RELATED PARTY TRANSACTIONS

12 Months Ended

Aug. 31, 2012

Notes to Financial Statements

Note 6 - RELATED PARTY TRANSACTIONS

During the year ended August 31, 2012, Richard Genovese, a Director of the Company ("Genovese" ), converted $595,000 of debt owed to him into 7,933,333 common shares at a conversion price per share of $0.075.

During the year ended August 31, 2012, Genovese made advances of $926,000 to the Company.  As of August 31, 2012 and August 31, 2011, the amount due Genovese was $661,510 and $330,510, respectively. The advances are non-interest bearing.

On February 28, 2012, Clayoquot Wilderness Resort Ltd. (“Clayoquot”), a company of which Genovese is a principal, advanced $100,000 to the Company. As of August 31, 2012 and August 31, 2011, the amount due Clayoquot was $100,000 and $-0-, respectively.  The advance is non-interest bearing.