BNP Resources

Des Plaines, Illinois, 60016

February 2, 2020

RE: February 2020 - Letter to Shareholders

Dear Shareholders:

The following is a summary of business development activities for this past month:

(a) The lateral filing cabinets, held in our storage locker, have found new ownership with a business in SE Calgary. We are still working on finding homes for the desks and shelving units, located in the corporate storage locker in Calgary. Once the office furniture is gone, we will have access to files.

(b) Discussions are continuing about a possible relocation of the BNP remote office to Windsor, Ontario, towards March – April 2020. Windsor is a strategic location to work on the bridge deal and the Dearborn hotel project.

(c) We have entered discussions regarding a 50-50 joint venture, by way of a Letter of Intent, with a local Calgary engineering company. They have developed a solution for the recycling of clamshell containers, and general city waste, using an emission free incinerator. These clamshell containers include waste food and paper labels, and are not suitable for traditional recycling. This technology has been successfully used in Europe. We could be the first to introduce this technology to Canada. We await a response from this company, and expect to report back in time for our next letter.

(d) Looking again at our proposed business line for the clean up of orphan wells in Alberta. We have 9 wells registered with the AER, and a $362,000 deposit. The AER now has a new management team in place. I will approach the new management of the AER, in Q1-Q2 to determine if we could obtain a contract, with progress payments, for well abandonment, up to the fixed price of our deposit. A contract could allow for bank financing. If this can be done, we could expand our scope, to all existing orphan wells with fully paid deposits in place. 

In The News:

1. Oil prices down to $51.63 per barrel today. Natural gas pricing at the Henry Hub is $1.84 US, due to over supply.

2. TC Energy proceeding with construction of Keystone Pipeline in 2020. 

3. TransMountain Pipeline construction is proceeding.

4. Retail vacancies increasing in Calgary.

5. International: Guyana production increases to 120,000 barrels per day. New drilling planned for Egypt.

General:

(a) BNP Resources operating costs this month, are $250.00 CDN for the larger storage locker. Total operating costs through Jan 31, 2020 are $250.00. Current working capital is $0.00.

(b) We have started planning the annual BNP barbeque, which is planned for Windsor, Ontario in June - August 2020. Any shareholders interested in attending, should call our office at 403-978-6376, to sign up. Good chance to meet the team and review our new projects. 

(c) We are interested in meeting with owners of shell companies with Canadian tax losses available up to $40 million. Liabilities are acceptable and can be factored into the purchase price. Public or private companies are acceptable. For example, with a business income of $40 million, at a 30% effective tax rate, roughly $12 million in taxes would be owed. Brokers usually pay five cents on the dollar for these tax losses, or about $2 million for $40 million in losses. These losses could be applied to future income, but does not include passive income.

Yours truly,

James Doody

BNP Resources