ROYAL ENERGY RESOURCES, INC. (OTCMKTS:ROYE) Files An 8-K Entry into a Material Definitive Agreement

ROYAL ENERGY RESOURCES, INC. (OTCMKTS:ROYE) Files An 8-K Entry into a Material Definitive Agreement

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Item 1.01 Entry into a Material Definitive Agreement.

On December 30, 2016, Royal Energy Resources, Inc. Royal)
entered into a Secured Promissory Note and a Pledge and Security
Agreement with Weston Energy, LLC (Weston) under which
Royal borrowed $2.0 million from Weston (the Loan). The
Loan bore interest at 8% per annum. All principal and accrued
interest was due and payable on January 15, 2017, which date was
later extended to January 31, 2017. The Loan was payable, at the
option of Royal, either in cash, or in common units of Rhino
Resource Partners, L.P. (Rhino). The proceeds of the Loan
were used to make an investment of $2.0 million in 200,000 Series
A Preferred Units of Rhino on December 30, 2016, at $10 per
Series A Preferred Unit.

On January 27, 2017, the Royal repaid the Loan in full by the
payment of $1,000,000 cash to Weston, and the sale to Weston of
100,000 Series A Preferred Units at $10 per Series A Preferred
Unit. Royal funded the purchase of cash portion of the repayment
of the Loan by selling its remaining 100,000 Series A Preferred
Units to a third party for $10 per Series A Preferred Unit. As a
result, Royal did not realize any gain or loss on its investment
in the Series A Preferred Units.

Section 2 Registrants Business and Operations

Item 2.01 Completion of Acquisition or Disposition of
Assets.

On January 27, 2017, Royal sold all of its 200,000 Series A
Preferred Units in Rhino. See Item 1.01.


About ROYAL ENERGY RESOURCES, INC. (OTCMKTS:ROYE)

Royal Energy Resources, Inc. is an energy company, which focuses on coal and energy related assets and activities, including energy infrastructure investments. The Company has a geographically diverse asset base with coal reserves located in Central Appalachia, Northern Appalachia, the Illinois Basin and the Western Bituminous region. The Company’s segments consist of Central Appalachia, which includes surface and underground mines located in Eastern Kentucky and Southern West Virginia; Northern Appalachia, which includes surface and underground mines located in Ohio; Rhino Western, which includes an underground mine located in the Western Bituminous region in Utah; Illinois Basin, which includes an underground mine in western Kentucky, and Other, which includes its ancillary businesses, and oil and natural gas investments. The Company produces and markets coal from surface and underground mines in Kentucky, West Virginia, Ohio and Utah.

ROYAL ENERGY RESOURCES, INC. (OTCMKTS:ROYE) Recent Trading Information

ROYAL ENERGY RESOURCES, INC. (OTCMKTS:ROYE) closed its last trading session down -2.50 at 6.00 with 130 shares trading hands.

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