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&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0 0.25in; text-align: justify"&gt;&lt;u&gt;Going Concern&lt;/u&gt;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0 0.25in; text-align: justify"&gt;&lt;font style="color: black"&gt;These
financial statements have been prepared on a going concern basis, which implies that the Company &lt;font style="letter-spacing: -0.1pt"&gt;will
continue to realize its assets and discharge its liabilities in the normal course of business. The Company has not generated significant
revenues since inception and is unlikely to generate significant revenue or earnings in the immediate or foreseeable future. As
at July 31, 2013, t&lt;/font&gt;he Company has not generated any revenues since inception, has a working capital deficiency of $1,712,258
and has an accumulated &lt;font style="letter-spacing: -0.1pt"&gt;deficit of $&lt;/font&gt;&lt;/font&gt;15,062,771 &lt;font style="color: black; letter-spacing: -0.1pt"&gt;since&lt;/font&gt;&lt;font style="color: black"&gt;
inception. &lt;font style="letter-spacing: -0.1pt"&gt;The continuation of the Company as a going concern is dependent upon the continued
financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations&lt;/font&gt;,
&lt;font style="letter-spacing: -0.1pt"&gt;and the attainment of profitable operations. &lt;/font&gt;These factors raise substantial doubt
regarding the Company&amp;#146;s ability to continue as a going concern. T&lt;font style="letter-spacing: -0.1pt"&gt;hese financial statements
do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities
that might be necessary should the Company be unable to continue as a going concern.&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0 0.25in; text-align: justify"&gt;The Company will need additional
working capital to continue or to be successful in any future business activities. Therefore, continuation of the Company as a
going concern is dependent upon obtaining the additional working capital necessary to accomplish its objective. Management plans
to seek debt or equity financing, or a combination of both, to raise the necessary working capital.&lt;/p&gt;



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