JULY 2011

Matrixx Resource Holdings expands into recyclables

Matrixx Resource Holdings, Inc. has entered into an agreement in principle to form a joint venture partnership engaging in the trading and processing of plastic and metal resources.

To run concurrently with the company’s oil and natural gas program, Matrixx has agreed to form a subsidiary in which the partnership will engage in the purchase, sale and processing of plastic and metal commodities. Matrixx plans to trade and recycle post-consumer polyethylene (PET) plastic bottles and their HDPE caps and sell the recycled product to companies in the United States where there is a high demand for recycled PET products.

The partnership is working on developing a proprietary equipment design and process that will eliminate the human component in the sorting process thus creating a more efficient and substantially more cost effective system than is currently available on the market today. The long term objective is to build a state of the art recycling facility in the New York metropolitan area that will incorporate renewable energy sources and serve as an education center. The plant would be FDA certified and will be able to further process the post-consumer plastics into high quality grades of resin for potential use in food and beverage containers as well as medical supplies.

Furthermore, the partnership has identified and initiated discussions for the acquisition of certain processing facilities; and, for purchase and sales contracts within and around Central and South America. Included in this formula, the partnership plan provides for specific collection and sales contracts of specified tradable commodities, including plastic, brass, copper, aluminum and other valuable tradable resources.

Under the terms of the agreement, Matrixx will retain a minority percentage between 25 and 50 percent of the newly formed subsidiary.

To facilitate the transaction, the acting chief executive officer, Catherine Thompson, has agreed to concede her accrued compensation on record with Matrixx for the past two years. In addition to the concessions, certain shareholders, including Thompson, have agreed to retire approximately 130,000,000 shares of Matrixx common stock to Treasury.

Additionally, the agreement calls for Matrixx to have managerial control of the newly formed subsidiary thus allowing the company to maintain consolidated financials.