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<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">ARX Gold Corporation, formerly Daulton Capital Corp., (“ARX
Gold”) was incorporated under the laws of the State of Nevada July 8, 2008. <font style="color: black">On May 22, 2012, ARX
Gold, </font>Grimsby Investments Limited (“Grimsby”), a company incorporated under the law of the British Virgin Islands
on March 8, 2012, and <font style="color: black">the stockholders of Grimsby (“Grimsby Shareholders”) entered into
a Share Exchange. </font>Upon closing of the transaction contemplated under the Share Exchange, as amended, on May 22, 2012, the
Grimsby Shareholders (4 entities) transferred all of the issued and outstanding capital stock of Grimsby to ARX Gold in exchange
for an aggregate of 4.148 billon shares of the common stock of ARX Gold and a commitment to pay royalties of $7,500,000 to two
original founding stockholders of Grimsby, as amended retroactively in August 2012 for an original $150 million debt to the four
original founding stockholders of Grimsby. Such exchange caused Grimsby to become a wholly-owned subsidiary of ARX Gold.  ARX
Gold and Grimsby with its subsidiaries are collectively referred to as “the Company”.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The Share Exchange was accounted for as a reverse-merger and
recapitalization since the stockholders of Grimsby obtained voting and management control of ARX Gold. Grimsby was the acquirer
for financial reporting purposes and ARC Gold was the acquired company. Consequently, the assets and liabilities and the operations
reflected in the historical financial statements prior to the Exchange Agreement will be those of Grimsby and was recorded at the
historical cost basis of Grimsby, and the consolidated financial statements after completion of the Share Exchange included the
assets and liabilities of both Grimsby and ARX Gold and the Company’s consolidated operations from the closing date of the
Share Exchange.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">On May 25, 2012, Daulton Capital Corp. changed its name to
Celframe ARX Resources Corp. and on October 16, 2012, Celframe ARX Resources Corp. changes its name to ARX Gold Corporation.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><b>  </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">On March 26, 2012, agents of Grimsby established ARX Springs
Pte, Ltd., (“ARX Pte”), a company incorporated in Singapore, in anticipation of a future restructuring of the Company.
At the time of its incorporation, ARX Pte had no operations, assets or stockholders.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">On April 12, 2012, the one founding stockholder of ARX Springs
Pty. Ltd a (“ARX Springs”), formed on November 11, 2011, and the two founding stockholders of ARX Pacific Resources
Pty Ltd. (“ARX Pacific”), formed on May 28, 2010, transferred 100% of their respective ownerships in such companies
to ARX Pte.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">On May 15, 2012, in connection with a reorganization of Grimsby,
100% of the founders’ shares of ARX Pte were issued to Grimsby and Grimsby issued its founders shares to four entities. On
May 22, 2012, immediately after the Share Exchange, the Company’s organizational structure of the Company is as follows:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="margin: 0">Pursuant to certain mining rights agreements (see Note 3), ARX Pacific and ARX Springs, together referred
to as the “ARX Companies”) have the rights to mine and extract gold and other materials from certain properties in
Australia as described in Note 3.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Basis of presentation</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Management acknowledges its responsibility for the preparation
of the accompanying interim consolidated financial statements which reflect all adjustments, consisting of normal recurring adjustments,
considered necessary in its opinion for a fair statement of its consolidated financial position and the consolidated results of
its operations for the interim period presented. These consolidated financial statements should be read in conjunction with the
summary of significant accounting policies and notes to financial statements included in the Company’s filing of Form 8-K/A
as filed with the Securities and Exchange Commission.  The accompanying unaudited consolidated financial statements for
ARX Gold Corporation have been prepared in accordance with accounting principles generally accepted in the United States of America
(the “U.S.”) for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation
S-X. Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as
a whole.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">As a result of the Company's focus on gold exploration, <font style="color: black">the
Company is considered a development stage company </font>as defined in ASC 915 “Development Stage Entities”. Activities
during the development stage include implementation of the Company’s business plan, reorganization activities and fund raising.
The Company plans on raising capital to implement its business plan and to begin development activities.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Going concern</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">As reflected in the accompanying consolidated financial statements,
the Company had a net loss and net cash used in operations of $441,901 and $267,629, respectively, for the six months ended October
31, 2012 and a working capital deficit, a stockholders’ deficit, and a deficit accumulated during development stage of $199,504,
$199,504 and $504,978, respectively, at October 31, 2012 and has no revenues. The ability of the Company to continue as a going
concern is dependent on the Company’s ability to raise additional capital, implement its business plan, and generate revenues.
The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue
as a going concern. <font style="color: black">The Company plans on raising capital though the sale of equity or debt instruments
to commence operations.</font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Principles of consolidation</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The consolidated financial statements are prepared in accordance
with generally accepted accounting principles in the United States of America ("US GAAP") and present the consolidated
financial statements of the Company and its wholly-owned subsidiaries as of October 31, 2012. In the preparation of consolidated
financial statements of the Company, intercompany transactions and balances are eliminated in consolidation.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">  </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Details of the Company’s subsidiaries are as follows:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Name</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Domicile and date of<br /> incorporation</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Registered <br /> capital</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Effective <br /> ownership</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">Principal activities</td></tr>
<tr style="vertical-align: bottom">
<td style="width: 19%; padding-left: 5.4pt; line-height: 115%">Grimsby Investments Limited</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 19%; padding-left: 5.4pt; line-height: 115%">British Virgin Islands <br /> March 8, 2012</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 18%; padding-left: 5.4pt; line-height: 115%; text-align: center">$100</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 16%; line-height: 115%; text-align: center">100%</td>
<td style="width: 1%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 18%; padding-left: 5.4pt; line-height: 115%">Holding company</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; line-height: 115%">ARX Springs Pte.</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%">Republic of Singapore <br /> March 26, 2012</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%">Singapore dollars (“S$”) 100,000</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">100%</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%">Holding company</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; line-height: 115%">ARX Springs Pty. Ltd.</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%">Australia <br /> November 11, 2011</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%">Australian dollars (“AUS$”) 30,000</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">100%</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%">Pursuant to various agreements, ARX Springs has the <font style="color: black">right to explore, mine and extract gold and other minerals from certain properties.</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; line-height: 115%">ARX Pacific Resources Pty. Ltd.</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%">Australia <br /> May 28, 2010</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%">AUS$ 1,000</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">100%</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%">Pursuant to various agreements, ARX Pacific has the <font style="color: black">right to explore, mine and extract gold and other minerals from certain properties.</font></td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Use of estimates</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><i> </i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The preparation of the consolidated financial statements in
conformity with generally accepted accounting principles in the United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual
results could differ from these estimates.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Fair value of financial instruments</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The Company adopted the guidance of Accounting Standards Codification
(“ASC”) 820 for fair value measurements which clarifies the definition of fair value, prescribes methods for measuring
fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: top">
<td style="width: 20px; padding-bottom: 6pt; line-height: 115%; text-align: right">*</td>
<td style="width: 7px"> </td>
<td style="padding-bottom: 6pt; line-height: 115%; text-align: justify">Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.</td></tr>
</table>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: top">
<td style="width: 20px; padding-bottom: 6pt; line-height: 115%; text-align: right">*</td>
<td style="width: 7px"> </td>
<td style="padding-bottom: 6pt; line-height: 115%">Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other then quoted prices that are observable, and inputs derived from or corroborated by observable market data.</td></tr>
</table>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: top">
<td style="width: 20px; padding-bottom: 6pt; line-height: 115%; text-align: right">*</td>
<td style="width: 7px"> </td>
<td style="padding-bottom: 6pt; line-height: 115%">Level 3-Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information.</td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The carrying amounts reported in the balance sheets for cash,
due from related parties, and other current assets, accounts payable, and accrued expenses and due to related parties approximate
their fair market value based on the short-term maturity of these instruments. The Company did not have any non-financial assets
or liabilities that are measured at fair value on a recurring basis as of October 31, 2012 and April 30, 2012.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Fair value of financial instruments (continued)</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">ASC 825-10 “<i>Financial Instruments</i>”<i>,</i>
allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (fair value option). The
fair value option may be elected on an instrument-by-instrument basis and is irrevocable, unless a new election date occurs. If
the fair value option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings
at each subsequent reporting date. The Company did not elect to apply the fair value option to any outstanding instruments.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 0 9pt; text-indent: -9pt"><u>Cash and cash equivalents</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: -9pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">For purposes of the consolidated statements of cash flows,
the Company considers all highly liquid instruments purchased with a maturity of three months or less and money market accounts
to be cash equivalents.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Mining property acquisition and exploration costs</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 115.5pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The Company follows ASC 930 “Extraction Activities –
Mining” in accounting for mining costs. Costs of lease, acquisition, exploration, carrying and retaining unproven mineral
lease properties are expensed as incurred. The Company has chosen to expense all mineral acquisition and exploration costs as incurred
given that it is still in the development stage. Once the Company has identified proven and probable reserves in its investigation
of its properties and upon development of a plan for operating a mine, it would capitalize future costs until production is established.
When a property reaches the production stage, the related capitalized costs will be depleted, using the units-of-production method
over the estimated life of the probable-proven reserves. When the Company has capitalized mineral properties, these properties
will be periodically assessed for impairment of value and any diminution in value. To date, the Company has not established the
commercial feasibility of any exploration prospects; therefore, all costs are being expensed. During the six months ended October
31, 2012 and 2011, the Company did not incur any exploration costs.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Environmental Matters</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Our operations are subject to evolving government environmental
laws and regulations related to the discharge of materials into the environment. Our process is not expected to produce harmful
levels of emissions or waste by-products.  However, these laws and regulations would require us to remove or mitigate
the environmental effects of the disposal or release of substances at our site should they occur.  Compliance with such
laws and regulations can be costly.  Additionally, governmental authorities may enforce the laws and regulations with
a variety of civil and criminal enforcement measures, including monetary penalties and remediation requirements.  We
are not aware of any area of non-compliance with governmental environmental laws and regulations as of the date of this report.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Asset retirement obligations</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The Company follows the provisions of ASC 410, <i>Asset Retirement
and Environmental Obligations</i>, which establishes standards for the initial measurement and subsequent accounting for obligations
associated with the sale, abandonment or other disposal of long-lived tangible assets arising from the acquisition, construction
or development and for normal operations of such assets. The Company did not have any asset retirement obligation at October 31,
2012.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Impairment of long-lived assets</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">In accordance with ASC Topic 360, the Company reviews long-lived
assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully
recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash
flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s
estimated fair value and its book value. The Company did not record any impairment charges for the six months ended October 31,
2012 and 2011.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b>  </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Advertising</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><i> </i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Advertising is expensed as incurred and is included in selling
expenses on the accompanying consolidated statements of operations. The Company did not incur advertising expenses during the six
months ended October 31, 2012 and 2011, respectively.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: -0.1pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Income taxes</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><i> </i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The Company is governed by the income tax laws of the United
States, Australia, the Republic of Singapore, and the British Virgin Islands. The Company accounts for income tax using the liability
method prescribed by ASC 740, “<i>Income Taxes</i>”. Under this method, deferred tax assets and liabilities are determined
based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will
be in effect in the year in which the differences are expected to reverse. The Company records a valuation allowance to offset
deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the
deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss
in the period that includes the enactment date.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The Company applied the provisions of ASC 740-10-50, “Accounting
for Uncertainty in Income Taxes”, which provides clarification related to the process associated with accounting for uncertain
tax positions recognized in our financial statements. Audit periods remain open for review until the statute of limitations has
passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment
to the Company’s liability for income taxes. Any such adjustment could be material to the Company’s results of operations
for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of October 31,
2012 and April 30, 2012, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the
future.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Foreign currency translation</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: -10.35pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.3pt">The accompanying consolidated financial
statements are presented in U.S. dollars (“USD”). The reporting currency of the Company is the USD. The functional
currency of the ARX Companies is the Australian dollar and the functional currency of ARX Pte is the Singapore dollar. Results
of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated
at the spot exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts
relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding
balances on the balance sheets.  Translation adjustments resulting from the process of translating the local currency
financial statements into U.S. dollars are included in determining comprehensive income.  The foreign currency translation
adjustment included in comprehensive loss for the six months ended October 31, 2012 and 2011 <font style="color: black">amounted
to $7,843 and </font>$10, respectively.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.3pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.3pt">Assets and liabilities denominated in
foreign currencies are translated into the functional currency at the exchange rates prevailing at the balance sheet date with
any transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than
the functional currency included in the results of operations as incurred.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.3pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.3pt">As of October 31, 2012 and April 30, 2012
and for the six months ended October 31, 2012 and 2011, the exchange rates used to translate amounts in Australian dollars and
Singapore dollars into USD for the purposes of preparing the consolidated financial statements were as follows:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Foreign currency translation (continued)</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">       </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td colspan="10" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">AUS $</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td colspan="10" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">SGD $</td>
<td style="line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">October 31, <br /> 2012</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">October 31,<br /> 2011</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">April 30, <br /> 2012</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">October 31, <br /> 2012</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">October 31, <br /> 2011</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">April 30, <br /> 2012</td>
<td style="line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; line-height: 115%; text-decoration: underline">Exchange rate on balance sheet dates</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 22%; padding-left: 5.4pt; line-height: 115%">USD : AUS$: SGD$ exchange rate</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: center">1.0358</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: center">1.0702</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: center">1.0471</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: center">0.8192</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: center">–</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: center">0.8086</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; line-height: 115%; text-decoration: underline">Average exchange rate for the period</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 115%">USD : AUS$: SGD$ exchange rate</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">1.0239</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">1.0497</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">1.0436</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">0.7996</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">0.7931</td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.3pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Stock-based compensation</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Stock-based compensation is accounted for based on the requirements
of the Share-Based Payment Topic of ASC 718 which requires recognition in the consolidated financial statements of the cost of
employee and director services received in exchange for an award of equity instruments over the period the employee or director
is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement
of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Pursuant to ASC Topic 505-50, for share-based payments to
consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized
over the vesting period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain.
The Company initially records compensation expense based on the fair value of the award at the reporting date.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Net loss per share of common stock</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; background-color: white">Basic net loss per common share is
computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding
during the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of shares
of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. As of October 31,
2012 and 2011 and April 30, 2012, the Company did not have any potentially dilutive common shares.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; background-color: white"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Accumulated other comprehensive income </u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Comprehensive income is comprised of net income and all changes
to stockholders' equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders.
For the Company, comprehensive loss for the six months ended October 31, 2012 and 2011 included net loss and unrealized gains (losses)
from foreign currency translation adjustments.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.3pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Related party transactions</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 69.25pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">A related party is generally defined as (i) any person that
holds 10% or more of the Company's securities including such person's immediate families, (ii) the Company's management, (iii)
someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who
can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party
transaction when there is a transfer of resources or obligations between related parties.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Recent accounting pronouncements</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Accounting standards that have been issued or proposed by
FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial
statements upon adoption.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>ARX Springs Project</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">On March 6, 2012 and as amended on March 31, 2012, the Company’s
subsidiaries, ARX Springs and ARX Pacific entered into Stage Tribute Agreements (the “Stage Tribute Agreements”) with
Riverstone Resources Pty Ltd. (“Riverstone”). The Stage Tribute Agreements were made pursuant to the terms of an agreement
dated February 27, 2012 between Riverstone and BRI Microfine Pty Ltd., a related party (See Note 4) (the “Riverstone Master
Agreement”). The Stage Tribute Agreements grant the exclusive right to the ARX Companies to explore, mine and extract gold
and other extracted products on the ARX Springs Project properties located in the Wide Bay Burnett Region in central Queensland,
Australia. The ARX Springs Project overall covers approximately 16 km² of surface area and the mining project is part of a
larger area for which Riverstone owns and operates an extractive industries business.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><font style="color: #010101">The two ARX Companies will jointly
operate at the ARX Springs site, and Phase 1 of the mining processing at ARX Springs under the respective Stage Tribute Agreements
will mine a surface area of 600 ha. Under the terms of the Riverstone Master Agreement between BRI, a related party and Riverstone,
phase 2 of the mining process at the ARX Springs Project may commence at any time and does not require work on phase 1 to be completed.
ARX Companies must pay to Riverstone product</font><font style="color: #1A1A1A">i</font><font style="color: #010101">on royalty
of 19% of the value of production extracted and processed </font>from the first 100 ha surface area of the ARX Springs Project
treated and 1<font style="color: #010101">5% of the value of production extracted and processed from the surface area of the project
which exceeds </font>100ha.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><font style="color: #010101">During the term of the Stage
Tribute Agreements, Riverstone solely or jointly with one or both of the ARX Companies (and either of the ARX Companies solely
or jointly with Riverstone) may apply for extensions and additional mining licenses from the Queensland Mines and Resources Department.
During all terms of the mining license and any additional mining licenses the holders of all ARX Springs mining license and additional
mining licenses shall be obliged to comply with the regulations applicable and to meet the obligations imposed by </font><font style="color: #020202">the
Mineral Resource Act of 1989 (Queensland). </font><font style="color: black">If the mining license or additional mining licenses,
at any time are cancelled, the ARX Companies may lose the right to mine and process at the ARX Springs Project. Riverstone may
terminate the Stage Tribute Agreements on prior notice to the ARX Companies if ARX Companies are in breach of the agreements but
termination cannot be affected without the ARX Companies being first permitted to remedy any alleged breach and any disputes between
Riverstone and the ARX Companies will be subject to mediation and if mediation is unsuccessful will be submitted to arbitration.
Riverstone may terminate the Stage Tribute Agreements by giving three month’s notice by March 5, 2037, with provision to
extend dates if required, or after the resources have been fully mined and processed, whichever occurs first. The initial ten hectare
surface area of the ARX Springs Project must be mined and processed by March 5, 2025. </font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b><font style="color: #010101"> </font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; color: #010101">The ARX Companies are obliged to take out
business liability and employee insurances which shall be effected when mining processing commences.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Prior to undertaking any ground disturbing work on the ARX
Springs Project, the ARX Companies must, in the ordinary course of the mining business obtain the approval of the Queensland Department
of Mines on a proposed work plan. The agreements with Riverstone require consultation with Riverstone on the form of any proposed
work plan to ensure it is not likely to interfere with the activities of Riverstone. The ARX companies solely or jointly with Riverstone
may proceed to obtain all necessary regulatory approvals for any proposed work plan according to standard industry mining practice
in the State of Queensland as governed by the Mineral Resource Act 1989.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; color: #010101"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><font style="color: #010101">The ARX Companies will be responsible
for all rehabilitation works on the properties, as required by the Queensland </font>Mines and Resources <font style="color: #010101">Department,
and any other governmental or other authorities in relation to exploration or mining activities carried out by the ARX Companies.
Prior to the commencement of work the Queensland Mines and Resources Department will assess a value of a rehabilitation bond and
the value of the rehabilitation bond will have to be paid by the ARX companies. </font>There is no reason known to Riverstone or
ARX Companies why the bond will not be assessed according to current <font style="color: #010101">Queensland Mines and Resources
Department </font>guidelines but the actual amount of the rehabilitation bond is not yet known.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the term of the Stage Tribute
Agreements, Riverstone shall take all action necessary to keep the ARX Project in good standing. Riverstone will be obliged to
protect the land areas and the Mining License and Riverstone shall make any required payments to the Department of Mines and Resources
or such other department of the government of Queensland Australia responsible for the administration of the Mineral Resource Act
of 1989 (Queensland) in order to maintain its rights to explore and, if warranted, to develop its property. If Riverstone fails
to meet these obligations, the Company may lose the right to explore for gold and other extracted products on the property. In
general terms the Arx Companies are entitled under their agreements to act on their own behalf to protect the land and site and
the mining leases and to pay royalties to Queensland Mines Department if they decide to do so by potential threats or risks to
the project or rights.<i> </i><font style="color: black"> </font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Technology Sub-license Agreement</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">On November 24, 2011, the Company’s subsidiary, ARX
Springs, entered into a Technology Sub-license Agreements (the “Technology Agreement”) with BRI Microfine Pty Ltd.
(“BRI”), a company incorporated in Australia and owned by the Company’s CEO and by a principal stockholder/founder
of the Company. Pursuant to the Technology Agreement, <font style="color: #010101">BRI granted to ARX Springs an exclusive non-assignable,
non-transferrable sub license to use the BRI’s technology with the ARX Spring Project for the term of the project. BRI’s
technology is a chem</font><font style="color: #222222">i</font><font style="color: #010101">cal leaching process which has been
shown to concentrate gold, particularly in a microfine (finer than 5 microns) state, from concentrates, ores, tailings, solutions
and other friable or pulverized materials. </font>As consideration of the Sub-license agreement, the Company shall pay a royalty
to BRI <font style="color: #010101">calculated as a percentage of the gross value of extracted </font>product on a sliding scale
based on tonnes processed ranging from 15% down to 10%. BRI in its discretion may at any time allow a rebate to AR Springs of any
royalty payable.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">BRI, at the cost of the Company, and in accordance with the
requirements of the Company, will construct at the ARX Springs Project site alluvial material processing production plants. Additionally,
BRI will arrange for the application of software systems for operations and metallurgical reporting and information systems to
be installed in all alluvial material processing production plants for the ARX Spring project<font style="color: #252525">. The
Company shall </font>pay BRI invoices for the provision of software systems and metallurgical reporting and information systems
and construction of alluvial material processing production plants.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Due from related party</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The Company received from and provided advances to BRI. These
advances are unsecured and payable on demand. At October 31, 2012 and April 30, 2012, amounts due from BRI amounted to $189 and
$850, respectively.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Due from related party</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Due to related party</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">During the three months ended July 31, 2012, the Company received
working capital advances of $527 from a former officer and shareholder. These advances were repaid during the three months ended
October 31, 2012. The advances were unsecured and payable on demand.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Royalty commitment</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">In August 2012, in connection with an amendment to the Share
Exchange dated May 22, 2012, the Company entered into a royalty agreement (the “Royalty Agreement”) with two original
founding stockholders of Grimsby (one of which is an officer and director of the Company), who received shares in the Share Exchange.
Pursuant to the Royalty Agreement, the Company agreed, at the discretion of the Company’s board of directors, to pay these
parties up to $7,500,000 in royalties from gross profits derived from the sales of all minerals and other products recovered from
the ARX Spring Project.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Development costs – related party</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">During the three months ended October 31, 2012, the Company
paid development fees of $194,846 to BRI for development services performed on the ARX Springs Project.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">During the six months ended October 31, 2012, a shareholder
advanced the Company $73,600 for working capital purposes. The advances are non-interest bearing, are unsecured and are payable
on demand.</p>
<p style="margin: 0pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; color: #010101"><u>Cash contributed by founders</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; color: #010101"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; color: #010101">For the year ended April 30, 2012 and for
the period from May 28, 2010 (inception) to April 30, 2011, the original stockholders of ARX Pacific contributed capital to ARX
Pacific of $515 and $420, respectively.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; color: #010101"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; color: #010101"><u>Stock-based compensation</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; color: #010101"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">On November 11, 2011, the Company issued 30,000 shares of
ARX Spring’s common stock to ARX Springs original founders for services rendered. As there was no determinable fair value
of founder’s shares, the<font style="color: black"> Company valued these common shares at a nominal value of AUS$1.00 per
common share. In connection with issuance of these common shares, the Company recorded stock-based compensation of $30,780.</font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><font style="color: #010101"> </font>  </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; color: #010101"><u>Stock-based compensation (continued)</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">On May 15, 2012 and accounted for on March 8, 2012, pursuant
to recapitalization accounting, the Company issued 100 shares of Grimsby common stock to Grimsby’s original founders for
services rendered. As there was no determinable fair value of founder’s shares, the<font style="color: black"> Company valued
these common shares at a nominal value of $1.00 per common share. In connection with issuance of these common shares, the Company
recorded stock-based compensation of $100. This 100 share issuance quantity has also been retroactively reflected back to inception
of the Company.</font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">On March 26, 2012, the Company issued 40,280 shares of ARX
Pte common stock to ARX Pte original founders for services rendered. As there was no determinable fair value of founder’s
shares, the<font style="color: black"> Company valued these common shares at a nominal value of S$1.00 per common share. In connection
with issuance of these common shares, the Company recorded stock-based compensation of $31,946.</font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">On May 22, 2012, in connection with the share exchange agreement,
the Company issued 4,148,000,000 shares if its common stock to the Grimsby shareholders (See Note 1).</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Sale of common stock</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">In September 2012, the Company sold 5,000,000 shares of its
common stock for proceeds of $225,000.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Other contributed capital</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">In connection with consulting services performed for the Company
by a third party in the amount of $44,704, BRI agreed to pay for these services on behalf of the Company, Accordingly, the Company
recorded contributed capital of $44,704.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="margin: 0pt"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Reliance on contractual agreement</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The Company’s business is dependent on agreements with
an unrelated party (see Note 3) and a related party (see Note 4).</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Concentrations of credit risk</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Financial instruments which potentially subject the Company
to concentrations of credit risk consist principally of cash. At October 31, 2012 and April 30, 2012, all of the Company’s
cash is maintained with banks in Australia and Singapore. The Company has not experienced any losses in such accounts and believes
it is not exposed to any risks on its cash in bank accounts.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Concentration in a geographic area</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The Company will operate in the mining industry and the operations
will be concentrated in Australia (See Note 3).</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">On June 18, 2012, the Company<font style="background-color: white">
entered into a Placement Agent Agreement with Khandwala Securities Limited (“KSL”) (the “Placement Agent”),
whereby KSL was to act as exclusive Placement Agent, perform due diligence, and conduct other business development activities
for a period of six months. In accordance with the Placement Agent Agreement, the Company shall pay KSL 5% of funds raised up
to $50 million. Additionally, the Company agreed to pay Placement Agent $250,000 with $100,000 due upon signing of the Placement
Agreement, $100,000 on completion of due diligence and submission of an information memorandum and $50,000 upon the Company’s
sign–off of a placement memorandum and information statement. To date, KSL had not submitted any information statement or
placement memorandum. Accordingly, the Company believes that only $100,000 may be due pursuant to the Placement Agent Agreement.
The $100,000 was earned and accrued by the Company as of October 31, 2012.</font></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font-size: 8pt">By agreement made 18th June 2012
between Grimsby Investments Ltd and Salam International Ltd the parties entered into a conditional Gold Forward Sales contract
which is subject to a condition of completion of due diligence by the buyer (Salam).  Under the contract the buyer proposed
buying gold bullion for US $105 million.  The agreement required first gold delivery by the Company to commence 270 days
after the effective date.  The parties have confirmed the agreement remains in force and of full effect. The parties have
agreed to extend both the time of completion of due diligence until the 28th February 2013 and the effective date specified in
the agreement to 28 February 2013 with the consequence that subject to due diligence, the time for first delivery of gold by the
Company is extended to 270 days after 1st March 2013.  The parties have acknowledged that the contract is conditional upon
satisfactory due diligence by the buyer.  There is no obligation on the company nor is there any potential penalty on the
company for any failure to deliver gold while the gold forward sales contract remains conditional on due diligence and on payment
by the buyer to the company of a $5 million cash deposit.  The deposit is not required to be paid until the buyer is satisfied
with its due diligence investigations.  </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">In August 2012, in connection with
an amendment to the Share Exchange dated May 22, 2012, Daulton entered into a royalty agreement (the “Royalty Agreement”)
with two original founding stockholders of Grimsby (one of which is an officer and director of the Company), who received shares
in the Share Exchange. Pursuant to the Royalty Agreement, the Company agreed, at the discretion of the Company’s board of
directors, to pay these parties up to $7,500,000 in royalties from gross profits derived from the sales of all minerals and other
products recovered from the ARX Spring Project.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font-size: 8pt">By agreement dated 31st October
2012 and by addendum agreement dated 21st November 2012 between the Company, Ascot Mining Ltd and Veritas Gold CR SA the parties
agreed to terms of purchase by the Company from Ascot of 50% of the issued shares of Veritas.  The terms of the purchase
by the Company require delivery of 200 million common shares to Ascot and a $2,500,000 loan (completion advance) from the Company
to Veritas as working capital and expansion capital for Chassoul Mine , Costa Rica.  The Company has the right in its absolute
discretion to arrange that the completion advance may be delivered by Musketeer Holdings Corp ( a shareholder in the company)
in substitution for the Company subject to the primary obligation remaining with the Company.  The parties have confirmed
the agreement remains in force and of full effect and have agreed to extend the earlier completion date of 30 November 2012 to
an extended completion date for the purchase to on or before 20 February 2013 or such other date as the parties may agree in writing. 
No party to the agreement is subject to any penalty by reason the purchase has not yet completed.</font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Basis of presentation</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Management acknowledges its responsibility for the preparation
of the accompanying interim consolidated financial statements which reflect all adjustments, consisting of normal recurring adjustments,
considered necessary in its opinion for a fair statement of its consolidated financial position and the consolidated results of
its operations for the interim period presented. These consolidated financial statements should be read in conjunction with the
summary of significant accounting policies and notes to financial statements included in the Company’s filing of Form 8-K/A
as filed with the Securities and Exchange Commission.  The accompanying unaudited consolidated financial statements for
ARX Gold Corporation have been prepared in accordance with accounting principles generally accepted in the United States of America
(the “U.S.”) for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation
S-X. Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as
a whole.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">As a result of the Company's focus on gold exploration, <font style="color: black">the
Company is considered a development stage company </font>as defined in ASC 915 “Development Stage Entities”. Activities
during the development stage include implementation of the Company’s business plan, reorganization activities and fund raising.
The Company plans on raising capital to implement its business plan and to begin development activities.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Going concern</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">As reflected in the accompanying consolidated financial statements,
the Company had a net loss and net cash used in operations of $441,901 and $267,629, respectively, for the six months ended October
31, 2012 and a working capital deficit, a stockholders’ deficit, and a deficit accumulated during development stage of $199,504,
$199,504 and $504,978, respectively, at October 31, 2012 and has no revenues. The ability of the Company to continue as a going
concern is dependent on the Company’s ability to raise additional capital, implement its business plan, and generate revenues.
The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue
as a going concern. <font style="color: black">The Company plans on raising capital though the sale of equity or debt instruments
to commence operations.</font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Principles of consolidation</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The consolidated financial statements are prepared in accordance
with generally accepted accounting principles in the United States of America ("US GAAP") and present the consolidated
financial statements of the Company and its wholly-owned subsidiaries as of October 31, 2012. In the preparation of consolidated
financial statements of the Company, intercompany transactions and balances are eliminated in consolidation.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">  </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Details of the Company’s subsidiaries are as follows:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Name</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Domicile and date of<br /> incorporation</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Registered <br /> capital</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Effective <br /> ownership</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">Principal activities</td></tr>
<tr style="vertical-align: bottom">
<td style="width: 19%; padding-left: 5.4pt; line-height: 115%">Grimsby Investments Limited</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 19%; padding-left: 5.4pt; line-height: 115%">British Virgin Islands <br /> March 8, 2012</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 18%; padding-left: 5.4pt; line-height: 115%; text-align: center">$100</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 16%; line-height: 115%; text-align: center">100%</td>
<td style="width: 1%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 18%; padding-left: 5.4pt; line-height: 115%">Holding company</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; line-height: 115%">ARX Springs Pte.</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%">Republic of Singapore <br /> March 26, 2012</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%">Singapore dollars (“S$”) 100,000</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">100%</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%">Holding company</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; line-height: 115%">ARX Springs Pty. Ltd.</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%">Australia <br /> November 11, 2011</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%">Australian dollars (“AUS$”) 30,000</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">100%</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%">Pursuant to various agreements, ARX Springs has the <font style="color: black">right to explore, mine and extract gold and other minerals from certain properties.</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; line-height: 115%">ARX Pacific Resources Pty. Ltd.</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%">Australia <br /> May 28, 2010</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%">AUS$ 1,000</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">100%</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%">Pursuant to various agreements, ARX Pacific has the <font style="color: black">right to explore, mine and extract gold and other minerals from certain properties.</font></td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Use of estimates</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><i> </i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The preparation of the consolidated financial statements in
conformity with generally accepted accounting principles in the United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual
results could differ from these estimates.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Fair value of financial instruments</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The Company adopted the guidance of Accounting Standards Codification
(“ASC”) 820 for fair value measurements which clarifies the definition of fair value, prescribes methods for measuring
fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 20px; padding-bottom: 6pt; font: 8pt/115% Times New Roman, Times, Serif; text-align: right">*</td>
<td style="width: 7px"> </td>
<td style="padding-bottom: 6pt; font: 8pt/115% Times New Roman, Times, Serif; text-align: justify">Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.</td></tr>
</table>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 20px; padding-bottom: 6pt; font: 8pt/115% Times New Roman, Times, Serif; text-align: right">*</td>
<td style="width: 7px"> </td>
<td style="padding-bottom: 6pt; font: 8pt/115% Times New Roman, Times, Serif">Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other then quoted prices that are observable, and inputs derived from or corroborated by observable market data.</td></tr>
</table>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 20px; padding-bottom: 6pt; font: 8pt/115% Times New Roman, Times, Serif; text-align: right">*</td>
<td style="width: 7px"> </td>
<td style="padding-bottom: 6pt; font: 8pt/115% Times New Roman, Times, Serif">Level 3-Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information.</td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The carrying amounts reported in the balance sheets for cash,
due from related parties, and other current assets, accounts payable, and accrued expenses and due to related parties approximate
their fair market value based on the short-term maturity of these instruments. The Company did not have any non-financial assets
or liabilities that are measured at fair value on a recurring basis as of October 31, 2012 and April 30, 2012.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">ASC 825-10 “<i>Financial Instruments</i>”<i>,</i>
allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (fair value option). The
fair value option may be elected on an instrument-by-instrument basis and is irrevocable, unless a new election date occurs. If
the fair value option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings
at each subsequent reporting date. The Company did not elect to apply the fair value option to any outstanding instruments.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 0 9pt; text-indent: -9pt"><u>Cash and cash equivalents</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: -9pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">For purposes of the consolidated statements of cash flows,
the Company considers all highly liquid instruments purchased with a maturity of three months or less and money market accounts
to be cash equivalents.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Mining property acquisition and exploration costs</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 115.5pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The Company follows ASC 930 “Extraction Activities –
Mining” in accounting for mining costs. Costs of lease, acquisition, exploration, carrying and retaining unproven mineral
lease properties are expensed as incurred. The Company has chosen to expense all mineral acquisition and exploration costs as incurred
given that it is still in the development stage. Once the Company has identified proven and probable reserves in its investigation
of its properties and upon development of a plan for operating a mine, it would capitalize future costs until production is established.
When a property reaches the production stage, the related capitalized costs will be depleted, using the units-of-production method
over the estimated life of the probable-proven reserves. When the Company has capitalized mineral properties, these properties
will be periodically assessed for impairment of value and any diminution in value. To date, the Company has not established the
commercial feasibility of any exploration prospects; therefore, all costs are being expensed. During the six months ended October
31, 2012 and 2011, the Company did not incur any exploration costs.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Environmental Matters</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Our operations are subject to evolving government environmental
laws and regulations related to the discharge of materials into the environment. Our process is not expected to produce harmful
levels of emissions or waste by-products.  However, these laws and regulations would require us to remove or mitigate
the environmental effects of the disposal or release of substances at our site should they occur.  Compliance with such
laws and regulations can be costly.  Additionally, governmental authorities may enforce the laws and regulations with
a variety of civil and criminal enforcement measures, including monetary penalties and remediation requirements.  We
are not aware of any area of non-compliance with governmental environmental laws and regulations as of the date of this report.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Asset retirement obligations</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The Company follows the provisions of ASC 410, <i>Asset Retirement
and Environmental Obligations</i>, which establishes standards for the initial measurement and subsequent accounting for obligations
associated with the sale, abandonment or other disposal of long-lived tangible assets arising from the acquisition, construction
or development and for normal operations of such assets. The Company did not have any asset retirement obligation at October 31,
2012.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Impairment of long-lived assets</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">In accordance with ASC Topic 360, the Company reviews long-lived
assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully
recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash
flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s
estimated fair value and its book value. The Company did not record any impairment charges for the six months ended October 31,
2012 and 2011.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Advertising</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><i> </i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Advertising is expensed as incurred and is included in selling
expenses on the accompanying consolidated statements of operations. The Company did not incur advertising expenses during the six
months ended October 31, 2012 and 2011, respectively.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Income taxes</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><i> </i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The Company is governed by the income tax laws of the United
States, Australia, the Republic of Singapore, and the British Virgin Islands. The Company accounts for income tax using the liability
method prescribed by ASC 740, “<i>Income Taxes</i>”. Under this method, deferred tax assets and liabilities are determined
based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will
be in effect in the year in which the differences are expected to reverse. The Company records a valuation allowance to offset
deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the
deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss
in the period that includes the enactment date.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The Company applied the provisions of ASC 740-10-50, “Accounting
for Uncertainty in Income Taxes”, which provides clarification related to the process associated with accounting for uncertain
tax positions recognized in our financial statements. Audit periods remain open for review until the statute of limitations has
passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment
to the Company’s liability for income taxes. Any such adjustment could be material to the Company’s results of operations
for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of October 31,
2012 and April 30, 2012, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the
future.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Foreign currency translation</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: -10.35pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.3pt">The accompanying consolidated financial
statements are presented in U.S. dollars (“USD”). The reporting currency of the Company is the USD. The functional
currency of the ARX Companies is the Australian dollar and the functional currency of ARX Pte is the Singapore dollar. Results
of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated
at the spot exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts
relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding
balances on the balance sheets.  Translation adjustments resulting from the process of translating the local currency
financial statements into U.S. dollars are included in determining comprehensive income.  The foreign currency translation
adjustment included in comprehensive loss for the six months ended October 31, 2012 and 2011 <font style="color: black">amounted
to $7,843 and </font>$10, respectively.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.3pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.3pt">Assets and liabilities denominated in
foreign currencies are translated into the functional currency at the exchange rates prevailing at the balance sheet date with
any transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than
the functional currency included in the results of operations as incurred.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.3pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.3pt">As of October 31, 2012 and April 30, 2012
and for the six months ended October 31, 2012 and 2011, the exchange rates used to translate amounts in Australian dollars and
Singapore dollars into USD for the purposes of preparing the consolidated financial statements were as follows:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">       </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td colspan="10" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">AUS $</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td colspan="10" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">SGD $</td>
<td style="line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">October 31, <br /> 2012</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">October 31,<br /> 2011</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">April 30, <br /> 2012</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">October 31, <br /> 2012</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">October 31, <br /> 2011</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">April 30, <br /> 2012</td>
<td style="line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; line-height: 115%; text-decoration: underline">Exchange rate on balance sheet dates</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 22%; padding-left: 5.4pt; line-height: 115%">USD : AUS$: SGD$ exchange rate</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: center">1.0358</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: center">1.0702</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: center">1.0471</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: center">0.8192</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: center">–</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 9%; line-height: 115%; text-align: center">0.8086</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; line-height: 115%; text-decoration: underline">Average exchange rate for the period</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 115%">USD : AUS$: SGD$ exchange rate</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">1.0239</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">1.0497</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">1.0436</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">0.7996</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">0.7931</td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Stock-based compensation</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Stock-based compensation is accounted for based on the requirements
of the Share-Based Payment Topic of ASC 718 which requires recognition in the consolidated financial statements of the cost of
employee and director services received in exchange for an award of equity instruments over the period the employee or director
is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement
of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Pursuant to ASC Topic 505-50, for share-based payments to
consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized
over the vesting period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain.
The Company initially records compensation expense based on the fair value of the award at the reporting date.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Net loss per share of common stock</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; background-color: white">Basic net loss per common share is
computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding
during the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of shares
of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. As of October 31,
2012 and 2011 and April 30, 2012, the Company did not have any potentially dilutive common shares.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Accumulated other comprehensive income </u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Comprehensive income is comprised of net income and all changes
to stockholders' equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders.
For the Company, comprehensive loss for the six months ended October 31, 2012 and 2011 included net loss and unrealized gains (losses)
from foreign currency translation adjustments.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Related party transactions</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 69.25pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">A related party is generally defined as (i) any person that
holds 10% or more of the Company's securities including such person's immediate families, (ii) the Company's management, (iii)
someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who
can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party
transaction when there is a transfer of resources or obligations between related parties.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><u>Recent accounting pronouncements</u></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Accounting standards that have been issued or proposed by
FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial
statements upon adoption.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
189
850
515
420
73600
19711
194846
194846
194846
-19485
-19485
225000
225000