<table>
<tbody><tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1pt">&nbsp;</td><td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2013</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</td><td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2012</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td>&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(Unaudited)</font></td><td style="text-align: left">&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(Unaudited)</font></td><td style="text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Cash flows from operating activities:</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">&nbsp;</td><td style="text-align: left">&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">&nbsp;</td><td style="text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="width: 56%; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;Net loss</td><td style="width: 8%">&nbsp;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(494,863</td><td style="width: 1%; text-align: left">)</td><td style="width: 8%">&nbsp;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(500,240</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income (loss) to net cash</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">&nbsp;</td><td style="text-align: left">&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">&nbsp;</td><td style="text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;provided by (used in) operating activities:	</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">&nbsp;</td><td style="text-align: left">&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">&nbsp;</td><td style="text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">9,733</td><td style="text-align: left">&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">4,688</td><td style="text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock for services</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">18,000</td><td style="text-align: left">&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">75,100</td><td style="text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on sale of securities</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">—&nbsp;&nbsp;</td><td style="text-align: left">&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">66,205</td><td style="text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beneficial interest on conversion of debt</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">24,100</td><td style="text-align: left">&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">85,546</td><td style="text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settlement expense on conversion of debt</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">128,453</td><td style="text-align: left">&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">73,758</td><td style="text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on extinguishment of debt</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">(2,018</td><td style="text-align: left">)</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">(53,860</td><td style="text-align: left">)</td></tr>
</tbody></table>
<table>
<tbody><tr>
<td> </td><td> </td>
<td> </td><td>2013</td><td> </td><td> </td>
<td> </td><td>2012</td><td> </td></tr>
<tr>
<td> </td><td> </td>
<td> </td><td><font>(Unaudited)</font></td><td> </td><td> </td>
<td> </td><td><font>(Unaudited)</font></td><td> </td></tr>
<tr>
<td>Cash flows from operating activities:</td><td> </td>
<td> </td><td> </td><td> </td><td> </td>
<td> </td><td> </td><td> </td></tr>
<tr>
<td>    Net loss</td><td> </td>
<td>$</td><td>(494,863</td><td>)</td><td> </td>
<td>$</td><td>(500,240</td><td>)</td></tr>
<tr>
<td>    Adjustments to reconcile net income (loss) to net cash</td><td> </td>
<td> </td><td> </td><td> </td><td> </td>
<td> </td><td> </td><td> </td></tr>
<tr>
<td>       provided by (used in) operating activities:	</td><td> </td>
<td> </td><td> </td><td> </td><td> </td>
<td> </td><td> </td><td> </td></tr>
<tr>
<td>          Depreciation</td><td> </td>
<td> </td><td>9,733</td><td> </td><td> </td>
<td> </td><td>4,688</td><td> </td></tr>
<tr>
<td>          Issuance of common stock for services</td><td> </td>
<td> </td><td>18,000</td><td> </td><td> </td>
<td> </td><td>75,100</td><td> </td></tr>
<tr>
<td>          Loss on sale of securities</td><td> </td>
<td> </td><td>—  </td><td> </td><td> </td>
<td> </td><td>66,205</td><td> </td></tr>
<tr>
<td>          Beneficial interest on conversion of debt</td><td> </td>
<td> </td><td>24,100</td><td> </td><td> </td>
<td> </td><td>85,546</td><td> </td></tr>
<tr>
<td>          Settlement expense on conversion of debt</td><td> </td>
<td> </td><td>128,453</td><td> </td><td> </td>
<td> </td><td>73,758</td><td> </td></tr>
<tr>
<td>          Gain on extinguishment of debt</td><td> </td>
<td> </td><td>(2,018</td><td>)</td><td> </td>
<td> </td><td>(53,860</td><td>)</td></tr>
</tbody></table>