The financial statements have been prepared assuming the Company
will continue as a going concern. The Company has incurred losses since inception, resulting in an accumulated deficit of $19,724,102
and negative working capital of $2,308,545, as of March 31, 2012 and further losses are anticipated. These factors raise substantial
doubt about the Companys ability to continue as a going concern. Its ability to continue as a going concern is dependent
upon the ability of the Company to generate profitable operations in the future and/or to obtain the necessary financing to meet
its obligations arising from normal business operations when they come due. These financial statements do not include any adjustments
relating to the recoverability and classification of recorded assets or the amounts of and classification of liabilities that might
be necessary in the event the Company cannot continue.
The Companys plan is to resolve this issue with the
commencement of management fees from the Gulfport Project Management Agreement and other future sources of revenue. Until these
occur in sufficient amounts, the Company plans to sell registered and unregistered stock to accredited investors.