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      &amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Convertible

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      June 7, 2013, the Company entered into a $32,500 convertible

      debenture with a non-related party. Under the terms of the

      debenture, the amount is unsecured, bears interest at 8% per

      annum, and matures on December 7, 2014. The note is

      convertible into shares of common stock 180 days after the

      date of issuance (December 4, 2013) at a conversion rate of

      50% of the average of the five lowest closing bid prices of

      the Company&amp;#8217;s common stock for the thirty trading days

      ending one trading date prior to the date the conversion

      notice is sent by the holder to the Company. As at June 30,

      2013, the Company recorded accrued interest of $164 (December

      31, 2012 - $nil), which has been included in accounts payable

      and accrued liabilities.&lt;/font&gt;

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      &lt;font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 9pt"&gt;In

      accordance with ASC 470-20, &amp;#8220;Debt with Conversion and

      Other Options&amp;#8221;, the Company recognized the intrinsic

      value of the embedded beneficial conversion feature of

      $32,500 as additional paid-in capital and an equivalent

      discount which will be charged to operations over the term of

      the convertible note. During the six months ended June 30,

      2013, the Company had amortized $1,372 (December 31, 2012 -

      $nil) of the debt discount to interest expense. As at June

      30, 2013, the carrying value of the debenture was $1,372

      (December 31, 2012 - $nil).&lt;/font&gt;

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