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&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"&gt;&lt;b&gt;NOTE 11 &amp;#150; STOCKHOLDERS&amp;#146; EQUITY&lt;/b&gt;&lt;/p&gt;

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&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Company is authorized to issue 1,125,000,000
shares of $0.001 par value common stock. As of June 30, 2013 and December 31, 2012, 24,040,812 and 23,149,145 shares were issued
and outstanding, respectively.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;On February 11, 2013, the Company issued
15,000 shares of common stock to a third party entity for investor relation services. The fair value of the shares of common stock
was $22,500 which is recorded to common stock payable as of December 31, 2012.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;On February 11, 2013, the Company issued
20,000 shares of common stock to a third party entity for financial and governance reporting services, SEC reporting services,
and other business related services. The fair value of the shares of common stock was $17,400 which is recorded to common stock
payable as of December 31, 2012.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;On February 25, 2013, the Company issued
20,000 shares of common stock to a third party entity for strategic management services. The fair value of the shares of common
stock was $17,000 which is recorded to common stock payable as of December 31, 2012.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;On January 12, 2013, the Company authorized
the issuance of 670,000 shares of common stock to an investor for $100,000 cash received. The Company issued the shares on April
19, 2013.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;On March 7, 2013, the Company authorized
the issuance of 166,667 shares of common stock to an investor for $50,000 cash received. The Company issued the shares on April
19, 2013.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;On May 15, 2013, the Company authorized
the issuance of 333,333 shares of common stock to a construction contractor for the settlement of outstanding invoices due in the
amount of $150,000. The fair value of the shares of common stock on the settlement date was $100,000 which is recorded to common
stock payable as of June 30, 2013. The Company recorded a gain on accounts payable settlement of $50,000 during the three months
ended June 30, 2013.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;As of June 30, 2013, there have been
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