LOANS PAYABLE

3 Months Ended

Feb. 29, 2012

Notes to Financial Statements

LOANS PAYABLE

NOTE 4 - LOANS PAYABLE

	February 29,		August 31,
	2012		2011
Loans payable	$	220,500	$	253,000
Total	$	220,500	$	253,000

In July 2010 an officer of the Company sold $140,000 of debt to a shareholder. The debt was due on demand and bears no interest.

In the year ended August 31, 2011 a shareholder loaned the Company $30,500. The debt is due on demand and bears no interest. In November 2011 this note was assumed by an officer of the Company and simultaneously contributed to capital.

In the year ended August 31, 2011 an officer of the Company sold $450,000 of debt to the same shareholder. The debt is due on demand and bears no interest. During the year the Company issued approximately 30,817,704 shares as partial payment of the loan valued at $434,392, in which $367,500 related to the principal portion and $66,892 was recorded as a loss on debt settlement. The balance remaining is $253,000 as of August 31, 2011.

During the quarter ended February 29, 2012, a shareholder assigned $100,000 of debt to a non affiliated third party.

In February 2012 the Company issued 40,000,000 shares valued at $52,500 as partial payment of a loan valued at $150,000.

In February 2012 an officer of the Company sold $150,000 of debt to a shareholder. The debt is due on demand and bears no interest.