2.4.0.80012 - Disclosure - Common Stocktruefalsefalse1falsefalsefalseFrom2013-01-01to2013-03-31http://www.sec.gov/CIK0001420421duration2013-01-01T00:00:002013-03-31T00:00:002falsefalsefalseFrom2012-01-01to2012-12-31http://www.sec.gov/CIK0001420421duration2012-01-01T00:00:002012-12-31T00:00:001true1MSTG_NotesToFinancialStatementsAbstractMSTG_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalse2falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false2MSTG_CommonStockTextBlockMSTG_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">In February 2007,
the Company issued 64,000,000 shares of common stock at $0.0000125 per share to the Founders of the Company for $800.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">In February
2008, the Company sold 22,400,000 shares of common stock at $0.002 per share pursuant to its public offering. The Company received
net proceeds of $44,964.</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; text-align: justify; text-indent: 1in">In February 2008,
the Company issued 800,000 shares of common stock with the fair value of $0.0075 per share for services rendered. The Company
recorded stock based compensation expense of $6,000 in connection with this issuance.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">On December 13, 2010, the Company issued
20,000,000 shares of common stock as payment for certain mining leases in Honduras at a fair value of $2,500.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">On December 15, 2010,
the Company notified FINRA of its intention to implement a 1 for 8 share dividend or forward stock split of its issued and outstanding
common stock to the holders of record as of December 27, 2010 (the “Shareholders”). The forward stock split became effective
as of the start of business on January 3, 2011. All share and per share data have been retroactively restated to reflect this
recapitalization.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">On February 22, 2011, the Company issued 20,000,000 shares of common stock as payment for certain additional
mining leases in Honduras at a fair value of $2,500.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">On March 28, 2011, the Company sold 60,000 units consisting of 60,000 shares of common stock and 30,000 warrants for
$15,000. The warrants are exercisable at $0.50 per share and have a two year term.</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; text-align: justify; text-indent: 1in">On March 31, 2011,
the Company's CEO retired 30,000,000 shares of his common stock of the Company as additional paid-in capital.</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; text-align: justify; text-indent: 1in">On April 12, 2011,
the Company sold 1,000,000 units consisting of 1,000,000 shares of common stock and 500,000 warrants for cash of $250,000. The
warrants are exercisable at $0.50 per share and have a two year term expiring April 12, 2013.</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; text-align: justify; text-indent: 1in">On April 20, 2011,
the Company sold 100,000 units consisting of 100,000 shares of common stock and 50,000 warrants for cash of $25,000. The warrants
are exercisable at $0.50 per share and have a two year term expiring April 20, 2013.</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; text-align: justify; text-indent: 1in">On April 21, 2011,
the Company sold 100,000 units consisting of 100,000 shares of common stock and 50,000 warrants for cash of $25,000. The warrants
are exercisable at $0.50 per share and have a two year term expiring April 21, 2013.</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; text-align: justify; text-indent: 1in">On May 6, 2011, the
Company sold 60,000 units consisting of 60,000 shares of common stock and 30,000 warrants for cash of $15,000. The warrants are
exercisable at $0.50 per share and have a two year term expiring May 6, 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; text-align: justify; text-indent: 1in">On May 11, 2011,
the Company sold 20,000 units consisting of 20,000 shares of common stock and 10,000 warrants for cash of $5,000. The warrants
are exercisable at $0.50 per share and have a two year term expiring May 11, 2013.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">On July 19, 2011,
the Company issued 40,000 units to Mark Holcombe, a director of the Company in consideration of consisting of 40,000 shares of
common stock and 20,000 warrants with a fair value of $1,583. Each warrant allows Mr. Holcombe to purchase one additional share
of common stock at a price of $0.50 per share for two years expiring July 19, 2013. The shares were valued at $10,000 ($0.25 per
share), the fair value on the date of grant.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">On July 21, 2011,
the Company issued 100,000 shares to Lawrence H. Wolfe, the Chief Financial Officer at the time, in consideration for the execution
and delivery of a consulting agreement with Mr. Wolfe. The shares were valued at $24,000 ($0.24 per share), the fair value on
the date of grant.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">On July 21, 2011,
the Company issued 100,000 shares to Zegal and Ross Capital LLC in consideration for the execution and delivery of a consulting
agreement. The shares were valued at $24,000 ($0.24 per share), the fair value on the date of grant.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">On July 25, 2011,
the Company issued 100,000 shares to Mendel Mochkin, a director, in consideration for the execution and delivery of a consulting
agreement that replaced Mr. Mochkin's employment agreement entirely. Mr. Mochkin is an accredited investor. The issuance was conducted
in reliance upon an exemption from registration provided under Section 4(2) of the Securities Act of 1933, as amended. The shares
were valued at $24,000 ($0.24 per share), the fair value on the date of grant.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">On July 27, 2011,
the Company sold 1,000,000 units in consideration of $250,000 consisting of 1,000,000 shares of common stock and 1,000,000 warrants.
Each warrant allows for the purchase one additional share of common stock at a price of $0.50 per share for two years expiring
July 27, 2013.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">During 2011, the
principal stockholder forgave consulting fees of $12,000. The amount was recorded as an in-kind contribution.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">On October 24, 2011,
the Company issued 20,000 shares to Ben Lafazan and 20,000 shares to Barry Wolinetz as partial settlement for services rendered.
The shares were valued at $0.22 per share, the fair value on the date of grant.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">At December 31, 2011,
the Company has 297,516 shares issuable to officers and directors with a fair value of $74,000 in connection with certain consulting
agreements. These shares were valued at the fair value on the date of grant. These shares were issued to officers and directors
during March, 2012.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">On February 3, 2012,
the Company issued 200,000 shares of common stock as payment for certain mining equipments in Honduras at a fair value of $106,000
based on the value of the equipment.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">In February 2012,
the company issued 175,000 units and raised an aggregate of $175,000 from one investor under a Regulation S Subscription Agreement.
Under this agreement, the Company is offering for sale up to $500,000 of shares and warrants at a purchase price of $1.00 per
share. For each dollar invested, the investor will receive one share of common stock and one warrant. Each warrant entitles the
investor to purchase one share of common stock for $1.50 per share. The warrants expire on the third anniversary date its issuance
in February 2015.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">On March 1, 2012,
an investor exercised his right to purchase 30,000 shares for $0.50 per share. The Company received proceeds of $15,000.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">In August 2012, the
Company raised an aggregate of $34,000 from one investor under a Regulation S Subscription Agreement in exchange for 680,000 shares
of common stock at $0.05 per share and 340,000 warrants exercisable at $0.20 per share. The warrants expire on the fifth anniversary
date of its issuance in August 2017.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">On August 28, 2012,
the Company issued 3,000,000 shares of common stock to three consultants in consideration for services previously provided. The
shares were valued at $0.07 per share, the fair value on the date of grant of $210,000.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">At December 31, 2012,
the Company has 235,318 shares issuable to officers and directors with a fair value of $88,000 in connection with certain consulting
agreements. These shares were valued at the fair value on the date of grant.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">During 2012, an officer
forgave consulting fees of $57,000. The amount was recorded as an in-kind contribution.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">On February 15, 2013, the Company issued
2,500,000 shares of common stock in connection with issuance of convertible debt of $45,000. These shares were valued at the fair
value on the date of grant (See note 6).</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; text-align: justify"><u>Warrants</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">During 2011, the Company
issued 1,690,000 warrants in connection with a private placement offering. The warrants have a term of two years from the date
of the subscription agreement and allow investors to purchase one share of common stock for $0.50. 30,000 warrants expired during
the three months ended March 31, 2013.</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; text-align: justify; text-indent: 1in">In February 2012,
the company issued 175,000 warrants in connection with a private placement offering. The warrants have a term of three years from
the date of the subscription agreement and allow investors to purchase one share of common stock for $1.50 per share.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">In August
2012, the company issued 340,000 warrants in connection with a private placement offering. The warrants have a term of five years
from the date of the subscription agreement and allow investors to purchase one share of common stock for $0.20 per share.</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; text-align: justify; text-indent: 1in">Information with respect
to warrants outstanding and exercisable at March 31, 2013 is as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: top; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Number</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Outstanding</b></p></td>
<td style="vertical-align: top; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: top; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Range of</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Exercise Price</b></p></td>
<td style="vertical-align: top; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: top; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Number</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Exercisable</b></p></td>
<td style="vertical-align: top; padding-bottom: 1.5pt"> </td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: top"> </td>
<td colspan="2" style="vertical-align: bottom"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td colspan="2" style="vertical-align: bottom"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td colspan="2" style="vertical-align: bottom"> </td>
<td style="vertical-align: top"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; width: 64%; font: 10pt/115% Times New Roman, Times, Serif"><b>Warrants outstanding, December 31, 2012</b></td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: top; width: 9%; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">2,175,000</td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: top; width: 1%; font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="vertical-align: top; width: 9%; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">0.20-1.50</td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: top; width: 9%; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">2,175,000</td>
<td style="vertical-align: top; width: 1%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; font: 10pt/115% Times New Roman, Times, Serif"><b>Issued</b></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">-</td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; font: 10pt/115% Times New Roman, Times, Serif"><b>Exercised</b></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">-</td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; font: 10pt/115% Times New Roman, Times, Serif"><b>Expired/Forfeited</b></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">(30,000)</td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="vertical-align: top; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">0.50</td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; font: 10pt/115% Times New Roman, Times, Serif; text-align: right; text-indent: -0.25in">-</td>
<td style="vertical-align: top"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; font: 10pt/115% Times New Roman, Times, Serif"><b>Warrants outstanding, March 31, 2013</b></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">2,145,000</td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; font: 10pt/115% Times New Roman, Times, Serif">$</td>
<td style="vertical-align: top; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">0.20-1.50</td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; font: 10pt/115% Times New Roman, Times, Serif; text-align: right">2,145,000</td>
<td style="vertical-align: top"> </td></tr>
</table>
<p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"> </p>falsefalsefalse2falsefalsefalse00<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In February 2007, the Company
issued 64,000,000 shares of common stock at $0.0000125 per share to the Founders of the Company for $800.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In February 2008, the Company
sold 22,400,000 shares of common stock at $0.002 per share pursuant to its public offering. The Company received net proceeds of
$44,964.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In February 2008, the Company
issued 800,000 shares of common stock with the fair value of $0.0075 per share for services rendered. The Company recorded stock
based compensation expense of $6,000 in connection with this issuance.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On December 15, 2010, the
Company notified FINRA of its intention to implement a 1 for 8 share dividend or forward stock split of its issued and outstanding
common stock to the holders of record as of December 27, 2010 (the “Shareholders”). The forward stock split became
effective as of the start of business on January 3, 2011. All share and per share data have been retroactively restated to reflect
this recapitalization.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On December 13, 2010, the
Company issued 20,000,000 shares of common stock as payment for certain mining leases in Honduras at a fair value of $2,500.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On February 22, 2011, the
Company issued 20,000,000 shares of common stock as payment for certain additional mining leases in Honduras at a fair value of
$2,500.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On March 28, 2011, the
Company sold 60,000 units consisting of 60,000 shares of common stock and 30,000 warrants for $15,000. The warrants are exercisable
at $0.50 per share and have a two year term.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On March 31, 2011, the
Company's CEO retired 30,000,000 shares of his common stock of the Company as additional paid-in capital.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On April 12, 2011, the
Company sold 1,000,000 units consisting of 1,000,000 shares of common stock and 500,000 warrants for cash of $250,000. The warrants
are exercisable at $0.50 per share and have a two year term.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On April 20, 2011, the
Company sold 100,000 units consisting of 100,000 shares of common stock and 50,000 warrants for cash of $25,000. The warrants are
exercisable at $0.50 per share and have a two year term.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On April 21, 2011, the
Company sold 100,000 units consisting of 100,000 shares of common stock and 50,000 warrants for cash of $25,000. The warrants are
exercisable at $0.50 per share and have a two year term.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On May 6, 2011, the Company
sold 60,000 units consisting of 60,000 shares of common stock and 30,000 warrants for cash of $15,000. The warrants are exercisable
at $0.50 per share and have a two year term.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On May 11, 2011, the Company
sold 20,000 units consisting of 20,000 shares of common stock and 10,000 warrants for cash of $5,000. The warrants are exercisable
at $0.50 per share and have a two year term.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On July 19, 2011, the Company
issued 40,000 units to Mark Holcombe, a director of the Company in consideration of consisting of 40,000 shares of common stock
and 20,000 warrants with a fair value of $1,583. Each warrant allows Mr. Holcombe to purchase one additional share of common stock
at a price of $0.50 per share for two years. The shares were valued at $10,000 ($0.25 per share), the fair value on the date of
grant.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On July 21, 2011, the Company
issued 100,000 shares to Lawrence H. Wolfe, our Chief Financial Officer, in consideration for the execution and delivery of a consulting
agreement with Mr. Wolfe. The shares were valued at $24,000 ($0.24 per share), the fair value on the date of grant.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On July 21, 2011, the Company
issued 100,000 shares to Zegal and Ross Capital LLC in consideration for the execution and delivery of a consulting agreement.
The shares were valued at $24,000 ($0.24 per share), the fair value on the date of grant.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On July 25, 2011, the Company
issued 100,000 shares to Mendel Mochkin, a director, in consideration for the execution and delivery of a consulting agreement
that replaced Mr. Mochkin's employment agreement entirely. Mr. Mochkin is an accredited investor. The issuance was conducted in
reliance upon an exemption from registration provided under Section 4(2) of the Securities Act of 1933, as amended. The shares
were valued at $24,000 ($0.24 per share), the fair value on the date of grant.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On July 27, 2011, the Company
sold 1,000,000 units in consideration of $250,000 consisting of 1,000,000 shares of common stock and 1,000,000 warrants. Each warrant
allows for the purchase one additional share of common stock at a price of $0.50 per share for two years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">During 2011, the principal
stockholder forgave consulting fees of $12,000. The amount was recorded as an in-kind contribution.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On October 24, 2011, the
Company issued 20,000 shares to Ben Lafazan and 20,000 shares to Barry Wolinetz as partial settlement for services rendered. The
shares were valued at $0.22 per share, the fair value on the date of grant.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">At December 31, 2011, the
Company has 297,516 shares issuable to officers and directors with a fair value of $74,000 in connection with certain consulting
agreements. These shares were valued at the fair value on the date of grant. These shares were issued to officers and directors
during March, 2012.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On February 3, 2012, the
Company issued 200,000 shares of common stock as payment for certain mining equipments in Honduras at a fair value of $106,000
based on the value of the equipment.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In February 2012, the company
issued 175,000 units and raised an aggregate of $175,000 from one investor under a Regulation S Subscription Agreement. Under this
agreement, the Company is offering for sale up to $500,000 of shares and warrants at a purchase price of $1.00 per share. For each
dollar invested, the investor will receive one share of common stock and one warrant. Each warrant entitles the investor to purchase
one share of common stock for $1.50 per share. The warrants expire on the third anniversary date its issuance.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On March 1, 2012, an investor
exercised his right to purchase 30,000 shares for $0.50 per share. The Company received proceeds of $15,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In August 2012, the Company
raised an aggregate of $34,000 from one investor under a Regulation S Subscription Agreement in exchange for 680,000 shares of
common stock at $0.05 per share and 340,000 warrants exercisable at $0.20 per share. The warrants expire on the fifth anniversary
date of its issuance.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On August 28, 2012, the
Company issued 3,000,000 shares of common stock to three consultants in consideration for services previously provided. The shares
were valued at $0.07 per share, the fair value on the date of grant of $210,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">At December 31, 2012, the
Company has 235,318 shares issuable to officers and directors with a fair value of $88,000 in connection with certain consulting
agreements. These shares were valued at the fair value on the date of grant.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">During 2012, an officer
forgave consulting fees of $57,000. The amount was recorded as an in-kind contribution</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Warrants</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">During 2011, the Company
issued 1,690,000 warrants in connection with a private placement offering. The warrants have a term of two years from the date
of the subscription agreement and allow investors to purchase one share of common stock for $0.50. At December 31, 2012 and 2011,
all warrants have a remaining contractual life of approximately 0.5 year and 1.5 years, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In February 2012, the company
issued 175,000 warrants in connection with a private placement offering. The warrants have a term of three years from the date
of the subscription agreement and allow investors to purchase one share of common stock for $1.50 per share. At December 31, 2012,
all warrants have a remaining contractual life of approximately 2.23 years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In August 2012, the company
issued 340,000 warrants in connection with a private placement offering. The warrants have a term of five years from the date of
the subscription agreement and allow investors to purchase one share of common stock for $0.20 per share. At December 31, 2012,
all warrants have a remaining contractual life of approximately 4.66 years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Information with respect to warrants outstanding and exercisable
at December 31, 2012 is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: top"> </td>
<td colspan="2" style="vertical-align: bottom"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td colspan="2" style="vertical-align: bottom"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td colspan="2" style="vertical-align: bottom"> </td>
<td style="vertical-align: top"> </td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: top"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Number</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Outstanding</b></p></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Range of</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Exercise Price</b></p></td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td colspan="2" style="vertical-align: bottom; border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Number</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Exercisable</b></p></td>
<td style="vertical-align: top"> </td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: top"> </td>
<td colspan="2" style="vertical-align: bottom"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td colspan="2" style="vertical-align: bottom"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td colspan="2" style="vertical-align: bottom"> </td>
<td style="vertical-align: top"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; width: 64%; font-weight: bold">Warrants outstanding, December 31, 2011</td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: top; width: 9%; text-align: right">1,690,000 </td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: top; width: 1%">$</td>
<td style="vertical-align: top; width: 9%; text-align: right">0.50</td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: top; width: 1%"> </td>
<td style="vertical-align: top; width: 9%; text-align: right">1,690,000</td>
<td style="vertical-align: top; width: 1%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; font-weight: bold">Issued</td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: right">515,000 </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top">$</td>
<td style="vertical-align: top; text-align: right">0.20-1.50</td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; font-weight: bold">Exercised</td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: right">(30,000)</td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top">$</td>
<td style="vertical-align: top; text-align: right">0.50</td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; font-weight: bold">Forfeited</td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: right; text-indent: 0in">-</td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: right">-</td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: right; text-indent: 0in">-</td>
<td style="vertical-align: top"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; font-weight: bold">Warrants outstanding, December 31, 2012</td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; border-bottom: black 2.25pt double"> </td>
<td style="vertical-align: top; border-bottom: black 2.25pt double; text-align: right">2,175,000 </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; border-bottom: black 2.25pt double">$</td>
<td style="vertical-align: top; border-bottom: black 2.25pt double; text-align: right">0.20-1.50</td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; border-bottom: black 2.25pt double"> </td>
<td style="vertical-align: top; border-bottom: black 2.25pt double; text-align: right">2,175,000</td>
<td style="vertical-align: top"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Options</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">During July 2011, the Company
granted 360,000 stock options to consultants for services to be rendered over a two-year period. The options are exercisable at
$0.50 per share, half of the option shall vest on January 1 and half on June 1 following the grant date. These options had a fair
value of $13,283 using the Black-Scholes option-pricing model. The grant date fair values of the Company’s option awards
during the years ended December 31, 2012 and 2011 were estimated at $47,822 and $13,283 using the Black Scholes option pricing
model with the following assumptions:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">For the Year ended</td>
<td nowrap="nowrap" style="font-weight: bold"> </td>
<td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">For the Year ended</td>
<td nowrap="nowrap" style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31, </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2012</b></p></td>
<td nowrap="nowrap" style="font-weight: bold"> </td>
<td style="font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31, </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2011</b></p></td>
<td nowrap="nowrap" style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 76%">Expected life (years)</td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right">-</td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right">2</td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Risk – free interest rate</td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right">-</td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right">0.40</td>
<td nowrap="nowrap">%</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Expected volatility</td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right">-</td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right">178</td>
<td nowrap="nowrap">%</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right">-</td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right">0.00</td>
<td nowrap="nowrap">%</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company has Consultancy
agreements that contain provisions for the issuance and granting of options aggregating 3,000,000 shares at $0.50 per share that
are predicated on the Company reaching certain milestones in the production of gold. None of the milestones have been met and accordingly
such options have not been granted or issued.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">During the third quarter
of 2012, all the consultancy agreements noted above were terminated. As a result, the 360,000 stock options and 3,000,000 grant
options were forfeited.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="background-color: white"> </td>
<td style="font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; background-color: white">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Number of </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Options</b></p></td>
<td nowrap="nowrap" style="background-color: white; font-weight: bold"> </td>
<td style="font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; background-color: white; font-weight: bold; text-align: center">Weighted Average Exercise Price</td>
<td nowrap="nowrap" style="background-color: white; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 76%">Balance at December 31, 2011</td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right">360,000</td>
<td nowrap="nowrap" style="width: 1%"> </td>
<td style="width: 1%; text-align: right"> </td>
<td style="width: 1%">$</td>
<td style="width: 9%; text-align: right">0.50</td>
<td nowrap="nowrap" style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Granted</td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right">-</td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right">-</td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Exercised</td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right">-</td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right">-</td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Forfeited</td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right">(360,000</td>
<td nowrap="nowrap">)</td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right">0.50</td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Balance at December 31, 2012</td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right">-</td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right">-</td>
<td nowrap="nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Options exercisable at December 31, 2012</td>
<td style="text-align: right"> </td>
<td> </td>
<td style="text-align: right">-</td>
<td nowrap="nowrap"> </td>
<td style="text-align: right"> </td>
<td>$</td>
<td style="text-align: right">0.50</td>
<td nowrap="nowrap"> </td></tr>
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