OPTIONS AND WARRANTS (Tables)

9 Months Ended

May 31, 2013

Notes to Financial Statements

Summary of stock option awarded

The following table summarizes the changes in options outstanding and the related prices for the shares of the Company’s common stock issued to employees and non-employees of the Company. These options were granted in lieu of cash compensation for services performed.

	Shares		Weighted Average Exercise Price
Outstanding, September 1, 2012		-0-	$	-0-
Granted		-		-
Expired/Cancelled		-		-
Exercised		-		-
Outstanding, period ended May 31, 2013		-0-	$	-0-
Exercisable at May 31, 2013		-0-	$	-0-

Summary of stock warrant awarded

During the nine months ended May 31, 2013, the Company issued no warrants in connection with the sales of common stock and conversion of debt into common stock.

	Warrants			Weighted Average Exercise Price
Outstanding, September 1, 2012		32,440,625	$	0.18
Granted		-0-		-0-
Expired/Cancelled		-0-		-0-
Exercised		2,000,000	$	0.15
Outstanding, period ended May 31, 2013		30,440,625	$	0.18
Exercisable, period ended May 31, 2013		30,440,625	$	0.18

Summary of stock warrant

	Warrants Outstanding						Warrants Exercisable
Year	Exercise  Price		Number of  Warrants Outstanding		Weighted Average Contractual Life (Years)		Number Exercisable		Weighted Average Exercise Price
2008	$	2.00		100,000		0.15		100,000		2.00
2009		0.15		*8,000,000		0.67		8,000,000		0.15
2009		0.15		*2,500,000		0.72		2,500,000		0.15
2009		0.15		*500,000		0.75		500,000		0.15
2009		0.15		*1,700,000		0.89		1,700,000		0.15
2009		0.15		*150,000		0.91		150,000		0.15
2009		0.15		*50,000		0.93		50,000		0.15
2009		0.15		*50,000		0.95		50,000		0.15
2009		0.15		*500,000		1.22		500,000		0.15
2009		0.15		*2,050,000		1.22		2,050,000		0.15
2011		0.30		6,600,625		2.50		6,600,625		0.30
2011		0.30		500,000		2.60		500,000		0.30
2011		0.10		6,840,000		3.00		6,840,000		0.10
2011		0.10		500,000		3.11		500,000		0.10
2012		0.25		400,000		3.46		400,000		0.25
Total				30,440,625				30,440,625