AFFILIATE TRANSACTION

6 Months Ended

Apr. 30, 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 six months ended April 30, 2013, AXIS provided services in accordance with the services agreement, incurred direct costs on behalf of the Company and provided funding of $792,852. In addition, the Manager of the Laos operations advanced the Company $59,000. The amounts owed to affiliates as of April 30, 2013 and October 31, 2012 were $7,482,049 and $6,630,197 respectively and are reflected in non-current liabilities - advance from affiliates. Included in these amounts is $232,500 and $173,500 respectively being funds advanced by the Manager of the Laos operations. During the three and six months ended April 30, 2013 and 2012, the affiliates did not 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.