Letter from President

July, 2011

Greetings,

The penny stock market is facing more and more challenges as we roll into the second half of 2011, however, if your company has a Plan and is prepared to execute that Plan, there is money available and the penny market is still ripe with opportunities.

Recently, I had a meeting with a trusted friend and securities attorney to get the latest low down on the merger and acquisition scene. We concluded that the shell market is still tough, if not dead for the moment. This is not surprising, given the latest set of hurdles coming our way.

We all know it costs an easy 50 grand per year to keep public, but that is not the reason for the dead market, just a couple of reasons are listed below:

• Some brokers are requiring $10,000 to open an account. This creates a unique obstacle in as far as investors get into the penny market to turn $1,000 into Many Thousands! A $10,000 starting amount can lock out many beginning investors.

• Rumor has it that Penson (one of the biggest clearing firms) is planning to return securities to shareholders if the shares trade below 10 cents. Look for companies jumping into ill planned or knee-jerk reverse splits to keep the stock price above this threshold. As always, should you elect to pursue a reverse split, a press release is appropriate to alert investors and shareholders of the details and the purpose of any reverse split. This would be a perfect time to brief investors on any changes or progress in your business plan.

• New XBRL SEC filing protocol adds a minimum of $5,000 per year to the cost of SEC filings. This applies to Calendar year filers beginning with the 2nd Quarter for 2011. For client, Lexico Resources International Corporation, we negotiated a 2 year pricing with a first rate company www.discountedgar.com .

Lexico secured 2 year pricing with an advanced account payment. Another little known fact is that SEC website mandates require integration of the XBRL formatting in uploaded SEC files. Thankfully, Discount Edgar has agreed to assist our webmaster with the integration.

How to survive as a public company in the current climate?

• Have a plan. If no plan, you need one. Call us for some ideas.

• Reach out to large shareholders and creditors to help out.

Note: Large shareholders and creditors are Not Liquid. Southwest has designed a financing vehicle that is flawless to generate liquidity and not kill the market, or your shareholders and creditors in the process.

For those companies that will do "what it takes" to make key acquisitions, sales and whatever is needed, survival is in the pipeline.

Let Southwest have a look at your particular circumstance and see how we might join your team.

Throw out all your past concepts and call me for a brainstorming session.

Sincerely,
F. Jeffrey Krupka, President
Southwest Consulting Associates, Inc.