BNP - May 2019 - Letter to ShareholdersThe purpose of this monthly letter is to bring BNP shareholders up to date, on issues and news, since the last letter. The following is a summary of business development activities for this month: 1. General Meetings Returned to Calgary on May 7-11th. (a) Met with our Acquisition and Divestment team to discuss ongoing project. Met with another sales associate to review a future A&D opportunity. (b) Held discussions with the future new management team for BNP Resources. (c) Met with a creditor (included in working capital deficiency), to provide an update on our progress. 2. Acquisition and Divestment (A&D) Business Unit We are current working on two projects. Awaiting progress reports from our associates. Many assets have been put up for sale by the US based Super-Majors, including Nigeria, Chad and Equitorial Guinea oil/gas production and pipelines. We have pitched these to our contacts, with no success to date. Devon Canada has been sold to CNRL for $3.8 Billion. 3. Hotel and Land Development Business Unit Business development: (a) Had discussions with our director regarding a 775 room hotel, potentially available for sale in Dearborn, Michigan. The hotel needs to be brought up to code including fire alarm and electrical, is currently closed, and is owned by a Toronto investor. This hotel could be leased to the US Government to provide room and board for asylum seekers from Guatemala. This opportunity will be followed up by our hotel division business development team in Q3. (b) Seeking $1-$2 million working capital to build a 70 unit apartment on the east coast of Canada. (c) Motown Corridor Project Meetings planned for Q3. Awaiting final trade mark approvals. (d) The vacancy rate in downtown Calgary is 28%, with many large blocks available for lease. City of Calgary business taxes are relatively high. The challenge is to fill the empty space with paying tenants, that can afford to pay the business taxes. 4. Pipeline Division We are looking at business development for the following future opportunities: (a) A private company, Northern Dancer Energy Inc., has developed a project to build a natural gas pipeline to Yellowknife, NT, a power generation plant at Yellowknife and a transmission line to the mines located NE of Yellowknife. Ownership of this company is private, with a 33% share being held by one director of BNP. BNP has been tasked to lobby for the project and the $6 Billion in federal loan guarantees. Total project cost including infrastructure is about $6 Billion. Future BNP involvement in this project is not on the infrastructure (pipeline, power generation and transmission), but is focused on the purchase and development of gas production, along the pipeline right of way, in Northern Alberta and NT. Our goal is to become an owner of gas reserves and to sell the natural gas production to the power plant. (b) We are interested in seeing the TransMountain Pipeline privatized, and will lobby in favor of a privatization. As an alternate plan, the Burnaby Bypass Pipeline, could be constructed from Jasper to Alaska, bypassing legal and regulatory issues related to Canadian law. This would benefit Alaska and Alberta Oil Producers, but would permanently export jobs to the USA.