U.S. Energy Corp. announced that in connection with the forbearance agreement, four of the directors currently serving on the Company's Board of Directors have agreed to resign and be replaced by three directors reasonably acceptable to APEG Energy II, L.P. On May 2, 2017, Thomas R. Bandy, Jerry W. Danni, James B. Fraser, and Leo A. Heath each notified the Company of his resignation from the Board. As a result of said resignations, David Veltri is the sole remaining director of the Company. In accordance with the Company's bylaws and articles of incorporation, and subject to the terms of the forbearance agreement, on May 8, 2017, Mr. Veltri, acting in his capacity as the sole remaining director in office, appointed each of Javier F. Pico, Weldon Chitwood, and John Hoffman as a director to serve on the Board. Mr. Pico will serve until the 2017 annual meeting of shareholders, and will be named in the Company's 2017 proxy statement as a nominee for director, to serve a three-year term ending in 2020. Mr. Hoffman will serve until the 2018 annual meeting of shareholders, and Mr. Chitwood will serve, along with Mr. Veltri, until the 2019 annual meeting of shareholders. Messrs. Pico, Chitwood, and Hoffman are independent directors under applicable NASDAQ and SEC rules. Messrs. Pico, Chitwood, and Hoffman are expected to be appointed as members of the Company's Audit Committee, Compensation Committee, and Nominating Committee. Mr. Pico is expected to be appointed Chairman of the Audit Committee, Mr. Chitwood is expected to be appointed Chairman of the Compensation Committee and Mr. Hoffman is expected to be appointed Chairman of the Nominating Committee. Mr. Veltri is expected to be appointed as Chairman of the Board.