by reference in this prospectus is accurate as of any date other than the date of that document.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>INFORMATION INCORPORATED BY REFERENCE
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">The SEC allows us to
incorporate information into this prospectus &ldquo;by reference,&rdquo; which means that we can disclose important information
to you by referring you to another document that we file separately with the SEC. The information incorporated by reference is
deemed to be part of this prospectus, except for any information superseded by information contained directly in this prospectus.
These documents contain important information about the Company and its financial condition, business and results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">We are incorporating
by reference the Company&rsquo;s filings listed below and any additional documents that we may file with the SEC pursuant to Section
13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934, as amended (the &ldquo;Exchange Act&rdquo;) on or after the
date hereof and prior to the termination of any offering, except we are not incorporating by reference any information furnished
(but not filed) under Item 2.02 or Item 7.01 of any Current Report on Form 8-K and corresponding information furnished under Item
9.01 as an exhibit thereto:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="width: 94%; text-align: justify">the Company&rsquo;s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 (the &ldquo;2016
    Form 10-K&rdquo;), filed with the SEC on March 31, 2017;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="width: 94%; text-align: justify">the Company&rsquo;s Quarterly Reports on Form 10-Q for the quarter ended March 31, 2017, filed with
    the SEC on May 15, 2017 and for the quarter ended June 30, 2017, filed with the SEC on August 21, 2017;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="width: 94%; text-align: justify">the Definitive Proxy Statement on Schedule 14A, filed with the SEC on April 7, 2017;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="width: 94%; text-align: justify">the Company&rsquo;s Current Reports on Form 8-K filed on April 4, 2017, April 11, 2017, April 28, 2017,
    May 12, 2017, July 20, 2017, and August 21, 2017 (except that any portions thereof which are furnished and not filed shall
    not be deemed incorporated); and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="width: 94%; text-align: justify">the description of our common stock contained in our Form 8-A filed on June 12, 2014, including any
    amendments or reports filed for the purpose of updating the description; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">We will provide, without
charge, to each person, including any beneficial owner, to whom a copy of this prospectus has been delivered a copy of any and
all of the documents referred to herein that are summarized in this prospectus, if such person makes a written or oral request
directed to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">EnerJex Resources, Inc.<BR>
4040 Broadway, Suite 425<BR>
San Antonio, TX 78209<BR>
Attn: Louis Schott<BR>
(210) 559-1670</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">Exhibits to the filings
will not be sent, however, unless those exhibits have specifically been incorporated by reference in this prospectus and any accompanying
prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_001"></A><B>SPECIAL NOTE REGARDING
FORWARD-LOOKING STATEMENTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">This prospectus and
any accompanying prospectus supplement may include &ldquo;forward-looking statements&rdquo; within the meaning of Section 27A
of the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;), and Section 21E of the Securities Exchange Act of
1934, as amended (the &ldquo;Exchange Act&rdquo;), and such statements are subject to the safe harbors created thereby. A forward-looking
statement is neither a prediction nor a guarantee of future events. We try, whenever possible, to identify these forward-looking
statements by using words such as &ldquo;anticipate,&rdquo; &ldquo;assume,&rdquo; &ldquo;believe,&rdquo; &ldquo;estimate,&rdquo;
&ldquo;expect,&rdquo; &ldquo;intend,&rdquo; &ldquo;plan,&rdquo; &ldquo;project,&rdquo; &ldquo;may,&rdquo; &ldquo;will,&rdquo;
&ldquo;would,&rdquo; and similar expressions. Forward-looking statements are related to, among other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="width: 94%">Business objectives and strategic plans;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="width: 94%">Operating strategies;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="width: 94%">The need for additional financing;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="width: 94%">Our products current state of development;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="width: 94%">Competition in various aspects of our business; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="width: 94%">Other risks detailed in our reports.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">Although we believe
that the expectations reflected in our forward-looking statements are based on reasonable assumptions, such expectations may prove
to be materially incorrect due to known or unknown risks and uncertainties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">In addition, the factors
described under Critical Accounting Policies and Estimates in Part II, Item 7, and Risk Factors in Part I, Item 1A in our most
recent Annual Report on Form 10-K, and Quarterly Reports on Form 10-Q; which is incorporated herein by reference into this prospectus,
as well as other possible factors not listed, could cause actual results to differ materially from those expressed in forward-looking
statements, including, without limitation, the following: substantial liquidity concerns; ability to continue as a going concern;
declining economic conditions and worsening geopolitical conditions; future profitability is subject to inherent risks in oil
and gas; oil and gas prices are volatile; uncertainties in operating risks; changes in availability of capital and credit facility
borrowings; ability to meet credit facility obligations; effectiveness of management; and changes in accounting standards, policies
and practices or related interpretations by auditors or regulatory entities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">All forward-looking
statements speak only as of the date made. All subsequent written and oral forward-looking statements attributable to us, or persons
acting on our behalf, are expressly qualified in their entirety by the cautionary statements. Except as required by law, we undertake
no obligation to update any forward-looking statements to reflect events or circumstances after the date on which it is made or
to reflect the occurrence of anticipated or unanticipated events or circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_001a"></A>OFFERING SUMMARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">The following is a
brief description of certain terms of this offering and does not purport to be complete. For a more complete description of the
terms of the common stock, see &ldquo;Description of Securities&rdquo; beginning on page 24 of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 35%; padding-left: 0.125in; text-indent: -0.125in"><B>Common Stock to be offered by the selling stockholders:</B></TD>
    <TD STYLE="width: 2%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 63%; text-align: justify">Up to 2,202,474 shares.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><B>Common stock outstanding immediately after this offering:</B></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">12,573,871 shares.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><B>Use of proceeds:</B></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Although we are paying the expenses related to the registration of the shares being offered
    by the selling stockholders, we will not receive any proceeds from the sale of shares of our common stock by the selling stockholders.
    The selling stockholders will receive all of the net proceeds and bear all commissions and discounts, if any, from the sales
    of our common stock offered by them pursuant to this prospectus.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><B>NYSE American symbol:</B></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Common stock: &ldquo;ENRJ&rdquo;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><B>Common Stock dividend policy:</B></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">We have not in the past declared any dividends with regard to our common stock. The declaration,
    timing and amount of any such dividends will be at the sole discretion of our board of directors and will depend on a variety
    of factors, including general economic conditions, our financial condition and operating results, our available cash and current
    and anticipated cash needs, capital requirements, plans for expansion, tax, legal, regulatory and contractual restrictions
    and implications, including our loan agreements and such other factors as our board of directors may deem relevant.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><B>Risk Factors:</B></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Investing in our securities involves substantial risks. You should carefully review and consider
    the &ldquo;Risk Factors&rdquo; section of this prospectus for a discussion of factors to consider before deciding to invest
    in our securities.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><B>Recent Developments</B></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">On May 10, 2017, the Company and its subsidiaries, and successor lender consummated an agreement
    pursuant to which:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">the successor lender agreed to forgive our existing secured loan in the approximate principal
    amount of $17,295,000, and in exchange entered into a secured promissory note (which we refer to as the &ldquo;<U>restated
    secured note</U>&rdquo;) in the original principal amount of $4,500,000.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">we:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">conveyed our oil and gas properties and associated performance and surety bonds in Colorado,
    Texas, and Nebraska;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">conveyed all of our shares of Oakridge Energy, Inc. (together, the &ldquo;<U>conveyed oil
    and gas assets</U>&rdquo;); and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">retained our assets in Kansas and continued as a going concern. The Kansas assets currently
    provide most of our current operating revenue.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">The restated secured note:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 35%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 63%; text-align: justify">is secured by a first-priority lien in the Company&rsquo;s oil and gas producing
    assets situated in the State of Kansas,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">evidences accrued interest on the $4,500,000 principal balance at a rate of 16% per annum,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">bears interest from and after May 1, 2017, at a rate of 16.0% per annum,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">is pre-payable in full at a discount at any time during the term of the restated secured note
    upon EnerJex paying $3,300,000 to successor lender, and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">matures and is due and payable in full on November 1, 2017.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will have two options to extend
        the maturity date of the restated secured note by 90 days each (first to January 30, 2018 and then to April 30, 2018),
        upon payment of extension fees of $100,000 for each extension.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">So long as we repay the $3,300,000
        in indebtedness on or prior to the maturity date, as extended, all other amounts payable under the restated secured note
        are to be forgiven.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">As part of the closing procedures and net settlement, we issued a promissory note to Pass
    Creek Resources LLC in the amount of $105,806. The promissory bears interest at 16% per annum and matured on June 9, 2017.
    The amount due was not paid on June 9, 2017, but the holder has not provided the Company a notice of default.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">In connection with the May 10, 2017 closing and in consideration of the satisfaction of $13,425,000
    of the amount due under our credit agreement, as amended, the Company and certain of its subsidiaries transferred to PCR Holdings
    LLC, an affiliate of the successor lenders under the Credit Agreement, all of the Company&rsquo;s oil and gas properties and
    assets located in Colorado, Texas, and Nebraska, as well as the Company&rsquo;s shares of Oakridge Energy, Inc.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>ABOUT ENERJEX
RESOURCES, INC. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Overview </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">We continue to investigate
multiple opportunities to both unlock value and accelerate growth in an accretive manner on behalf of shareholders, including
but not limited to mergers, acquisitions, joint ventures, and non-dilutive financings. There can be no assurance of the results
or timing associated with this process.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">We have substantially
curtailed capital spending because of the current commodity price environment and the Company&rsquo;s limited capital. Once the
commodity market and/or capital availability improves, we intend to focus our budget on the development of our Kansas properties
where we have identified certain drilling locations and reactivation or recompletion opportunities that we believe will generate
high rates of return with low risk profiles as well as certain acquisitions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">We were formerly known
as Millennium Plastics Corporation and were incorporated in the State of Nevada on March 31, 1999. We abandoned a prior business
plan focusing on the development of biodegradable plastic materials. In August 2006, we acquired Midwest Energy, Inc., a Nevada
corporation, pursuant to a reverse merger. After the merger, Midwest Energy became a wholly owned subsidiary, and as a result
of the merger the former Midwest Energy stockholders controlled approximately 98% of our outstanding shares of common stock. We
changed our name to EnerJex Resources, Inc. in connection with the merger, and in November 2007 we changed the name of Midwest
Energy (now our wholly owned subsidiary) to EnerJex Kansas, Inc. All of our current operations are conducted through EnerJex Kansas,
Inc., and our leasehold interests are held in our wholly owned subsidiaries Working Interest, LLC, and EnerJex Kansas, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Plan of Operations</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Board of Directors
is currently pursuing possible strategic transactions involving opportunities both in and outside the oil and gas industry that
will offer the opportunity for future growth and net cash flow. Those opportunities may involve a business combination with another
business enterprise, the acquisition of one or more groups of assets, an equity or debt financing transaction to provide capital
with which to fund operations and expansion, and other similar transactions. In addition, the Company expects to continue to pursue
other acquisition and business combination opportunities including acquisition with a privately owned company. No assurance can
be given that any one or more of these potential business combinations or asset acquisition opportunities will be consummated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_002"></A><B>RISK FACTORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt; text-align: justify">&nbsp;<I>An investment in our securities
involves a high degree of risk. Before making an investment decision, you should carefully consider the risks described below,
as well as the risks described under the caption &ldquo;Risk Factors&rdquo; in our Annual Report on Form 10-K for the year ended
December 31, 2016 and the other filings we make with the SEC pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act,
which we have incorporated herein by reference. Our business, financial condition, results of operations and cash flows could
be materially adversely affected by any of these risks, and the market or trading price of our securities could decline due to
any of these risks. In addition, please read &ldquo;Disclosure Regarding Forward-Looking Statements&rdquo; in this prospectus,
where we describe additional uncertainties associated with our business and the forward-looking statements included or incorporated
by reference in this prospectus. Please note that additional risks not presently known to us or that we currently deem immaterial
may also impair our business and operations.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 42.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Risks Related to Recent Developments</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Due to our substantial liquidity concerns, we may be
unable to continue as a going concern.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our only remaining
assets are located in Kansas. We currently owe $4,500,000 under a promissory note, payable with a discount in the amount of $3,300,000
provided the loan is paid in full prior to the maturity date November 1, 2017, subject to extension.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Due to our indebtedness,
liquidity issues and the potential for restructuring transactions, there is risk that, among other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">it may become more difficult to retain, attract or
replace key employees;</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">employees could be distracted from performance of
their duties or attracted to other career opportunities; and</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our suppliers, hedge counterparties, vendors and service
providers could renegotiate the terms of our arrangements, terminate their relationship with us or require financial assurances
from us.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The occurrence of
certain of these events has already negatively affected our business and may continue to have a material adverse effect on our
business, results of operations and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our existing and future
debt agreements could create issues as principal and interest payments become due and the debt matures that will threaten our
ability to continue as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We have substantial indebtedness
which is secured by substantially all of our assets.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our subsidiaries&rsquo;
obligations under the credit agreement and note are non-recourse and are secured by a first-priority lien in the Company&rsquo;s
and the subsidiaries&rsquo; oil properties and assets located in Kansas. The Company was removed as a borrower under the Credit
Agreement, but entered into a Guaranty of Recourse Carveouts, pursuant to which the Company guarantees the Subsidiaries&rsquo;
payment of certain fees and expenses due under the Credit Agreement, and may be liable for certain conduct, such as fraud, bad
faith, gross negligence, and waste of the Kansas oil properties or assets. In the event we fail to repay our debts our creditors
may enforce their security interests and foreclose on our assets, which would likely cause any investment in the company to become
worthless.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We are pursuing strategic transactions which may result
in a change of control of the Company, may result in a change of business focus and may result in substantial dilution to existing
shareholders.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Board of Directors
is currently pursuing possible strategic transactions involving opportunities both in and outside the oil and gas industry that
will offer the opportunity for future growth and net cash flow. Those opportunities may involve a business combination with another
business enterprise, the acquisition of one or more groups of assets, an equity or debt financing transaction to provide capital
with which to fund operations and expansion, and other similar transactions. To illustrate the types of transactions that the
Company is investigating, the Company has been investigating the acquisition by purchase or contribution of certain operating
oil and gas assets. In addition, the Company recently was involved in discussions about a possible acquisition by merger of a
privately held company that operates an agricultural drone business and in which an affiliate of the holder of the Company&rsquo;s
Series B Preferred Stock has an interest. In addition, the Company expects to continue to pursue other acquisition and business
combination opportunities. No assurance can be given that any one or more of these potential business combinations or asset acquisition
opportunities will be consummated. Any transaction, if completed, may results in a change of control or change in business focus
of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If the average closing price of our common stock is less
than $0.20 per share for a period of over 30 consecutive trading days, the NYSE American could delist our common stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The NYSE American
requires that the average closing price of a listed company&rsquo;s common stock not be less than $0.20 per share for a period
of over 30 consecutive trading days. The trading price of our common stock is currently below $0.30 per share. Under NYSE American
rules, a company can avoid delisting, if, during the six month period following receipt of the NYSE American notice and on the
last trading day of any calendar month, a company&rsquo;s common stock price per share and 30 trading-day average share price
is at least $0.20. During this six month period, a company&rsquo;s common stock will continue to be traded on the NYSE American,
subject to compliance with other continued listing requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the future, if
our common stock ultimately were to be delisted for any reason, it could negatively impact us by (i) reducing the liquidity and
market price of our common stock; (ii) reducing the number of investors willing to hold or acquire our common stock, which could
negatively impact our ability to raise equity financing; (iii) limiting our ability to use a registration statement to offer and
sell freely tradeable securities, thereby preventing us from accessing the public capital markets; and (iv) impairing our ability
to provide equity incentives to our employees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Current volatile market conditions and significant fluctuations
in energy prices may continue indefinitely, negatively affecting our business prospects and viability.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The oil and gas markets
are very volatile, and we cannot predict future oil and natural gas prices. Historically, oil and natural gas prices have been
volatile and are subject to fluctuations in response to changes in supply and demand, market uncertainty and a variety of additional
factors that are beyond our control. Further declines in the price of oil and natural gas will have a material adverse effect
on our planned operations and financial condition. Additionally, the amount of any royalty payment we receive from the production
of oil and gas from our oil and gas interests will depend on numerous factors beyond our control.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may continue to incur substantial write-downs of the
carrying value of our oil and gas properties, which would adversely impact our earnings.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We review the carrying
value of our oil and gas properties under the full cost method of accounting. Under the full cost method of accounting, the net
book value of oil and gas properties, less deferred income taxes, may not exceed a calculated &ldquo;ceiling.&rdquo; The ceiling
limitation is (a) the present value of future net revenues computed by applying current prices of oil &amp; gas reserves (with
consideration of price changes only to the extent provided by contractual arrangements) to estimated future production of proved
oil &amp; gas reserves as of the date of the latest balance sheet presented, less estimated future expenditures (based on current
costs) to be incurred in developing and producing the proved reserves computed using a discount factor of 10 percent and assuming
continuation of existing economic conditions <I>plus</I> (b) the cost of properties not being amortized <I>plus</I> (c) the lower
of cost or estimated fair value of unproven properties included in the costs being amortized <I>less</I> (d) income tax effects
related to differences between book and tax basis of properties. Future cash outflows associated with settling accrued retirement
obligations are excluded from the calculation. Estimated future cash flows are calculated using end-of-period costs and an un-weighted
arithmetic average of commodity prices in effect on the first day of each of the previous 12 months held flat for the life of
the production, except where prices are defined by contractual arrangements.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risks Associated with our Industry</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Oil and gas prices are volatile. Future price volatility
may negatively impact cash flows which could result in an inability to cover our operating and/or capital expenditures.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our future revenues,
profitability, future growth and the carrying value of our properties depend substantially on the prices we realize for our oil
and gas production. Our realized prices may also affect the amount of cash flow available for operating and/or capital expenditures
and our ability to borrow and raise additional capital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Oil and gas prices
are subject to wide fluctuations in response to relatively minor changes in or perceptions regarding supply and demand. Historically,
the markets for oil and gas have been volatile, and they are likely to continue to be volatile in the future. Among the factors
that can cause this volatility are:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 42.9pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>commodities speculators;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>local, national and worldwide economic conditions;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>worldwide or regional demand for energy, which is affected by economic conditions;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>the domestic and foreign supply of oil and gas;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>weather conditions;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>natural disasters;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>acts of terrorism and war;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>domestic and foreign governmental regulations and taxation;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>political and economic conditions in oil and gas producing countries, including those in the Middle East and South America;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>impact of the U.S. dollar exchange rates on oil and gas prices;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>the availability of refining capacity;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>actions of the Organization of Petroleum Exporting Countries, or OPEC, and other state controlled oil and gas companies
    relating to oil and gas price and production controls; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>the price and availability of other fuels.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">It is impossible to
predict oil and gas price movements with certainty. A drop in oil and gas prices may not only decrease our future revenues on
a per unit basis but also may reduce the amount of oil and gas that we can produce economically. A substantial or extended decline
in oil and gas prices would materially and adversely affect our future business enough to potentially force us to cease our business
operations. In addition, our reserves, financial condition, results of operations, liquidity and ability to finance and execute
planned capital expenditures will also suffer in such a price decline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Declining economic conditions and worsening geopolitical
conditions could negatively impact our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our operations are
affected by local, national and worldwide economic conditions. Markets in the United States and elsewhere have been experiencing
volatility and disruption for more than 5 years, due in part to the financial stresses affecting the liquidity of the banking
system and the financial markets generally.&nbsp;The consequences of a potential or prolonged recession may include a lower level
of economic activity, decreasing demand for petroleum products and uncertainty regarding energy prices and the capital and commodity
markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, actual
and attempted terrorist attacks in the United States, Middle East, Southeast Asia and Europe, and war or armed hostilities in
the Middle East, the Persian Gulf, North Africa, Iran, North Korea or elsewhere, or the fear of such events, could further exacerbate
the volatility and disruption to the financial markets and economies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">While the ultimate
outcome and impact of the current economic conditions cannot be predicted, a lower level of economic activity might result in
a decline in energy consumption, which may materially adversely affect the price of oil and gas, our revenues, liquidity and future
growth.&nbsp;&nbsp;Instability in the financial markets, as a result of recession or otherwise, also may affect the cost of capital
and our ability to raise capital.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The oil and natural gas business involves numerous uncertainties
and operating risks that can prevent us from realizing profits and can cause substantial losses.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our development, exploitation
and exploration activities may be unsuccessful for many reasons, including weather, cost overruns, equipment shortages and mechanical
difficulties. Moreover, the successful drilling of a well does not ensure a profit on investment. A variety of factors, both geological
and market-related, can cause a well to become uneconomical or only marginally economical. In addition to their cost, unsuccessful
wells can hurt our efforts to replace reserves.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The oil and natural gas business involves
a variety of operating risks, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>unexpected operational events and/or conditions;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>reductions in oil and natural gas prices;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>limitations in the market for oil and natural gas;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>adverse weather conditions;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>facility or equipment malfunctions;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>title problems;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>oil and gas quality issues;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>pipe, casing, cement or pipeline failures;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>natural disasters;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>fires, explosions, blowouts, surface cratering, pollution and other risks or accidents;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>environmental hazards, such as oil spills, pipeline ruptures and discharges of toxic gases;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>compliance with environmental and other governmental requirements; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>uncontrollable flows of oil or natural gas or well fluids.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If we experience any
of these problems, it could affect well bores, gathering systems and processing facilities, which could adversely affect our ability
to conduct operations. We could also incur substantial losses as a result of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>injury or loss of life;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>severe damage to and destruction of property, natural resources and equipment;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>pollution and other environmental damage;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>clean-up responsibilities;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>regulatory investigation and penalties;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>suspension of our operations; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>repairs to resume operations.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Because we use third-party
drilling contractors to drill our wells, we may not realize the full benefit of worker compensation laws in dealing with their
employees. Our insurance does not protect us against all operational risks. We do not carry business interruption insurance at
levels that would provide enough funds for us to continue operating without access to other funds. For some risks, we may not
obtain insurance if we believe the cost of available insurance is excessive relative to the risks presented. In addition, pollution
and environmental risks generally are not fully insurable. If a significant accident or other event occurs and is not fully covered
by insurance, it could impact our operations enough to force us to cease our operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The differential between the New York Mercantile Exchange,
or NYMEX, or other benchmark price of oil and gas and the wellhead price we receive could have a material adverse effect on our
results of operations, financial condition and cash flows.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The prices that we
receive for&nbsp;our oil production in Kansas are typically based on a discount to the relevant benchmark prices, such as NYMEX,
that are used for calculating hedge positions. The difference between the benchmark price and the price we receive is called a
differential. &nbsp;We cannot accurately predict oil and gas differentials. In recent years for example, production increases
from competing North American producers, in conjunction with limited refining and pipeline capacity have widened this differential.
Recent economic conditions, including volatility in the price of oil and gas, have resulted in both increases and decreases in
the differential between the benchmark price for oil and gas and the wellhead price we receive.&nbsp;&nbsp;These fluctuations
could have a material adverse effect on our results of operations, financial condition and cash flows by decreasing the proceeds
we receive for our oil and gas production in comparison to what we would receive if not for the differential.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The oil and gas business involves numerous uncertainties
and operating risks that can prevent us from realizing profits and can cause substantial losses.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our development, exploitation
and exploration activities may be unsuccessful for many reasons, including weather, cost overruns, equipment shortages and mechanical
difficulties. Moreover, the successful drilling of an oil and gas well does not ensure a profit on investment. A variety of factors,
both geological and market-related, can cause a well to become uneconomical or only marginally economical. In addition to their
cost, unsuccessful wells can hurt our efforts to replace reserves.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The oil and gas business involves a variety
of operating risks, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>unexpected operational events and/or conditions;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>reductions in oil and gas prices;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>limitations in the market for oil and gas;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>adverse weather conditions;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>facility or equipment malfunctions;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>title problems;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>oil and gas quality issues;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>pipe, casing, cement or pipeline failures;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>natural disasters;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>fires, explosions, blowouts, surface cratering, pollution and other risks or accidents;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>environmental hazards, such as oil spills, pipeline ruptures and discharges of toxic gases;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>compliance with environmental and other governmental requirements; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>uncontrollable flows of oil and gas or well fluids</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 42.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If we experience any
of these problems, it could affect well bores, gathering systems and processing facilities, which could adversely affect our ability
to conduct operations. We could also incur substantial losses as a result of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>injury or loss of life;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>severe damage to and destruction of property, natural resources and equipment;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>pollution and other environmental damage;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>clean-up responsibilities;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>regulatory investigation and penalties;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>suspension of our operations; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>repairs to resume operations</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Because we use third-party
drilling contractors to drill our wells, we may not realize the full benefit of worker compensation laws in dealing with their
employees. Our insurance does not protect us against all operational risks. We do not carry business interruption insurance at
levels that would provide enough funds for us to continue operating without access to other funds. For some risks, we may not
obtain insurance if we believe the cost of available insurance is excessive relative to the risks presented. In addition, pollution
and environmental risks generally are not fully insurable. If a significant accident or other event occurs and is not fully covered
by insurance, it could impact our operations enough to force us to cease our operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Drilling wells is speculative, and any material inaccuracies
in our forecasted drilling costs, estimates or underlying assumptions will materially affect our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Developing and exploring
for oil and gas involves a high degree of operational and financial risk, which precludes definitive statements as to the time
required and costs involved in reaching certain objectives. The budgeted costs of drilling, completing and operating wells are
often exceeded and can increase significantly when drilling costs rise due to a tightening in the supply of various types of oil
and gas field equipment and related services. Drilling may be unsuccessful for many reasons, including geological conditions,
weather, cost overruns, equipment shortages and mechanical difficulties. Moreover, the successful drilling of an oil and gas well
does not ensure a profit on investment. Exploratory wells bear a much greater risk of loss than development wells. A variety of
factors, both geological and market-related, can cause a well to become uneconomical or only marginally economic. Our initial
drilling and development sites, and any potential additional sites that may be developed, require significant additional exploration
and development, regulatory approval and commitments of resources prior to commercial development. If our actual drilling and
development costs are significantly more than our estimated costs, we may not be able to continue our business operations&nbsp;as
proposed and would be forced to modify our plan of operation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Development of our
reserves, when established, may not occur as scheduled and the actual results may not be as anticipated. Drilling activity and
lack of access to economically acceptable capital may result in downward adjustments in reserves or higher than anticipated costs.
Our estimates will be based on various assumptions, including assumptions over which we have control and assumptions required
by the SEC relating to oil and gas&nbsp;prices, drilling and operating expenses, capital expenditures, taxes and availability
of funds. We have control over our operations that affect, among other things, acquisitions and dispositions of properties, availability
of funds, use of applicable technologies, hydrocarbon recovery efficiency, drainage volume and production decline rates that are
part of these estimates and assumptions and any variance in our operations that affects these items within our control may have
a material effect on reserves. &nbsp;The process of estimating our oil and gas reserves is extremely complex, and requires significant
decisions and assumptions in the evaluation of available geological, geophysical, engineering and economic data for each reservoir.
Our estimates may not be reliable enough to allow us to be successful in our intended business operations. Our actual production,
revenues, taxes, development expenditures and operating expenses will likely vary from those anticipated. These variances may
be material.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Unless we replace our oil and gas reserves, our reserves
and production will decline, which would adversely affect our cash flows and income.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Unless we conduct
successful development, exploitation and exploration activities or acquire properties containing proved reserves, our proved reserves
will decline as those reserves are produced. Producing oil and gas reservoirs generally are characterized by declining production
rates that vary depending upon reservoir characteristics and other factors. Our future oil and gas production, and, therefore
our cash flow and income, are highly dependent on our success in efficiently developing and exploiting our current reserves and
economically finding or acquiring additional recoverable reserves. We may be unable to make such acquisitions because we are:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>unable to identify attractive acquisition candidates or negotiate acceptable purchase contracts with them;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>unable to obtain financing for these acquisitions on economically acceptable terms; or</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>outbid by competitors.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If we are unable to
develop, exploit, find or acquire additional reserves to replace our current and future production, our cash flow and income will
decline as production declines, until our existing properties would be incapable of sustaining commercial production.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 42.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>In order to exploit successfully our current oil and
gas leases and others that we acquire in the future, we will need to generate significant amounts of capital.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The oil and gas exploration,
development and production business is a capital-intensive undertaking. In order for us to be successful in acquiring, investigating,
developing, and producing oil and gas from our current mineral leases and other leases that we may acquire in the future, we will
need to generate an amount of capital in excess of that generated from our results of operations. In order to generate that additional
capital, we may need to obtain an expanded debt facility and issue additional shares of our equity securities. There can be no
assurance that we will be successful in either obtaining that expanded debt facility or issuing additional shares of our equity
securities, and our inability to generate the needed additional capital may have a material adverse effect on our prospects and
financial results of operations. If we are able to issue additional equity securities in order to generate such additional capital,
then those issuances may occur at prices that represent discounts to our trading price, and will dilute the percentage ownership
interest of those persons holding our shares prior to such issuances. Unless we are able to generate additional enterprise value
with the proceeds of the sale of our equity securities, those issuances may adversely affect the value of our shares that are
outstanding prior to those issuances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>A significant portion of our potential future reserves
and our business plan depend upon secondary recovery techniques to establish production. There are significant risks associated
with such techniques.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We anticipate that
a significant portion of our future reserves and our business plan will be associated with secondary recovery projects that are
either in the early stage of implementation or are scheduled for implementation subject to availability of capital. We anticipate
that secondary recovery will affect our reserves and our business plan, and the exact project initiation dates and, by the very
nature of water flood operations, the exact completion dates of such projects are uncertain. In addition, the reserves and our
business plan associated with these secondary recovery projects, as with any reserves, are estimates only, as the success of any
development project, including these water flood projects, cannot be ascertained in advance. If we are not successful in developing
a significant portion of our reserves associated with secondary recovery methods, then the project may be uneconomic or generate
less cash flow and reserves than we had estimated prior to investing the capital. Risks associated with secondary recovery techniques
include, but are not limited to, the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 42.9pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>higher than projected operating costs;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>lower-than-expected production;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>longer response times;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>higher costs associated with obtaining capital;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>unusual or unexpected geological formations;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>fluctuations in oil and gas prices;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>regulatory changes;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>shortages of equipment; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>lack of technical expertise.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 42.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If any of these risks
occur, it could adversely affect our financial condition or results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Any acquisitions we complete are subject to considerable
risk.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Even if we make acquisitions
that we believe are good for our business,&nbsp;all acquisitions involve potential risks, including, among other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>the validity of our assumptions about reserves, future production, revenues and costs, including synergies;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>an inability to integrate successfully the businesses we acquire;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>a decrease in our liquidity by using our available cash or borrowing capacity to finance acquisitions;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>a significant increase in our interest expense or financial leverage if we incur additional debt to finance acquisitions;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>the assumption of unknown liabilities, losses or costs for which we are not indemnified or for which our indemnity is
    inadequate;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>the diversion of management&rsquo;s attention from other business concerns;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>an inability to hire, train or retain qualified personnel to manage the acquired properties or assets;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>the incurrence of other significant charges, such as impairment of goodwill or other intangible assets, asset devaluation
    or restructuring charges;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>unforeseen difficulties encountered in operating in new geographic or geological areas; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>customer or key employee losses at the acquired businesses.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our decision to acquire a property will depend in part
on the evaluation of data obtained from production reports and engineering studies, geophysical and geological analyses and seismic
and other information, the results of which are often incomplete or inconclusive.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our reviews of acquired
properties can be inherently incomplete because it is not always feasible to perform an in-depth review of the individual properties
involved in each acquisition. Even a detailed review of records and properties may not necessarily reveal existing or potential
problems, nor will it permit a buyer to become sufficiently familiar with the properties to assess fully their deficiencies and
potential. Inspections may not always be performed on every well, and environmental problems, such as ground water contamination,
plugging or orphaned well liability are&nbsp;not necessarily observable even when an inspection is undertaken.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We must obtain governmental permits and approvals for
drilling operations, which can result in delays in our operations, be a costly and time consuming process, and result in restrictions
on our operations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Regulatory authorities
exercise considerable discretion in the timing and scope of permit issuances in the regions in which we operate. Compliance with
the requirements imposed by these authorities can be costly and time consuming and may result in delays in the commencement or
continuation of our exploration or production operations and/or fines. Regulatory or legal actions in the future may materially
interfere with our operations or otherwise have a material adverse effect on us. In addition, we are often required to prepare
and present to federal, state or local authorities data pertaining to the effect or impact that a proposed project may have on
the environment, threatened and endangered species, and cultural and archaeological artifacts. Accordingly, the permits we need
may not be issued, or if issued, may not be issued in a timely fashion, or may involve requirements that restrict our ability
to conduct our operations or to do so profitably.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Due to our lack of geographic diversification, adverse
developments in our operating areas would materially affect our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We currently only
lease and operate oil and gas properties located in Kansas. As a result of this concentration, we may be disproportionately exposed
to the impact of delays or interruptions of production from these properties caused by significant governmental regulation, transportation
capacity constraints, curtailment of production, natural disasters, adverse weather conditions or other events which&nbsp;impact
this area.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We depend on a small number of customers for all, or
a substantial amount of our sales. If these customers reduce the volumes of oil and gas they purchase from us, our revenue and
cash flow will decline to the extent we are not able to find new customers for our production.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In Kansas, we sell
oil to Coffeyville Resources. There are approximately six potential purchasers of oil in Kansas. If a key purchaser were to reduce
the volume of oil it purchases from us, our revenue and cash available for operations will decline to the extent we are not able
to find new customers to purchase our production at equivalent prices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may suffer losses or incur liability
for events for which we or the operator of a property have chosen not to obtain insurance.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our operations are
subject to hazards and risks inherent in producing and transporting oil and gas, such as fires, natural disasters, explosions,
pipeline ruptures, spills, and acts of terrorism, all of which can result in the loss of hydrocarbons, environmental pollution,
personal injury claims and other damage to our and others&rsquo; properties. As protection against operating hazards, we maintain
insurance coverage against some, but not all, potential losses. In addition, pollution and environmental risks generally are not
fully insurable. As a result of market conditions, existing insurance policies may not be renewed and other desirable insurance
may not be available on commercially reasonable terms, if at all. The occurrence of an event that is not covered, or not fully
covered, by insurance could have a material adverse effect on our business, financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our business depends in part on processing facilities
owned by others. Any limitation in the availability of those facilities could interfere with our ability to market our oil and
gas production and could harm our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The marketability
of our oil and gas production will depend in part on the availability, proximity and capacity of pipelines and oil and gas processing
facilities. The amount of oil and gas that can be produced and sold is subject to curtailment in certain circumstances, such as
pipeline interruptions due to scheduled and unscheduled maintenance, excessive pressure, physical damage or lack of available
capacity on such systems. The curtailments arising from these and similar circumstances may last from a few days to several months.
In many cases, we will be provided only with limited, if any, notice as to when these circumstances will arise and their duration.
Any significant curtailment in pipeline capacity or the capacity of processing facilities could significantly reduce our ability
to market our oil and gas production and could materially harm our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Cost and availability of drilling rigs, equipment, supplies,
personnel and other services could adversely affect our ability to execute on a timely basis our development, exploitation and
exploration plans.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shortages or an increase
in cost of drilling rigs, equipment, supplies or personnel could delay or interrupt our operations, which could impact our financial
condition and results of operations. Drilling activity in the geographic areas in which we conduct drilling activities may increase,
which would lead to increases in associated costs, including those related to drilling rigs, equipment, supplies and personnel
and the services and products of other vendors to the industry. Increased drilling activity in these areas may also decrease the
availability of rigs. We do not have any contracts for drilling rigs and drilling rigs may not be readily available when we need
them. Drilling and other costs may increase further and necessary equipment and services may not be available to us at economical
prices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 42.9pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our exposure to possible leasehold defects and potential
title failure could materially adversely impact our ability to conduct drilling operations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 42.9pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We obtain the right
and access to properties for drilling by obtaining oil and gas leases either directly from the hydrocarbon owner, or through a
third party that owns the lease. The leases may be taken or assigned to us without title insurance. There is a risk of title failure
with respect to such leases, and such title failures could materially adversely impact our business by causing us to be unable
to access properties to conduct drilling operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our reserves are subject to the risk of depletion because
many of our leases are in mature fields that have produced large quantities of oil and gas to date.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 42.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our operations are
located in or near established fields in Kansas. As a result, many of our leases are in, or directly offset, areas that have produced
large quantities of oil and gas to date.&nbsp;&nbsp;As such, our reserves may be negatively impacted by offsetting wells or previously
drilled wells, which could significantly harm our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our lease ownership may be diluted
due to financing strategies we may employ in the future.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To accelerate our
development efforts we may take on working interest partners who will contribute to the costs of drilling and completion operations
and then share in any cash flow derived from production. In addition, we may in the future, due to a lack of capital or other
strategic reasons, establish joint venture partnerships or farm out all or part of our development efforts. These economic strategies
may have a dilutive effect on our lease ownership and could significantly reduce our operating revenues.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may face lease expirations on leases that are not
currently held-by-production.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have numerous leases
that are not currently held-by-production, some of which have near term lease expirations and are likely to expire. Although we
believe that we can maintain our most desirable leases by conducting drilling operations or by negotiating lease extensions, we
can make no guarantee that we can maintain these leases.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We are subject to complex laws and regulations, including
environmental regulations, which can adversely affect the cost, manner or feasibility of doing business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Development, production
and sale of oil and gas in the United States are subject to extensive laws and regulations, including environmental laws and regulations.
We may be required to make large expenditures to comply with environmental and other governmental regulations. Matters subject
to regulation include, but are not limited to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 42.9pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">location and density of wells;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the handling of drilling fluids and obtaining discharge
permits for drilling operations;</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">accounting for and payment of royalties on production
from state, federal and Indian lands;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">bonds for ownership, development and production of
oil and gas properties;</TD>
</TR></TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">transportation of oil and gas by pipelines;</TD>
</TR></TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">operation of wells and reports concerning operations;
and</TD>
</TR></TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">taxation.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under these laws and
regulations, we could be liable for personal injuries, property damage, oil and gas spills, discharge of hazardous materials,
remediation and clean-up costs and other environmental damages. Failure to comply with these laws and regulations also may result
in the suspension or termination of our operations and subject us to administrative, civil and criminal penalties. Moreover, these
laws and regulations could change in ways that substantially increase our costs. Accordingly, any of these liabilities, penalties,
suspensions, terminations or regulatory changes could materially adversely affect our financial condition and results of operations
enough to possibly force us to cease our business operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our operations may expose us to significant costs and
liabilities with respect to environmental, operational safety and other matters.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We may incur significant
costs and liabilities as a result of environmental and safety requirements applicable to our oil and gas production activities.
We may also be exposed to the risk of costs associated with Kansas Corporation Commission requirements to plug orphaned and abandoned
wells on our oil and gas leases from wells previously drilled by third parties. In addition, we may indemnify sellers or lessors
of oil and gas properties for environmental liabilities they or their predecessors may have created. These costs and liabilities
could arise under a wide range of federal, state and local environmental and safety laws and regulations, including regulations
and enforcement policies, which have tended to become increasingly strict over time. Failure to comply with these laws and regulations
may result in the assessment of administrative, civil and criminal penalties, imposition of cleanup and site restoration costs,
liens and to a lesser extent, issuance of injunctions to limit or cease operations. In addition, claims for damages to persons
or property may result from environmental and other impacts of our operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Strict, joint and
several liability may be imposed under certain environmental laws, which could cause us to become liable for the conduct of others
or for consequences of our own actions that were in compliance with all applicable laws at the time those actions were taken.
New laws, regulations or enforcement policies could be more stringent and impose unforeseen liabilities or significantly increase
compliance costs. If we are not able to recover the resulting costs through insurance or increased revenues, our ability to operate
effectively could be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We operate in a highly competitive environment and our
competitors may have greater resources than do we.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The oil and gas industry
is intensely competitive and we compete with other companies, many of which are larger and have greater financial, technological,
human and other resources. Many of these companies not only explore for and produce crude oil and gas but also carry on refining
operations and market petroleum and other products on a regional, national or worldwide basis. Such companies may be able to pay
more for productive oil and gas properties and exploratory prospects or define, evaluate, bid for and purchase a greater number
of properties and prospects than our financial or human resources permit. In addition, such companies may have a greater ability
to continue exploration activities during periods of low oil and gas market prices. Our ability to acquire additional properties
and to discover reserves in the future will be dependent upon our ability to evaluate and select suitable properties and to consummate
transactions in a highly competitive environment. If we are unable to compete, our operating results and financial position may
be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Risks Associated with our Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We have ceased paying dividends on our Series A preferred
stock, causing the trading price of the preferred stock to dramatically decline</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On November 4, 2015,
we announced that we would not be declaring the monthly dividend for the month of November 2015 on our 10.00% Series A Cumulative
Redeemable Perpetual Preferred Stock in order to preserve our cash resources. We have not declared the monthly dividend since,
and do not expect to do so in the near future. The failure to declare and pay monthly dividends on our preferred stock caused
its trading price to decline substantially.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We have derivative securities currently outstanding and
we may issue derivative securities in the future. Exercise of the derivatives will cause dilution to existing and new stockholders.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The exercise of our
outstanding options and warrants, will cause additional shares of common stock to be issued, resulting in dilution to our existing
and future common stockholders</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We have the ability to issue additional shares of our
common stock and preferred stock without asking for stockholder approval, which could cause your investment to be diluted.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our amended and restated
articles of incorporation authorize the board of directors to issue up to 250,000,000 shares of common stock and 25,000,000 shares
of preferred stock.&nbsp;&nbsp; The power of the board of directors to issue shares of common stock, preferred stock or warrants
or options to purchase shares of common stock or preferred stock is generally not subject to shareholder approval.&nbsp;&nbsp;Accordingly,
any additional issuance of our common stock, or preferred stock that may be convertible into common stock, or debt instruments
that may be convertible into common or preferred stock, may have the effect of diluting one&rsquo;s investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Although our common stock is traded on the NYSE American
and our Series A preferred stock is traded on the OTC PINK, daily trading volumes are small making it difficult for investors
to sell their shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our common stock and
our Series A preferred stock trade under the symbol &ldquo;ENRJ,&rdquo; and &ldquo;ENRJP,&rdquo; respectively but trading volume
has been minimal. Therefore, the market for our common stock is limited. The trading price of our stock could be subject to wide
fluctuations. Investors may not be able to purchase additional shares or sell their shares within the time frame or at a price
they desire.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.6in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The price of our common stock and
Series A preferred stock may be volatile and you may not be able to resell your shares at a favorable price.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Regardless of whether
an active trading market for our stock develops, the market price of our stock may be volatile and you may not be able to resell
your shares at or above the price you paid for such shares. Many factors beyond our control, including but not limited to the
following factors could affect our stock price:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.6in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>our operating and financial performance and prospects;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>quarterly variations in the rate of growth of our financial indicators, such as net income or loss per share, net income
    or loss and revenues;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>changes in revenue or earnings estimates or publication of research reports by analysts about us or the exploration and
    production industry;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>potentially limited liquidity;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>actual or anticipated variations in our reserve estimates and quarterly operating results;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>changes in oil and gas prices;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>sales of our common stock by significant stockholders and future issuances of our common stock;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>increases in our cost of capital;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>changes in applicable laws or regulations, court rulings and enforcement and legal actions;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>commencement of or involvement in litigation;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>changes in market valuations of similar companies;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>additions or departures of key management personnel;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>general market conditions, including fluctuations in and the occurrence of events or trends affecting the price of oil
    and gas; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>domestic and international economic, legal and regulatory factors unrelated to our performance.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



<P STYLE="margin: 0"></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Our amended and restated articles of incorporation, restated
bylaws and Nevada Law contain provisions that could discourage an acquisition or change of control of us.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our amended and restated
articles of incorporation authorize our board of directors to issue preferred stock and common stock without stockholder approval.
The election by our board of directors to issue Series A preferred stock, and any future election to issue more preferred stock,
could make it more difficult for a third party to acquire control of us. In addition, provisions of the articles of incorporation
and bylaws could also make it more difficult for a third party to acquire control of us. In addition, Nevada&rsquo;s &ldquo;Combination
with Interested Stockholders&rsquo; Statute&rdquo; and its &ldquo;Control Share Acquisition Statute&rdquo; may have the effect
in the future of delaying or making it more difficult to effect a change in control of us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">These statutory anti-takeover
measures may have certain negative consequences, including an effect on the ability of our stockholders or other individuals to
(i) change the composition of the incumbent board of directors; (ii) benefit from certain transactions which are opposed by the
incumbent board of directors; and (iii) make a tender offer or attempt to gain control of us, even if such attempt were beneficial
to us and our stockholders. Since such measures may also discourage the accumulations of large blocks of our common stock by purchasers
whose objective is to seek control of us or have such common stock repurchased by us or other persons at a premium, these measures
could also depress the market price of our common stock. Accordingly, our stockholders may be deprived of certain opportunities
to realize the &ldquo;control premium&rdquo; associated with take-over attempts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>We have no plans to pay dividends on our common stock. You
may not receive funds without selling your stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We do not anticipate paying
any cash dividends on our common stock in the foreseeable future. We currently intend to retain future earnings, if any, to finance
the expansion of our business. Our future dividend policy with regard to our common stock is within the discretion of our board
of directors and will depend upon various factors, including our business, financial condition, results of operations, capital
requirements, investment opportunities and restrictions contained in current or future financing instruments,&nbsp;including the
consent of debt holders and holders of Series A Shares, if applicable at such time, and other factors our Board of Directors deems
relevant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_003"></A><B>USE OF PROCEEDS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The selling stockholders
will receive all of the net proceeds from the sales of shares of common stock offered by them pursuant to this prospectus. We
will not receive any proceeds from the sale of shares of our common stock by our selling stockholders, but we will bear the costs
associated with this registration. The selling stockholders will bear any underwriting commissions and discounts attributable
to their sale of shares of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_003a"></A>DESCRIPTION OF SECURITIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Authorized and Outstanding Capital Stock </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">Our authorized capital
stock consists of 250,000,000 shares of common stock, $0.001 par value, and 25,000,000 shares of preferred stock, $0.001 par value,
of which 2,000,000 shares have been designated 10% Series A cumulative redeemable perpetual preferred stock, 1,764 shares have
been designated Series B convertible preferred stock and 500 shares have been designated Series C convertible preferred stock.
As of June 30, 2017, we had 10,321,397 shares of common stock, 938,248 shares of Series A cumulative perpetual redeemable preferred
stock, and 1,374 shares of Series B convertible preferred stock and 300 shares of Series convertible preferred stock outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">As of September 28, 2017,
we had an aggregate of 1,904,286 shares of EnerJex common stock reserved for issuance upon the exercise of outstanding stock options
granted under the EnerJex Resources, Inc. 2013 Stock Incentive Plan, and 1,904,286 shares of common stock reserved for issuance
under outstanding warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Common Stock </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">For all matters submitted
to a vote of EnerJex stockholders, each holder of EnerJex common stock is entitled to one vote for each share registered in the
holder&rsquo;s name on EnerJex&rsquo;s books. EnerJex common stock does not have cumulative voting rights. The holders of a majority
of the shares of EnerJex common stock can elect all of the directors standing for election. Subject to limitations under Nevada
law and preferences that may be applicable to any then outstanding preferred stock, holders of EnerJex common stock are entitled
to receive ratably those dividends, if any, as may be declared by the EnerJex board of directors out of legally available funds.
Upon the liquidation, dissolution or winding up of EnerJex, the holders of EnerJex common stock will be entitled to share ratably
in the net assets legally available for distribution to stockholders after the payment of all of EnerJex&rsquo;s debts and other
liabilities, subject to the prior rights of any preferred stock then outstanding. All shares of outstanding EnerJex common stock
are fully paid and nonassessable. Holders of EnerJex common stock do not have preemptive or subscription rights, and they have
no right to convert their EnerJex common stock into any other securities. There are no redemption or sinking fund provisions applicable
to the EnerJex common stock. The rights, preferences and privileges of the holders of EnerJex common stock are subject to the
rights of the holders of any series of preferred stock which EnerJex may designate in the future. EnerJex&rsquo;s articles of
incorporation and bylaws do not restrict the ability of a holder of EnerJex common stock to transfer the holder&rsquo;s shares
of EnerJex common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The common stock trades
on the NYSE American under the symbol &ldquo;ENRJ.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Preferred Stock </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The EnerJex board of
directors is authorized, without approval of EnerJex stockholders subject to any limitations prescribed by law, to issue up to
an aggregate of 25,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges and
restrictions granted to or imposed upon the preferred stock, including voting rights, dividend rights, conversion rights, redemption
privileges and liquidation preferences. The rights of the holders of EnerJex common stock and Series A preferred stock (with the
prior approval of the holders of a two-thirds of the issued and outstanding shares of the Series A preferred stock) will be subject
to, and may be adversely affected by, the rights of holders of any preferred stock that may be issued in the future. The EnerJex
board of directors could authorize the issuance of shares of preferred stock with terms and conditions more favorable than the
EnerJex common stock or Series A preferred stock (with the prior approval of the holders of a two-thirds of the issued and outstanding
shares of the Series A preferred stock) and with rights that could adversely affect the voting power or other rights of holders
of the EnerJex common stock or Series A preferred stock. Prior to issuance of shares of each series of undesignated preferred
stock, the EnerJex board of directors is required by the Nevada Revised Statutes and EnerJex&rsquo;s amended and restated articles
of incorporation to adopt resolutions and file a Certificate of Designations with the Secretary of State of the State of Nevada,
fixing for each such series the designations, powers, preferences, rights, qualifications, limitations and restrictions of the
shares of such series. If such new series of preferred stock has rights that are senior or equal to those of the Series A preferred
stock with respect to dividends or liquidation proceeds, then the terms of such new series must be approved by holders of two-thirds
of the issued and outstanding shares of Series A preferred stock. Issuance of preferred stock, while providing flexibility in
connection with possible acquisitions and other corporate purposes, could have the effect of delaying, deferring or preventing
a change in control of EnerJex.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Series B Preferred Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">Pursuant to the Certificate
of Designation of Preferences, Rights and Limitations of Series B Convertible Preferred Stock to be filed by the Company with
the Nevada Secretary of State on March 11, 2015 (the &ldquo;Certificate of Designation&rdquo;), the Series B preferred stock is
non-voting (except to the extent required by law and except for certain consent rights relating to amending the certificate of
incorporation or bylaws, and the like), ranks senior to the common stock with respect to dividends and with respect to distributions
upon a deemed dissolution, liquidation or winding-up of the Company, and ranks junior to the Company's series A preferred stock
with respect to dividends and with respect to distributions upon a deemed dissolution, liquidation or winding-up of the Company.
Until the volume weighted average price of the Company&rsquo;s common stock on NYSE exceeds $4.30 with a daily trading volume
of 200,000 shares for ten consecutive trading days, the series B preferred stock is subject to full ratchet price based anti-dilution
protection.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The Certificate of Designation
also provides: (i) if the Company issues or agrees to grants, issues, or sells any common stock equivalents or rights to purchase
stock, warrants, securities or other property pro rata to holders of common stock following the closing under the Purchase Agreement,
the holders of series B preferred stock shall be issued the same purchase rights on an as-converted to common stock basis, and
(ii) if the Company effects a fundamental transaction, then upon any subsequent conversion of series B preferred stock, the holder
thereof shall have the right to receive, for each share of common stock that would have been issuable upon such conversion immediately
prior to the occurrence of such fundamental transaction, the number of shares of the successor&rsquo;s or acquiring corporation&rsquo;s
common stock or of our common stock, if the Company is the surviving corporation, and any additional consideration receivable
as a result of such fundamental transaction by a holder of the number of shares of common stock into which series B preferred
stock is convertible immediately prior to such fundamental transaction. A &quot;fundamental transaction&quot; means: (a) a merger
or consolidation with or into another entity, (b) any sale of all or substantially all of our assets in one transaction or a series
of related transactions, (c) any tender offer or exchange offer allowing holders of our common stock to tender or exchange their
shares for cash, property or securities, and has been accepted by the holders of 50% or more of the outstanding common stock (d)
any reclassification of our common stock or any compulsory share exchange by which common stock is effectively converted into
or exchanged for other securities, cash or property, or (e) consummation of a stock or share purchase agreement or other business
combination with another person whereby such other person acquires more than 50% of the outstanding shares of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Series C Convertible Preferred Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">On April 27, 2017, the
Company filed a Certificate of Designation of Preferences, Rights and Limitations of Series C Convertible Preferred Stock (the
&ldquo;Certificate of Designation&rdquo;). The Company's board of directors approved the Certificate of Designation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">Pursuant to the Certificate
of Designation of, the Series C preferred stock is non-voting (except to the extent required by law and except for certain consent
rights relating to amending the certificate of incorporation or bylaws, and the like), ranks senior to the common stock with respect
to dividends and with respect to distributions upon a deemed dissolution, liquidation or winding-up of the Company, and ranks
junior to the Company's Series A preferred stock and Series B preferred stock with respect to dividends and with respect to distributions
upon a deemed dissolution, liquidation or winding-up of the Company. Upon request of the Holders, the Company can seek stockholder
approval to remove the Issuance Limitation described therein and to allow for further adjustments related to anti-dilution protection,
only if such stockholder approval is obtained.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The Series C preferred
stock includes a beneficial ownership limitation preventing conversion of shares of Series C preferred stock into more than 9.99%
of the number of shares of common stock outstanding immediately after giving effect to the issuance of shares of common stock
upon conversion of the Series C preferred stock. In addition, the Company may not convert the Series C preferred stock into a
number of shares of common stock which, when aggregated with any shares of common stock issued on or after the original issue
date and prior to such conversion date in connection with any conversion of Series C preferred stock would exceed 1,683,944 shares
of common stock (19.99% of the outstanding shares as of the original issue date), subject to adjustment for forward and reverse
stock splits, recapitalizations and the like. In the event conversion of the Series C preferred is limited pursuant to these provisions,
each holder shall be entitled to pro rata portion of the issuable maximum.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The Certificate of Designation
also provides: (i) if the Company issues or agrees to grants, issues, or sells any common stock equivalents or rights to purchase
stock, warrants, securities or other property pro rata to holders of common stock following the closing under the Purchase Agreement,
the holders of Series C preferred stock shall be issued the same purchase rights on an as-converted to common stock basis, and
(ii) if the Company effects a fundamental transaction, then upon any subsequent conversion of Series C preferred stock, the holder
thereof shall have the right to receive, for each share of common stock that would have been issuable upon such conversion immediately
prior to the occurrence of such fundamental transaction, the number of shares of the successor&rsquo;s or acquiring corporation&rsquo;s
common stock or of our common stock, if the Company is the surviving corporation, and any additional consideration receivable
as a result of such fundamental transaction by a holder of the number of shares of common stock into which Series C preferred
stock is convertible immediately prior to such fundamental transaction. A &quot;fundamental transaction&quot; means: (a) a merger
or consolidation with or into another entity, (b) any sale of all or substantially all of our assets in one transaction or a series
of related transactions, (c) any tender offer or exchange offer allowing holders of our common stock to tender or exchange their
shares for cash, property or securities, and has been accepted by the holders of 50% or more of the outstanding common stock (d)
any reclassification of our common stock or any compulsory share exchange by which common stock is effectively converted into
or exchanged for other securities, cash or property, or (e) consummation of a stock or share purchase agreement or other business
combination with another person whereby such other person acquires more than 50% of the outstanding shares of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Anti-Takeover Effects of Provisions of
EnerJex&rsquo;s Amended and Restated Articles of Incorporation and Bylaws and Nevada Law </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">Some provisions of EnerJex&rsquo;s
amended and restated articles of incorporation and bylaws and Nevada law contain provisions that could make the following transactions
more difficult: an acquisition of EnerJex by means of a tender offer; an acquisition of EnerJex by means of a proxy contest or
otherwise; or removal of EnerJex&rsquo;s incumbent officers and directors. It is possible that these provisions could make it
more difficult to accomplish or could deter transactions that EnerJex stockholders may otherwise consider to be in their best
interest or in EnerJex&rsquo;s best interests, including transactions that might result in a premium over the market price for
EnerJex&rsquo;s shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">These provisions, summarized
below, are designed to discourage coercive takeover practices and inadequate takeover bids. These provisions also are designed
to encourage persons seeking to acquire control of EnerJex to first negotiate with the EnerJex board of directors. The EnerJex
board of directors believes that the benefits of increased protection of its potential ability to negotiate with the proponent
of an unfriendly or unsolicited proposal to acquire or restructure EnerJex outweigh the disadvantages of discouraging these proposals
because negotiation of these proposals could result in an improvement of their terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Articles of Incorporation and Bylaws
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The following provisions
in EnerJex&rsquo;s amended and restated articles of incorporation and bylaws could delay or discourage transactions involving
an actual or potential change in control or change in EnerJex&rsquo;s management, including transactions that EnerJex stockholders
may otherwise consider to be in their best interest or in EnerJex&rsquo;s best interests, including transactions that might result
in a premium over the market price for EnerJex&rsquo;s shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><B><I>Authorized
                                         But Unissued Capital Stock.</I></B>&nbsp;&nbsp;EnerJex has shares of common stock and
                                         undesignated preferred stock available for future issuance without stockholder approval.
                                         EnerJex may use these additional shares for a variety of corporate purposes, including
                                         for future public offerings to raise additional capital or to facilitate corporate acquisitions
                                         or for payment as a dividend on its capital stock. The existence of unissued and unreserved
                                         capital stock may enable the EnerJex board of directors to issue shares to persons friendly
                                         to current management that could render more difficult or discourage a third-party attempt
                                         to obtain control of EnerJex by means of a merger, tender offer, proxy contest or otherwise,
                                         thereby protecting the continuity of EnerJex&rsquo;s management. In addition, the ability
                                         to authorize undesignated preferred stock makes it possible for the EnerJex board of
                                         directors to issue preferred stock with voting or other rights or preferences that could
                                         impede the success of any attempt to change control of EnerJex. These and other provisions
                                         may have the effect of deferring hostile takeovers or delaying changes in control or
                                         management of EnerJex.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><B><I>Stockholder
                                         Meetings.</I></B>&nbsp;&nbsp;EnerJex&rsquo;s amended and restated bylaws provide that
                                         a special meeting of stockholders may be called only by EnerJex&rsquo;s chairman of the
                                         board, president and chief executive officer, or by the EnerJex board of directors.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><B><I>Requirements
                                         for Advance Notification of Stockholder Nominations and Proposals.</I></B>&nbsp;&nbsp;EnerJex&rsquo;s
                                         amended and restated bylaws establish advance notice procedures with respect to stockholder
                                         proposals and the nomination of candidates for election as directors, other than nominations
                                         made by or at the direction of the EnerJex board of directors or a committee of the EnerJex
                                         board of directors.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><B><I>No
                                         Cumulative Voting Rights.</I></B>&nbsp;&nbsp;EnerJex&rsquo;s amended and restated articles
                                         of incorporation and bylaws do not provide for cumulative voting rights. The holders
                                         of a majority of the shares of common stock entitled to vote in any election of directors,
                                         voting together as a single class, can elect all of the directors standing for election.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Nevada Anti-Takeover Law </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">As a Nevada corporation,
EnerJex is subject to Section 78.411 to 78.444 of the Nevada Revised Statutes. This law prohibits a publicly-held Nevada corporation
from engaging in any business combination with any interested stockholder for a period of three years following the date that
the stockholder became an interested stockholder unless:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">prior to
                                         the date of the transaction, the board of directors of the corporation approved either
                                         the business combination or the transaction which resulted in the stockholder becoming
                                         an interested stockholder;</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">upon consummation
                                         of the transaction which resulted in the stockholder becoming an interested stockholder,
                                         the interested stockholder owned at least 85 percent of the voting stock of the corporation
                                         outstanding at the time the transaction commenced, excluding for purposes of determining
                                         the number of shares outstanding those shares owned by persons who are directors and
                                         also officers and by employee stock plans in which employee participants do not have
                                         the right to determine confidentially whether shares held subject to the plan will be
                                         tendered in a tender or exchange offer; or</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">on or subsequent
                                         to the date of the transaction, the business combination is approved by the board of
                                         directors and authorized at an annual or special meeting of stockholders, and not by
                                         written consent, by the affirmative vote of at least two-thirds of the outstanding voting
                                         stock which is not owned by the interested stockholder.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">Section 78-416 of the
Nevada Revised Statues defines &ldquo;business combination&rdquo; to include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">any merger
                                         or consolidation involving the corporation and the interested stockholder;</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">any sale,
                                         transfer, pledge or other disposition of 10 percent or more of the corporation&rsquo;s
                                         assets involving the interested stockholder;</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">in general,
                                         any transaction that results in the issuance or transfer by the corporation of any of
                                         its stock to the interested stockholder; or</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the receipt
                                         by the interested stockholder of the benefit of any loans, advances, guarantees, pledges
                                         or other financial benefits provided by or through the corporation.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Limitation of Liability and Indemnification
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">EnerJex&rsquo;s amended
and restated articles of incorporation contains certain provisions permitted under the Nevada Revised Statutes relating to the
liability of directors. The provisions eliminate a director&rsquo;s liability for monetary damages for a breach of fiduciary duty,
except in circumstances involving wrongful acts, such as the breach of a director&rsquo;s duty of loyalty or acts or omissions
that involve intentional misconduct or a knowing violation of law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">In addition, EnerJex&rsquo;s
amended and restated articles of incorporation contain provisions to indemnify EnerJex&rsquo;s directors and officers to the fullest
extent permitted by the Nevada Revised Statutes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Transfer Agent and Registrar </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The transfer agent and
registrar for EnerJex common stock, and Series B preferred stock is Standard Registrar &amp; Transfer Co., Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_004"></A><B>SELLING SHAREHOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">This prospectus relates
to the offering and sale, from time to time, of up to 2,202,474 shares of our common stock, held by the stockholders named in
the table below, which amount includes 298,188 common shares issuable upon conversion of Series B Preferred Stock and 1,904,286
common shares issuable upon the exercise of warrants held by the selling stockholders. The selling stockholders may exercise their
warrants at any time in their sole discretion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">On March 11, 2015, we
and certain select accredited investors entered into a securities purchase agreement pursuant to which sold 763,547 shares of
common stock, 1,763.79175 shares of series B convertible preferred stock, and warrants to purchase 1,771,428 shares of common
stock at an exercise price of $2.75 per share. If at any time after the six month anniversary of the closing under Series B Financing
the shares of common stock issuable under the warrants are not registered under the Securities Act of 1933, as amended, the warrants
will have a cashless exercise provision. The warrants will not be exercisable for the first six months following issuance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">In connection with our
series B financing, on March 11, 2015, we entered into a placement agency agreement with Northland Securities, Inc. and Euro Pacific
Capital, Inc. pursuant to which the placement agents agreed to act as our exclusive placement agents for the issuance and sale
of the securities in the series B financing. In connection with the successful completion of the transactions, for the price of
$50, the placement agents purchased a five-year warrant to purchase an aggregate amount of 106,285 shares of our common stock
at an exercise price of $2.75. If at any time after the six month anniversary of the closing under series B financing the shares
of common stock issuable under the warrants are not registered under the Securities Act of 1933, as amended, the warrants will
have a cashless exercise provision. The warrants will not be exercisable for the first six months following issuance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The warrants were issued
pursuant to an exemption from registration under the Securities Act of 1933 in reliance on Sections 3(a)(9) and 4(a)(2) of the
Securities Act of 1933, as amended, and Rule 506 of Regulation D promulgated thereunder as transactions by an issuer not involving
a public offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The selling stockholders
identified in the table below may from time to time offer and sell under this prospectus any or all of the shares of common stock
described under the column &ldquo;Shares of Common Stock Being Offered in this Offering&rdquo; and/or any or all of the shares
of preferred stock described under the column &ldquo;Shares of Preferred Stock Being Offered in this Offering&rdquo; in the tables
below. The table below has been prepared based upon information furnished to us by the selling stockholders as of the dates represented
in the footnotes accompanying the table. The selling stockholders identified below may have sold, transferred or otherwise disposed
of some or all of their shares since the date on which the information in the following table is presented in transactions exempt
from or not subject to the registration requirements of the Securities Act. Information concerning the selling stockholders may
change from time to time and, if necessary, we will amend or supplement this prospectus accordingly and as required.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The following tables
and footnotes disclosure following the table sets forth the name of each selling stockholder, the nature of any position, office
or other material relationship, if any, that the selling stockholder has had within the past three years with us, and the number
of shares of our common stock and preferred stock beneficially owned by the selling stockholder before this offering. The number
of shares reflected are those beneficially owned, as determined under applicable rules of the SEC, and the information is not
necessarily indicative of beneficial ownership for any other purpose. Under applicable SEC rules, beneficial ownership includes
any shares of common stock as to which a person has sole or shared voting power or investment power and any shares of common stock
which the person has the right to acquire within 60 days after June 18, 2015 through the exercise of any option, warrant or right
or through the conversion of any convertible security. Unless otherwise indicated in the footnotes to the table below and subject
to community property laws where applicable, we believe, based on information furnished to us, that each of the selling stockholders
named in this table has sole voting and investment power with respect to the shares indicated as beneficially owned.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">We have assumed that
all shares of common stock and preferred stock reflected in the tables as being offered in the offering covered by this prospectus
will be sold from time to time in this offering. We cannot provide an estimate as to the number of shares of common stock or preferred
stock that will be held by the selling stockholders upon termination of the offering covered by this prospectus because the selling
stockholders may offer some, all or none of their shares of common stock being offered in the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Common Stock to be Sold in Offering</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid">Selling Stockholder</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares of<BR> Common
    Stock<BR> Beneficially<BR> Owned<BR> Before This<BR> Offering</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Percentage
    of</B></FONT><BR> <FONT STYLE="font-size: 10pt"><B>Outstanding</B></FONT><BR> <FONT STYLE="font-size: 10pt"><B>Common Stock</B></FONT><BR>
    <FONT STYLE="font-size: 10pt"><B>Beneficially</B></FONT><BR> <FONT STYLE="font-size: 10pt"><B>Owned</B></FONT><BR> <FONT STYLE="font-size: 10pt"><B>Before
    This</B></FONT><BR> <FONT STYLE="font-size: 10pt"><B>Offering<SUP>(1)</SUP></B></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares of<BR> Common
    Stock<BR> Being<BR> Offered<BR> in This<BR> Offering</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares of<BR> Common
    Stock<BR> Beneficially<BR> Owned Upon<BR> Completion<BR> of This<BR> Offering</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Percentage
    of</B></FONT><BR> <FONT STYLE="font-size: 10pt"><B>Outstanding</B></FONT><BR> <FONT STYLE="font-size: 10pt"><B>Common Stock</B></FONT><BR>
    <FONT STYLE="font-size: 10pt"><B>Beneficially</B></FONT><BR> <FONT STYLE="font-size: 10pt"><B>Owned Upon</B></FONT><BR> <FONT STYLE="font-size: 10pt"><B>Completion</B></FONT><BR>
    <FONT STYLE="font-size: 10pt"><B>of This</B></FONT><BR> <FONT STYLE="font-size: 10pt"><B>Offering<SUP>(1)(2)</SUP></B></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 25%; text-align: left; text-indent: -10pt; padding-left: 10pt">Alpha Capital Anstalt</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">832,259</TD><TD STYLE="width: 1%; text-align: left"><SUP>(3)</SUP></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">8.1</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">832,259</TD><TD STYLE="width: 1%; text-align: left"><SUP>(3)</SUP></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">832,259</TD><TD STYLE="width: 1%; text-align: left"><SUP>(3)</SUP></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">8.1</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Euro Pacific Capital, Inc.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">53,143</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">53,143</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Northald Securities, Inc.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">53,143</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">53,143</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; text-indent: -10pt; padding-left: 10pt">Shawn Messner</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,286</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,286</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Adam Connors</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,286</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,286</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-indent: -10pt; padding-left: 20pt">Total</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">965,117</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">9.4</TD><TD STYLE="font-weight: bold; text-align: left">%</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">965,117</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">1,904,286</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">9.9</TD><TD STYLE="font-weight: bold; text-align: left">%</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left">*</TD><TD>Less than 1%.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: justify">Percentage ownership
                                         is based on a denominator equal to the sum of (i) 10,321,397 shares of our common stock
                                         outstanding as of September 28, 2017, and (ii) the number of shares of common stock and
                                         shares of common stock issuable upon exercise or conversion of convertible securities
                                         beneficially owned by the applicable selling stockholder.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left">(2)</TD><TD STYLE="text-align: justify">Assumes that all
                                         shares of common stock being registered under the registration statement of which this
                                         prospectus forms a part are sold in this offering, and that none of the selling stockholders
                                         acquire additional shares of our common stock after the date of this prospectus and prior
                                         to completion of this offering.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left">(3)</TD><TD STYLE="text-align: justify">Does not include
                                         (a) 939,169 shares of our common stock issuable upon the exercise of warrants held by
                                         ACA, which warrants contain a customary 9.9% blocker provision and, thus, are not exercisable
                                         within 60 days, and (b) 1,701,716 shares of our common stock issuable upon the conversion
                                         of 1,242.17099 shares of our Series B Preferred Stock held by ACA, which preferred shares
                                         also contain a 9.9% blocker and, thus, are not convertible within 60 days. Based solely
                                         on a Schedule 13G filed with the SEC by ACA on March 16, 2015, ACA has sole voting power
                                         with respect to this common stock. Konrad Ackerman is the managing member of ACA Capital
                                         Anstalt and as such has voting and investment power over the securities owned by selling
                                         stockholder. Mr. Ackerman disclaims beneficial ownership over these shares.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_005"></A><B>PLAN OF DISTRIBUTION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Trading Market</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">Our common stock is listed
on the NYSE America under the symbol &ldquo;ENRJ&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">As of the date of this
prospectus, we have not been advised by the selling stockholders as to any plan of distribution. Distributions of the shares by
the selling stockholders, or by their partners, pledgees, donees (including charitable organizations), transferees or other successors
in interest, may from time to time be offered for sale either directly by such persons, or through underwriters, dealers or agents
or on any exchange on which the shares may from time to time be traded, in the over-the-counter market, or in independently negotiated
transactions or otherwise. The methods by which the shares may be sold include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">a block
                                         trade (which may involve crosses) in which the broker or dealer so engaged will attempt
                                         to sell the securities as agent but may position and resell a portion of the block as
                                         principal to facilitate the transaction;</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">purchases
                                         by a broker or dealer as principal and resale by such broker or dealer for its own account
                                         pursuant to this prospectus;</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">exchange
                                         distributions and/or secondary distributions;</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">sales in
                                         the over-the-counter market;</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">underwritten
                                         transactions;</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">ordinary
                                         brokerage transactions and transactions in which the broker solicits purchasers; and</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">privately
                                         negotiated transactions.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">Such transactions may
be effected by the selling stockholders at market prices prevailing at the time of sale or at negotiated prices. The selling stockholders
may effect such transactions by selling the common stock to underwriters or to or through broker-dealers, and such underwriters
or broker-dealers may receive compensations in the form of discounts or commissions from the selling stockholders and may receive
commissions from the purchasers of the common stock for whom they may act as agent. The selling stockholders may agree to indemnify
any underwriter, broker-dealer or agent that participates in transactions involving sales of the shares against certain liabilities,
including liabilities arising under the Securities Act. We have agreed to register the shares for sale under the Securities Act
and to indemnify the selling stockholders and each person who participates as an underwriter in the offering of the shares against
certain civil liabilities, including certain liabilities under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">In connection with sales
of the common stock under this prospectus, the selling stockholders may enter into hedging transactions with broker-dealers, who
may in turn engage in short sales of the common stock in the course of hedging the positions they assume. The selling stockholders
also may sell shares of common stock short and deliver them to close out the short positions, or loan or pledge the shares of
common stock to broker-dealers that in turn may sell them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The selling stockholders
and any broker-dealers or agents that are involved in selling the shares may be deemed to be underwriters, and any profit on sale
of the shares by them and any discounts, commissions or concessions received by any underwriter, dealer or agent may be deemed
to be underwriting discounts and commissions under the Securities Act. Because the selling stockholders may be deemed to be an
underwriter within the meaning of the Securities Act, they will be subject to the prospectus delivery requirements of the Securities
Act. Discounts, concessions, commissions and similar selling expenses, if any, that are attributed to the sale of common stock
will be paid by the selling stockholder and/or the purchasers. Each selling stockholder has represented and warranted to EnerJex
that it acquired the securities subject to this registration statement in the ordinary course of the selling stockholder&rsquo;s
business and, at the time of its purchase of such securities the selling stockholder had no agreements or understandings, directly
or indirectly, with any person to distribute any such securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">There can be no assurances
that the selling stockholders will sell any or all of the shares offered under this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_006"></A><B>INFORMATION WITH RESPECT
TO REGISTRANT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">All information, except
the ownership of certain beneficial owners and management, required under Item 11 of Registration Statement on Form S-1 is incorporated
herein by reference to our 2016 Form 10-K for the fiscal year ended December 31, 2016, Quarterly Reports on Form 10-Q for the
quarter ended March 31, 2017 and June 30, 2017, and our Definitive Proxy Statement on Schedule 14A filed on April 7, 2017, in
connection with our Annual Meeting of Stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">Information regarding
the following is incorporated by reference from our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 and
Quarterly Reports on Form 10-Q for the quarter ended March 31, 2017 and June 30, 2017, respectively:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Description
                                         of Business</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Description
                                         of Property;</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Legal Proceedings;</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Financial
                                         Statements;</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Selected
                                         Financial Data;</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Supplementary
                                         Financial Information;</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Management&rsquo;s
                                         Discussion and Analysis of Financial Condition and Results of Operation;</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Changes
                                         in and Disagreements with Accountants on Accounting and Financial Disclosure; and</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Quantitative
                                         and Qualitative Disclosures about Market Risk.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">Information regarding
the following is incorporated by reference form our Definitive Proxy Statement on Schedule 14A filed on April 7, 2017, in connection
with our 2017 Annual Meeting of Stockholders:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Directors,
                                         Executive Officer and Corporate Governance;</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Executive
                                         Compensation; and</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Certain
                                         Relationships and Related Transactions, and Director Independence.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><A NAME="a_007"></A><B>OWNERSHIP OF CERTAIN
BENEFICIAL OWNERS AND MANAGEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The following table presents
information, to the best of EnerJex&rsquo;s knowledge, about the ownership of EnerJex&rsquo;s common stock on September 28, 2017
relating to those persons known to beneficially own more than 5% of EnerJex&rsquo;s capital stock and by EnerJex&rsquo;s directors
and executive officers. The percentage of beneficial ownership for the following table is based on 10,321,397 shares of common
stock outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">Beneficial ownership
is determined in accordance with the rules of the Securities and Exchange Commission and does not necessarily indicate beneficial
ownership for any other purpose. Under these rules, beneficial ownership includes those shares of common stock over which the
stockholder has sole or shared voting or investment power. It also includes shares of common stock that the stockholder has a
right to acquire within 60 days after September 28, 2017 pursuant to options, warrants, conversion privileges or other right.
The percentage ownership of the outstanding common stock, however, is based on the assumption, expressly required by the rules
of the Securities and Exchange Commission, that only the person or entity whose ownership is being reported has converted options
or warrants into shares of EnerJex&rsquo;s common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold"><FONT STYLE="font-size: 10pt"><B>Name and Address of
    Beneficial Owner<SUP>(1)</SUP></B></FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Number of<BR>
    Shares</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>Percent of Outstanding Shares of Common Stock<SUP>(2)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 70%; text-align: left; text-indent: -10pt; padding-left: 10pt">Louis G. Schott, Interim CEO/Secretary</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Robert G. Watson, Jr., Former CEO/President and Former
    Director<SUP>(3)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">266,667</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.58</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Ryan A. Lowe, Director<SUP>(4)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,701</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">.13</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Lance W. Helfert, Director<SUP>(4)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">381,306</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.69</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">James G. Miller, Director</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">157,356</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.52</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Richard E. Menchaca, Director</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,432</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.12</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Montecito Venture Partners, LLC<SUP>(4)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">128,925</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.25</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Robert Schleizer, Interim CFO</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Kent A. Roach, EVP</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">43,748</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.42</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Alpha Capital Anstalt<SUP>(5) </SUP>Pradafant 7, Furstenturns
    9490 Vaduz, Liechtenstein</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">832,259</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.06</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Natalie Orfalea</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">691,412</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.70</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">David L. Kunovic, EVP Exploration</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">55,633</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.54</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Paul Orfalea</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">696,945</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.75</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt">Newman Family Trust</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: right">562,784</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">5.45</TD><TD STYLE="padding-bottom: 1pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt">Directors, Officers and Beneficial
    Owners as a Group</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">37.23</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.75pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: justify">As used in this table, &ldquo;beneficial ownership&rdquo;
means the sole or shared power to vote, or to direct the voting of, security, or the sole or shared investment power with respect
to a security (i.e., the power to dispose of, or to direct the disposition of, a security). The address of each person is care
of the Registrant, 4040 Broadway, Suite 508, San Antonio, Texas 78209.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(2)</TD><TD STYLE="text-align: justify">Figures are rounded to the nearest tenth of a percent.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(3)</TD><TD STYLE="text-align: justify">Includes 266,667 shares held by RGW Energy, LLC, of which
Mr. Watson is the sole member.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(4)</TD><TD STYLE="text-align: justify">Montecito Venture Partners, LLC is managed by Ryan A.
Lowe and Lance W. Helfert, which directly own the shares listed opposite its name in the table above. Each Reporting Person disclaims
beneficial ownership of all securities reported herein, except to the extent of their pecuniary interest therein, if any, and
this report shall not be deemed an admission that such Reporting Person is the beneficial owner of the shares for purposes of
Section 16 of the Securities and Exchange Act of 1934 or for any other purposes.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(5)</TD><TD STYLE="text-align: justify">Includes 68,712 shares of our common stock issuable upon
the exercise of warrants that are exercisable within 60 days held by Alpha Capital Anstalt (ACA). Does not include (a) 939,169
shares of our common stock issuable upon the exercise of the warrants held by ACA, which warrants contain a customary 9.9% blocker
provision and, thus, are not exercisable within 60 days, and (b) 1,701,716 shares of our common stock issuable upon the conversion
of 1,242.17099 shares of our Series B Preferred Stock held by ACA, which preferred shares also contain a 9.9% blocker and, thus,
are not convertible within 60 days. Based solely on the Schedule 13G filed with the SEC by ACA on March 16, 2015, ACA has sole
voting power with respect to this common stock. Konrad Ackerman is the managing member of ACA and as such has voting and investment
power over the securities owned by selling stockholder. Mr. Ackerman disclaims beneficial ownership over these shares.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The following table presents
information, to the best of EnerJex&rsquo;s knowledge, about the ownership of EnerJex&rsquo;s Series A preferred stock on March
28, 2017 relating to those persons known to beneficially own more than 5% of EnerJex&rsquo;s capital stock and by EnerJex&rsquo;s
directors and executive officers. The percentage of beneficial ownership for the following table is based on 938,248 shares of
Series A preferred stock outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">Beneficial ownership
is determined in accordance with the rules of the Securities and Exchange Commission and does not necessarily indicate beneficial
ownership for any other purpose. Under these rules, beneficial ownership includes those shares of Series A preferred stock over
which the stockholder has sole or shared voting or investment power. It also includes shares of Series A preferred stock that
the stockholder has a right to acquire within 60 days after March 28, 2017 pursuant to options, warrants, conversion privileges
or other right. The percentage ownership of the outstanding common stock, however, is based on the assumption, expressly required
by the rules of the Securities and Exchange Commission, that only the person or entity whose ownership is being reported has converted
options or warrants into shares of EnerJex&rsquo;s common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold"><FONT STYLE="font-size: 10pt"><B>Name and Address of
    Beneficial Owner<SUP>(1)</SUP></B></FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Number of Shares</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>Percent of Outstanding Shares of Series A Preferred Stock<SUP>(2)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 70%; text-align: left; text-indent: -10pt; padding-left: 10pt">Louis G. Schott, Interim CEO/Secretary</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Robert G. Watson, Jr., Former CEO/President and Former
    Director<SUP>(3)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">.02</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Ryan A. Lowe, Director<SUP>(5)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Montecito Venture Partners, LLC<SUP>(5)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,746</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">.07</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Lance W. Helfert, Director<SUP>(4)(5)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,555</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">.18</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">James G. Miller, Director</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Richard E. Menchaca, Director</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Robert Schleizer, Interim CFO</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Kent A. Roach, EVP</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">David L. Kunovic, EVP Exploration</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt">Directors, Officers and Beneficial
    Owners as a Group</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">27,301</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">.26</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.75pt; color: Red"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: justify">As used in this table, &ldquo;beneficial ownership&rdquo;
means the sole or shared power to vote, or to direct the voting of, security, or the sole or shared investment power with respect
to a security (i.e., the power to dispose of, or to direct the disposition of, a security). The address of each person is care
of the Registrant, 4040 Broadway, Suite 508, San Antonio, Texas 78209.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(2)</TD><TD STYLE="text-align: justify">Figures are rounded to the nearest tenth of a percent.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(3)</TD><TD STYLE="text-align: justify">Mr. Watson resigned as an officer and director of the
Company on February 10, 2017.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(4)</TD><TD STYLE="text-align: justify">Shares are held by Mr. Helfert&rsquo;s father&rsquo;s
SEP IRA, his children&rsquo;s trust and himself.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(5)</TD><TD STYLE="text-align: justify">Montecito Venture Partners, LLC is managed by Ryan A.
Lowe and Lance W. Helfert, which directly own the shares listed opposite its name in the table above. Each Reporting Person disclaims
beneficial ownership of all securities reported herein, except to the extent of their pecuniary interest therein, if any, and
this repot shall not be deemed an admission that such Reporting Person is the beneficial owner of the shares for purposes of Section
16 of the Securities and Exchange Act of 1934 or for any other purposes.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_008"></A><B>EXPERTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The financial statements
of EnerJex as of December 31, 2016 and December 31, 2015, and for the years ended December 31, 2016 and December 31, 2015, incorporated
in this prospectus by reference, and the effectiveness of EnerJex's internal control over financial reporting as of December 31,
2016 and December 31, 2015, has been audited by RBSM, LLP, an independent registered public accounting firm, as stated in their
reports. Such financial statements have been so incorporated in reliance upon the reports of such firm given upon their authority
as experts in accounting and auditing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The information incorporated
in this prospectus by reference, as of December 31, 2016 and 2015 relating to EnerJex&rsquo;s estimated quantities of oil and
gas reserves is derived from reserve reports prepared by William M. Cobb &amp; Associates, Inc. This information is included in
this prospectus in reliance upon such firm as experts in matters contained in the reports.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_009"></A><B>WHERE YOU CAN FIND MORE
INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">We are a public company
and file annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission.
You may read and copy any document we file at the SEC&rsquo;s Public Reference Room at 100 F Street, N.E., Room 1580, Washington,
D.C. 20549. You can request copies of these documents by writing to the SEC and paying a fee for the copying cost. Please call
the SEC at 1-800-SEC-0330 for more information about the operation of the public reference room. Our SEC filings are also available
to the public at the SEC&rsquo;s web site at <I><U>http://www.sec.gov</U></I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">In addition, we maintain
a website that contains information, including copies of reports, proxy statements and other information we file with the SEC.
The address of our website is <I>www.enerjex.com.</I> Information contained on our website or that can be accessed through our
website does not constitute a part of this prospectus. We have included our website addresses only as inactive textual references
and do not intend it to be an active link to its website.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">We have filed with the
SEC a registration statement on Form S-1, which includes exhibits and amendments, under the Securities Act, with respect to this
offering of our securities. Although this prospectus, which forms a part of the registration statement, contains all material
information included in the registration statement, parts of the registration statement have been omitted as permitted by rules
and regulations of the SEC. We refer you to the registration statement and its exhibits for further information about us, our
securities and this offering. The registration statement and its exhibits, as well as our other reports filed with the SEC, can
be inspected and copied at the SEC&rsquo;s public reference room at 100 F Street, N.E., Washington, D.C. 20549-1004. The public
may obtain information about the operation of the public reference room by calling the SEC at 1-800-SEC-0330. In addition, the
SEC maintains a web site at <I>http://www.sec.gov</I>, which contains the Form S-1 and other reports, proxy and information statements
and information regarding issuers that file electronically with the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">No dealer, salesperson
or any other person is authorized to give any information or make any representations in connection with this offering other than
those contained in this prospectus and, if given or made, the information or representations must not be relied upon as having
been authorized by us. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any security
other than the securities offered by this prospectus, or an offer to sell or a solicitation of an offer to buy any securities
by anyone in any jurisdiction in which the offer or solicitation is not authorized or is unlawful.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
