Halio Energy Inc. entered into a Loan Agreement and Demand Promissory Note with Halio Holdings International Inc. in the amount of $171,205.44, The Loan Agreement and Promissory Note mature on October 30, 2017. The Promissory Note also provides for additional future advances to Halio Energy, subject to the terms and provisions of the aforementioned Agreements, which advances may be made solely at the discretion of Halio Holdings. The note bears interest at 8% per year payable annually in arrears. As security for the Loan, Halio Energy pledged the Farm-in agreement between Halio Energy and Trendwell West Inc. On July 17, 2017, proceeds from the Loan Agreement totaling $171,205.44 were utilized to pay, in full and complete remediation, the past due and outstanding financial obligations owed by the Company under the Farm-in Agreement. With the payment of the past due obligations under the Farm-in agreement, the Farm-in Agreement is deemed to be current as of this date and all defaults are deemed to have been cured. Halio Holdings will not receive bonus shares for the loan.