The Company entered into four notes payable
at the end of March 2012, with subsequent increases to the amounts borrowed in the September 2012 quarter. As at September 30,
2012 the notes total $433,752 Australian Dollars ($466,197 US Dollars). These notes are demand notes with no guarantee, no stated
maturity date bearing 5% annual interest on un-matured amounts and 10% on matured, unpaid amounts. As demand notes these notes
are considered current liabilities. No interest was accrued as of September 30, 2012 and the reported balance owing in US Dollars
was $466,197. These loans were from officers and affiliates of the Company.