Biloxi Marsh Lands Corporation Announces Unaudited Results for the Third Quarter and First Nine Months of 2017 and Provides Update

November 6, 2017

METAIRIE, La.–(BUSINESS WIRE)–Biloxi Marsh Lands Corporation (PINK SHEETS: BLMC) today announces its
unaudited results for the third quarter of 2017 and first nine months of
2017 and provides update. The Company’s revenue for the three months
ended September 30, 2017 from oil and gas production for its fee lands
was $8,708 compared to revenue of $27,518 for the third quarter of 2016.
For the first nine months of 2017, revenue generated from the Company’s
fee lands was $79,170 compared to $76,477 for the same period in 2016.

Meanwhile, dividend and interest income for the first nine months of
2017 was $75,304, compared to $95,043 for the first nine months of 2016.
For the first nine months of 2017, the Company realized a cumulative
gain from the sale of investment securities of $639,825 compared to a
cumulative gain of $358,465 for the first nine months of 2016. For the
third quarter of 2017, total revenues included a $42,543 loss from the
Company’s investment in B&L Exploration, LLC (B&L). This compares to a
loss of $464,317 from B&L for the third quarter of 2016.
Correspondingly, total revenue for the nine months ended September 30,
2017 includes a net loss of $315,106 generated by B&L compared to a net
loss of $1,312,506 from B&L for the first nine months of 2016.

Expenses for the third quarter were $170,433 compared to $140,400 for
the same period of 2016. Total expenses for the first nine months of
2017 and 2016 were $536,812 and $542,372, respectively. The Company had
a net loss of $146,461 or $0.06 per share for the third quarter of 2017
compared to net income of $57,714 or $.02 per share in 2016. Meanwhile,
for the first nine months of 2017, there was a net loss of $209 or $0.00
per share compared to a net loss of $1,020,804 or $.40 per share for the
same period of 2016.

While 6 wells continue to produce, as of September 30, 2017 the combined
net daily production accruing to the Company from its fee lands was
minimal. Meanwhile, as of September 30, 2017 B&L’s net daily production
from 6 wells was approximately 2,266 thousand cubic feet of natural gas
(Mcfg) and 32 barrels of oil per day (BOPD).

As previously reported, the Louisiana Coastal Protection and Restoration
Authority (CPRA) released the final draft of its 2017 Coastal Master
Plan (CMP). The Company plans to engage CPRA in discussions to make
certain that all parties involved in the process clearly understand the
value of our property and that the Biloxi Marsh Complex is sustainable
beyond the time frame which was originally set forth in the draft CMP
2017. The Company has assembled a team of experts in order to revise and
update The Biloxi Marsh Stabilization and Restoration Plan
published in 2006.

As previously reported, on June 15, 2012, the Company filed a claim
(Biloxi Marsh Lands Corporation et al v. United States of America) in
the U.S. Court of Federal Claims against the US Army Corps of Engineers
(USACE) seeking monetary damages for property damage and losses caused
by the Mississippi River Gulf Outlet (MR-GO). A trial solely on the
liability portion of the claims was set for October of 2017 but has been
continued to March of 2018. Liability is the first phase of the
litigation process. If and when the liability phase of the litigation
runs its course and reaches full conclusion, there will be a second
trial on damages to determine the value of the Company’s claims. Given
the early stages of this matter, at this time the Company cannot predict
the timing of resolution or the outcome of this claim. We will continue
to aggressively pursue this claim and will keep our shareholders advised
as things progress.

Based on information provided by the well’s Operator to the Louisiana
Department of Natural Resources (LDNR) and published on LDNR’s Strategic
Online Natural Resources Information System (SONRIS – www.sonris.com),
the Highlander discovery well continued to produce at a flow rate of
approximately 45,300 Mcfg per day during September 2017. B&L is
contractually entitled to a 1.5% of 8/8ths overriding royalty interest
(ORRI) in the Highlander discovery well and in all mineral leases
obtained and maintained by Freeport-McMoRan Oil & Gas in its Highlander
Project Area located in Assumption, Iberia, Iberville, St. Martin and
St. Mary Parishes, Louisiana. Beginning in 2012 ORRIs in various leases
within the Highlander Project Area started to be assigned to B&L. While
B&L has been assigned ORRIs in leases covering close to 50,000 acres,
currently only 9,000 acres are held by production (HBP) within the
boundaries of the EOC TUSC BL UDS SUA production unit in the Bayou Long
Field, St. Martin Parish, Louisiana. B&L is not aware of the status of
leases outside of boundaries of the EOC TUSC BL UDS SUA production unit
which was established under the Louisiana Office of Conservation’s Order
Nos. 262-T-1, 262-T-2 and 262-T-3.

As previously reported, B&L had obtained a 60% working interest in a
mineral lease in a federal offshore block located in shallow water on
the intercontinental shelf offshore of Louisiana. This five-year lease
expired in October of 2017 and the associated PUD reserves will not be
included in future reserve estimates. Meanwhile during the third
quarter, B&L negotiated the sale of a non-operated working interest in a
well whose disposition has minimal impact on B&L’s net daily production.
Unrelated to the foregoing, during October 2017, the Operator of a field
in which B&L owns a non-operating working interest filed a bankruptcy
petition. B&L does not currently expect a significant impact to its
revenues as a result, since B&L’s net production associated with that
working interest was minimal. As of this time, it is uncertain whether
B&L and other working interest owners may incur future expenses as a
result of the operator’s bankruptcy, which could impact B&L’s financial
results.

B&L continues to successfully develop its Lago Verde project in South
Texas. As previously reported, the Welder No. 4 well was placed on
production on April 6, 2017. The Welder No. 4 well is the first
development well drilled to offset B&L’s Welder No. 3 field discovery
well. Continuing its field development, B&L drilled its Welder No. 6
well during July 2017. The Welder No. 6 well is scheduled for hydraulic
fracturing operations during the fourth quarter of 2017. B&L drilled its
Welder No. 8 well within the past week and is currently scheduling
completion operations. B&L is the Operator and has a 62.5% working
interest in the Welder No. 3, No. 4, No. 6 and No. 8 wells. B&L’s
current mineral lease position is approximately 2,500 gross acres in
South Texas.

B&L was organized as a limited liability Company (LLC) under the laws of
Louisiana in July of 2006. B&L’s members are BLMC and Lake Eugenie Land
& Development, Inc. (LKEU), which have membership percentages of 75% and
25%, respectively.

On December 14, 2015, the board of directors authorized the purchase of
up to 30,000 shares of the Company’s common stock. The purchases will be
made from time to time on the open market at the sole discretion of the
Company. All shares purchased will be held as treasury stock. As of the
date of this press release, the Company has acquired 7,020 shares.

William B. Rudolf, President and CEO, commented: “B&L’s project in South
Texas is currently B&L’s main area of focus. The results from this
project continue to be encouraging and we hope that this project will
have continued success. As stated previously, relatively low well costs
combined with the possibility of multiple development wells make this
project attractive. Meanwhile, continued lower natural gas pricing
combined with the political and regulatory environment in South
Louisiana is making it difficult for us to attract parties interested in
exploring for natural gas on the Company’s fee lands.”

The Company maintains a website, www.biloximarshlandscorp.com,
and strongly recommends that all investors and interested parties visit
the website to view historical press releases, historical financial
statements, and other relevant information.

Biloxi Marsh Lands Corporation owns approximately 90,000 acres of marsh
lands located in St. Bernard Parish, Louisiana. As the landowner, it
derives revenues from oil and gas exploration and production activities
that take place on or near the Company’s fee lands and revenues from
surface rentals. BLMC also owns a seventy-five percent interest in B&L
Exploration, LLC which explores for and develops oil and gas primarily
in Louisiana and Texas.

This news release contains forward-looking statements regarding oil and
gas discoveries, oil and gas exploration, development and production
activities and reserves. Accuracy of the forward-looking statements
depends on assumptions about events that change over time and is thus
susceptible to periodic change based on actual experience and new
developments. The Company cautions readers that it assumes no obligation
to update or publicly release any revisions to the forward-looking
statements in this report. Important factors that might cause future
results to differ from these forward-looking statements include:
variations in the market prices of oil and natural gas; drilling
results; unanticipated fluctuations in flow rates of producing wells;
oil and natural gas reserves expectations; the ability to satisfy future
cash obligations and environmental costs; and general exploration and
development risks and hazards. Readers are cautioned not to place undue
reliance on forward-looking statements made by or on behalf of the
Company. Each such statement speaks only as of the day it was made. The
factors described above cannot be controlled by the Company. When used
in this report, the words “believes,” “estimates,” “plans,” “expects,”
“could,” “should,” “outlook,” and “anticipates” and similar expressions
as they relate to the Company or its management are intended to identify
forward-looking statements.

The following “Statements of Assets, Liabilities and Stockholders’
Equity” and “Statements of Revenues and Expenses” have been derived from
interim un-audited financial statements which do not include the
information and footnotes that are an integral part of a complete
financial statement.

BILOXI MARSH LANDS CORPORATION
Statements of Assets, Liabilities, and Stockholders' Equity
September 30, 2017 and 2016
Assets	2017	2016
Current assets:
Cash and cash equivalents	$	1,655,430	3,234,045
Accounts receivable	11,689	65,163
Prepaid expenses	61,548	59,444
Accrued interest receivable	16,204	27,221
Deferred tax asset	21,055	205,916
Income taxes receivable	8,786	12,143
Other assets	3,830	3,830
Total current assets	1,778,542	3,607,762
Other assets:
Investment in partnership	1,492,001	1,639,523
Marketable debt and equity securities – at cost	7,465,578	5,815,219
Land	234,939	234,939
Geological and geophysical costs – fee lands, net of amortization	2,056	16,128
Levees and office furniture and equipment	314,943	315,943
Accumulated depreciation	(314,747	)	(314,471	)
Total other assets	9,194,770	7,707,281
Total assets	$	10,973,312	11,315,043
Liabilities and Stockholders' Equity
Current liabilities:
Income taxes payable	$	—	—
Accrued expenses	20,802	23,477
Total current liabilities	20,802	23,477
Stockholders' equity:
Common stock, $.001 par value. Authorized, 20,000,000 shares; issued, 2,851,196 shares; outstanding, 2,528,008 and 2,535,028 shares in 2017 and 2016, respectively	47,520	47,520
Retained earnings	13,810,438	14,086,671
Treasury stock – 323,188 and 316,168 shares in 2017 and 2016, respectively, at cost	(2,905,448	)	(2,842,625	)
Total liabilities and stockholders' equity	$	10,973,312	11,315,043

BILOXI MARSH LANDS CORPORATION
Statements of Revenues and Expenses
September 30, 2017 and 2016
3 Months Ended	9 Months Ended
September 30	September 30
2017	2016	2017	2016
Revenues:
Oil and gas royalties	$	8,708	27,518	$	34,170	$	76,477
Surface rentals	–	–	45,000	–
Total oil and gas revenues	8,708	27,518	79,170	76,477
Other income (loss):
Dividends and interest income	27,169	29,667	75,304	95,043
Gain (loss) on sale of securities	(2,917	)	461,035	639,825	358,465
Gain on settlement	–	95,111	–	95,111
Surface rentals	33,555	49,100	57,410	56,210
Loss from investment in partnership	(42,543	)	(464,317	)	(315,106	)	(1,312,506	)
Total other income	15,264	170,596	457,433	(707,677	)
Total revenues and other income	23,972	198,114	536,603	(631,200	)
Expenses:
Total expenses	170,433	140,400	536,812	542,372
Net income before income taxes	(146,461	)	57,714	(209	)	(1,173,572	)
Income tax expense (benefit)	–	–	–	(152,768	)
Net income	$	(146,461	)	57,714	$	(209	)	(1,020,804	)
Net income per share	$	(0.06	)	0.02	$	(0.00	)	(0.40	)