AFFILIATE TRANSACTIONS

3 Months Ended

Jan. 31, 2015

(4)	AFFILIATE TRANSACTIONS

The Company entered into an agreement with AXIS to provide management and administration services to the Company. AXIS is affiliated through common management. The Company is one of nine 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, 2015, AXIS provided services in accordance with the services agreement, incurred direct costs on behalf of the Company and provided funding of $14,894. During the three months ended January 31, 2015, the foreign exchange effect on the amounts owed to affiliates was a gain of $818,064. The amounts owed to AXIS as of January 31, 2015 and October 31, 2014 is $6,221,256 and $7,025,426, respectively, and are reflected in non-current liabilities - advance from affiliates. At January 31, 2015, the Company owed the former Managing Director of its Laos operation $232,500 (2014: $232,500). During the three months ended January 31, 2015 and 2014, 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 (refer footnote 10 – Subsequent Events) and accordingly the Company has classified the amounts payable as non-current in the accompanying balance sheet.