Share Purchase Warrants

12 Months Ended

Jun. 30, 2014

NOTE 10 – SHARE PURCHASE WARRANTS

On May 9th and May 20th, 2013 respectively, we entered into two Private Placement Agreements, one with a U.S. investor and one with a non-US investor pursuant to which, the investors have funded a total of $85,000 by way of a private placement units subscription agreement for a total of 188,888 units of the common stock of the Company at a price of $0.45 per unit, each unit consisting of one share and one share purchase warrant entitling the subscriber to purchase one additional share of common stock at $0.75 per share within one year from the original date of the private placement.

On September 9, 2013, the Company entered into securities purchase agreements (the “SPA”) to raise a total $600,000 with five accredited investors introduced by Palladium to the Company. Under the terms of the SPA, the purchasers subscribed for a total of 4,000,000 shares of the common stock of the Company at $0.15 per share and an equal number of warrants exercisable at $0.30 per share for a period of five years. On March 14, 2014, the warrants were re-priced at $0.0724 per share. (see note 6(3) above).

On September 12, 2013, the Company issued total of 120,000 shares of the common stock of the Company at par value and an equal number of warrants exercisable at $0.30 per share for a period of five years under the placement agent agreement. On March 14, 2014, the warrants were re-priced at $0.0724 per share. (see Note 7(2)(ii))above).

On March 14, 2014, the Company entered into securities purchase agreements (the “SPA #2”) to raise a total $300,000 with three accredited investors introduced by Palladium to the Company. Under the terms of the SPA, the purchasers subscribed for a total of 3,750,000 shares of the common stock of the Company at $0.08 per share and an equal number of warrants exercisable at $0.15 per share for a period of five years. (see note 6(3) above).

On March 14, 2014, the Company issued total of 262,500 warrants exercisable at $0.15 per share for a period of five years under the placement agent agreement. see Note 7(2)(ii))above).

On March 14, 2014 through March 21, 2014 the Company received notices and executed cashless exercise warrants from the subscribers under the SPA#1.

As at June 30, 2014, the Company had the following warrants outstanding:

Exercise Price	Expiry Date	Weighted Average Remaining Contractual Life (Years)	Outstanding at June 30, 2013	Issued	Exercised	Waived	Expired	Outstanding at June 30, 2014
$ 0.75	May 9, 2014	0.10	88,888	-	-		88,888	-
$ 0.75	May 20, 2014	0.14	100,000	-	-		100,000	-
$ 0.0724	September 4, 2018	-	-	16,574,586	8,401,960	8,172,626	-	-
$ 0.0724	September 12, 2018	-	-	1,160,221	588,014	572,207	-	-
$0.15	March 14, 2019	4.95	-	4,012,500	-		-	4,012,500
			188,888	21,747,307	8,989,974	8,744,833	188,888	4,012,500