On September 12, 2012, the board of directors of American International Industries Inc. has accepted the resignation of S. Scott Gaille as President of the company. Additionally, Mr. Gaille resigned as President of Brenham Oil & Gas Corp., a subsidiary of American. Mr. Gaille, in his letter of resignation, stated that his resignation was due to the increasing responsibilities related to his employment with another company.

Mr. Gaille has agreed to continue to serve as a member of Brenham's board of directors. Mr. Daniel Dror, CEO and Chairman of American and Brenham, has temporarily assumed the position of President of both companies.