Thank you MARCO POLO III for your post and questio

Quote:

---

Thank you MARCO POLO III for your post and questions in Post #1 above. We apologize for the delay in responding back to you due to internal technical issues with the back office of the Forum software. This has been rectified.

We have replicated your post below:

What does Profit Sharing Agreement with an arm's length 3rd party for financing of 20% of a 8,540,000 MT SPA mean? And how is it structured to benefit XUN/XOM and the SHareholders?

Question #1: What does Profit Sharing Agreement with an arm's length 3rd party for financing of 20% of a 8,540,000 MT SPA mean?

Response #1: As it relates to JV003, the Profit Sharing Agreement is between Xun Oil Corporation (XOM) and a counterparty that is desirous to provide 20% of the financing for the purchase of 20% of 8,450,000 Metric Tons of Jet Fuel (approximately 8 barrels jet fuel to 1 metric ton). This means that the counterparty is providing 20% of the funding for XOM to purchase the jet fuel and the Profit Sharing Agreement dictates the terms and conditions of how they will share in the profits once the jet fuel is sold. It also means that XOM has a financier for 20% or 1,820,000 of the 8,450,000 (including the trial lift of 140,000 MT) which XOM does not have to come up with any funds.

Question #2: And how is it structured to benefit XUN/XOM and the SHareholders?

Response #2: The benefit to the shareholders is that XOM has created a business model where XOM does not have to put up any funds and XOM will share in any profits or losses resulting from the transaction. It is classified as "Creative Financing!"

The Company cannot discuss the structure as the Company is prohibited from discussing the terms and conditions of the Profit Sharing Agreement. The Company relies on Rule 406 under the Securities Act of 1933 ("Securities Act" ) and Rule 24b-2 under the Securities Exchange Act of 1934 ("Exchange Act" ), link: www.sec.gov/interps/legal/slbcf1r.htm.

THERE CAN BE NO ASSURANCE THAT JV003 WILL BE ABLE TO OBTAIN THE REMAINING 80% FINANCING REQUIRED TO PURCHASE THE 8.54 MILLION METRIC TONS OF AVIATION JET FUEL. THERE CAN BE NO ASSURANCE THAT JV003 WILL BE ABLE TO SELL THE AVIATION JET FUEL SHOULD IT BE SUCCESSFUL IN OBTAINING FINANCING FOR THE AVIATION JET FUEL. EVEN IF JV003 WAS SUCCESSFUL IN SELLING THE AVIATION JET FUEL, THERE CAN BE NO ASSURANCE THAT THE SALE OF THE AVIATION JET FUEL WILL BE PROFITABLE OR THAT THE COMPANY WILL BE ABLE TO GENERATE SUFFICIENT REVENUES TO OPERATE PROFITABLY.

We thank you for your interest, support and faith in the Company.

Respectfully,

Xun Energy, Inc.
Jerry G. Mikolajczyk
President and CEO

---