CONVERTIBLE DEBENTURES PAYABLE	9 Months Ended
Sep. 30, 2011
Convertible Debentures Payable
Note 7.CONVERTIBLE DEBENTURES PAYABLE	During the year ended December 31, 2010, the Company issued 9 convertible debentures aggregating $123,000, maturing in December 2011, bearing interest at 20% per annum. During the three months ended March 31, 2011, the Company issued an additional 19 convertible debentures aggregating $227,000, maturing between January 2012 and March 2012, bearing interest at 20% per annum. As well, the Company issued 1 convertible debenture for $425,000 in February 2011, maturing in February 2012, bearing interest at 6% per annum. During the three months ended June 30, 2011, the Company issued an additional 1 convertible debenture for $15,000, maturing in April 2012, bearing interest at 20% per annum. The holders of each debenture may convert the debentures into shares of the Company’s common stock, convertible at $1.00 per share at any time prior to the maturity date. During the period, one debenture holder received an investment bonus of 2 million shares of the Company common stock, as consideration for making the investment in the debentures. Maturity date is the earlier of: (i) six months from the signing of each debenture; or (ii) the date on which project financing is obtained; or (iii) the date of receipt of significant equity investment. In accordance with the provisions of ASC Topic 470-20, the Company recognizes the value of any embedded beneficial conversion feature in connection with the convertible notes. The fair value of the embedded beneficial conversion feature is estimated to be the difference between the issue date fair value and face amount of the debt with the fair value of the debt being determined on a relative fair value basis, based on the underlying estimated fair value of the common shares issuable on conversion. The embedded beneficial conversion feature would be recorded as a credit to additional paid-in capital. The resulting debt discount is accreted over the term of the notes using the effective interest amortization method. , The Company determined that no debt discount exists. The Company has recorded accrued interest of $68,608 (2010 - $Nil) on the debenture debt through September 30, 2011.

CONVERTIBLE DEBENTURES PAYABLE

9 Months Ended

Sep. 30, 2011

During the year ended December 31, 2010, the Company issued 9 convertible debentures aggregating $123,000, maturing in December 2011, bearing interest at 20% per annum.

During the three months ended March 31, 2011, the Company issued an additional 19 convertible debentures aggregating $227,000, maturing between January 2012 and March 2012, bearing interest at 20% per annum. As well, the Company issued 1 convertible debenture for $425,000 in February 2011, maturing in February 2012, bearing interest at 6% per annum.

During the three months ended June 30, 2011, the Company issued an additional 1 convertible debenture for $15,000, maturing in April 2012, bearing interest at 20% per annum.

The holders of each debenture may convert the debentures into shares of the Company’s common stock, convertible at $1.00 per share at any time prior to the maturity date. During the period, one debenture holder received an investment bonus of 2 million shares of the Company common stock, as consideration for making the investment in the debentures. Maturity date is the earlier of: (i) six months from the signing of each debenture; or (ii) the date on which project financing is obtained; or (iii) the date of receipt of significant equity investment.

In accordance with the provisions of ASC Topic 470-20, the Company recognizes the value of any embedded beneficial conversion feature in connection with the convertible notes. The fair value of the embedded beneficial conversion feature is estimated to be the difference between the issue date fair value and face amount of the debt with the fair value of the debt being determined on a relative fair value basis, based on the underlying estimated fair value of the common shares issuable on conversion. The embedded beneficial conversion feature would be recorded as a credit to additional paid-in capital. The resulting debt discount is accreted over the term of the notes using the effective interest amortization method. , The Company determined that no debt discount exists. The Company has recorded accrued interest of $68,608 (2010 - $Nil) on the debenture debt through September 30, 2011.