HOUSTON, TX / ACCESSWIRE / August 11, 2020 / Vertex Energy, Inc. (NASDAQ:VTNR), "Vertex" or the "Company"), a leading specialty refiner and marketer of high-quality hydrocarbon products, today announced its financial results for the second quarter of 2020.

MANAGEMENT OUTLOOK

Marrero and Heartland refineries operated at near peak utilization rates during July 2020
UMO collections improved to normalized levels in July 2020, due in part to organic growth in 1H20
Expect to realize $1-2 million of cost reductions during the second half 2020
Total cash and available liquidity of $19.6 million as of June 30, 2020

For the three months ended June 30, 2020, the Company reported a net loss attributable to Vertex Energy of ($9.0) million, versus a net loss of ($0.4) million, the second quarter 2019. Vertex reported Adjusted EBITDA of ($5.3) million for the second quarter 2020, versus $2.1 million in the prior-year period. The year-over-year decline in net income and Adjusted EBITDA was attributable to extended maintenance at the Marrero, Louisiana refinery and a year-over-year decline in refined product margins, given lower economic activity related to the novel coronavirus (COVID-19). A schedule reconciling the Company's GAAP and non-GAAP financial results, including Adjusted EBITDA, is included later in this release.

STRATEGIC UPDATE

During the second quarter, Vertex quickly adapted to the changing market dynamics resulting from the novel coronavirus. Specifically, management took action to improve feedstock availability, increase refinery utilization, reduce costs and further optimize owned assets.

Improved feedstock availability. During the first half of 2020, shelter-in-place orders were issued across most U.S. states and municipalities in response to COVID-19, resulting in a material decline in economic activity and travel. This decline in activity resulted in lower availability of used motor oil (UMO), the Company's primary feedstock. To that end, second quarter total collections were 21% below the same period of 2019. In response, management expanded its collection network, helping to increase availability of feedstock to support its refining operations during the first half of 2020.

Increased refinery utilization. During the second quarter, the Marrero and Heartland refineries operated at 62% and 78% of capacity, respectively. At Marrero, the company conducted 34 days of planned, extended maintenance that concluded in mid-June 2020, which impacted utilization in the period. At Heartland, second quarter utilization rates were impacted by reduced UMO availability. During July 2020, both the Marrero and Heartland refineries operated at levels approaching peak capacity utilization, given increased availability of UMO feedstock.

Targeted cost reductions. During the second quarter, management implemented a series of cost reductions throughout the organization. These actions included both reductions in contract labor, together with reductions in plant operating costs. Total selling, general and administrative expenses declined nearly 10% in the second quarter, when compared to the first quarter 2020. Management expects to realize approximately $1 to $2 million in additional, annualized cost reductions during the second half of 2020.

Asset optimization. Vertex continues to evaluate targeted organic growth opportunities designed to improve its utilization of existing, owned assets. During the second quarter, the Company invested in several initiatives designed to grow its market presence as a collector and recycler of used automotive waste streams. The Company expects to provide an update on these activities during the fourth quarter 2020.

Maintain capital discipline. Given current market volatility, Vertex remains focused on conserving available liquidity to support the long-term growth of the business. As of June 30, 2020, the Company had total cash and available liquidity of $19.6 million, versus $20.2 million as of March 31, 2020. Included in total cash amounts are cash held in the Company's special purpose vehicles (SPVs) relating to its Myrtle Grove and Heartland assets, which are limited to use by each SPV, respectively.

MANAGEMENT COMMENTARY

"As expected, our second quarter performance was impacted by a combination of low UMO availability, extended downtime at our largest refinery and a year-over-year decline in refined product margins, all of which were attributable to the historic disruption caused by the COVID-19 pandemic," stated Benjamin P. Cowart, President and CEO of Vertex. "In response to rapidly changing market dynamics, our management team took decisive action to reduce costs during the second quarter, while maintaining balance sheet discipline to support the long-term growth of our business."

"Business conditions improved during July, as shelter-in-place orders were lifted," continued Cowart. "Since the start of the third quarter, both our Marrero and Heartland refineries have operated near peak utilization, as UMO feedstock availability has returned to near-historical levels. In July, total UMO collections increased by nearly 40% versus June levels."

"During the second quarter, UMO prices were driven to elevated levels, given a lack of feedstock availability," continued Cowart. "Elevated UMO pricing resulted in less favorable product spreads, which impacted our profitability during the second quarter. As economic activity further accelerates and UMO supplies become more readily available, we expect to see a decline in feedstock prices and improved realized margins during the second half of 2020."

BALANCE SHEET

As of June 30, 2020, the Company had total cash and availability on its lending facility of $17.8 million and $1.8 million, respectively.

Vertex had total term debt outstanding of $10.2 million as of June 30, 2020, which included $4.2 million related to funds received under the Paycheck Protection Program (the "PPP") which is part of the recently enacted Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"). Under the terms of the PPP, the entire balance of the loan may be forgiven to the extent that cash proceeds are used for qualifying expenses. As of the date of this release, the Company has allocated the entirety of PPP funds received toward qualifying expenses.

CONFERENCE CALL AND WEBCAST

A conference call will be held today at 9:00 A.M. ET to review the Company's financial results, discuss recent events and conduct a question-and-answer session.

A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of Vertex's website at www.vertexenergy.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download, and install any necessary audio software. To participate in the live teleconference:

Domestic Live: 844-602-0380

To listen to a replay of the teleconference, which will be available through August 18, 2020:

Domestic Replay: 877-481-4010

Conference ID: 36289

ABOUT VERTEX ENERGY

Houston-based Vertex Energy, Inc. (NASDAQ: VTNR) is a specialty refiner of alternative feedstocks and marketer of high-purity petroleum products. Vertex is one of the largest processors of used motor oil in the U.S., with operations located in Houston and Port Arthur (TX), Marrero (LA) and Heartland (OH). Vertex also co-owns a facility, Myrtle Grove, located on a 41-acre industrial complex along the Gulf Coast in Belle Chasse, LA, with existing hydro-processing and plant infrastructure assets, that include nine million gallons of storage. The Company has built a reputation as a key supplier of Group II+ and Group III base oils to the lubricant manufacturing industry throughout North America.

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements, including information about management's view of Vertex Energy's future expectations, plans and prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "believes," "hopes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act, and are subject to the safe harbor created by the Act. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of Vertex Energy, its divisions and concepts to be materially different than those expressed or implied in such statements. These risk factors and others are included from time to time in documents Vertex Energy files with the Securities and Exchange Commission, including, but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors also could have material adverse effects on Vertex Energy's future results. The forward-looking statements included in this press release are made only as of the date hereof. Vertex Energy cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Vertex Energy undertakes no obligation to update these statements after the date of this release, except as required by law, and takes no obligation to update or correct information prepared by third parties that are not paid for by Vertex Energy.

CONTACT

Investor Relations
720.778.2415
IR@vertexenergy.com

VERTEX ENERGY, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

 
June 30,
2020
 
 
December 31,
2019
 

ASSETS

Current assets

Cash and cash equivalents

 
$ 
17,754,312
 
 
$ 
4,099,655
 

Restricted cash

 
 
100,125
 
 
 
100,170
 

Accounts receivable, net

 
 
9,163,208
 
 
 
12,138,078
 

Federal income tax receivable

 
 
–
 
 
 
68,606
 

Inventory

 
 
3,812,752
 
 
 
6,547,479
 

Prepaid expenses and other current assets

 
 
2,499,104
 
 
 
4,452,920
 

Total current assets

 
 
33,329,501
 
 
 
27,406,908
 

Noncurrent assets

Fixed assets, at cost

 
 
70,977,927
 
 
 
69,469,548
 

Less accumulated depreciation

 
 
(26,992,136
)
 
 
(24,708,151
)

Fixed assets, net

 
 
43,985,791
 
 
 
44,761,397
 

Finance lease right-of-use assets

 
 
1,613,661
 
 
 
851,570
 

Operating lease right-of use assets

 
 
34,739,105
 
 
 
35,586,885
 

Intangible assets, net

 
 
10,363,179
 
 
 
11,243,800
 

Deferred income taxes

 
 
–
 
 
 
68,605
 

Other assets

 
 
1,219,301
 
 
 
840,754
 

TOTAL ASSETS

 
$ 
125,250,538
 
 
$ 
120,759,919
 

LIABILITIES, TEMPORARY EQUITY, AND EQUITY

Current liabilities

Accounts payable

 
$ 
8,373,449
 
 
$ 
7,620,098
 

Accrued expenses

 
 
2,950,439
 
 
 
5,016,132
 

Dividends payable

 
 
360,203
 
 
 
389,176
 

Finance lease liability-current

 
 
450,835
 
 
 
217,164
 

Operating lease liability-current

 
 
6,004,500
 
 
 
5,885,304
 

Current portion of long-term debt, net of unamortized finance costs

 
 
2,814,306
 
 
 
2,017,345
 

Derivative commodity liability

 
 
538,297
 
 
 
375,850
 

Revolving note

 
 
–
 
 
 
3,276,230
 

Total current liabilities

 
 
21,492,029
 
 
 
24,797,299
 

Long-term liabilities

Long-term debt, net of unamortized finance costs

 
 
7,440,308
 
 
 
12,433,000
 

Finance lease liability-long-term

 
 
1,103,231
 
 
 
610,450
 

Operating lease liability-long-term

 
 
28,734,605
 
 
 
29,701,581
 

Derivative warrant liability

 
 
381,434
 
 
 
1,969,216
 

Total liabilities

 
 
59,151,607
 
 
 
69,511,546
 

COMMITMENTS AND CONTINGENCIES (Note 3)

 
 
–
 
 
 
–
 

TEMPORARY EQUITY

Series B Convertible Preferred Stock, $0.001 par value per share;
10,000,000 shares designated, 3,941,704 and 3,826,055 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively with a liquidation preference of $12,219,282 and $11,860,771 at June 30, 2020 and December 31, 2019, respectively.

 
 
12,219,282
 
 
 
11,006,406
 

Series B1 Convertible Preferred Stock, $0.001 par value per share;
17,000,000 shares designated, 7,109,305 and 9,028,085 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively with a liquidation preference of $11,090,516 and $14,083,813 at June 30, 2020 and December 31, 2019, respectively.

 
 
10,366,624
 
 
 
12,743,047
 

Redeemable non-controlling interest

 
 
28,334,401
 
 
 
4,396,894
 

Total Temporary Equity

 
 
50,920,307
 
 
 
28,146,347
 

EQUITY

50,000,000 of total Preferred shares authorized:

Series A Convertible Preferred Stock, $0.001 par value;
5,000,000 shares designated, 419,859 shares issued and outstanding at June 30, 2020 and December 31, 2019, with a liquidation preference of $625,590 at June 30, 2020 and December 31, 2019.

 
 
420
 
 
 
420
 

Series C Convertible Preferred Stock, $0.001 par value;
44,000 shares designated, no shares issued or outstanding.

 
 
–
 
 
 
–
 

Common stock, $0.001 par value per share;
750,000,000 shares authorized; 45,554,841 and 43,395,563 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively.

 
 
45,555
 
 
 
43,396
 

Additional paid-in capital

 
 
94,233,371
 
 
 
81,527,351
 

Accumulated deficit

 
 
(79,979,484
)
 
 
(59,246,514
)

Total Vertex Energy, Inc. stockholders' equity

 
 
14,299,862
 
 
 
22,324,653
 

Non-controlling interest

 
 
878,762
 
 
 
777,373
 

Total Equity

 
 
15,178,624
 
 
 
23,102,026
 

TOTAL LIABILITIES, TEMPORARY EQUITY, AND EQUITY

 
$ 
125,250,538
 
 
$ 
120,759,919
 

VERTEX ENERGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

 
Three Months Ended June 30,
 
 
Six Months Ended June 30,
 

 
2020
 
 
2019
 
 
2020
 
 
2020
 

Revenues

 
$ 
21,374,127
 
 
$ 
43,657,292
 
 
$ 
57,577,556
 
 
$ 
82,978,004
 

Cost of revenues (exclusive of depreciation and amortization shown separately below)

 
 
22,197,805
 
 
 
36,515,421
 
 
 
49,034,659
 
 
 
71,359,770
 

Gross profit (loss)

 
 
(823,678
)
 
 
7,141,871
 
 
 
8,542,897
 
 
 
11,618,234
 

Operating expenses:

Selling, general and administrative expenses

 
 
6,030,560
 
 
 
6,028,859
 
 
 
12,731,078
 
 
 
11,376,600
 

Depreciation and amortization

 
 
1,713,461
 
 
 
1,780,890
 
 
 
3,348,008
 
 
 
3,517,903
 

Total operating expenses

 
 
7,744,021
 
 
 
7,809,749
 
 
 
16,079,086
 
 
 
14,894,503
 

Loss from operations

 
 
(8,567,699
)
 
 
(667,878
)
 
 
(7,536,189
)
 
 
(3,276,269
)

Other income (expense):

Other income

 
 
20
 
 
 
1,918
 
 
 
100
 
 
 
1,918
 

Gain on sale of assets

 
 
12,344
 
 
 
29,150
 
 
 
12,344
 
 
 
31,443
 

Gain (loss) on change in value of derivative warrant liability

 
 
(110,965
)
 
 
746,017
 
 
 
1,587,782
 
 
 
(959,077
)

Interest expense

 
 
(222,173
)
 
 
(738,972
)
 
 
(562,259
)
 
 
(1,496,775
)

Total other income (expense)

 
 
(320,774
)
 
 
38,113
 
 
 
1,037,967
 
 
 
(2,422,491
)

Loss before income tax

 
 
(8,888,473
)
 
 
(629,765
)
 
 
(6,498,222
)
 
 
(5,698,760
)

Income tax benefit (expense)

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 

Net loss

 
 
(8,888,473
)
 
 
(629,765
)
 
 
(6,498,222
)
 
 
(5,698,760
)

Net income (loss) attributable to non-controlling interest and redeemable non-controlling interest

 
 
109,165
 
 
 
(202,329
)
 
 
(289,444
)
 
 
(307,760
)

Net loss attributable to Vertex Energy, Inc.

 
 
(8,997,638
)
 
 
(427,436
)
 
 
(6,208,778
)
 
 
(5,391,000
)

Accretion of redeemable noncontrolling interest to redemption value

 
 
(1,381,889
)
 
 
–
 
 
 
(12,348,238
)
 
 
–
 

Accretion of discount on Series B and B1 Preferred Stock

 
 
(539,235
)
 
 
(532,925
)
 
 
(1,471,238
)
 
 
(1,093,600
)

Dividends on Series B and B1 Preferred Stock

 
 
(360,217
)
 
 
(412,875
)
 
 
(704,716
)
 
 
(819,670
)

Net loss available to common shareholders

 
$ 
(11,278,979
)
 
$ 
(1,373,236
)
 
$ 
(20,732,970
)
 
$ 
(7,304,270
)

Loss per common share

Basic

 
$ 
(0.25
)
 
$ 
(0.03
)
 
$ 
(0.46
)
 
$ 
(0.18
)

Diluted

 
$ 
(0.25
)
 
$ 
(0.03
)
 
$ 
(0.46
)
 
$ 
(0.18
)

Shares used in computing earnings per share

Basic

 
 
45,554,841
 
 
 
40,294,870
 
 
 
45,463,600
 
 
 
40,245,671
 

Diluted

 
 
45,554,841
 
 
 
40,294,870
 
 
 
45,463,600
 
 
 
40,245,671
 

VERTEX ENERGY, INC.
CONSOLIDATED STATEMENTS OF EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 2020 AND 2019
(UNAUDITED)

 
Six Months Ended June 30, 2020
 

 
Common Stock
 
 
Series A Preferred
 
 
Series C Preferred
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Shares
 
 
$0.001 Par
 
 
Shares
 
 
$0.001 Par
 
 
Shares
 
 
$0.001 Par
 
 
Additional Paid-In Capital
 
 
Retained Earnings
 
 
Non-controlling Interest
 
 
Total Equity
 

Balance on January 1, 2020

 
 
43,395,563
 
 
$ 
43,396
 
 
 
419,859
 
 
$ 
420
 
 
 
–
 
 
$ 
–
 
 
$ 
81,527,351
 
 
$ 
(59,246,514
)
 
$ 
777,373
 
 
$ 
23,102,026
 

Purchase of shares of consolidated subsidiary

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(71,171
)
 
 
–
 
 
 
–
 
 
 
(71,171
)

Adjustment of carrying mount of non-controlling interest

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
9,091,068
 
 
 
–
 
 
 
–
 
 
 
9,091,068
 

Share based compensation expense

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
163,269
 
 
 
–
 
 
 
–
 
 
 
163,269
 

Conversion of Series B1 Preferred stock to common

 
 
2,159,278
 
 
 
2,159
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
3,366,315
 
 
 
–
 
 
 
–
 
 
 
3,368,474
 

Dividends on Series B and B1

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(344,499
)
 
 
–
 
 
 
(344,499
)

Accretion of discount on Series B and B1

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(932,003
)
 
 
–
 
 
 
(932,003
)

Accretion of redeemable non-controlling interest to redemption value

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(10,966,349
)
 
 
–
 
 
 
(10,966,349
)

Net income

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
2,788,860
 
 
 
119,268
 
 
 
2,908,128
 

Balance on March 31, 2020

 
 
45,554,841
 
 
$ 
45,555
 
 
 
419,859
 
 
$ 
420
 
 
$ 
–
 
 
$ 
–
 
 
$ 
94,076,832
 
 
$ 
(68,700,505
)
 
$ 
896,641
 
 
$ 
26,318,943
 

Share based compensation expense

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
156,539
 
 
 
–
 
 
 
–
 
 
 
156,539
 

Dividends on Series B and B1

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(360,217
)
 
 
–
 
 
 
(360,217
)

Accretion of discount on Series B and B1

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(539,235
)
 
 
–
 
 
 
(539,235
)

Accretion of redeemable non-controlling interest to redemption value

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(1,381,889
)
 
 
–
 
 
 
(1,381,889
)

Net loss

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(8,997,638
)
 
 
(17,879
)
 
 
(9,015,517
)

Balance on June 30, 2020

 
 
45,554,841
 
 
$ 
45,555
 
 
 
419,859
 
 
$ 
420
 
 
$ 
–
 
 
$ 
–
 
 
$ 
94,233,371
 
 
$ 
(79,979,484
)
 
$ 
878,762
 
 
$ 
15,178,624
 

 
Six Months Ended June 30, 2019
 

 
Common Stock
 
 
Series A Preferred
 
 
Series C Preferred
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Shares
 
 
$0.001 Par
 
 
Shares
 
 
$0.001 Par
 
 
Shares
 
 
$0.001 Par
 
 
Additional Paid-In Capital
 
 
Retained Earnings
 
 
Non-controlling Interest
 
 
Total Equity
 

Balance on January 1, 2019

 
 
40,174,821
 
 
$ 
40,175
 
 
 
419,859
 
 
$ 
420
 
 
 
–
 
 
$ 
–
 
 
$ 
75,131,122
 
 
$ 
(47,800,886
)
 
$ 
1,438,213
 
 
$ 
28,809,044
 

Share based compensation expense

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
143,063
 
 
 
–
 
 
 
–
 
 
 
143,063
 

Conversion of Series B1 Preferred stock to common

 
 
96,160
 
 
 
96
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
149,914
 
 
 
–
 
 
 
–
 
 
 
150,010
 

Dividends on Series B and B1

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(406,795
)
 
 
–
 
 
 
(406,795
)

Accretion of discount on Series B and B1

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(560,675
)
 
 
–
 
 
 
(560,675
)

Net loss

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(4,963,564
)
 
 
(105,431
)
 
 
(5,068,995
)

Balance on March 31, 2019

 
 
40,270,981
 
 
$ 
40,271
 
 
 
419,859
 
 
$ 
420
 
 
 
–
 
 
$ 
–
 
 
$ 
75,424,099
 
 
$ 
(53,731,920
)
 
$ 
1,332,782
 
 
$ 
23,065,652
 

Exercise of options to common

 
 
75,925
 
 
 
76
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
4,424
 
 
 
–
 
 
 
–
 
 
 
4,500
 

Share based compensation expense

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
171,002
 
 
 
–
 
 
 
–
 
 
 
171,002
 

Distribution to noncontrolling

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(285,534
)
 
 
(285,534
)

Dividends on Series B and B1

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(412,875
)
 
 
–
 
 
 
(412,875
)

Accretion of discount on Series B and B1

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(532,925
)
 
 
–
 
 
 
(532,925
)

Net income

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(427,436
)
 
 
(202,329
)
 
 
(629,765
)

Balance on June 30, 2019

 
 
40,346,906
 
 
$ 
40,347
 
 
 
419,859
 
 
$ 
420
 
 
 
–
 
 
$ 
–
 
 
$ 
75,599,525
 
 
$ 
(55,105,156
)
 
$ 
844,919
 
 
$ 
21,380,055
 

VERTEX ENERGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2020 AND 2019 (UNAUDITED)

 
 
Six Months Ended
 

 
June 30,
2020
 
 
June 30,
2019
 

Cash flows from operating activities

Net loss

 
$ 
(6,498,222
)
 
$ 
(5,698,760
)

Adjustments to reconcile net loss to cash provided by operating activities

Stock based compensation expense

 
 
319,809
 
 
 
314,065
 

Depreciation and amortization

 
 
3,348,008
 
 
 
3,517,903
 

Gain on sale of assets

 
 
(12,344
)
 
 
(31,443
)

Contingent consideration reduction

 
 
–
 
 
 
(15,564
)

Bad debt and reduction in allowance for bad debt

 
 
65,443
 
 
 
(360,926
)

(Decrease) increase in fair value of derivative warrant liability

 
 
(1,587,782
)
 
 
959,077
 

(Gain) loss on commodity derivative contracts

 
 
(4,484,798
)
 
 
1,069,778
 

Net cash settlements on commodity derivatives

 
 
4,781,183
 
 
 
(967,708
)

Amortization of debt discount and deferred costs

 
 
47,826
 
 
 
286,954
 

Changes in operating assets and liabilities

Accounts receivable

 
 
4,986,003
 
 
 
(2,111,591
)

Inventory

 
 
3,711,239
 
 
 
2,338,814
 

Prepaid expenses

 
 
1,834,361
 
 
 
1,948,771
 

Accounts payable

 
 
(269,740
)
 
 
(518,050
)

Accrued expenses

 
 
(2,150,272
)
 
 
(187,349
)

Other assets

 
 
(378,547
)
 
 
–
 

Net cash provided by operating activities

 
 
3,712,167
 
 
 
543,971
 

Cash flows from investing activities

Acquisition

 
 
(1,822,690
)
 
 
–
 

Internally developed software

 
 
(49,229
)
 
 
–
 

Purchase of fixed assets

 
 
(1,526,379
)
 
 
(2,419,599
)

Proceeds from sale of fixed assets

 
 
22,844
 
 
 
86,846
 

Net cash used in investing activities

 
 
(3,375,454
)
 
 
(2,332,753
)

Cash flows from financing activities

Payments on finance leases

 
 
(162,312
)
 
 
(61,638
)

Proceeds from exercise of stock options

 
 
–
 
 
 
4,500
 

Distribution VRM LA

 
 
–
 
 
 
(285,534
)

Contributions received from redeemable noncontrolling interest

 
 
21,000,000
 
 
 
–
 

Line of credit (payments) proceeds, net

 
 
(3,276,230
)
 
 
1,235,251
 

Proceeds from note payable (includes proceeds from PPP note)

 
 
4,374,643
 
 
 
187,501
 

Payments on note payable

 
 
(8,618,202
)
 
 
(1,542,903
)

Net cash provided by (used in) financing activities

 
 
13,317,899
 
 
 
(462,823
)

Net change in cash, cash equivalents and restricted cash

 
 
13,654,612
 
 
 
(2,251,605
)

Cash, cash equivalents, and restricted cash at beginning of the period

 
 
4,199,825
 
 
 
2,849,831
 

Cash, cash equivalents, and restricted cash at end of period

 
$ 
17,854,437
 
 
$ 
598,226
 

SUPPLEMENTAL INFORMATION

Cash paid for interest

 
$ 
562,259
 
 
$ 
1,221,363
 

Cash paid for taxes

 
$ 
–
 
 
$ 
–
 

NON-CASH INVESTING AND FINANCING TRANSACTIONS

Conversion of Series B1 Preferred Stock into common stock

 
$ 
3,368,474
 
 
$ 
150,010
 

Accretion of discount on Series B and B1 Preferred Stock

 
$ 
1,471,238
 
 
$ 
1,093,600
 

Dividends-in-kind accrued on Series B and B1 Preferred Stock

 
$ 
704,716
 
 
$ 
819,670
 

Equipment acquired under finance leases

 
$ 
888,764
 
 
$ 
621,000
 

Initial adjustment of carrying amount redeemable noncontrolling interest

 
$ 
9,091,068
 
 
$ 
–
 

Accretion of redeemable noncontrolling interest to redemption value

 
$ 
12,348,238
 
 
$ 
–
 

Reconciliation of Net Loss attributable to Vertex Energy, Inc., to Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA*

 
 
For the Three Months Ended
 
 
For the Trailing Twelve Months
 

 
June 30, 2020
 
 
June 30, 2019
 
 
June 30, 2020
 
 
June 30, 2019
 

Net income (loss)

 
$ 
( 8,888,473
)
 
$ 
(629,765
)
 
$ 
(6,285,015
)
 
$ 
(8,136,060
)

Add (deduct):

Interest Income

 
 
(20
)
 
 
(1,918
)
 
 
(879
)
 
 
(1,918
)

Interest Expense

 
 
222,173
 
 
 
738,972
 
 
 
2,135,555
 
 
 
3,128,659
 

Depreciation and amortization

 
 
1,713,461
 
 
 
1,780,890
 
 
 
7,010,194
 
 
 
7,081,738
 

EBITDA

 
 
(6,952,859)
 
 
 
1,888,179
 
 
 
2,859,855
 
 
 
2,072,419
 

Add (deduct):

Loss (gain) on change in value of derivative warrant liability

 
 
110,965
 
 
 
(746,017
)
 
 
(2,059,335
)
 
 
239,523
 

Unrealized (gain) loss on derivative instruments

 
 
1,344,093
 
 
 
558,360
 
 
 
429,740
 
 
 
61,944
 

Stock-based compensation

 
 
156,539
 
 
 
171,002
 
 
 
648,585
 
 
 
644,180
 

Adjusted EBITDA *

 
$ 
(5,341,262)
 
 
$ 
1,871,524
 
 
$ 
1,878,845
 
 
$ 
3,018,066
 

Net cash provided by (used in)

operating activities

 
 
597,159
 
 
 
2,520,851
 
 
 
5,641,363
 
 
 
2,725,294
 

Add (deduct): capital expenditures

 
 
(1,084,199
)
 
 
(1,644,702
)
 
 
(3,014,469
)
 
 
(3,348,625
)

Free cash flow

 
 
(487,040
)
 
 
876,149
 
 
 
2,626,894
 
 
 
(623,331
)

* EBITDA, Adjusted EBITDA, and free cash flows are non-GAAP financial measures. These measurements are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance.

EBITDA represents net income before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before stock-based compensation expense and gain (loss) on change in value of derivative warrant liability and unrealized gains and losses on derivative instruments for hedging activities. EBITDA and Adjusted EBITDA are presented because we believe they provide additional useful information to investors due to the various noncash items during the period. EBITDA and Adjusted EBITDA have limitations as analytical tools, and you should not consider them in isolation, or as a substitute for analysis of our operating results as reported under GAAP. Some of these limitations are:

EBITDA and Adjusted EBITDA do not reflect cash expenditures, or future requirements for capital expenditures, or contractual commitments;
EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, working capital needs;
EBITDA and Adjusted EBITDA do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on debt or cash income tax payments;
Although depreciation and amortization are noncash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements; and
Other companies in this industry may calculate EBITDA and Adjusted EBITDA differently than Vertex Energy does, limiting its usefulness as a comparative measure.

Free cash flow represents net cash provided by (used in) operating activities less capital expenditures.

SOURCE: Vertex Energy, Inc. 

ReleaseID: 601111

New AI & ML Advisory Board created to bolster Oxylabs' influence in the big data industry.

VILNIUS, LITHUANIA / ACCESSWIRE / AUGUST 11, 2020 / Oxylabs, the proxy and data gathering service provider, has announced the launch of its newly formed AI & ML Advisory Board, appointing four industry-leading data science, machine learning and AI experts as its members. Oxylabs' newly formed group will help support and drive the company as it expands its influence in the data industry, while providing discussions and guidance on the proxy and data industry more generally.

Founded and based in Lithuania, Oxylabs ensures every organisation has access to big data, no matter its size. To do this, it puts great emphasis on data gathering, providing success for every organisation it works with. The company's hardworking ethos has allowed it to build a strong reputation within the industry, with over 500 clients – a vast majority of which are Fortune 500 companies.

The board comprises of leading figures in the machine learning, AI, and data science industries, many of whom have experience working for highly reputable organisations such as NASA, Massachusetts Institute of Technology (MIT) and UCL. The group is made up of:

Pujaa Rajan, Deep Learning Engineer at Node.io, USA Ambassador at Women In AI and Google Developer ML Expert
Adi Andrei, Lead, Mentor, Senior Data Scientist, NASA, Unilever, British Gas
Jonas Kubilius, Artificial Intelligence Researcher
Ali Chaudhry, PhD Researcher, Artificial Intelligence at UCL

Julius Cerniauskas, CEO, Oxylabs said: "Offering unrivalled innovation in the proxy space has always been at the heart of Oxylabs. Creating an advisory board of this calibre is indicative of the measures we are taking to supercharge innovation in AI, data science and machine learning within the data gathering industry. We wanted to ensure we attracted the very best in the industry who will enable us to grow as an organisation, but more importantly provide expert opinion and advice on the competitive proxy market."

Cerniauskas continued: "The big data industry is expected to grow by almost $100bn within the next five years. It's vital we leverage advances in machine learning and AI to optimise decision making.

"Here at Oxylabs we offer reliable and unique products, with our team continually developing industry-leading solutions. As an example, we've recently launched a brand new Next-Gen Residential Proxies platform, allowing users to leverage the power of machine learning technology and AI, in a residential proxy platform, for the very first time. The addition of the board will play a vital role in ensuring we achieve our vision and that we continue developing innovative data extraction solutions for our clients."

Pujaa Rajan, member of the AI & ML Advisory Board and Deep Learning Engineer, Node.io said: "The proxy market is undoubtedly competitive, yet the board Oxylabs has created is the first of its kind in the industry; formulating a team of experts to advise the company on a number of prominent areas from machine learning to proxy deployment. Every member of the AI & ML Advisory Board brings something unique to the table. The company's thirst and passion to provide for its clients but to also see the industry grow and thrive is what attracted me to join the board, alongside the three other experts Adi, Jonas and Ali."

Rajan concluded: "With the aim of appointing another two members in due course, I look forward to our first quarterly meeting in August 2020 and I cannot wait to collaborate and see what we achieve collectively alongside Oxylabs in the future."

About Oxylabs

Oxylabs is the leading global provider of premium proxies and data scraping solutions for large-scale web data extraction. The company's mission is clear: To give every business – whether big or small – the right to access big data. With unmatched hands-on experience in web data harvesting, Oxylabs is in trusted partnerships with dozens of Fortune 500 companies and global businesses, helping them unearth hidden gems of business intelligence data through state-of-the-art products and technological expertise. For more information, please visit: https://oxylabs.io/

Media contact

Name: Vytautas Kirjazovas

Company: Oxylabs

Website: www.oxylabs.io

Phone: +37060054118

Email: press@oxylabs.io

SOURCE: Oxylabs

ReleaseID: 601142

Major carbonate mineral producers investing extensively in PPE and automated mining systems to sustain regular operations during the coronavirus crisis, while mitigating health concerns for workers.

DUBAI, UAE / ACCESSWIRE / August 11, 2020 / Future Market Insights: The carbonate minerals market is anticipated to surpass a valuation of US$ 80 Bn during the period of projection between 2019 and 2029. The coronavirus pandemic has significantly impacted the carbonate minerals market. Mining operations in multiple countries have been temporarily suspended or limited. Further, uncertainties over lockdowns and potential resurgence of the contagion are likely to have an adverse impact on the short-term prospects of the carbonate minerals market.

"Carbonate minerals are have gained major interest in recent times, owing to potential applications in reversing climate change. Carbonate minerals can be used to sequester carbon dioxide in solid form in multiple industry verticals, which will generate highly lucrative opportunities in the industry," says the FMI analyst.

Request a sample of the report to gain in-depth market insights at https://www.futuremarketinsights.com/reports/sample/rep-gb-309

Carbonate Minerals Market – Key Takeaways

Dolomite is gaining traction in the agriculture sector for niche applications as a soil stabilizer.
Calcite remains an in-demand carbonate mineral owing to extensive applications in paper, plastic, and paint & coating production.
Asia Pacific is a fast-growing market for carbonate minerals owing to recent upsurge in industrial and transport infrastructure investments from public and private bodies.

Carbonate Minerals Market – Driving Factors

Wide ranging applications of carbonate minerals in multiple verticals including construction, paper, agriculture, coatings, feed, plastic, ceramics, and steel sustain market growth.
Favorable government policies and investments towards infrastructure and industrial development help market players.

Carbonate Mineral Market – Key Constraints

Environmental concerns associated with carbonate mineral mining activities holds back market growth.
High processing and production costs for carbonate minerals limits adoption rates.

The Anticipated Impact of Coronavirus

The coronavirus pandemic has closed several carbonate mineral mines to close temporarily either owing to a shortage of workers or over health concerns of the workers. Remote monitoring, maintenance, and technical support will be critical to the functioning of the supply chain. The carbonate mineral market is likely to witness a steady resurgence towards 2021 as lockdown restrictions are relaxed, and industrial demand is back on the rise.

Explore the global carbonate minerals market report with 145 illustrative figures, 31 data tables and the table of contents. You can also find market segmentation on https://www.futuremarketinsights.com/askus/rep-gb-309

Competition Landscape

Major manufacturers in the carbonate minerals market include but are not limited to Holding Toray Industries Inc., Mitsubishi Chemical, Solvay Group, Teijin Ltd., and SGL Carbon SE.

Manufacturers are largely displaying interest expansion of mining and production facilities to boost operations and meet growing end user demand. Research in sustainability is also gaining traction.

For example, Giga Metals has collaborated with the University of British Columbia to run a carbon dioxide sequestration program by turning silicates in mining facilities to carbonate minerals. Incoa Performance Minerals LLC has announced a US$ 110 million investment into the development of a carbonate mineral processing facility in the Gulf Coast. Northern Minerals has collaborated with Thyssekrupp Materials for a carbonate minerals pilot plant project in West Australia.

More About the Report

The FMI's market research report offers detailed insights on carbonate minerals market. The market is scrutinized on the basis of mineral (calcite, magnesite, aragonite, smithsonite, and dolomite), source (natural and synthetic), and end use (food, paint, plastic & rubber, paper & pulp, building & construction, agriculture, and glass) across seven key regions (North America, Latin America, Western Europe, Eastern Europe, Asia Pacific excluding Japan, Japan, and Middle East and Africa).

We Offer tailor-made Solutions to fit Your Requirements, Request Customization@ https://www.futuremarketinsights.com/customization-available/rep-gb-309

Explore Extensive Coverage of FMI's Chemicals & Materials Landscape

APAC Flexible Glass Market: Find insights on the APAC flexible glass market with segment analysis, statistics, influencing factors, and business strategies for a 6-year period.

BRIC Automotive Plastics Market: FMI's report on the BRIC automotive plastics market offers details on the market set for 2015-2020. The study includes impacting forces, sources of revenue, market leaders, and important strategies.

Bio-Plastics Market: Get an analysis on the bio-plastics market with insights on growth factors, opportunities, regulatory policies, restraints, regional markets and market leaders.

About Future Market Insights

Expert analysis, actionable insights, and strategic recommendations of the veteran research team at FMI helps clients from across the globe with their unique business intelligence requirements. With a repository of over thousand reports and 1 million+ data points, the team has scrutinized the chemicals & materials sector across 50+ countries for over a decade. The team provides unmatched end-to-end research and consulting services. Reach out to explore how we can help.

Contact

Mr. Abhishek Budholiya

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United Arab Emirates

MARKET ACCESS DMCC Initiative

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Report: https://www.futuremarketinsights.com/reports/carbonate-minerals-market

Press Release Source: https://www.futuremarketinsights.com/press-release/carbonate-minerals-market

SOURCE: Future Market Insights

ReleaseID: 601143

Empower July 2020 patient volume surpasses 2,300 patients with Sun Valley Health increasing revenue per patient by 29%, and adds 426 COVID-19 patient tests in July 2020 pilot testing program

VANCOUVER, BC / ACCESSWIRE / AUGUST 11, 2020 / EMPOWER CLINICS INC. (CSE:CBDT) (OTCQB:EPWCF) (Frankfurt:8EC) ("Empower" or the "Company"), a life sciences company, is pleased to announce the Company continues to execute on its plan to diversify revenue sources with 2,317 patient visits in July 2020 with record revenues coming from medical cannabis certifications, naturopathic consultations, product sales, identification card production and COVID-19 testing services.

"Diversification of revenue sources utilizing the strength of our clinic, physician, technology and operational assets has been a mission of ours." said Steven McAuley, Chairman & CEO of Empower. "To see our team, deliver record performance in such a challenging environment, validates our execution strategy, validates the daily commitment of our team members and demonstrates we are on the right path to delivering significant shareholder value."

The Arizona Department of Health Services announced yesterday its Phased Reopening Plan for Paused Industries indicating that community spread remains: Substantial based on the status of three main criteria: 1) Cases per 100,000 individuals: Substantial, 2) Percent positivity: Substantial, and 3) Hospital visits for COVID-like illnesses in the region: Substantial.

A dashboard available at azhealth.gov/businessCOVID19 indicates whether counties meet the recommended benchmarks for reopening of gyms, movie theaters, waterparks, tubing venues, and bars.

Further information is available at:

https://www.azdhs.gov/director/public-information-office/index.php#news-release-081020

ABOUT EMPOWER

Empower is a vertically integrated health & wellness company with a network of corporate and franchised health & wellness clinics in the U.S. The Company is focused on helping patients improve and protect their health, through innovative physician recommended treatment options. The Company has launched Dosed Wellness Ltd. to connect its significant data, to the potential of the efficacy of alternative treatment options related to hemp-derived cannabidiol (CBD) therapies, psilocybin and other psychedelic plant-based treatment options. The Company conducts COVID-19 testing in its clinics under a four-phase national launch in the United States.

ON BEHALF OF THE BOARD OF DIRECTORS:

Steven McAuley
Chief Executive Officer

CONTACTS:

Investors: Steven McAuley
Chairman & CEO
s.mcauley@empowerclinics.com
604-789-2146

Investors: Dustin Klein
SVP, Business Development
dustin@svmmjcc.com
720-352-1398

For French inquiries: Remy Scalabrini, Maricom Inc., E: rs@maricom.ca, T: (888) 585-MARI

DISCLAIMER FOR FORWARD-LOOKING STATEMENTS

This news release contains certain "forward-looking statements" or "forward-looking information" (collectively "forward looking statements") within the meaning of applicable Canadian securities laws. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release.Forward-looking statements can frequently be identified by words such as "plans", "continues", "expects", "projects", "intends", "believes", "anticipates", "estimates", "may", "will", "potential", "proposed" and other similar words, or information that certain events or conditions "may" or "will" occur. Forward-looking statements in this news release include statements regarding: the Company's expected timing of filing of its Annual Filings, the Company's intention to create psilocybin and psychedelics divisions, that market research on advancements in psilocybin and psychedelics in North America and globally will create greater shareholder value, the Company's intention to open a hemp-based CBD extraction facility, the expected benefits to the Company and its shareholders as a result of the proposed acquisitions and partnerships; the effectiveness of the extraction technology; the expected benefits for Empowers patient base and customers; the benefits of CBD based products; the effect of the approval of the Farm Bill; the growth of the Company's patient list and that the Company will be positioned to be a market-leading service provider for complex patient requirements in 2019 and beyond; the ability of the Company to complete or execute phases One, Two, Three or Four of COVID-19 test programs, and Psychedelic substances remain illegal in most countries, so please reference your local laws in relation to medical or recreational use. Such statements are only projections, are based on assumptions known to management at this time, and are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the forward-looking statements, including; that the Company may not open a hemp-based CBD extraction facility; that legislative changes may have an adverse effect on the Company's business and product development; that the Company may not be able to obtain adequate financing to pursue its business plan; general business, economic, competitive, political and social uncertainties; failure to obtain any necessary approvals in connection with the proposed acquisitions and partnerships; and other factors beyond the Company's control. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Readers are cautioned not to place undue reliance on the forward-looking statements in this release, which are qualified in their entirety by these cautionary statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements in this release, whether as a result of new information, future events or otherwise, except as expressly required by applicable laws.

SOURCE: Empower Clinics Inc.

ReleaseID: 601136

MONTREAL, QC / ACCESSWIRE / August 11, 2020 / Amex Exploration Inc. ("Amex or the Company") (TSXV:AMX)(FRA:MX0)(OTCQX:AMXEF) is very pleased to report a number of results from the Denise Zone which is located in the Eastern Gold Zone (EGZ) on the 100% owned Perron property in northwestern Quebec, Canada. The EGZ is comprised of multiple parallel gold zones including the High Grade Zone (HGZ) and the Denise Zone. See Figure 1 Plan Map of the EGZ. A select list of results is provided in Table 1.

Highlight results from the Denise Zone Include: (Figures 2, 3, and 4 Cross Sections)

Hole PE-20-172 intersected 14.00 metres of 8.19 g/t Au, including 1.50 metres of 61.72 g/t Au and 9.00 metres of 5.94 g/t Au at a vertical depth of approximately 90 m and 160 m

Hole PE-20-174 intersected 8.50 metres of 3.86 g/t Au at a vertical depth of approximately 70 m

Hole PE-20-175 intersected 21.60 metres of 1.93 g/t Au at a vertical depth of approximately 70 m and further downhole intercepted 0.70 metres of 22.76 g/t Au at a vertical depth of approximately 130 m

Hole PE-20-180 intersected 5.35 metres of 5.31 g/t Au at a vertical depth of approximately 85 m and further downhole intercepted 3.00 metres of 6.91 g/t Au at a vertical depth of approximately 144 m

Hole PE-20-56EXT intersected 3.55 metres of 10.53 g/t Au at a vertical depth of approximately 120 m

At the Eastern Gold Zone, Amex clearly has two different orogenic Archean gold mineralization types adjacent to each other. The now famous HGZ is typically a Bonanza Vein Type characterized by very high grade gold content (up to 393.33 g/t Au over 1.70 m in hole PE-19-22) usually consisting of two parallel continuous quartz veins containing multiple native coarse free gold grains located at the contact on both sides of a linear vertical mafic foliated gabbro intrusive cross cutting a massive rhyolitic host unit. The Denise Zone is a more typical Shear Zone type gold mineralization which consists mainly of a wide (from 5 m to more than 80 m of width) sub vertical deformation zone of highly sheared and highly silicified, sericitized and pyritized altered rhyolite. The Denise zone also has a distinctive feature consisting of heavily deformed, pinched and swells transposed quartz veins and veinlets containing various sulfide minerals, such as pyrite, pyrrhotite, sphalerite and galena, and also frequently fine grain native free gold. The occurrence of scattered fine free native gold in the Denise Zone could explain the higher gold content of this mineralized Shear Zone (for example hole PE-19-83 that returned 23.91 g/t Au over 9.30 m).

Jacques Trottier, PhD Executive Chairman of Amex said, "Since the discovery of the Eastern Gold Zone most of our work has been focused on the HGZ which has continued to deliver excellent results. With 6 drills now turning on the Perron property we have the resources to explore the Denise Zone, located roughly 50 m to a 100 m to the North and parallel to the HGZ. Given today's results which are wide, high-grade and near surface we will be doing extensive following up drilling on Denise to fully evaluate its potential to build its own resources. This discovery of gold near surface is in fact changing our interpretation of the Denise Zone, which is 100% accretive to the HGZ, and has the potential to add significant gold ounces to the Eastern Gold Zone especially when calculating ounces per vertical metre."

Trottier continued, "Of course we will continue to explore the HGZ at depth as it appears to be getting richer and wider as we go deeper. There is still a lot of drilling to be done to fully define that zone down to about a kilometer. Finally, we have deployed a drill to the Grey Cat Zone as the ground has firmed up and we have better access. Drilling is going very well on that target and we should be reporting results from Grey Cat soon."

Figure 1: Plan map of the EGZ with location of drill sections

For enhanced image, click here

Figure 2: Drill section 614395

For enhanced image, click here

Figure 3: Drill section 614455

For enhanced image, click here

Figure 4: Drill section 614515

For enhanced image, click here

Table 1: Assay Results from the Denise Zone at EGZ

Hole ID

From (m)

To (m)

Length (m)

Au (g/t)

Zone

PE-20-172

124.00

138.00

14.00

8.19

Denise Zone

Including

128.50

129.00

0.50

25.66

Including

132.00

133.50

1.50

61.72

PE-20-172

222.00

231.00

9.00

5.94

Including

223.50

225.00

1.50

10.19

Including

229.50

231.00

1.50

14.64

PE-20-174

97.00

105.50

8.50

3.86

Denise Zone

Including

97.00

98.50

1.50

11.16

Including

104.00

105.50

1.50

7.24

PE-20-175

80.50

102.10

21.60

1.93

Denise Zone

Including

94.00

95.50

1.50

9.26

Including

97.00

98.50

1.50

7.76

PE-20-175

179.80

180.50

0.70

22.76

PE-20-180

116.50

121.85

5.35

5.31

Denise Zone

Including

120.20

120.70

0.50

39.94

PE-20-180

207.00

210.00

3.00

6.91

Including

207.90

208.40

0.50

34.38

PE-20-56EXT

166.5

170.05

3.55

10.52

Denise Zone

Including

169.05

169.55

0.50

57.08

* Note that drill results are presented uncapped and lengths represent core lengths. True width is estimated to be 45 to 75% in EGZ. NSR = No Significant Results.

Qualified Person

Maxime Bouchard P.Geo. M.Sc.A., (OGQ 1752) and Jérôme Augustin P.Geo. Ph.D., (OGQ 2134), Independent Qualified Persons as defined by Canadian NI 43-101 standards, have reviewed and approved the geological information reported in this news release. The drilling campaign and the quality control program have been planned and supervised by Maxime Bouchard and Jérôme Augustin. Core logging and sampling were completed by Laurentia Exploration. The quality assurance and quality control protocol include insertion of blank or standard every 10 samples on average, in addition to the regular insertion of blank, duplicate, and standard samples accredited by Laboratoire Expert during the analytical process. Gold values are estimated by fire assay with finish by atomic absorption and values over 3 ppm Au are reanalyzed by fire assay with finish by gravimetry by Laboratoire Expert Inc, Rouyn-Noranda. Samples containing visible gold mineralization are analyzed by metallic sieve. For additional quality assurance and quality control, all samples were crushed to 90% less than 2 mm prior to pulverization, in order to homogenize samples which may contain coarse gold. Core logging and sampling were completed by Laurentia Exploration.

The Qualified Persons have not completed sufficient work to verify the historic information on the Property, particularly in regards to historical drill results. However, the Qualified Persons believe that drilling and analytical results were completed to industry standard practices. The information provides an indication of the exploration potential of the Property but may not be representative of expected results.

About Amex

Amex Exploration Inc. is a junior mining exploration company, the primary objective of which is to acquire, explore, and develop viable gold projects in the mining-friendly jurisdiction of Quebec. Amex is focused on its 100% owned Perron gold project located 110 kilometers north of Rouyn Noranda, Quebec, consisting of 116 contiguous claims covering 4,518 hectares. A number of significant gold discoveries have been made at Perron, including the Eastern Gold Zone, the Gratien Gold Zone, the Grey Cat Zone, and the Central Polymetallic Zone. High-grade gold has been identified in each of the zones. A significant portion of the project remains underexplored. In addition to the Perron project, the company holds a portfolio of three other properties focused on gold and base metals in the Abitibi region of Quebec and elsewhere in the province.

For further information please contact:

Victor Cantore
President and Chief Executive Officer
Amex Exploration: +1-514-866-8209

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking statements:

This news release contains forward-looking statements. All statements, other than of historical facts, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future including, without limitation, the planned exploration program on the HGZ and Denise Zone, the expected positive exploration results, the extension of the mineralized zones, the timing of the exploration results, the ability of the Company to continue with the exploration program, the availability of the required funds to continue with the exploration and the potential mineralization or potential mineral resources are forward-looking statements. Forward-looking statements are generally identifiable by use of the words "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "to earn", "to have', "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, failure to meet expected, estimated or planned exploration expenditures, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, general business and economic conditions, changes in world gold markets, sufficient labour and equipment being available, changes in laws and permitting requirements, unanticipated weather changes, title disputes and claims, environmental risks as well as those risks identified in the Company's annual Management's Discussion and Analysis. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described and accordingly, readers should not place undue reliance on forward-looking statements. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements except as otherwise required by applicable law.

SOURCE: Amex Exploration, Inc.

ReleaseID: 601035