UPDATE TO NESS ENERGY INTERNATIONAL, INC. STOCKHOLDERS

UPDATE

Concerning the lawsuit in Israel, Alpha Capital as owner of Ness Energy of Israel and Plaintiff has filed its 138 page summary claim. Ness International and/or Viceroy, LLC as a co-defendant is to submit its summary claims on or before March 6, 2013. The other co-defendant, Du Tsach is scheduled to file its summary claim the first of April 2013. After all summary claims are submitted the judge will issue a decision. At this time, there is no date known when the judge will render his decision.

There is no change in the status of the lawsuit in the US Federal court.

Thank you for your continued encouraging support of Ness Energy and we look forward to having justice and equity from the courts both in Israel and the US.

David M. Boyce
President
Ness Energy International, Inc.

UPDATE TO NESS ENERGY STOCKHOLDERS

UPDATE

On December 17, 2012 the judge in the US Federal court denied Alpha Capital's motion to reopen the case. We at Ness are very pleased with this decision as we opposed Alpha's motion. This will allow the court in Israel to issue a decision before the US court will reopen the case for the equity hearing. If the court dates in Israel stand as currently scheduled the case in the US would be reopened sometime in August or September of 2013.

We are looking forward to receiving more good news in the coming year from the court in Israel. We wish all of those Ness stockholders and friends a Merry Christmas and a 2013 filled with good health and divine favor.

David M. Boyce
President
Ness Energy International, Inc.

UPDATE TO NESS ENERGY STOCKHOLDERS

DECEMBER UPDATE

I will not be able to give specific details of the developments of the case in Israel, but we received a written update from our legal counsel in Israel and he and his associates in the law firm are very pleased with the developments in the case. Their overall positive assessment brings focus back on the case here in the US. As it stands now there will not be a decision from the court in Israel until August or September of 2013.

Alpha Capital is the plaintiff in both of the cases in Israel and here in the US. Alpha has filed a Motion requesting the case in the US be reopened. We filed a Response in Opposition to Plaintiff's Motion to Reopen for one fundamental reason. At this point we feel we need a decision from the court in Israel in order to more fairly determine the equity issue here in the US case. It may take several weeks for a decision from the court on the Motion to Reopen the case here.

UPDATE TO NESS ENERGY STOCKHOLDERS

NESS ENERGY UPDATE

There is no news of consequence that has occurred over the last 30 days. The Ness attorneys in Israel generally expect a decision from the judge there sometime before the 15 th of September, which would precede the beginning of the High Holy days, although there is no assurance of when the judge's decision will be issued. Once a decision is issued by the Israeli court the case may be re-opened in the U.S. Federal Court in order to obtain a ruling on equity as to the percentage ownership of Ness Energy of Israel, Inc. that will be shared between Alpha Capital and Ness Energy International, Inc. If there is any news of consequence during the month, an update will be placed on the website at that time.

UPDATE TO NESS ENERGY STOCKHOLDERS

NEWS FROM THE TRIAL IN ISRAEL

David Boyce returned on July 22, 2012 from a weeklong trip to Israel. Mr. Boyce made the trip to testify and be cross examined in connection with an affidavit he had previously submitted to the court. The affidavit set out Ness Energy International's position in this trial and supported the facts and circumstances surrounding the dilution of Ness Energy of Israel's ownership in Noya. This dilution is the primary issue of the Israeli trial. As many of you know, Noya is the Israeli company which manages Modi'in Limited Partnership, a publicly held LP traded on the Tel-Aviv Stock Exchange.

As it turned out Mr. Boyce was not called to testify in the trial but the trip was extremely valuable for Ness International. His presence in Israel assured that the affidavit mentioned above would be accepted by the court verbatim without challenge by either party. This would not have been the case had he not made an appearance.

The trip also provided the opportunity for Mr. Boyce to meet and talk with several of the significant parties in this lawsuit, on both the plaintiff and defendant side. Being in the court room and hearing several "expert" witnesses on the last day of testimony proved to be very interesting and may be helpful going forward with our case in the US.

In further developments, there was a lawyers only hearing on Monday, July 23rd at which time the judge made an informal proposal to settle the case. We will find out soon if anything comes of this as he has scheduled another hearing for July 31st for the parties to state their position on this proposal.

We will provide additional information as it becomes available.

UPDATE TO NESS ENERGY STOCKHOLDERS

LEGAL ACTIONS IN THE U.S. AND ISRAEL

U.S. CASE

Nothing noteworthy has taken place since the last update. The trial date is still pending and there have been no significant negotiations between the parties.

ISRAELI CASE

The trial in Israel started as originally scheduled on Sunday June 24 and will, to our knowledge, continue on the dates previously listed. It is of course too early to have any news to report.