On February 13, 2013, we entered into a securities purchase agreement with JMJ Financial. Pursuant to the terms of the agreement, our company will also enter into a convertible promissory note in the principal amount of $1,100,000 (for consideration of up to $1,000,000 ), of which $100,000 shall be paid to our company upon closing of the convertible promissory note and a common stock purchase warrant for the purchase of up to 540,540 shares of our common stock at an exercise price of $0.185 for a period of five years. The convertible promissory note shall have a maturity date of February 13, 2016. The remainder of the convertible debenture can be drawn down on by mutual agreement from JMJ Financial and our company. As at the date of this report we have made the following issuances of common stock in conversion of the February 13, 2013 note: On August 13, 2013 we issued 1,585,714 common shares in conversion of $163,693 payable pursuant to the note. On November 11, 2013, we issued 1,387,500 common shares in conversion of $81,846 payable pursuant to the note. On December 4, 2013, we issued 1,435,345 common shares in conversion of $81,846 payable pursuant to the note. On January 6, 2014 we issued 2,553,681 common shares in conversion of $81,846 payable pursuant to the note. On February 14, 2014 we issued 2,000,000 common shares in conversion of $62,921 payable pursuant to the note. On March 3, 2014 we issued 1,902,344 common shares in conversion of $62,921 payable pursuant to the note. On June 10, 2014 we issued 1,600,000 common shares in conversion of $47,752 payable pursuant to the note. On June 27, 2014 we issued 1,700,000 common shares in conversion of $44,171 payable pursuant to the note. On July 16, 2014 we issued 1,800,000 common shares in conversion of $70,200 payable pursuant to the note. On August 1, 2014 we issued 1,062,687 common shares in conversion of $39,000 payable pursuant to the note. As at June 30, 2014, there remains a balance of $343,475 unconverted and payable pursuant to the note . On September 23, 2013 we issued 1,293,717 common shares at a deemed of $0.04 per share in full cashless exercise of the 540,540 warrants issued in connection with the note. Page 14