RELATED PARTY TRANSACTIONS

9 Months Ended

May 31, 2013

Notes to Financial Statements

Note 5 - RELATED PARTY TRANSACTIONS

During the nine months ended May 31, 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 nine months ended May 31, 2013, Janst Limited, an affiliate of the Company (“Janst”), entered into a subscription agreement to purchase 5,714,287 shares of our common stock at $0.07 per share for an aggregate investment in the Company of $400,000.

As of May 31, 2013 and August 31, 2012, the amount due Genovese was $461,510 and $661,510 respectively. The advances are non-interest bearing.

As of May 31, 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 nine months ended May 31, 2013, Richard Genovese exercised 2,000,000 warrants at $0.15 for an aggregate amount of $300,000.

During the nine months ended May 31, 2013, Janspec Holdings Limited and affiliated companies, a shareholder of the Company, made advances to the Company of $792,000, evidenced by one year 10% notes of the Company, due December 23, 2013 through May 30, 2014.