Biloxi Marsh Lands Corporation Announces Unaudited Results for the Second Quarter and First Six Months of 2018 and Provides Update

Biloxi Marsh Lands Corporation (PINK SHEETS: BLMC) today announces its
unaudited results for the second quarter of 2018 and first six months of
2018 and provides update. The Company’s revenue for the three months
ended June 30, 2018 from oil and gas production for its fee lands was
$6,880 compared to revenue of $12,446 for the second quarter of 2017.
For the first six months of 2018, revenue generated from the Company’s
fee lands was $12,693 compared to $70,462 for the same period in 2017.

Meanwhile, dividend and interest income for the first six months of 2018
was $58,780, compared to $48,135 for the first six months of 2017. For
the first six months of 2018, the Company realized a cumulative gain
from the sale of investment securities of $1,037,465 compared to a
cumulative gain of $642,742 for the first six months of 2017. For the
second quarter of 2018, total revenues included a $725,023 loss from the
Company’s investment in B&L Exploration, LLC (B&L). This compares to a
loss of $162,487 from B&L for the second quarter of 2017.
Correspondingly, total revenue for the six months ended June 30, 2018
includes a net loss of $1,184,637 generated by B&L compared to a net
loss of $272,563 from B&L for the first six months of 2017.

Expenses for the second quarter were $199,304 compared to $208,014 for
the same period of 2017. Total expenses for the first six months of 2018
and 2017 were $372,881 and $366,379, respectively. The Company had a net
loss of $75,334 or $0.03 per share for the second quarter of 2018
compared to net income of $333,213 or $.13 per share in 2017. Meanwhile,
for the first half of 2018, there was a net loss of $442,930 or $.18 per
share compared to net income of $146,252 or $.06 per share for the same
period of 2017.

In an effort to protect and sustain the Company’s fee lands in St.
Bernard Parish, Louisiana and in response to the Louisiana Coastal
Protection and Restoration Authority (CPRA) 2017 Coastal Master Plan
(CMP 2017) the Company’s expert team, comprised of various scientists
from local universities, continues to collect and assemble the critical
data to revise and update The Biloxi Marsh Stabilization and
Restoration Plan which was first published in 2006. The goal of this
critical data collection is to determine the root causes of degradation
of the Company’s marsh lands and determine scientific hypotheses that
demonstrate that the Biloxi Marsh Complex is sustainable for a longer
period of time than set forth in CMP 2017.

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),
during June 2018 the Highlander discovery well produced at a flow rate
of approximately 55,273 Mcfg per day from the Tuscaloosa sand interval.
The reported gross production for May and June of 2018 reflect an
increase in volumes. 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.

As of June 30, 2018, B&L’s net daily production from five wells was
approximately 1,420 thousand cubic feet of natural gas (Mcfg) and 7
barrels of oil per day (BOPD). B&L currently has four producing wells
within its Lago Verde project area. B&L still has additional PUD
locations to drill in the fault block discovered by the Welder No. 3
well. In the current pricing environment, B&L is executing its current
plan to drill an exploratory well to test a neighboring fault block
during 2018. 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.

As previously reported, on June 15, 2012, the Company filed a claim
(Biloxi Marsh Lands Corp., et al. v. United States; Case No. 12-382L) in
the U.S. Court of Federal Claims against the US Army Corps of Engineers
(“The Biloxi Case”) seeking monetary damages for property damage and
losses caused by the Mississippi River Gulf Outlet (MR-GO). In January
of 2018 The Biloxi Case was consolidated with other similar landowners’
cases against the US Army Corps of Engineers and will proceed as Biloxi
Marsh Lands Corp., et al. v. United States, No. 12-382L. A trial solely
on the liability portion of the claims was continued, and a trial date
was scheduled for October of 2018. During a status conference held in
June of 2018, the presiding Judge determined that, prior to considering
issues of liability, the legal issue of whether the plaintiffs’ takings
claims are time-barred should be addressed. Subsequently, the court
issued an updated scheduling order holding in abeyance any possible
trial on liability. At this time the Company cannot predict the timing
of resolution or the outcome of this litigation process.

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. During the
quarter ended June 30, 2018, the Company acquired an additional 3,100
shares. The Company has acquired 10,120 shares as of June 30, 2018.

William B. Rudolf, President and CEO, commented: “Management continues
to proactively address apparent scientific flaws in the CPRA – 2017
Coastal Master Plan (CMP 2017). The main scientific flaw appears to be
the prediction that most of St. Bernard Parish including the Biloxi
Marsh Complex will be lost over the next 50 years.” The Company’s
comments to CMP 2017 are available at http://www.biloximarshlandscorp.com/biloxi-marsh-coastal-restoration/.

“Meanwhile, attracting third parties interested in exploring for and
developing the minerals beneath our lands continues to prove difficult
due to a combination of factors which include the depth of prospects
beneath our property, the current price of natural gas and the difficult
environment for oil and gas operators in Louisiana’s coastal zone. With
this said, we are continually looking for a catalyst that will create an
opportunity to test one of the subsurface structures identified using 3D
seismic data within the Tuscaloosa sand interval which are located
beneath the Company’s fee lands in St. Bernard Parish, Louisiana.
Additionally, B&L’s management continues to focus on its Lago Verde
Project in South Texas and is cognizant that the Highlander discovery
continues to produce at significant rates.”

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.

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