On May 22, 2019, U.S. Energy Corp. and Energy One, LLC (collectively, "Plaintiffs"), Apeg Energy II, LP and Apeg Energy II GP, LLC (collectively, "Defendants") entered into a Final Release and Settlement Agreement with John Hoffman, one of the third-party defendants in the Civil Action, according to which, each party to the Settlement Agreement agreed to settle third-party claims as to Mr. Hoffman. Mr. Hoffman resigns from the Board and each Board committee in respect of Plaintiffs on which he holds a position. Mr. Hoffman was the Chairman of the Compensation Committee and a member of the Audit Committee and the Nominating Committee.