The accompanying financial statements have
been prepared assuming that the Company will continue as a going concern, which contemplates, among other things, the realization
of assets and satisfaction of liabilities in the normal course of business. The Company has incurred net losses for the period
from inception to September 30, 2012 of $7,577,739; has negative working capital of $944,904 at September 30, 2012; and
is currently in default on certain outstanding debt obligations. Accordingly, there is substantial doubt as to the ability of the
Company to continue as a going concern. The Company intends to fund initial operations through equity financing or debt arrangements.
The ability of the Company to emerge from the
exploration stage is dependent upon the Companys successful efforts to raise sufficient capital and then attain profitable
operations. There can be no assurances, however, that managements expectations of future revenues will be realized.