Mr. Marc Branson reports

CORPORATE UPDATE

Highmark Marketing Inc. is providing further information regarding the business of its pending joint venture with Donald Rainwater (see press release dated Aug. 12, 2015). The joint venture will target acquiring, marketing and facilitating the use of water rights within the Jiminez district of Mexico for use by energy companies in the exploitation of oil and gas in the region.

Highmark is pleased to report that Mr. Rainwater has currently secured one million gallons of water per day in the municipality of Jimenez, Coahuila, and is currently negotiating terms for an additional two million gallons per day. The parties to the joint venture foresee a business opportunity to use the water in the process of fracking in the extraction of oil and gas.

The term fracking refers to the procedure of hydraulic fracturing of rocks and rock formations by injecting fracking fluid -- which is mainly composed of water -- at a high pressure into cracks to create wider openings in the rock. The creation of larger fissures allows more oil and gas to flow out of the formation and into the wellbore, from where it can be extracted. There has been a rapid growth over the past decade in the use of fracking techniques in oil and gas extraction, and as a result, a market has grown for water used in fracking fluid. The water rights Mr. Rainwater intends on securing will permit the joint venture to supply numerous drilling programs the water for fracking fluid.

Fracking water typically sells for around three U.S. cents per gallon, and depending on various factors of a well, such as size, rock formation or number of fractures, millions of gallons of water can be required for each fracking operation. In the Jiminez district region, the Mexican government has placed eight blocks for tender and has a projected recovery of 140 million barrels of oil equivalent. Development of the blocks in this region could translate into significant revenues for the supply of water. In addition to this market, the parties to the joint venture are interested in pursuing ancillary services throughout the fracking water use cycle, which can generate significant revenues from well operators. These ancillary services include water delivery, on-site storage, cleaning, disposal and further transportation.

The joint venture initiative with Mr. Rainwater is strategically complementary to the business of Lightning Industries Inc., which Highmark has entered into a non-binding letter of intent to acquire (see press release dated Sept. 3, 2015). Lightning Industries currently produces many components used in the initial water fracking cycle, and downstream use in oil and gas extraction. The projected oil extraction plans for the Jiminez district provide an opportunity to establish an international customer base for the business of Lightning Industries.

We seek Safe Harbor.