M Line Holdings Inc (MLHC)

[Moni001]

2,500,000 Common shares of stock valued at 3 cents per share

§ 100 shares of J Series Preferred stock convertible to 2,500,000 shares of common stock after one year

This transaction gives M Line control of the brand, the current list of customers, as well as the opportunity to bring this fantastic energy drink through the Caravel Group’s retail and distribution channels.

Tony Anish, CEO of M Line, commented: “This is an extraordinary addition to our group. The sales potential of this drink is many millions of dollars. We expect to deliver our first orders late this year with drinks being available on the web site in December. We plan to bring new flavors and expand the whole line of TORQUE® drinks and apparel. We would again like to thank our shareholders for their support. We will repay this support with transparency, solid growth and profitability and we WILL increase shareholder value. Keep watching our Company. We have barely started.”