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<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-left: 27pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Twelve Months ending March 31,</font></td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; padding-left: 27pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">203,333</font></td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 27pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2016</font></td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">143,333</font></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 27pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2017</font></td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">122,431</font></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">469,097</font></td>
<td style="line-height: 115%"> </td></tr>
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<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Common Shares</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Covered by Warrants</b></p></td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Weighted Average Exercise Price</b></font></td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Weighted Average Remaining Term (Years)</b></font></td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Aggregate Intrinsic Value</b></font></td></tr>
<tr>
<td style="vertical-align: bottom; width: 40%; line-height: 115%"> </td>
<td style="vertical-align: bottom; width: 14%; line-height: 115%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 115%"> </td>
<td style="vertical-align: bottom; width: 1%; line-height: 115%"> </td>
<td style="vertical-align: bottom; width: 14%; line-height: 115%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 115%"> </td>
<td style="vertical-align: bottom; width: 14%; line-height: 115%"> </td>
<td style="vertical-align: bottom; width: 1%; line-height: 115%"> </td>
<td style="vertical-align: bottom; width: 14%; line-height: 115%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Outstanding at February 7, 2014</font></td>
<td style="vertical-align: bottom; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,482,852</font></td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; padding-right: 9.9pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1.088</font></td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; padding-right: 22.5pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2.018</font></td>
<td style="vertical-align: bottom; text-align: right; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">  Granted</font></td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">590,300</font></td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; padding-right: 9.9pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">0.500</font></td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; padding-right: 22.5pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3.000</font></td>
<td style="vertical-align: bottom; text-align: right; line-height: 115%"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
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<td style="vertical-align: bottom; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Outstanding at March 31, 2014</font></td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2,073,152</font></td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; padding-right: 9.9pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">0.920</font></td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; padding-right: 22.5pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2.160</font></td>
<td style="vertical-align: bottom; text-align: right; line-height: 115%"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; padding-right: 3.05pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$ 4,104,125</font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Exercisable at March 31, 2014</font></td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2,073,152</font></td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; padding-right: 9.9pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">0.920</font></td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; padding-right: 22.5pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2.160</font></td>
<td style="vertical-align: bottom; text-align: right; line-height: 115%"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; padding-right: 3.05pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$ 4,104,125</font></td></tr>
</table>
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<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Range</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 82%; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Common stock issuable upon exercise of warrants</font></td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 16%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,482,852</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Exercise price</font></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$0.90 - $1.60</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Market price of the Company’s common stock</font></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$2.40</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Risk free interest rate</font></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">0.44% - 0.69%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Dividend yield</font></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">0%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Volatility</font></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">357.70% - 381.34%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Expected term</font></td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1.73 - 2.96 years</font></td></tr>
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<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></p>
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<tr style="vertical-align: bottom">
<td> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="11" style="font-family: Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Fair Value Measurement at March 31, 2014</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Level 1</font></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Level 2</font></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Level 3</font></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif">Liabilities:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">  Warrant derivative liabilities</td><td style="width: 5%; font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 11%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">—  </td><td style="width: 1%; padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 5%; font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 11%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">—  </td><td style="width: 1%; padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 5%; font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 11%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">3,530,995</td><td style="width: 1%; padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif">Total</td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">—  </td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">—  </td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">3,530,995</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="11" style="font-family: Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Fair Value Measurement at June 30, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Level 1</font></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Level 2</font></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Level 3</font></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif">Liabilities:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">  None</td><td style="width: 5%; font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"></td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 11%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">—  </td><td style="width: 1%; padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 5%; font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 11%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">—  </td><td style="width: 1%; padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 5%; font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 11%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">—</td><td style="width: 1%; padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif">Total</td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">—  </td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">—  </td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">—</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Balance, February 7, 2014</font></td>
<td style="width: 1%; text-align: right; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,150,455</font></td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">  Change in fair value of derivative liabilities</font></td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2,380,540</font></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Balance, March 31, 2014</font></td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,530,995</font></td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif"> </td>
<td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">February 7, 2014 Through</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">March 31, 2014</p></td>
<td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 486px; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Loss from discontinued operations</font></td>
<td style="width: 6px; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 69px; border-bottom: black 2.25pt double; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(212,479</font></td>
<td style="width: 6px; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Current assets:</font></td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; padding-left: 9pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Cash held in escrow</font></td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">500</font></td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Prepaid assets</font></td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">14,793</font></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total current assets</font></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">15,293</font></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Noncurrent assets:</font></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Property and equipment, net</font></td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">4,048</font></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total assets from discontinued operations</font></td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">19,341</font></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Current liabilities:</font></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; line-height: 115%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">Accounts payable and accrued liabilities</font></td>
<td style="line-height: 115%; padding-bottom: 1pt"> </td>
<td style="line-height: 115%; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 115%; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">15,313</font></td>
<td style="line-height: 115%; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">Total current liabilities</font></td>
<td style="line-height: 115%; padding-bottom: 1pt"> </td>
<td style="line-height: 115%; border-bottom: Black 1pt solid"> </td>
<td style="text-align: right; line-height: 115%; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">15,313</font></td>
<td style="line-height: 115%; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 22.95pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total liabilities from discontinued operations</font></td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">15,313</font></td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="margin: 0">5</p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Cash</font></td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">209,392</font></td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Other assets</font></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">18,712</font></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Accounts payable and accrued expenses</font></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(168,325</font></td>
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Notes payable</font></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(88,482</font></td>
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Derivative liabilities</font></td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(1,150,455</font></td>
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Net liabilities retained</font></td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(1,179,158</font></td>
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The unaudited consolidated
financial statements of California Gold Corp. (“California Gold”) and Subsidiaries (collectively, the “Company”)
as of March 31, 2014 and for the three and nine month periods ended March 31, 2014 and 2013 have been prepared pursuant to the
rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally
included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States
of America have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures
made are adequate to make the information not misleading.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The consolidated balance sheet
of MV Patents, LLC (“MV Patents”) at June 30, 2013 has been derived from the audited financial statements at that date,
but does not include all of the information and notes required by accounting principles generally accepted in the United States
for complete financial statements. All adjustments that, in the opinion of management, are necessary for a fair presentation for
the periods presented have been reflected as required by the SEC. Such adjustments are of a normal, recurring nature. It is suggested
that these unaudited consolidated financial statements be read in conjunction with the financial statements and notes thereto of
MV Patents for the year ended June 30, 2013 included as Exhibit 99.1 on Form 8-K filed by the Company on March 10, 2014.  The
results of operations for interim periods are not necessarily indicative of the operating results to be expected for the full year
or any other interim period.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">California Gold was an exploration
stage mining company with a focus on the identification, acquisition and development of rare and precious metals mining properties
in the Americas. On February 7, 2014, the Company entered into a securities exchange agreement (the “Securities Exchange”)
with MVP Portfolio, LLC, a Florida limited liability company (“MVP Portfolio”), MV Patents, a Florida limited liability
company and majority member of MVP Portfolio, and other members of MVP Portfolio (all such members collectively, the “Members”).
Pursuant to the Securities Exchange, the Members sold all of their membership interests in MVP Portfolio to the Company in exchange
for an aggregate of 9,385,000 shares of common stock, $0.001 par value per share, after taking into account an anticipated 1 for
100 reverse stock split (the “Reverse Split”) of the Company’s issued and outstanding common stock on a one for
one hundred basis. Following the Securities Exchange, the Company assumed the additional line of business of MVP Portfolio.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Securities Exchange
was consummated in anticipation of a 1 for 100 Reverse Split. As of the date of the filing of this Form 10Q, the Reverse
Split has not been effected. As the Securities Exchange is dependent upon the Reverse Split, all share and per share amounts
herein have been retroactively restated to reflect the 1 for 100 Reverse Split as if it has been effected.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">MV Patents, formed on July
11, 2011, is in the developmental stage, and has limited operations. MVP Portfolio was formed on July 26, 2013 as a wholly owned
subsidiary of MV Patents. On August 30, 2013, MV Patents transferred a portion of its patents without recourse to MVP Portfolio.  Pursuant
to the Securities Exchange on February 7, 2014, MVP Portfolio ceased to be a subsidiary of MV Patents and became a wholly owned
subsidiary of California Gold. MV Patents is deemed to be the predecessor entity to MVP Portfolio.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On March 6, 2014, MVP Portfolio
changed its form of organization to a Florida corporation from a Florida limited liability company, and changed its name to Visual
Real Estate, Inc. (“VRE”). VRE has historically maintained a June 30 fiscal year, through MV Patents, the predecessor
business to MVP Portfolio.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">VRE is a development stage
company engaged in the business of patent licensing and assertion of rights under patents against parties believed to be selling
goods or services that rely upon VRE’s patented technology. VRE owns a patent portfolio it refers to as “Video Drive-by”
and online mapping, which has previously been used by its predecessors and licensees commercially. VRE currently owns a patent
portfolio consisting of eight (8) issued and sixteen (16) pending patents. The patents disclose systems and methods for providing
video drive-by data to enable a street level view of a neighborhood surrounding a geographic location. The systems include, generally,
a video and data server farm incorporating at least one (1) video storage server that stores video image files containing video
drive-by data corresponding to a geographic location, a data base server that processes a data query received from a user over
the internet and an image processing server.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The financial position, operating
results and cash flows presented herein for the periods prior to February 7, 2014, represent those of MV Patents, the predecessor
entity. The financial position, operating results and cash flows presented herein for the periods subsequent to February 6, 2014,
represent those of the Company and VRE (formerly MVP Portfolio), collectively the successor entity.  The ongoing business
of VRE is still in the development stage and has generated no revenues to date.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Results of operations from
February 7, 2014 through March 31, 2014 include the pre-Securities Exchange business unrelated to VRE, which is reflected as discontinued
operations in the consolidated financial statements, and the business of VRE.  The results of operations for the three
months ended March 31, 2014 includes the combined results of operations of MV Patents from January 1, 2014 through February 6,
2014 and the consolidated results of operations of California Gold and Subsidiaries (including (i) CalGold de Mexico, S. de R.L.
de C.V., formed to explore mining opportunities in Mexico, and included in discontinued operations as of and for the periods ending
March 31, 2014 and (ii) VRE) for the period February 7, 2014 through March 31, 2014. The results of operations for the nine months
ended March 31, 2014 includes the combined results of operations of MV Patents from July 1, 2013 through February 6, 2014 and the
consolidated results of operations of California Gold and Subsidiaries for the period February 7, 2014 through March 31, 2014.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Results of operations for the
three month and nine month periods ended March 31, 2013 includes the results of operations of MV Patents, as the predecessor business
to VRE.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Securities Exchange was
accounted for as a reverse recapitalization, such that MVP Portfolio (VRE as of March 6, 2014), the legal acquiree, is considered
the acquirer for accounting purposes and VRE is treated as the surviving and continuing entity. Pursuant to the Securities Exchange,
the pre-Securities Exchange exploration stage mining business will be discontinued, and the business of VRE will be continued.
In addition, VRE’s management has assumed operational, management and governance control of the Company. The accounting for
a reverse recapitalization is similar to that resulting from a reverse acquisition, except that no goodwill or other intangible
assets should be recorded. The fair value of the consideration effectively transferred in a reverse recapitalization is equal to
the net tangible assets (liabilities) assumed. The net liabilities of California Gold retained subsequent to the transaction are
as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Cash</font></td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">209,392</font></td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Other assets</font></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">18,712</font></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Accounts payable and accrued expenses</font></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(168,325</font></td>
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Notes payable</font></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(88,482</font></td>
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Derivative liabilities</font></td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(1,150,455</font></td>
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Net liabilities retained</font></td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(1,179,158</font></td>
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Subsequent to the Securities
Exchange, the Company changed the fiscal year end of California Gold to June 30, which is VRE’s year end.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The ongoing business plan of
the Company is to assert its intellectual property rights to monetize its patents through net recoveries. Net recoveries relate
to monetary payments received by the Company in respect to its patents through judgments, settlements, royalty agreements, or other
disposition of the patents or cash proceeds of any equity actually received as consideration for any such disposition, including
those received in connection with litigation.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt">The Company has no technologies or technology operations.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The accompanying consolidated
financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction
of liabilities and commitments in the normal course of business.  As shown in the condensed consolidated financial
statements, the Company is currently in the development stage with losses for all periods presented.   The Company
has not established an ongoing source of revenues and has funded activities to date primarily from convertible notes offerings. 
These conditions raise substantial doubt about the Company’s ability to continue as a going concern.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company is subject to a
number of risks similar to other companies in the development stage, including, but not limited to, the need to obtain adequate
funding and possible risk of failure to monetize its patents. If the Company does not successfully monetize its patents, it will
be unable to generate revenues or achieve profitability.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Management’s plan with
respect to funding this development is to secure equity financing through access to U.S. capital markets as a registrant of the
U.S. Securities and Exchange Commission. </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">While the Company believes
it will be successful in obtaining the necessary financing to (i) fund its operations, (ii) monetize its patents and meet revenue
projections and (iii) manage costs,  it does not currently have any financing plans in place and there are no assurances
that such additional funding will be achieved and that it will succeed in its future operations. The consolidated financial
statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts
of liabilities that might be necessary should the Company be unable to continue as a going concern. Operating results for the three
and nine month periods ended March 31, 2014, are not necessarily indicative of the results that may be expected for the fiscal
year ending June 30, 2014.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Pursuant to the Securities Exchange,
the pre-existing exploration stage mining business will be discontinued. The Company plans on transferring the pre-Securities Exchange
assets and liabilities related to the historical business which existed prior to the acquisition of MVP Portfolio to a to-be-formed
wholly owned subsidiary. The Company plans to seek a buyer for the to-be-formed wholly owned subsidiary and/or the assets and liabilities
of such business.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The following
table presents summarized operating results for these discontinued operations for the pre-Securities Exchange business. The table
below does not present the results of operations of MV Patents because the historical financial information represents the
activity of MV Patents as the predecessor business to VRE, and does not include any of the operations of the discontinued
exploration stage mining business.  The historical financial information for MV Patents for the three and nine
month periods ended March 31, 2013 is included in the accompanying consolidated financial statements.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif"> </td>
<td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">February 7, 2014 Through</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">March 31, 2014</p></td>
<td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 486px; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Loss from discontinued operations</font></td>
<td style="width: 6px; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 69px; border-bottom: black 2.25pt double; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(212,479</font></td>
<td style="width: 6px; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Components of assets and liabilities
from discontinued operations consist of the following as of March 31, 2014. The table does not present the discontinued assets
and liabilities as of June 30, 2013 because the June 30, 2013 historical financial information represents the activity of MV Patents
as the predecessor business to VRE, while the discontinued operations relates specifically to the pre-existing exploration stage
mining business.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Current assets:</font></td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; padding-left: 9pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Cash held in escrow</font></td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">500</font></td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Prepaid assets</font></td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">14,793</font></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total current assets</font></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">15,293</font></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Noncurrent assets:</font></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Property and equipment, net</font></td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">4,048</font></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total assets from discontinued operations</font></td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">19,341</font></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Current liabilities:</font></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; line-height: 115%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">Accounts payable and accrued liabilities</font></td>
<td style="line-height: 115%; padding-bottom: 1pt"> </td>
<td style="line-height: 115%; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 115%; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">15,313</font></td>
<td style="line-height: 115%; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">Total current liabilities</font></td>
<td style="line-height: 115%; padding-bottom: 1pt"> </td>
<td style="line-height: 115%; border-bottom: Black 1pt solid"> </td>
<td style="text-align: right; line-height: 115%; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">15,313</font></td>
<td style="line-height: 115%; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 22.95pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total liabilities from discontinued operations</font></td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">15,313</font></td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On February 7, 2014 (the “February
2014 Offering”) and March 3, 2014 (the “March 2014 Offering”), the Company held two separate closings of private
placement offerings pursuant to which it sold to various accredited investors (collectively, the “Investors”) $2,942,495
and $992,500 (before deducting placement agent fees and expenses of the offering), respectively, in principal amount of its 10%
convertible promissory notes (the “Notes”). An additional $25,000 of the Notes was issued for the settlement of legal
fees during the period from February 7, 2014 through March 31, 2014. The Notes mature within one year from the date of issuance.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Notes will automatically
convert into shares of the Company’s to-be authorized Series C Convertible Preferred Stock, $0.001 par value per share (the
“Series C Preferred Stock”), at a pre-Reverse Split conversion price of $0.005 per share and a post-Reverse Split conversion
price of $0.50 per share (the “Conversion Price”), upon the Company’s filing of a Certificate of Designation
of Series C Convertible Preferred Stock (the “Certificate of Series C Designation”) with the Secretary of State of
the State of Nevada following completion of the proxy voting process to increase our authorized preferred stock, and which Series
C Preferred Stock shall be convertible into shares of the Company’s Common Stock on a one share for one share basis. The
Company evaluated the shares and determined a contingent beneficial conversion feature of $3,959,995 existed within this transaction.
The beneficial conversion is contingent upon the filing of the Series C Convertible Preferred Stock Designation, and the Reverse
Split. The beneficial conversion amount related to the value of the Notes will be accreted back to the Notes in accordance with
the requirements of FASB ASC Topic 470-20, <i>Accounting for Debt Instruments with Specific Conversion Features, </i>when the contingency
is met<i>.</i></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Also in connection with the
February and March 2014 Offerings, the Company paid cash of $295,150 and issued an aggregate of 590,300 warrants (post 1 for 100
Reverse Split) as payment of commissions. The Warrants entitle the holder to purchase shares of Common Stock at an exercise price
of $0.50 per share and will be exercisable for three (3) years from the date of issuance. The fair value of the warrants was determined
to be $1,120,970. The warrants and the cash commissions were recorded as deferred financing costs which are being amortized to
interest expense over the life of the Notes using the effective interest method. Amortization of $333,878 was recorded against
these deferred financing costs during the period from February 7, 2014 through March 31, 2014.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">During the period from February
7, 2014 through March 31, 2014, additional amortization expense of $13,190 was recognized associated with the debt discounts related
to the outstanding notes originally issued in November 2013. The unamortized discount associated with these notes was $230,279
as of March 31, 2014.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">As of February 7, 2014
and March 31, 2014, there were 2,965,704 (post 1 for 100 Reverse Split) outstanding derivative warrants with
1,482,852 common shares issuable upon exercise. The warrants qualify as derivative liabilities due to the existence of reset
provisions which cause the instruments to no longer be indexed to the Company’s own stock under FASB ASC Topic 815, <i>Derivatives
and Hedging</i>. The estimated fair value of the derivative warrants were calculated using the Black-Scholes option pricing
model as of March 31, 2014. The fair value of the warrants was determined to be $1,150,455 and $3,530,995 as of February 7, 2014 and
March 31, 2014, respectively. The company recorded a $2,380,540 loss on the change in fair value as non-operating expense for
the period from February 7, 2014 through March 31, 2014.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The range of significant assumptions
used in the Black-Scholes option pricing model as of March 31, 2014 were as follows (post 1 for 100 Reverse Split):</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Range</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 82%; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Common stock issuable upon exercise of warrants</font></td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 16%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,482,852</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Exercise price</font></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$0.90 - $1.60</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Market price of the Company’s common stock</font></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$2.40</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Risk free interest rate</font></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">0.44% - 0.69%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Dividend yield</font></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">0%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Volatility</font></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">357.70% - 381.34%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Expected term</font></td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1.73 - 2.96 years</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><u>Fair Value Measurements</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company measures its financial
assets and liabilities in accordance with the requirements of FASB ASC Topic 820, <i>Fair Value Measurements and Disclosures.</i>
FASB ASC Topic 820 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting
principles, and expands disclosures about fair value measurements. ASC 820 establishes a three-tier fair value hierarchy which
prioritizes the inputs used in measuring fair value as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Level 1.  Observable
inputs such as quoted prices in active markets;</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Level 2.  Inputs,
other than the quoted prices in active markets, that are observable either directly or indirectly; and</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Level 3.  Unobservable
inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company uses Level 3 inputs
to estimate the fair value of its derivative liabilities.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">  </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt">The following table sets forth the fair value hierarchy
within our financial assets and liabilities by level that they were accounted for at fair value on a recurring basis as of March
31, 2014 and June 30, 2013:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="11" style="font-family: Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Fair Value Measurement at March 31, 2014</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Level 1</font></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Level 2</font></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Level 3</font></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif">Liabilities:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">  Warrant derivative liabilities</td><td style="width: 5%; font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 11%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">—  </td><td style="width: 1%; padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 5%; font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 11%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">—  </td><td style="width: 1%; padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 5%; font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 11%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">3,530,995</td><td style="width: 1%; padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif">Total</td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">—  </td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">—  </td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">3,530,995</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="11" style="font-family: Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Fair Value Measurement at June 30, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Level 1</font></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Level 2</font></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Level 3</font></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif">Liabilities:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">  None</td><td style="width: 5%; font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"></td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 11%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">—  </td><td style="width: 1%; padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 5%; font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 11%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">—  </td><td style="width: 1%; padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 5%; font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="width: 11%; border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">—</td><td style="width: 1%; padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Times New Roman, Times, Serif">Total</td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">—  </td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">—  </td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="font-family: Times New Roman, Times, Serif; text-align: right">—</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt">The following table sets forth the changes in the
fair value of derivative liabilities for the period from February 7, 2014 through March 31, 2014:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Balance, February 7, 2014</font></td>
<td style="width: 1%; text-align: right; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,150,445</font></td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">  Change in fair value of derivative liabilities</font></td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2,380,540</font></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Balance, March 31, 2014</font></td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,530,995</font></td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><i>Options</i></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On February 7, 2014, the Company’s
Board of Directors voted to terminate the 2007 Stock Option Plan and adopted the 2014 Equity Incentive Plan (the “2014 Plan”),
which provides for the issuance of incentive awards of up to 6,150,564 post 1 for 100 Reverse Split shares of the Company’s
Common Stock to officers, key employees, consultants and directors.  The options’ exercise price will be no less
than the closing price of the Company’s shares on the day of issuance. When incentive stock options are granted to an employee
who, at the time the incentive stock option is granted, owns stock representing more than 10% of the voting power of all classes
of stock of the Company, the per share exercise price will be no less than 110% of the closing price of the Company’s shares
on the day of issuance.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company has 6,150,564 options
available for grant under the 2014 Plan. As of March 31, 2014, there were no stock options outstanding.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><i>Warrants</i></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The following table presents
the warrant activity during the period from February 7, 2014 through March 31, 2014 presented on a post 1 for 100 reverse split
basis:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Common Shares</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Covered by Warrants</b></p></td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Weighted Average Exercise Price</b></font></td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Weighted Average Remaining Term (Years)</b></font></td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Aggregate Intrinsic Value</b></font></td></tr>
<tr>
<td style="vertical-align: bottom; width: 40%; line-height: 115%"> </td>
<td style="vertical-align: bottom; width: 14%; line-height: 115%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 115%"> </td>
<td style="vertical-align: bottom; width: 1%; line-height: 115%"> </td>
<td style="vertical-align: bottom; width: 14%; line-height: 115%"> </td>
<td style="vertical-align: top; width: 1%; line-height: 115%"> </td>
<td style="vertical-align: bottom; width: 14%; line-height: 115%"> </td>
<td style="vertical-align: bottom; width: 1%; line-height: 115%"> </td>
<td style="vertical-align: bottom; width: 14%; line-height: 115%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Outstanding at February 7, 2014</font></td>
<td style="vertical-align: bottom; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,482,852</font></td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; padding-right: 9.9pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1.088</font></td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; padding-right: 22.5pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2.018</font></td>
<td style="vertical-align: bottom; text-align: right; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">  Granted</font></td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">590,300</font></td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; padding-right: 9.9pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">0.500</font></td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; padding-right: 22.5pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3.000</font></td>
<td style="vertical-align: bottom; text-align: right; line-height: 115%"> </td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Outstanding at March 31, 2014</font></td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2,073,152</font></td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; padding-right: 9.9pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">0.920</font></td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; padding-right: 22.5pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2.160</font></td>
<td style="vertical-align: bottom; text-align: right; line-height: 115%"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; padding-right: 3.05pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$ 4,104,125</font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Exercisable at March 31, 2014</font></td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2,073,152</font></td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; padding-right: 9.9pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">0.920</font></td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; padding-right: 22.5pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2.160</font></td>
<td style="vertical-align: bottom; text-align: right; line-height: 115%"> </td>
<td style="vertical-align: bottom; border-bottom: black 2.25pt double; padding-right: 3.05pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$ 4,104,125</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On February 6, 2014, the Company
entered into warrant exchange agreements related to 3,250,000 warrants originally issued with convertible notes in November 2013.
The warrants were cancelled and exchanged for the right to receive, upon effectiveness of the Reverse Split, 4,000,000 shares of
the Company’s common stock.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">A related party stockholder,
purchased 6,000,000 units of the Company’s Preferred Series A Stock in the Company’s 2010/2011 Private Placement for
an aggregate investment of $150,000. Such stockholder converted the 6,000,000 units of Preferred Series A Stock to 60,000 shares
of the Company’s common stock on February 28, 2014.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">During the period from February
7, 2014 through March 31, 2014, a stockholder contributed $1,000 to the Company.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">As of March 31, 2014, the Company
owed its officers and directors $12,746 for compensation which was recorded as accounts payable and accrued liabilities in its
consolidated balance sheets. As of June 30, 2013, MV Patents owed its officers and directors $435,516, which was recorded as accrued
salaries – member in its consolidated balance sheets.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company has employment
agreements with two employees and a separate consulting agreement with one of the Company’s executive officers. The aggregate
future commitment under these agreements is as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-indent: 0.5in">                                                                                            </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-left: 27pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Twelve Months ending March 31,</font></td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; padding-left: 27pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 8%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">203,333</font></td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 27pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2016</font></td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">143,333</font></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 27pt; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2017</font></td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">122,431</font></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">469,097</font></td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">These agreements provide for
additional bonus payments that are calculated as defined.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">The Company is involved in
various legal proceedings and litigation arising in the ordinary course of business. In the opinion of management and legal counsel,
the outcome of such proceedings and litigation will not have a material adverse effect on the Company's condensed consolidated
financial statements.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">Pursuant to the Securities
Exchange the Company agreed to pay the members of MV Patents ten (10%) percent of the net proceeds to be received from any enforcement
activities or sales transactions related to the patents owned or applications pending as of the closing of the Securities Exchange.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">During May 2014, the Company
issued an aggregate of 80,000 (post 1 for 100 reverse split) common shares for the conversion of 8,000,000 shares of Series A Preferred
stock.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">On April 28, 2014 the Company
notified Mexivada Mining Corp. and Compania Minera Mexivada S.A de C.V., of termination of the Mexivada Property Option Agreement
dated as of February 11, 2011, as amended October 24, 2011, and that the Company would not pay any further fees or expenses associated
with the Agreement.  As a result, the Company continues to own a 20% interest in 2 exploration mineral concessions,
La Viuda and La Viuda 1, situated in the Municipality of Montezuma, Sonora, Mexico.</p>
-2054270
-153186
-2326747
182500
441527
10000
10000
140591
168947
576107
98160
75836
357984
38500
-423
-423
-25799
-25799
25000
25000
2380540
2380540
347068
347068
294
294
209392
209392
209392
209392
39520
1334
1867724
-38186
1870247
3712602
115000
3987602
20000
115000
295000
50000
50000
3934995
3934995
295150
295150
6000
6000
1388550
1388550
-578561
-237667
1829118
2061880
3426602
1829118
2061880
3426602
578561
237667
-1908
-900
-1067224
-1075565
-1081687
-1718277
-1718277
-1718277
-2785501
-2793842
-2799964
-662263
-662263
-662263
-1718277
-1718277
-1718277
-2380540
-2380540
-2380540
1908
900
-580469
-238567
-2896342
-3137445
-4508289
-1718277
-1718277
-1718277
-4614619
-4855722
-6226566
-212479
-212479
-212479
-212479
-212479
-212479
1161804
1161804
-0.50
-0.21
-0.50
-0.21
-0.00
-0.00
587139
-825813
-238674
3006199
1718277
4724476
2997129
2997129
MV Portfolios, Inc., formerly California Gold Corp., is filing this amendment (the "Amendment") to the Company's Form 10-Q for the period ended March 31, 2014 filed with the Securities Exchange Commission on July 23, 2014 (the "Original Report"), in order to provide restated unaudited consolidated financial statements and footnotes as discussed in Note 12 to the accompanying restated unaudited consolidated financial statements.
P2Y0M7D
P2Y1M28D
P2Y1M28D
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 31.5pt; text-align: justify">During the audit of the Company’s
consolidated financial statements for the year ended June 30, 2014, the Company identified an error in the accounting for and presentation
of the impact of the November 15, 2103 private placement offering (“November Offering”) on the Company’s derivative
liability as of January 31, 2014 and March 31, 2014. In the November Offering, the Company issued warrants (“November 2013
Warrants”) entitling the Investors to purchase one thousand (1,000) shares of common stock for each $1.00 principal amount
of consideration received, at an exercise price of $0.10 per share. Since the exercise price per share of the November 2013 Warrants
was lower than the $3.00 warrant exercise prices of the warrants issued during the 2010/2011 private placement offerings, and the
$6.00 exercise price of the warrants issued in the 2012 private placement offering, the exercise prices with respect to these previous
warrant issuances should have been lowered, and the amount of shares exercisable increased based on the reset provisions in each
warrant agreement. The Company did not account for the reset provisions in the previously reported consolidated financial statements
as of January 31, 2014, and therefore the amounts accounted for as assumed net liabilities in the February 6, 2014 Reverse Recapitalization
(Note 2) were recorded erroneously as of March 31, 2014. In addition the amount calculated as the fair market value for the derivative
liabilities as of March 31, 2014 did not properly account for the change in exercise price and number of exercisable shares for
the warrants from the 2010-2012 private placement offerings, as reset by the November Offering.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 31.5pt; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 31.5pt; text-align: justify">In accordance with the SECs
Staff Accounting Bulletin Nos. 99 and 108 (“SAB 99” and “SAB 108”), the Company evaluated this error and,
based on an analysis of quantitative and qualitative factors, determined that the error is material to the March 31, 2014 period.
Therefore, as permitted by SAB 108, the Company corrected, in the current filing, previously reported results for the period ended
March 31, 2014.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 31.5pt; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 31.5pt">The following table presents the effect of the
correction of the previously reported information and the impact on the Company’s unaudited consolidated balance sheet for
the year ended March 31, 2014:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="11" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>As of March 31, 2014</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="3" style="text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>As Previously </b></font><br />
<font style="font: 8pt Times New Roman, Times, Serif"><b>Reported</b></font></td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="3" style="text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>Adjustments</b></font></td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="3" style="text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>As Restated</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Liabilities and stockholders’ deficit:</font></td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="text-align: right; line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="text-align: right; line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="text-align: right; line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 46%; padding-left: 13.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Derivative liability</font></td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">986,905</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,544,090</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">3,530,995</font></td>
<td style="width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 13.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Additional paid-in capital</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">587,139</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(825,813</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(238,674</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
</table>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top; background-color: #CCEEFF">
<td style="width: 60%; padding-left: 13.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Deficit accumulated during the exploration stage</font></td>
<td style="width: 1%; padding-left: 13.5pt; line-height: 107%"> </td>
<td style="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(3,006,199)</font></td>
<td style="width: 5%; padding-left: 13.5pt; text-align: right; line-height: 107%"> </td>
<td style="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277)</font></td>
<td style="width: 1%; padding-left: 13.5pt; text-align: right; line-height: 107%"> </td>
<td style="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(4,724,476)</font></td>
<td style="width: 1%; padding-left: 13.5pt; text-align: right; line-height: 107%"> </td></tr>
</table>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 46%; padding-left: 13.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total liabilities and stockholders’ deficit</font></td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,997,129</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,997,129</font></td>
<td style="width: 1%; line-height: 107%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 31.5pt">The following table presents the effect of the
correction of the previously reported information and the impact on the Company’s unaudited consolidated statement of expenses
for the three months ended March 31, 2014:</p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="11" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>As of March 31, 2014</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="3" style="text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>As Previously </b></font><br />
<font style="font: 8pt Times New Roman, Times, Serif"><b>Reported</b></font></td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="3" style="text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>Adjustments</b></font></td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="3" style="text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>As Restated</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 46%; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Loss from operations:</font></td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,829,118</font></td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,829,118</font></td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Other income (expenses):</font></td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="text-align: right; line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="text-align: right; line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="text-align: right; line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 13.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Realized and unrealized loss on derivatives</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(662,263</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(2,380,540</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total other income (expenses)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,067,224</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(2,785,501</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Loss from continuing operations</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(2,896,342</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(4,614,619</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Loss from discontinued operations</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(212,479</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(212,479</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net loss</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(3,108,821</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(4,827,089</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 31.5pt">The following table presents the effect of the
correction of the previously reported information and the impact on the Company’s unaudited consolidated statement of expenses
for the nine months ended March 31, 2014:</p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="11" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>As of March 31, 2014</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="3" style="text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>As Previously </b></font><br />
<font style="font: 8pt Times New Roman, Times, Serif"><b>Reported</b></font></td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="3" style="text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>Adjustments</b></font></td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="3" style="text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>As Restated</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 46%; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Loss from operations:</font></td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(2,061,880</font></td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(2,061,880</font></td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Other income (expenses):</font></td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="text-align: right; line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="text-align: right; line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="text-align: right; line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 13.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Realized and unrealized loss on derivatives</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(662,263</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(2,380,540</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total other income (expenses)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,075,565</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(2,793,842</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Loss from continuing operations</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(3,137,445</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(4,855,722</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Loss from discontinued operations</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(212,479</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(212,479</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net loss</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(3,349,924</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(5,068,201</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 2pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">The following table presents the effect of the correction
of the previously reported information and the impact on the Company’s unaudited consolidated statement of expenses for the
period July 11, 2011 (Inception) through March 31, 2014:</p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="11" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>As of March 31, 2014</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="3" style="text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>As Previously </b></font><br />
<font style="font: 8pt Times New Roman, Times, Serif"><b>Reported</b></font></td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="3" style="text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>Adjustments</b></font></td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="3" style="text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>As Restated</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 46%; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Loss from operations:</font></td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(3,426,602</font></td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(3,426,602</font></td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Other income (expenses):</font></td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="text-align: right; line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="text-align: right; line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="text-align: right; line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 13.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Realized and unrealized loss on derivatives</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(662,263</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(2,380,540</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total other income (expenses)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,081,687</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(2,799,964</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Loss from continuing operations</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(4,508,289</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(6,226,566</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Loss from discontinued operations</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(212,479</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(212,479</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net loss</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(4,720,768</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(6,493,045</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 31.5pt; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">In addition to the information noted above the correction
of the previously reported information impacted the Company’s loss from continuing operations per share to $0.42 from $0.27
and to $0.44 from $0.29 for the three and nine months ended March 31, 2014, respectively.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 31.5pt">The following table presents the effect of the
correction of the previously reported information and the impact on the Company’s unaudited consolidated balance sheet for
the year ended March 31, 2014:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="11" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>As of March 31, 2014</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="3" style="text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>As Previously </b></font><br />
<font style="font: 8pt Times New Roman, Times, Serif"><b>Reported</b></font></td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="3" style="text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>Adjustments</b></font></td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="3" style="text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>As Restated</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Liabilities and stockholders’ deficit:</font></td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="text-align: right; line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="text-align: right; line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="text-align: right; line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 46%; padding-left: 13.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Derivative liability</font></td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">986,905</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,544,090</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">3,530,995</font></td>
<td style="width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 13.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Additional paid-in capital</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">587,139</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(825,813</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(238,674</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
</table>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top; background-color: #CCEEFF">
<td style="width: 60%; padding-left: 13.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Deficit accumulated during the exploration stage</font></td>
<td style="width: 1%; padding-left: 13.5pt; line-height: 107%"> </td>
<td style="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(3,006,199)</font></td>
<td style="width: 5%; padding-left: 13.5pt; text-align: right; line-height: 107%"> </td>
<td style="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277)</font></td>
<td style="width: 1%; padding-left: 13.5pt; text-align: right; line-height: 107%"> </td>
<td style="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(4,724,476)</font></td>
<td style="width: 1%; padding-left: 13.5pt; text-align: right; line-height: 107%"> </td></tr>
</table>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 46%; padding-left: 13.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total liabilities and stockholders’ deficit</font></td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,997,129</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,997,129</font></td>
<td style="width: 1%; line-height: 107%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 31.5pt">The following table presents the effect of the
correction of the previously reported information and the impact on the Company’s unaudited consolidated statement of expenses
for the three months ended March 31, 2014:</p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="11" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>As of March 31, 2014</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="3" style="text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>As Previously </b></font><br />
<font style="font: 8pt Times New Roman, Times, Serif"><b>Reported</b></font></td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="3" style="text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>Adjustments</b></font></td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="3" style="text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>As Restated</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 46%; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Loss from operations:</font></td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,829,118</font></td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,829,118</font></td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Other income (expenses):</font></td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="text-align: right; line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="text-align: right; line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="text-align: right; line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 13.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Realized and unrealized loss on derivatives</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(662,263</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(2,380,540</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total other income (expenses)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,067,224</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(2,785,501</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Loss from continuing operations</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(2,896,342</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(4,614,619</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Loss from discontinued operations</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(212,479</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(212,479</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net loss</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(3,108,821</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(4,827,089</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 31.5pt">The following table presents the effect of the
correction of the previously reported information and the impact on the Company’s unaudited consolidated statement of expenses
for the nine months ended March 31, 2014:</p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="11" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>As of March 31, 2014</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="3" style="text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>As Previously </b></font><br />
<font style="font: 8pt Times New Roman, Times, Serif"><b>Reported</b></font></td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="3" style="text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>Adjustments</b></font></td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="3" style="text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>As Restated</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 46%; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Loss from operations:</font></td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(2,061,880</font></td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(2,061,880</font></td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Other income (expenses):</font></td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="text-align: right; line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="text-align: right; line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="text-align: right; line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 13.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Realized and unrealized loss on derivatives</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(662,263</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(2,380,540</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total other income (expenses)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,075,565</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(2,793,842</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Loss from continuing operations</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(3,137,445</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(4,855,722</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Loss from discontinued operations</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(212,479</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(212,479</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net loss</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(3,349,924</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(5,068,201</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></p>
<p style="font: 2pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">The following table presents the effect of the correction
of the previously reported information and the impact on the Company’s unaudited consolidated statement of expenses for the
period July 11, 2011 (Inception) through March 31, 2014:</p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="11" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>As of March 31, 2014</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="3" style="text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>As Previously </b></font><br />
<font style="font: 8pt Times New Roman, Times, Serif"><b>Reported</b></font></td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="3" style="text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>Adjustments</b></font></td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td colspan="3" style="text-align: center; line-height: 107%; font-size: 8pt"><font style="font: 8pt Times New Roman, Times, Serif"><b>As Restated</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 46%; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Loss from operations:</font></td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(3,426,602</font></td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 5%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(3,426,602</font></td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Other income (expenses):</font></td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="text-align: right; line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="text-align: right; line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td>
<td style="text-align: right; line-height: 107%; font-size: 8pt"> </td>
<td style="line-height: 107%; font-size: 8pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 13.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Realized and unrealized loss on derivatives</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(662,263</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(2,380,540</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total other income (expenses)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,081,687</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(2,799,964</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Loss from continuing operations</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(4,508,289</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(6,226,566</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Loss from discontinued operations</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(212,479</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(212,479</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net loss</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(4,720,768</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,718,277</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(6,493,045</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 31.5pt; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">In addition to the information noted above the correction
of the previously reported information impacted the Company’s loss from continuing operations per share to $0.42 from $0.27
and to $0.44 from $0.29 for the three and nine months ended March 31, 2014, respectively.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt"> </p>
Takes into account an anticipated reverse stock split on a 1 for 100 basis as further discussed in the Quarterly Report.
California Gold Corp. and Subsidiaries
MV Patents, LLC
Restated