RELATED PARTY TRANSACTIONS

6 Months Ended

Feb. 28, 2013

Related Party Transactions

Note 6 - RELATED PARTY TRANSACTIONS

During the six months ended February 28, 2013, Richard Genovese, a Director of the Company ("Genovese"), converted $661,000 of debt owed to him into 6,610,000 common shares at a conversion price per share of $0.10.

During the six months ended February 28, 2013, Janst Limited, an affiliate of the Company (“Janst”), entered into a subscription agreement to purchase 5,714,286 shares of our common stock at $0.07 per share for an aggregate investment in the Company of $400,000.

As of February 28, 2013 and August 31, 2012, the amount due Genovese was $510 and $661,510 respectively. The advances are non-interest bearing.

As of February 28, 2013 and August 31, 2012, the amount due Clayoquot Wilderness Resort, a company which Genovese is a principal, was $100,000 and $-0-, respectively.  The advance is non-interest bearing.

During the six months ended February 28, 2013 Richard Genovese deposited $300,000 with the Company for the exercise of 2,000,000 warrants at $0.15. The Company plans to issue the shares issuable as a result of exercise of these warrants in the current fiscal quarter.

During the three months ended February 28, 2013, Janspec Holdings Limited, a shareholder of the Company, made advances to the Company of $75,000 and $75,000, evidenced by one year 10% notes of the Company, due December 23, 2013 and January 13, 2014.