1st NRG Corp. (OTCBB: FNRC.PK) is an exploration and production

company headquartered in Denver Colorado. Our activity has been centered

upon the development of coal bed methane reserves where we hold a working

interest in 42 producing wells, 1 permitted location, and 2,460 undeveloped

acres upon which we intend to permit an additional 35 locations. Most

recently, the Company has expanded its activities into one of North America’s

most exciting shale plays, through a development of prospective acreage in

SE Ohio encompassing approximately 7,000 acres.

In November 2013, the Company announced its participation agreement with

Energy Corporation of America (“ECA”), to jointly develop the SE Ohio

acreage.

Pursuant to the development agreement,

ECA commenced drilling of the Townley

1S – vertical test well in September 2014.

The Townley well reached TD at 7,620’ on

9/20/2014 and after running open hole logs

and coring tools the well was cased on

9/26/2014.

The Townley 1S identified potential reservoirs in the Utica shale, the Beekmantown

Dolomite and the Conasauga formation. The size of the Beekmantown and Conasauga

reservoirs was deemed insignificant for a company the size of ECA and the decline of

oil prices delay any horizontal development in the Utica. 1st NRG along with Keito Gas

will continue with the completion of the Townley well, with each company owning 50%

Ohio Properties

By completing the Townley 1S well, 1st NRG will keep the

development agreement in place with Keito Gas and the ability

to continue development on approximately 7,000 acres in SE

Ohio, including potential horizontal development of the

Utica/Point Pleasant Shale.

“Characterization of rotary sidewall core samples was conducted for the Townley IS well in Morgan County, Ohio

to define basic reservoir, geologic and petrologic properties, and to calibrate petrophysical log interpretations of

reservoir potential and OOIP. Of particular interest are samples collected from the Conasauga formation which

could provide a new resource play. The samples were received at W. D. Von Gonten Laboratories in College Station,

TX on September 26, 2014”

W. D. Von Gonten Laboratories in College Station, TX

The Conasauga formation is a Cambrian part of the Appalachian. The subterranean formation consists

of shales and carbonates over 15,000 feet (4,600 m) thick in certain areas. The Conasauga overlies the

Rome Formation, and in turn is overlain by the Knox Formation. No more than 50 holes have been drilled through

all or part of the rift-sequence in the Rome Trough. Several good gas and oil shows have been reported, the best of

which was an initial potential flow of between 5 and 9 MMCFGPD from the Exxon No. 1 McCoy well in Jackson

County, West Virginia. The well produced briefly before it was abandoned in 1975. The Mavity oil field, discovered

in 1967 in Boyd County, Kentucky, produced about 10,000 BO in 1-1/2 years from a sandstone in the upper part of

the Conasauga Group.

Resource potential: This play has potential for several undiscovered gas fields greater than 6 BCFG. A small oil

field and good gas and oil shows indicate that hydrocarbons are present in the rift sequence. Moreover, numerous

structures in the Rome Trough have not been tested. Several factors may limit the potential of the play: (1)

reservoirs may be widely scattered and of low quality, (2) source beds may be very local and lean, and (3) numerous

episodes of basement-fault reactivation may have permitted much of the gas to escape.

Townley 1S Well

Consauga Group wells south of our location

DFIT Analysis

Fracture Closure - Pressure 1,383

Reservoir Pore Pressure 3,420

Conasauga injection test. BreakdownConasauga @ 1510 psi & 2 bpm, work rateup to 10 bpm @ 1700 psi, pump 60 bbl CFL.ATP-1500 psi, ATR-10 bpm, ISIP- 900 psi, 5min-750 psi, 10 min-709 psi, 15 min-620 psi

Samples from the Conasauga formation were submitted for X-Ray Diffraction analysis, which aresummarized as follows:

Dolomite is the major mineral component while quartz and feldspars are minor components. Ankerite is presentin small amounts and calcite is only detected in two samples and in small amounts.

The clay fraction is small in all samples, generally less than 10%. Serpentine -a trioctahedral 1:1 clay mineral- isthe main component of the clay fraction. Serpentine is a Mg-rich clay which may have formed diageneticallyfrom the alteration of dolomite.

Serpentine is the only clay mineral above 7322 ft.

Below 7322 ft traces of chlorite and mica (illite) are present as well.

Expandable minerals were not found.

Carbonates Silicates - non clay Clay Minerals Accesory Minerals

Depth (ft) Dolomite Ankerlite Calcite Quartz

K-

Feldspar Serpentine Chlorite Mica/Iilite Pyrite Apalite Siderite Total %

% Clay

minerals

Grain

Density

7312 74.31% 3.87% 3.77% 13.02% 5.04% 100% 5.04% 2.80

7316 68.59% 3.92% 1.69% 9.36% 7.79% 7.12% 0.34% 1.18% 100% 7.12% 2.82

7318 64.80% 4.54% 11.85% 13.78% 4.44% 0.59% 100% 4.44% 2.79

7320 65.38% 2.06% 1.09% 8.08% 19.81% 3.24% 0.33% 100% 3.24% 2.78

7322 61.75% 3.80% 4.12% 21.91% 6.14% 0.87% 0.51% 0.90% 100% 7.01% 2.79

7326 74.34% 5.93% 8.37% 6.33% 3.09% 0.81% 0.64% 0.49% 100% 4.54% 2.83

7328 54.26% 0.94% 5.30% 31.39% 6.01% 0.94% 0.83% 0.34% 100% 7.78% 2.74

7336 88.04% 3.76% 0.75% 2.23% 3.70% 0.56% 0.66% 0.44% 100% 4.92% 2.86

7342 60.79% 3.72% 13.33% 12.82% 9.05% 0.29% 100% 9.34% 2.77

7356 69.42% 4.91% 5.79% 12.52% 2.89% 1.13% 2.48% 0.86% 100% 6.50% 2.82

7368 76.06% 4.20% 2.87% 7.97% 6.03% 0.75% 1.43% 0.47% 100% 8.21% 2.82

7399 66.30% 5.94% 7.55% 9.66% 7.36% 1.38% 0.86% 0.94% 100% 9.60% 2.82

Published industry DFIT analysis of unconventional reservoirs

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Conasaua Reservoir PressureFirst 24 Hours

Series1 Series2

Observations from Sapphire analysis.

Exhibits fractured reservoir behavior (composite reservoir, meaning it shows the combined responses of

the fracture network and the matrix)

Radial flow was clearly indicated (that's formation matrix contributing)

Estimated BHP = 3435 psia (P*), same as 3420 psig constant reading

Estimated formation perm 5.8 mD

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Conasauga Pressure Build Up Test -Daily

Downhole Pressure PSI Phydrostatic

1ST NRG CORP.

Conasauga Proformas

Five Year Projection

Year Ended

2015 2016 2017 2018 2019

Production - MCFE

Net to FNRC 43,216 157,642 293,018 373,669 439,021

43,216 157,642 293,018 373,669 439,021

Revenues 157,275 573,711 1,066,388 1,359,901 1,597,739

Total revenues 157,275 573,711 1,066,388 1,359,901 1,597,739

Costs and Expenses of

Operations

Transportation/gathering - - - - -

Lease operating expense 1,433 6,351 14,210 22,313 32,092

Production taxes 4,718 17,211 31,992 40,797 47,932

Total costs and expenses of

operations 6,151 23,562 46,201 63,110 80,024

Operating Margin 151,124 550,149 1,020,186 1,296,791 1,517,714

Cap X 200,000 300,000 400,000 300,000 300,000

Total Cap X 200,000 300,000 400,000 300,000 300,000

Net Cash Flow

Balance Forward (48,876) 201,273 821,460 1,818,251

Cash from Operations 151,124 550,149 1,020,186 1,296,791 1,517,714

Cap X (200,000) (300,000) (400,000) (300,000) (300,000)

Net Cash (48,876) 201,273 821,460 1,818,251 3,035,965

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1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

TOWNLEY 1S - CONASAUGA GAS PROD. --MSCF--

GROSS GAS PROD. --MSCF--

REMAINING WELL LIFE: 20.083 YEARS Effective: January 01, 2015

8/8 ths NET

CUM GAS PRODUCTION @ REPORT DATE 0 MCF NET WORTH PROFILE DISC% W.I. W.I.

EST GAS PRODUCTION AFTER REP. DATE 619,421 MCF PW OF NCF BFIT DISC @ 0.0% 1,407,054 659,556

EST ULTIMATE GAS PRODUCTION 619,421 MCF PW OF NCF BFIT DISC @ 10.0% 519,901 243,704

PW OF NCF BFIT DISC @ 15.0% 325,028 152,357

PW OF NCF BFIT DISC @ 20.0% 206,288 96,698

EUR AVERAGE PER WELL 619,421 MCF PW OF NCF BFIT DISC @ 25.0% 132,610 62,161

INT. RATE OF RETURN = 167%

THIS PROPERTY HAS 100% OF ITS ULTIMATE RESERVES RETURN ON INVESTMENT IS... 8.0x's

REMAINING TO BE PRODUCED NET VALUE @NPV 15% $0.63 $/MCF

The Beekmantown Dolomite

A karst-unconformity play at the top of the Ordovician Beekmantown

Dolomite is judged to have great petroleum potential in Ohio and

adjacent states; wells have high ultimate reserves and large areas remain

untested. The massive dolomite, characterized by a hypidiotopic-

idiotopic texture, formed by the replacement of stacked peritidal

carbonate cycles. Secondary porosity occurs at two scales: (1)

mesoscopic - breccia porosity, solution-enlarged fractures, large vugs,

and caverns, and (2) microscopic - intercrystalline, intracrystalline,

molds, small vugs, and microfractures. Mesoscopic pores (providing the

major storage capacity in this reservoir) were produced by intrastratal

solution and collapse of carbonate layers, whereas microscopic pores

(connecting the larger pores) generally formed by the leaching of

individual carbonate grains and crystals. Most pore types developed

during periods of subaerial exposure across the carbonate bank, tied to

either the numerous, though brief falls of relative sea level during

Beekmantown deposition or more importantly the prolonged Knox

unconformity at the close of sedimentation. The distribution of

reservoir-quality porosity is quite heterogeneous, being confined

vertically to a zone immediately below the unconformity and best

developed laterally beneath buried hills and noses of this erosion

surface. The inferred, shallow flow of ground water in the

Beekmantown karst, primarily below topographic highs and above a

diagenetic base level close to the water table, led to this irregular

distribution of porosity

Source - Paleokarst and reservoir porosity in the Ordovician Beekmantown Dolomite of the central Appalachian basin

Author - Smosna, R.; Bruner, K.R.; Riley, R.A.http://pubs.er.usgs.gov/publication/70029670

Beekmantown wells near our position

Over 1,500 wells in Ohio were completed and produced in the Beekmantown Dolomite, EUR's ranged from 24 MCFEto 3.95 BCF.

Beekmantown Dolomite

Townley 1S

Beekmantown

Resistivity 190

Porosity 8%

Thickness 25

RW .033

Water Saturation 17%

Formation Depth 6420

Beekmantown – Mud Log

1ST NRG CORP.

Beekmantown

Five Year Projection

Year Ended

2015 2016 2017 2018 2019

Production - MCFE

Net to FNRC 181,890 663,501 1,233,284 1,572,735 1,847,795

181,890 663,501 1,233,284 1,572,735 1,847,795

Revenues 1,534,262 5,596,706 10,402,893 13,266,199 15,586,362

Total revenues 1,534,262 5,596,706 10,402,893 13,266,199 15,586,362

Costs and Expenses of

Operations

Transportation/gathering - - - - -

Lease operating expense 14,328 63,510 142,095 223,130 320,923

Production taxes 46,028 167,901 312,087 397,986 467,591

Total costs and expenses of

operations 60,356 231,411 454,182 621,116 788,514

Operating Margin 1,473,906 5,365,295 9,948,711 12,645,082 14,797,848

Cap X 700,000 1,050,000 1,400,000 1,050,000 1,050,000

Total Cap X 700,000 1,050,000 1,400,000 1,050,000 1,050,000

Net Cash Flow

Balance Forward 773,906 5,089,201 13,637,912 25,232,994

Cash from Operations 1,473,906 5,365,295 9,948,711 12,645,082 14,797,848

Cap X (700,000) (1,050,000) (1,400,000) (1,050,000) (1,050,000)

Net Cash 773,906 5,089,201 13,637,912 25,232,994 38,980,842

100

1,000

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100,000

Jan

-15

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5

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c-1

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Beekmantown Model Production Curve

OIL

GAS

REMAINING WELL LIFE: 17.083 YEARS Effective: January 01, 2015

8/8 ths NET

CUM GAS PRODUCTION @ REPORT DATE 0 MCF NET WORTH PROFILE DISC% W.I. W.I.

EST GAS PRODUCTION AFTER REP. DATE 2,694,892 MCF PW OF NCF BFIT DISC @ 0.0% 16,070,220 7,532,916

EST ULTIMATE GAS PRODUCTION 2,694,892 MCF PW OF NCF BFIT DISC @ 10.0% 10,121,340 4,744,378

PW OF NCF BFIT DISC @ 15.0% 8,318,773 3,899,425

PW OF NCF BFIT DISC @ 20.0% 6,961,851 3,263,367

EUR AVERAGE PER WELL 2,694,892 MCF PW OF NCF BFIT DISC @ 25.0% 5,913,876 2,772,129

INT. RATE OF RETURN = 634%

THIS PROPERTY HAS 100% OF ITS ULTIMATE RESERVES RETURN ON INVESTMENT IS... 22.5x's

REMAINING TO BE PRODUCED NET VALUE @NPV 15% $3.70 $/MCF

IP – 322 mcfd161 bopd

1ST NRG CORP.

Proformas - Ohio Property

Year Ended

2015 2016 2017 2018 2019

Production - MCFE

OH Beekmantown 181,890 663,501 1,233,284 1,572,735 1,847,795

Conasauga 43,216 157,642 293,018 373,669 439,021

225,105 821,143 1,526,302 1,946,404 2,286,816

Revenues

Beekmantown 1,534,262 5,596,706 10,402,893 13,266,199 15,586,362

Conasauga 157,275 573,711 1,066,388 1,359,901 1,597,739

Total revenues 1,691,537 6,170,418 11,469,280 14,626,100 17,184,100

Less Expenses

Lease operating expense

Beekmantown 14,328 63,510 142,095 223,130 320,923

Conasauga 1,433 6,351 14,210 22,313 32,092

Production taxes

Beekmantown 46,028 167,901 312,087 397,986 467,591

Conasauga 4,718 17,211 31,992 40,797 47,932

Total costs and expenses of

operations66,507 254,973 500,383 684,227 868,538

Operating Margin 1,625,030 5,915,445 10,968,897 13,941,873 16,315,562