AFFILIATE TRANSACTION

3 Months Ended

Jan. 31, 2013

AFFILIATE TRANSACTION

(4) AFFILIATE TRANSACTIONS

The Company entered into an agreement with AXIS Consultants Pty Ltd (“AXIS”) to provide management and administration services to the Company. AXIS is affiliated through common management. The Company is one of ten affiliated companies to which AXIS provides services. Each of the companies has some common Directors, officers and shareholders. Currently, there are no material arrangements or planned transactions between the Company and any of the affiliated companies other than AXIS.

During the three months ended January 31, 2013, AXIS provided services in accordance with the services agreement, incurred direct costs on behalf of the Company and provided funding of $445,634, in addition to the Manager of the Laos operations advancing the Company $7,500. The amounts owed to affiliates as of January 31, 2013 and October 31, 2012 was $7,083,331 and $6,630,197 respectively and are reflected in non-current liabilities - advance from affiliates. Included in these amounts is $181,000 and $173,500 respectively being funds advanced by the Manager of the Laos operations. During the three months ended January 31, 2013 and 2012, the affiliates have agreed not to charge interest.

The Company intends to repay these amounts with funds raised either via additional debt or equity offerings. Both affiliates have agreed not to call the advance within the next twelve months and accordingly the Company has classified the amounts payable as non-current in the accompanying balance sheet.