5. RELATED PARTY TRANSACTIONS AND AMOUNTS DUE

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

NOTE 5 - RELATED PARTY TRANSACTIONS AND AMOUNTS DUE

Transactions with related parties were in the normal course of operations and have been valued in these financial statements at the exchange amount, which is the amount of consideration agreed to and established by the related parties.

a)	Related Party Amounts Due
At September 30, 2013, the Company owed a company controlled by its sole director and officer $13,700 (December 31, 2012 - $30,970) which was included in accounts payable.
At September 30, 2013, the Company had prepaid $8,990 (December 31, 2012 - $43,022) in consulting fees to a company controlled by its sole director and officer.

b)

Promissory Notes Due to Related Party

At December 31, 2012, the Company was indebted for unsecured promissory notes due on demand, bearing interest at 8% per annum, totaling $7,116 including accrued interest of $1,216. The promissory notes were due to a company controlled by the sole director and officer of the Company. Effective January 1, 2013 the Company, its sole director and CEO, and his private company, mutually agreed that all funds due to the CEO and his company would no longer bear interest.  Consequently, the promissory notes were reclassified to accounts payable.

c)	Consulting Services
During the nine months ended September 30, 2013, the Company incurred $83,480 (September 30, 2012 - $72,000) in consulting fees to the sole director and officer of the Company. See Note 6.