On July 22, 2014, STW Resources Holding Corp. received a resignation notice from Audry Lee Maddox that he was resigning from his positions as Chief Operating Officer of the Company, as well as officer and manager of the Company's subsidiaries, including Chief Operating Officer and Manager of STW Pipeline Maintenance & Pipeline Construction, LLC., President and Manager of STW Oilfield Construction, LLC, and President of STW Energy Services, LLC, all effective retroactively on June 30, 2014. On the same day, Mr. Maddox provided the Company's Board of Directors with a resignation notice to resign as a director, also effective retroactively on June 30, 2014.

Mr. Maddox's resignation did not result from any disagreement on matters regarding the Company's operations, policies or practices.