On August 26, 2008, pursuant to a Purchase
Agreement, the Company transferred its Pepper Hope mineral claim located in British Columbia to Mr. Jeff Wiegel, its former officer
and director (the Spin-Off). In exchange for receiving ownership of the Pepper Hope claim, Mr. Wiegel has delivered
all of his 15,888,000 shares of common stock back to the Company for cancellation. As part of the Spin-off, Mr. Wiegel agreed to
assume any and all liabilities which may be related to the Pepper Hope mineral claim.