SUBSEQUENT EVENTS

9 Months Ended

Feb. 29, 2012

SUBSEQUENT EVENTS [Abstract]

SUBSEQUENT EVENTS

NOTE 10 -SUBSEQUENT EVENTS

Acquisition of BEST, LLC

In connection with its planned acquisition of a 100% equity interest in BEST, LLC, a company organized under the laws of the Russian Federation, the Company issued 4.5 million common shares and 425 shares of the Company's Series A Preferred Stock on March 30, 2012. BEST, LLC owns a 49-year lease to develop and operate a coal mine in Novosibirsk, Russia and approximately 180,000 metric tons of coking coal. Upon closing of this planned acquisition, the Company expects to issue an additional 115.5 million common shares, 575 Series A Preferred Stock and 1,000 Series B Preferred Stock pursuant to its purchase agreement with the equity holders of BEST, LLC.

Loan receivable

On March 1, 2012, the Company agreed to loan up to $1.4 million to Seacrest Trading, Ltd, a stockholder of BEST, LLC.  The loan has a term of 120 days and is subject to a monthly interest of 2%.  An initial advance on the loan of $400,000 was made as of February 29, 2012 and is reported as loan receivable in the consolidated balance sheets.