Member Info for Looed

Pt.2

12. FRC's Board of Directors approved obtaining the PPP and EIDL loans and to providing my personal guarantee of the loans as required, and also approved our retention of Aprio as advisor, with respect to these loans. Aprio also approved each step of the loan process and FRC's eligibility for same.

13. In addition to Mr. Mamulaishvili being involved in discussions regarding the PPP and EIDL loans, agreeing that such loans were appropriate and necessary for FRC under the circumstances and providing information necessary in order for FRC to obtain the loans, Mr. Mamulaishvili received more than 25% of the aggregate loan proceeds in the form of salary and for other requested operational purposes, all in his capacity as CEO of the company. As CEO, Mr. Mamulaishvili informed me that with these funds, he could begin revenue generation of approximately $200,000 every 2-4 weeks from FRC's operations. Unfortunately, FRC never received the revenue Mr. Mamulaishvili had represented would be generated and never received an accounting of how the proceeds were spent on operations.

14. All proceeds from the loans FRC received were used to pay FRC's vendors, rent and salaries.

15. FRC's decision to apply for and receive PPP and EIDL loans was made by FRC and its leadership, including then-CEO, Mr. Mamulaishvili, myself and other board members, with the advice of Aprio. FRC's communications with Mr. Mamulaishvili on these topics was in connection with his employment responsibilities as then-CEO of FRC, until he was removed from that position effective August 28, 2020. Mr. Maulaishvili's claims that he was not aware of these loans is untrue.

16. Similarly, Mr. Mamulaishvili's claims that he was not aware of FRC's relationship with Cornerstone is untrue. Mr. Mamulaishvili was well aware of and supportive of FRC's relationship with Cornerstone and attended numerous meetings over the years, and as recently as early 2020, with our representatives at Cornerstone and various politicians and business partners. Further, Cornerstone's efforts were for the benefit of FRC and not detrimental to FRC.

It runs for 7 pages and here are some edits - Pt.1

4. Currently, FRC holds oil and gas licenses in Georgia (where it has a long- term production sharing contract with the government of Georgia) and Moldova (where it has a long-term concession agreement with the government of Moldova).

7. In March 2020, at the same time as most U.S. based businesses shut down due to the COVID-19 pandemic, FRC also discontinued its in-person office meetings. Additionally, while Mr. Mamulaishvili has a green card which allows him to legally work in the United States, he had returned to his native Georgia and continued to work for FRC during the pandemic. During this period, Mr. Mamulaishvili and I spoke frequently by phone.

8. In the spring of 2020, FRC learned of the opportunity to apply for a Paycheck Protection Program ("PPP") loan and an EIDL loan under the applicable federal programs. I spoke frequently with Mr. Mamulaishvili by phone on this topic as well as by text message. By way of example, Exhibit 31is one of many text messages between me and Mr. Mamulaishvili which demonstrates that he was well aware that FRC was in the process of and ultimately did apply for PPP and EIDL loans. Mr. Mamulaishvili agreed that obtaining such loans would be of great help to FRC.

9. On many of these calls, Mr. Bryce Linsenmayer, FRC's outside general counsel, participated in these conversations, and we updated Mr. Mamulaishvili on the programs that were being offered and the company's progress in participating therein, including telephone conferences on each of April 18, 2020, April 28, 2020, May 9, 2020 and May 11, 2020.

10. I specifically advised Mr. Mamulaishvili that FRC was taking action to hire Aprio, a large, independent full-service CPA services firm, to advise FRC and that I would personally provide FRC with funding to engage them as advisors to FRC in this process. I further informed Mr. Mamulaishvili that I would be personally guaranteeing whatever funds FRC was able to receive through the PPP and EIDL programs where required, such that in the event the loans were not forgiven because of any failure to comply with the conditions of the program, I would be personally liable for repayment of such amounts that I was required to personally guarantee. Mr. Mamulaishvili supported FRC's applications for the PPP and EIDL loan programs.

11. During this process, I kept Mr. Mamulaishvili fully apprised of our efforts. Mr. Mamulaishvili's advice and consultation regarding loans for FRC were part of his responsibilities as then-CEO of FRC, and in this capacity he provided information needed in order to complete the applications for the PPP and EIDL loans. Mr. Mamulaishvili provided the requested information to support our application process.

Hi Star, got it. Hopefully we get a hearing schedule soon for this case, at least for now it seems to be moving quite quickly.

Star I posted on this going time ago but in short for the purpose of PPP, payroll is based on a calculation of headcount over a 12 month period as well as some other factors, not merely headcount at the point of claim. Payment is allowed to overseas employees of American companies etc. As you say, if payments have been made for other things, lets see the evidence.

ZM claims the funds had been used to pay monies to SN, ZM and ZM's son. I don't see any documented claim by ZM or others that money was spent in ways outside of this.

ODR not so sure about your probable conclusion. unless the 'top-rated advice' the company received from the CPA was to lie to the govt and then later in court. The court filings state -

"FRC sought and obtained professional guidance from Aprio, a nationwide, award- winning, top-rated CPA and advisory services firm. FRC followed the advice given to it by Aprio in the use of the PPP funds."

You believe the company has indeed committed a federal crime?

Small point, we already knew that FRC had received a PPP loan that between US$100K - $350K. The loan can be used for payroll as well as fund other business related payments such as utilities, health care, rents etc.

The court documents revealed that the company actually received US$239,582. The "where they said the money would go" part of the public record has now been updated and shows that the money was allocated in full to meet payroll requirements. So no need for funds - at least from this award - to support other parts of the business.

https://projects.propublica.org/coronavirus/bailouts/loans/frontera-resources-corporation-7436337100

Star - I agree the correct comms channel should be RNS-R as the 'old' FRR promised. As we all know, they utterly failed to do so. This new 'evolving' (to use their term) FRR has started outreach, piecemeal though it may be. As they build the operation I would expect they would make use of RNS-R, statements to all shareholders etc as a more formalized communication channel.

Verification process - StarRage tested the system and obviously uncovered a weakness. Its for you to decide if that undermines the whole process or not. Hopefully it's a kink that will work itself out.

I can't explain the stop-start-stop approach to verification. As ODR says don't automatically assume it means they can't find you. We don't know the size of the US team and what their immediate issues are, certainly court cases must be near the top of any list. If BL and his team are overseeing / working with the company on this issue, the company have allocated significant funds to this process because BL for sure isn't doing it for free.

They have done a pretty good job of ignoring shareholders for the past 2+ years. Now they have cracked the door open.

WHamboy - There has been a lot of information shared recently and in various formats, be it directly from the company, persons associated with it, press statements and, importantly, court documents. I think we have a basic framework of what's going on. Outside the Cali cases etc we can see:-

- The company is streamlining its current operations by reducing entities and bringing in a new - and very experienced / connected - management team. Take TN - what a potentially perfect fast-track from the US powers that be to those in Georgia. He worked extensively on FRR pre-joining. i doubt he would join a sinking ship.

- The court docs are clear that whatever the 'SM' / partner deal is is now 'lost' (their words)

- The PSA for the developed lands remains in place and it it would seem O&G continues to be produced. Zm has stated the gas production number is one of the translations, if large quantities of oil and inventory have been stolen as alleged, then that indicates production is ongoing. In the last ZM interview he said production was ongoing 24/7.

- The ZM v SN etc will play itself out as a sideshow. It thus far hasn't impacted any restructure as its already in place.

- Those latest docs show that SN is pumping in the money, so all the investment would still appear to be internal.

- ZM, as least publicly in Georgia, seems supportive. Says he is still connected which on the surface seems at odds with the US statements. maybe he is a consultant, or angling fo a piece of the 'FRR Green' project. The current team focus on the here and now, he is off to do business development. Kicked upstairs, so to speak.

- Though the 'SM' opportunity was lost, that's not to say FRR won't be an attractive concern once production / sales figures are finally revealed and the various court cases are finally put to bed.

Just a very brief overview. The recent 'info dump' does have more nuggets, and at least these are direct, not from 3rd party commentators.

I see people giving arbitrary dates for updates and calls to arms. Yes we have waited long enough but it wasn't that long ago folks where saying they would be happy with just a crumb of info. I suggest a review of all the recent info that has been released. It seems its only after the ouster of ZM that the company has attempted shareholder outreach. Sure, they could have handled it better (and I think some people still haven't been verified?) but they are trying to resolve this database issue. We don't know the mess that ZM left behind as CEO.

You asked "Are things still in play for FRR?". I would say we have the strongest indications yet that very much seems to be the case. Would a new management team jump on board if that wasn't the case. Hopefully soon we get to see the implications for us shareholders soon, and it's something we are relieved to accept.

WHamboy - haven't heard anything. They understand anything given to me will be shared. There is no any guarantee they will be in contact again.

Motion to compel Arbitration and Stay Proceedings is now signed by the judge and so officially Denied.

seisprocessor - yes the texts paint a very different picture

ZM - Looks like they're disbursing a lot of cash. Do you think we still have a chance?

SN - We do... I last communicated with SBA on June 8. This was first formal acknowledgement of progress from them since April 9. I'm expecting we will now see something in the next week or so. Our friends at Aprio are saying that we are not outside the norm of their clients in terms of response time.

ZM - Its moving slowly...

SN - 100% of funds out of first approval is already disbursed and only 60% is left from funds out of second approval
This is what I've read

SN - Yes...we're still in line though. I haven't had any "rejection". I'm guessing that we may be moving more slowly because we haven't filed tax returns. But this is my speculation. No one has said this to me. That said, I've indicated I would personally guarantee lending...

ZM - Call when you have a moment...

SN - Any time... I'm here...

Pt.2

13. In addition to Mr. Mamulaishvili being involved in discussions regarding the PPP and EIDL loans, agreeing that such loans were appropriate and necessary for FRC under the circumstances and providing information necessary in order for FRC to obtain the loans, Mr. Mamulaishvili received more than 25% of the aggregate loan proceeds in the form of salary and for other requested operational purposes, all in his capacity as CEO of the company. As CEO, Mr. Mamulaishvili informed me that with these funds, he could begin revenue generation of approximately $200,000 every 2-4 weeks from FRC's operations. Unfortunately, FRC never received the revenue Mr. Mamulaishvili had represented would be generated and never received an accounting of how the proceeds were spent on operations. (same as Stars earlier post)

14. All proceeds from the loans FRC received were used to pay FRC's vendors, rent and salaries.

15. FRC's decision to apply for and receive PPP and EIDL loans was made by FRC and its leadership, including then-CEO, Mr. Mamulaishvili, myself and other board members, with the advice of Aprio. FRC's communications with Mr. Mamulaishvili on these topics was in connection with his employment responsibilities as then-CEO of FRC, until he was removed from that position effective August 28, 2020. Mr. Maulaishvili's claims that he was not aware of these loans is untrue.

16. Similarly, Mr. Mamulaishvili's claims that he was not aware of FRC's relationship with Cornerstone is untrue. Mr. Mamulaishvili was well aware of and supportive of FRC's relationship with Cornerstone and attended numerous meetings over the years, and as recently as early 2020, with our representatives at Cornerstone and various politicians and business partners. Further, Cornerstone's efforts were for the benefit of FRC and not detrimental to FRC.

Pt.1

7. In March 2020, at the same time as most U.S. based businesses shut down due to the COVID-19 pandemic, FRC also discontinued its in-person office meetings. Additionally, while Mr. Mamulaishvili has a green card which allows him to legally work in the United States, he had returned to his native Georgia and continued to work for FRC during the pandemic. During this period, Mr. Mamulaishvili and I spoke frequently by phone.

8. In the spring of 2020, FRC learned of the opportunity to apply for a Paycheck Protection Program ("PPP") loan and an EIDL loan under the applicable federal programs. I spoke frequently with Mr. Mamulaishvili by phone on this topic as well as by text message. By way of example, Exhibit 31is one of many text messages between me and Mr. Mamulaishvili which demonstrates that he was well aware that FRC was in the process of and ultimately did apply for PPP and EIDL loans. Mr. Mamulaishvili agreed that obtaining such loans would be of great help to FRC.

9. On many of these calls, Mr. Bryce Linsenmayer, FRC's outside general counsel, participated in these conversations, and we updated Mr. Mamulaishvili on the programs that were being offered and the company's progress in participating therein, including telephone conferences on each of April 18, 2020, April 28, 2020, May 9, 2020 and May 11, 2020.

10. I specifically advised Mr. Mamulaishvili that FRC was taking action to hire Aprio,alarge,independentfull-serviceCPAservicesfirm,toadviseFRCandthatIwould personally provide FRC with funding to engage them as advisors to FRC in this process. I further informed Mr. Mamulaishvili that I would be personally guaranteeing whatever funds FRC was able to receive through the PPP and EIDL programs where required, such that in the event the loans were not forgiven because of any failure to comply with the conditions of the program, I would be personally liable for repayment of such amounts that I was required to personally guarantee. Mr. Mamulaishvili supported FRC's applications for the PPP and EIDL loan programs.

11. During this process, I kept Mr. Mamulaishvili fully apprised of our efforts. Mr. Mamulaishvili's advice and consultation regarding loans for FRC were part of his responsibilities as then-CEO of FRC, and in this capacity he provided information needed in order to complete the applications for the PPP and EIDL loans. Mr. Mamulaishvili provided the requested information to support our application process. process of and ultimately did apply for PPP and EIDL loans. Mr. Mamulaishvili agreed that obtaining such loans would be of great help to FRC.

12. FRC's Board of Directors approved obtaining the PPP and EIDL loans and to providing my personal guarantee of the loans as required, and also approved our retention of Aprio as advisor, with respect to these loans. Aprio also approved each step of the loan process and FRC's eligibility for same.

Thanks Star, and Jim I suggest you note the details in case the remove Stars post as well.

ZM is giving his comments regarding events in Georgia which includes the following -

On the contrary, it worked hard to narrow down existing American investments and not start new projects.

Helping Americans create jobs, as mentioned in the statement is related to investments, that's the only way jobs will be created and people will have income.

JimSlade that would be great. Let me know if you need the Zoom ID. I did post it a few days ago but it got deleted. Its scheduled to start 9:30am Houston time.

OK goose83, good luck and it will be great if you can find something new.

goose83 - I only looked at the free page as don't have a Zoom business account, but seems nothing new. The old email address etc.

Yes - located in Taiwan.