Effective December 31, 2013, Mr. Ralph Beck tendered his resignation as Chairman and member of the Board of Directors of Pernix Group Inc. Prior to Mr. Beck's retirement from the Company's Board, he was Chairman of the Board and was a member of the Compensation, Executive and Government Security Committees. Mr. Beck served for 14 years on the Board prior to his retirement. His resignation was not tendered in connection with any disagreement with the Company on any matter relating to the Company's operations, policies or practices but was tendered to facilitate his retirement.

Effective December 31, 2013, the Board has elected Mr. Don Gunther to fill the Chairman of the Board position pursuant to the retirement of Mr. Ralph Beck, whose resignation is announced above. Mr. Gunther has served on the Board of Directors since December 2012 and will continue to serve on the Compensation Committee replacing Mr. Beck as the Chairman of that Committee. In connection with his appointment as the Chairman of the Board, Mr. Gunther and the Company have negotiated a Consulting Agreement.

Effective December 31, 2013, the Board of the Company has appointed Mr. C. Robert Campbell to fill the Board position vacated by Mr. Ralph Beck, whose resignation is announced above. Mr. Campbell has also joined the Compensation Committee, filling the vacancy created by Mr. Beck's resignation. Additionally, Mr. Campbell will serve as the Chairman of the Audit Committee.

Mr. Campbell brings a vast amount of financial management experience gained through his time serving in various executive level positions for several publicly traded companies. Prior to his retirement from MasTec Inc. (MasTec) on December 31, 2013, Mr. Campbell served for the past nine years as Executive Vice President and Chief Financial Officer of MasTec, an infrastructure construction company based in Coral Gables, Florida. Prior to joining MasTec, Mr. Campbell served in many roles, including Chief Executive Officer, Chief Financial Officer, Chief Administrative Officer and Head of Planning and Development at BAX Global, Ryder System Inc. and Flagstar Restaurants Inc.