Item 3.01 Notice of Failure to Satisfy a Continued Listing Rule or Standard

On May 8, 2012, Royale Energy, Inc., notified NASDAQ that its Audit Committee was comprised of only two members as of July 8, 2011, the date of its 2011 annual meeting. At the 2011 annual meeting, one director who was a member of the Company's Audit Committee retired from the Board of Directors and was not replaced, resulting in a vacancy on the Audit Committee. Failure to maintain an Audit Committee of at least three independent members of the Board of Directors is a violation of NASDAQ Rule 5605(c)(2). The Board of Directors has a resolution by unanimous consent appointing Gary Grinsfelder as a member of the Audit Committee, returning the membership of the audit committee to three members. The Board of Directors has determined that Mr. Grinsfelder is an independent member of the Board of Directors.