10. SUBSEQUENT EVENTS
On October 19, 2012 and October 26,
2012 respectively, the Company entered into two Securities Purchase Agreements with Craigstone Ltd., each in the amount of $15,000
pursuant to which the Company received $30,000 as loans from Craigstone in exchange for one (1) Unit consisting of: a Convertible
Promissory Note convertible to common stock in whole or in part, at any time and from time to time before maturity at the option
of the holder at seventy-five percent (75%) of the average traded price of the common stock for the thirty (30) trading days immediately
preceding the conversion date; and a three (3) year Warrant (the Warrant) to purchase seventy five thousand (75,000)
shares of the Companys Common Stock exercisable at the lower of : (i) a price of $0.20 per share or (ii) seventy-five percent
(75%) of the average traded price of common stock for the thirty (30) trading days immediately preceding the exercise date. The
Notes earn simple interest accruing at ten percent (10%) per annum and are due on or before the twelfth month anniversary of the
date of execution.
On, November 27, 2012, the Companys
wholly owned subsidiary, 9252-4768 Quebec Inc. entered into an second addendum to the original property option agreement with 9228-6202
Quebec Inc. whereby the parties acknowledged that 9252-4768 Quebec Inc. had earned its 100% right, title and interest in and to
certain mineral claims, located in Portland Township, Outaouais, Quebec.
We have evaluated subsequent events
through December 28, 2012. Other than those set out above, there have been no subsequent events after September 30, 2012 for which
disclosure is required.