Morro Bay Resources Ltd.

Morro Bay Capital announces that upon closing of the IPO, and as disclosed in the Amended and Restated Prospectus dated March 5, 2013, the Corporation granted 1,000,000 incentive stock options to its directors and officers which are exercisable within five (5) years from the date of the grant at an exercise price of $0.10 per Share (the "Options"). The Options granted are as follows: