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<!--egx--><p style='background:white;margin:6.95pt 0cm 0pt 0.7pt'><b><font lang="EN-US" style='letter-spacing:-0.55pt'>1. ORGANIZATION AND BUSINESS OF COMPANY</font></b></p> <p style='background:white;text-align:justify;margin:7.7pt 0.7pt 0pt 0.25pt;line-height:7.45pt'><font lang="EN-US" style='letter-spacing:-0.2pt'>Mexus Gold US (the "Company") was originally incorporated under the laws of the State of Colorado on June 22, 1990, as U.S.A. Connection, Inc. On October 28, 2005, the Company changed its' name to </font><font lang="EN-US" style='letter-spacing:-0.15pt'>Action Fashions, Ltd. On September 18, 2009, the Company changed its' domicile to Nevada and changed its' name to Mexus Gold US to better reflect the Company's new planned principle business operations. The Company has a fiscal year end of March 31.</font></p> <p style='background:white;text-align:justify;margin:7.2pt 0.95pt 0pt 0.5pt;line-height:7.7pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>The Company is a mining company engaged in the evaluation, acquisition, exploration and advancement of gold, silver and copper projects in the State of Sonora, Mexico and the Western United States, </font><font lang="EN-US" style='letter-spacing:-0.15pt'>as well as, the salvage of precious metals from identifiable sources.</font></p>
<!--egx--><div> <p style='margin:6.95pt 0cm 0pt 0.25pt;background:white'><b><font lang="EN-US" style='letter-spacing:-0.4pt'>2. BASIS OF PREPARATION</font></b></p> <p style='text-align:justify;line-height:7.45pt;margin:7.7pt 0.5pt 0pt 0.25pt;background:white'><font lang="EN-US" style='letter-spacing:-0.1pt'>Pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q, the consolidated financial statements, footnote disclosures and other information normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. The condensed consolidated financial statements contained in </font><font lang="EN-US" style='letter-spacing:-0.05pt'>this report are unaudited but, in the opinion of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the consolidated financial </font><font lang="EN-US" style='letter-spacing:-0.1pt'>statements. All significant mter-company accounts and transactions have been eliminated in consolidation. The results of operations for any interim period are not necessarily indicative of results for the full year. The consolidated balance sheet at March 31, 2015 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes </font><font lang="EN-US" style='letter-spacing:-0.15pt'>required by accounting principles generally accepted in the United States of America for complete financial statements.</font></p> <p style='line-height:7.45pt;margin:7.45pt 0cm 0pt 0.25pt;background:white'><font lang="EN-US" style='letter-spacing:-0.15pt'>The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported </font><font lang="EN-US" style='letter-spacing:-0.1pt'>amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Management reviews these estimates and assumptions on an ongoing basis using currently available information. Actual results could differ from those estimates.</font></p> <p style='line-height:15.1pt;margin:1.45pt 0cm 0pt 0.5pt;background:white'><b><font lang="EN-US" style='letter-spacing:-0.35pt'>Cash and Cash Equivalents</font></b></p> <p style='line-height:7.45pt;margin:7.45pt 0cm 0pt 0.25pt;background:white'><font lang="EN-US" style='letter-spacing:-0.15pt'>The Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. </font></p> <p style='line-height:15.1pt;margin:1.45pt 0cm 0pt 0.5pt;background:white'><font lang="EN-US" style='letter-spacing:-0.15pt'> </font><b><font lang="EN-US" style='letter-spacing:-0.3pt'>Derivative Instruments</font></b></p> <p style='text-align:justify;line-height:7.45pt;margin:6.25pt 0.5pt 0pt 0.25pt;background:white'><font lang="EN-US" style='letter-spacing:-0.15pt'>Accounting standards require that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value. A change in the market </font><font lang="EN-US" style='letter-spacing:-0.1pt'>value of the financial instrument is recognized as a gain or loss in results of operations in the period of change.</font></p> <p style='margin:7.2pt 0cm 0pt 0.5pt;background:white'><b><font lang="EN-US" style='letter-spacing:-0.35pt'>Exploration and Development Costs</font></b></p> <p style='text-align:justify;line-height:7.45pt;margin:7.45pt 0.5pt 0pt 0.25pt;background:white'><font lang="EN-US" style='letter-spacing:-0.15pt'>Exploration costs incurred in locating areas of potential mineralization or evaluating properties or working interests with specific areas of potential mineralization are expensed as incurred. Development </font><font lang="EN-US" style='letter-spacing:-0.1pt'>costs of proven mining properties not yet producing are capitalized at cost and classified as capitalized exploration costs under property, plant and equipment. Property holding costs are charged to operations during the period if no significant exploration or development activities are being conducted on the related properties. Upon commencement of production, capitalized exploration and </font><font lang="EN-US" style='letter-spacing:-0.15pt'>development costs would be amortized based on the estimated proven and probable reserves benefited. Properties determined to be impaired or that are abandoned are written-down to the estimated fair </font><font lang="EN-US" style='letter-spacing:-0.1pt'>value. Carrying values do not necessarily reflect present or future values.</font></p> <p style='margin:7.2pt 0cm 0pt 0.25pt;background:white'><b><font lang="EN-US" style='letter-spacing:-0.25pt'>Fair Value of Financial Instruments</font></b></p> <p style='margin:6.95pt 0cm 0pt 0.25pt;background:white'><font lang="EN-US" style='letter-spacing:-0.15pt'>ASC Topic 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.</font></p> <p style='text-align:justify;line-height:7.45pt;margin:7.45pt 0.7pt 0pt 0.25pt;background:white'><font lang="EN-US" style='letter-spacing:-0.1pt'>Included in the ASC Topic 820 framework is a three level valuation inputs hierarchy with Level 1 being inputs and transactions that can be effectively fully observed by market participants spanning to Level 3 where estimates are unobservable by market participants outside of the Company and must be estimated using assumptions developed by the Company. The Company discloses the lowest level input significant to each category of asset or liability valued within the scope of ASC Topic 820 and the valuation method as exchange, income or use. The Company uses inputs which are as observable as possible and the methods most applicable to the specific situation of each company or valued item.</font></p> <p style='text-align:justify;line-height:7.45pt;margin:7.7pt 0.7pt 0pt 0.5pt;background:white'><font lang="EN-US" style='letter-spacing:-0.1pt'>The Company's financial instruments consist of cash, accounts payable, accrued liabilities, advances, notes payable, and a loan payable. The carrying amount of these financial instruments approximate fair value due to either length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.</font></p> <p style='margin:6.95pt 0cm 0pt 0.5pt;background:white'><font lang="EN-US" style='letter-spacing:-0.15pt'>Our investment in marketable securities is measured at fair value on a recurring basis using Level 1 inputs.</font></p> <p style='text-align:justify;line-height:7.45pt;margin:7.7pt 0cm 0pt 0.5pt;background:white'><font lang="EN-US" style='letter-spacing:-0.2pt'>On March 24, 2014, the Company resigned as the operator of the Joint Venture with Minerals LaNegra S. de R.L. de C.V. and Trinidad Pacifica S. de R.L. de C.V. and sold 50 shares of the minimum fixed capital stock of Mexus Enterprises S.A. de C.V. to First Pursuit Silver de Mexico S. de R.L. de C.V. for the following consideration: Assumption of $468,000 of accounts payable; Payment of $100,000 and </font><font lang="EN-US" style='letter-spacing:-0.15pt'>$100,000 on July 2014 and July 2015, respectively, on behalf of the Company to Minerales de Tarchi S. de R.L. de C.V. for lease payments under an exploration agreement; 1,660,000 shares of common stock of Silver Pursuit Resources Limited; and $4,000,000 due on or before March 24, 2015. The Company could recover its 50% interest sold should the purchaser not fulfill the terms of the sale. As of September 30, 2015 the Company has not been successful in obtaining the shares we were to receive, accordingly we have recorded an impairment of $96,150 to fully impair the value of the investment as it is uncertain if the Company will be able to obtain such shares.</font></p> <p style='margin:6.95pt 0cm 0pt 0.5pt;background:white'><font lang="EN-US" style='letter-spacing:-0.15pt'>Our warrant derivative liability and secured convertible promissory note derivative liability is measured at fair value on a recurring basis using Level 3 inputs.</font></p> <p style='text-align:justify;line-height:7.45pt;margin:7.7pt 0.7pt 0pt 0.5pt;background:white'><font lang="EN-US" style='letter-spacing:-0.1pt'>Interest rate risk is the risk that the value of a financial instrument might be adversely affected by a change in the interest rates. The notes payable, loans payable and convertible promissory notes have </font><font lang="EN-US" style='letter-spacing:-0.05pt'>fixed interest rates therefore the Company is exposed to interest rate risk in that they could not benefit from a decrease in market interest rates. In seeking to minimize the risks from interest rate </font><font lang="EN-US" style='letter-spacing:-0.15pt'>fluctuations, the Company manages exposure through its normal operating and financing activities.</font></p> <p style='margin:6.95pt 0cm 0pt 0.25pt;background:white'><b><font lang="EN-US" style='letter-spacing:-0.25pt'>Mineral Property Rights</font></b></p> <p style='text-align:justify;line-height:7.45pt;margin:7.7pt 0cm 0pt 0.25pt;background:white'><font lang="EN-US" style='letter-spacing:-0.1pt'>Costs of acquiring mining properties are capitalized upon acquisition. Mine development costs incurred either to develop new ore deposits, to expand the capacity of mines, or to develop mine areas substantially in advance of current production are also capitalized once proven and probable reserves exist and the property is a commercially mineable property. Costs incurred to maintain current production or to maintain assets on a standby basis are charged to operations. Costs of abandoned projects are charged to operations upon abandonment. The Company evaluates the carrying value of capitalized mining costs and related property and equipment costs, to determine if these costs are in excess of their recoverable amount whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Evaluation of the carrying value of capitalized costs and any related property and equipment costs would be based upon expected future cash flows and/or </font><font lang="EN-US" style='letter-spacing:-0.15pt'>estimated salvage value in accordance with Accounting Standards Codification (ASC) 360-10-35-15, <i>Impairment or Disposal of Long-Lived Asset </i></font><b><font lang="EN-US" style='letter-spacing:-0.25pt'>Per Share Data</font></b></p> <p style='text-align:justify;line-height:7.45pt;margin:7.7pt 0.7pt 0pt 0.25pt;background:white'><font lang="EN-US" style='letter-spacing:-0.1pt'>Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, "Earnings per Share". Basic earnings per common share ("EPS") calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. </font><font lang="EN-US" style='letter-spacing:-0.15pt'>During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation.</font></p> <p style='margin:6.95pt 0cm 0pt 0.25pt;background:white'><b><font lang="EN-US" style='letter-spacing:-0.3pt'>Revenue Recognition</font></b></p> <p style='text-align:justify;line-height:7.7pt;margin:7.2pt 0.5pt 0pt;background:white'><font lang="EN-US" style='letter-spacing:-0.1pt'>The Company recognizes revenues and the related costs when persuasive evidence of an arrangement exists, delivery and acceptance has occurred or service has been rendered, the price is fixed or determmable, and collection of the resulting receivable is reasonably assured.</font></p> <p style='margin:6.95pt 0cm 0pt 0.5pt;background:white'><b><font lang="EN-US" style='letter-spacing:-0.3pt'>Stock-based Compensation</font></b></p> <p style='text-align:justify;line-height:7.7pt;margin:7.2pt 0.5pt 0pt;background:white'><font lang="EN-US" style='letter-spacing:-0.1pt'>The Company records stock based compensation in accordance with the guidance in ASC Topic 718 which requires the Company to recognize expenses related to the fair value of its employee stock </font><font lang="EN-US" style='letter-spacing:-0.05pt'>option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based</font></p></div> <p style='margin:0cm 0cm 0pt 0.25pt;background:white'><font lang="EN-US" style='letter-spacing:0.05pt'>method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.</font></p> <p style='text-align:justify;line-height:7.7pt;margin:7.45pt 0.7pt 0pt 0.25pt;background:white'><font lang="EN-US" style='letter-spacing:0.05pt'>ASC 505, "Compensation-Stock Compensation", establishes standards for the accounting for transactions in which an entity exchanges its equity instruments to non employees for goods or services. </font><font lang="EN-US">Under this transition method, stock compensation expense includes compensation expense for all stock-based compensation awards granted on or after January 1, 2006, based on the grant-date fair value <font style='letter-spacing:-0.05pt'>estimated in accordance with the provisions of ASC 505.</font></font></p>
<!--egx--><p style='background:white;margin:7.9pt 0cm 0pt 0.25pt'><b><font lang="EN-US" style='letter-spacing:-0.4pt'>3.</font></b><b><font lang="EN-US"> <font style='letter-spacing:-0.35pt'>GOING CONCERN</font></font></b></p> <p style='background:white;text-align:justify;margin:7.45pt 0.95pt 0pt 0.5pt;line-height:7.7pt'><font lang="EN-US">The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying condensed consolidated financial statements, the Company has a limited operating history and limited funds and has an accumulated deficit of $17,895,797 at September 30, 2015. These factors, among others, may indicate that the Company may not be able to continue as a going concern.</font></p> <p style='background:white;text-align:justify;margin:7.45pt 0.95pt 0pt 0.25pt;line-height:7.45pt'><font lang="EN-US" style='letter-spacing:0.1pt'>The Company is dependent upon outside financing to continue operations. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. It is management's plans to raise necessary funds through a private placement of its common stock to satisfy the capital requirements of the Company's business plan. There is no assurance that the </font><font lang="EN-US">Company will be able to raise the necessary funds, or that if it is successful in raising the necessary funds, that the Company will successfully execute its business plan.</font></p> <p style='background:white;text-align:justify;margin:7.2pt 0.5pt 0pt 0.25pt;line-height:7.7pt'><font lang="EN-US">The financial statements do not include any adjustments relating to the recoverabihty and classification of assets and/or liabilities that might be necessary should the Company be unable to continue as a going concern. The continuation as a going concern is dependent upon the ability of the Company to meet our obligations on a timely basis, and, ultimately to attain profitability.</font></p>
<!--egx--><p style='background:white;margin:7.9pt 0cm 0pt 0.5pt'><b><font lang="EN-US" style='letter-spacing:-0.4pt'>4.</font></b><b><font lang="EN-US"> <font style='letter-spacing:-0.4pt'>RECENT ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANY</font></font></b></p> <p style='background:white;text-align:justify;margin:7.9pt 0cm 0pt 0.25pt;line-height:7.45pt'><font lang="EN-US">In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers ("FASB ASU 2014-09"). This standard update clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. generally accepted accounting principles (GAAP) and International Financial Reporting Standards. The standard update intends to provide a <font style='letter-spacing:0.05pt'>more robust framework for addressing revenue issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; and provide more useful </font><font style='letter-spacing:0.1pt'>information to users of consolidated financial statements through improved disclosure requirements. Upon adoption of this standard update, the Company expects that the allocation and timing of </font><font style='letter-spacing:-0.05pt'>revenue recognition will be impacted. The provisions of FASB ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting </font><font style='letter-spacing:0.05pt'>period, and are to be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. Early application is not permitted. The </font>Company is currently evaluating the impact that this standard update will have on its consolidated financial statements.</font></p> <p style='background:white;text-align:justify;margin:7.45pt 0.5pt 0pt 0.25pt;line-height:7.45pt'><font lang="EN-US">In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern. The new standard requires management of public and private companies to evaluate whether there is substantial doubt about the entity's ability to continue as a going concern and, if so, disclose that fact. Management will also be required to evaluate and disclose whether its plans alleviate that doubt. <font style='letter-spacing:0.05pt'>The standard requires management to evaluate, for each reporting period, whether there are conditions or events that raise substantial doubt about a company's ability to continue as a going concern </font>within one year from the date the financial statements are issued. The new standard is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of the ASU to have a significant impact on our consolidated financial statements</font></p> <p style='background:white;text-align:justify;margin:7.7pt 0.7pt 0pt 0.5pt;line-height:7.45pt'><font lang="EN-US" style='letter-spacing:0.1pt'>The Company has implemented all new accounting pronouncements that are in effect and that may impact its consolidated financial statements and does not believe that there are any other new </font><font lang="EN-US" style='letter-spacing:0.05pt'>accounting pronouncements that have been issued that might have a material impact on its consolidated financial statements.</font></p>
<!--egx--><p style='background:white;margin:8.15pt 0cm 0pt 0.5pt'><b><font lang="EN-US" style='letter-spacing:-0.4pt'>5.</font></b><b><font lang="EN-US"> <font style='letter-spacing:-0.3pt'>ACCOUNTS PAYABLE - RELATED PARTIES</font></font></b></p> <p style='background:white;text-align:justify;margin:7.45pt 0.25pt 0pt 0.7pt;line-height:7.7pt'><font lang="EN-US" style='letter-spacing:-0.05pt'>During the six months ended September 30, 2015 and 2014, the Company incurred rent expense to Paul D. Thompson, the sole director and officer of the Company, of $22,800 and $22,800, respectively. At September 30, 2015 and March 31, 2015, $10,998 and $83,798 for this obligation is outstanding, respectively.</font></p> <p style='background:white;text-align:justify;margin:7.2pt 0.5pt 0pt;line-height:7.7pt'><font lang="EN-US">On June 10, 2015, the Company issued 625,000 shares of Series A Preferred Stock ($0.12 per share) to Paul Thompson Sr., Chief Executive Officer and sole director of the Company, for $75,000 for <font style='letter-spacing:0.05pt'>settlement of accounts payable - related party.</font></font></p> <p style='background:white;margin:7.9pt 0cm 0pt 0.5pt'><b><font lang="EN-US" style='letter-spacing:0.15pt'>Compensation</font></b></p><font lang="EN-US" style='letter-spacing:-0.05pt'>On July 2, 2015, the Company entered into a compensation agreement with Paul D. Thompson, the sole director and officer of the Company. Mr. Thompson is compensated $15,000 per month and has the </font><font lang="EN-US" style='letter-spacing:0.05pt'>option to take payment in Company stock valued at an average of 5 days closing price, cash payments or deferred payment in stock or cash. In additional, Mr. Thompson is due 2,000,000 shares of </font><font lang="EN-US" style='letter-spacing:-0.05pt'>common stock valued at the 5 day average closing price each fiscal quarter. At September 30, 2015, $45,000 of compensation due is included in accounts payable - related party and $29,800 ($0.0149 per </font><font lang="EN-US" style='letter-spacing:0.05pt'>share) of stock due is included in share subscriptions payable.</font>
<!--egx--><p style='background:white;margin:7.9pt 0cm 0pt 0.5pt'><b><font lang="EN-US" style='letter-spacing:-0.4pt'>7.</font></b><b><font lang="EN-US"> <font style='letter-spacing:-0.3pt'>NOTES PAYABLE - RELATED PARTY</font></font></b></p> <p style='background:white;text-align:justify;margin:15.1pt 0.5pt 0pt 0.25pt;line-height:7.7pt'><font lang="EN-US">Notes due to Taurus Gold, Inc. are unsecured, non-interest bearing and due on demand. These notes were accumulated through a series of cash advances to the Company. Taurus Gold, Inc. is controlled <font style='letter-spacing:-0.05pt'>by Paul D. Thompson, the sole director and officer of the Company. As of September 30, 2015 and March 31, 2015, notes payable due to Taurus Gold Inc. totaled $136,532 and $186,792, respectively.</font></font></p> <p style='background:white;text-align:justify;margin:7.45pt 0.5pt 0pt;line-height:7.45pt'><font lang="EN-US">Notes due to North Pacific Gold were accumulated through a series of cash advances to the Company. North Pacific Gold is controlled by Paul Thompson, Jr. an immediate family member of Paul D. Thompson, the sole director and officer of the Company. On June 29, 2015, North Pacific Gold advanced the Company $7,500 in cash. This loan is due in 90 days, unsecured and bears interest of 6% per <font style='letter-spacing:-0.05pt'>annum and is repayable in cash or Company common stock at market value at the option of the Company. As of September 30, 2015 notes payable due to North Pacific Gold totaled $2,057.</font></font></p>
<!--egx--><div> <p style='background:white;margin:8.15pt 0cm 0pt 0.5pt'><b><font lang="EN-US" style='letter-spacing:-0.4pt'>8.</font></b><b><font lang="EN-US"> <font style='letter-spacing:-0.35pt'>NOTES PAYABLE</font></font></b></p></div> <p style='background:white;text-align:justify;margin:0cm 0cm 0pt 0.5pt;line-height:7.45pt'><font lang="EN-US" style='letter-spacing:-0.05pt'>On August 24, 2015, the Company issued a convertible promissory note ("Note") for a total amount of $343,973 due on February 24, 2017 with William H. Brinker ("Holder"). The total amount of the Note </font><font lang="EN-US" style='letter-spacing:0.05pt'>is due in three equal payments plus any accrued interest at 180 days, 360 days and 540 days from the issuance date. The Holder upon annual election may elect to be paid in cash or stock (but not both) </font><font lang="EN-US">as follows: (a) in cash, with interest at 4% per annum (b) in shares of common stock of the Company, with interest at 12% per annum ("Stock Payment"). For a Stock Payment, the number of shares is <font style='letter-spacing:0.05pt'>determined by multiplying the outstanding principal of the Note by 12% divided by 100% of the average of the closing price of the Stock for ten trading days immediately preceding the payment date. This Note has been accounted for in accordance with ASC 480 <i>Distinguishing Liabilities from Equity. </i>In consideration of the Company issuing the Note, the Holder agreed to cancel all other notes, contracts or other agreements with a carrying value totaling $458,402 prior to the issuance of the Note comprising unsecured promissory note dated January 8, 2013 of $140,000, promissory note of </font><font style='letter-spacing:-0.05pt'>$100,000 dated April 18, 2013, various notes payable of $41,001, interest payable of $9,372 and share subscriptions payable of $168,029. In conjunction with the Note, on September 2, 2015, the Company </font><font style='letter-spacing:0.1pt'>issued the Holder 8,732,880 shares of common stock with a fair value of $134,486 ($0.0154 per share) which as recorded as debt discount. The issuance of the Note resulted in gam on settlement of </font><font style='letter-spacing:-0.1pt'>$114,429. At September 30, 2015, the Note is recorded net of discount of $127,015.</font></font></p> <p style='background:white;text-align:justify;margin:7.7pt 0.5pt 0pt;line-height:7.45pt'><font lang="EN-US">On January 8, 2013, the Company entered into an unsecured promissory note agreement with William H. Brinker in the amount of $185,000. The note is due on demand upon the occurrence of certain <font style='letter-spacing:-0.05pt'>events and at the discretion of the note holder. A finance charge of $5,000 is due on or before March 31, 2013. The note is secured by 5,000,000 shares of common stock of Mexus Gold US pledged by the </font>Company and certain mining equipment including a radial stacker and cone crushing plant. On April 1, 2013, the Company repaid $50,000 in principal. On August 24, 2015, the remaining balance of this</font><font lang="EN-US"> </font>unsecured promissory note of $140,000 was settled in full on issuance of the convertible promissory note ($140,000 – March 31, 2015)</p> <p style='background:white;text-align:justify;margin:8.15pt 0.5pt 0pt;line-height:7.45pt'><font lang="EN-US">On February 4, 2014, the Company received a cash advance of $30,000 for a note payable with a face value of $36,000 with no specific terms of repayment secured by a mobile crusher unit. At September 30, 2015 and March 31, 2015, the balance of this note is $0 and $30,000, respectively. At September 30, 2015 and March 31, 2015, accrued interest of $0 and $6,000 on this note have been included in accounts payable and accrued liabilities, respectively.</font></p> <p style='background:white;margin:8.15pt 0cm 0pt 0.25pt'><font lang="EN-US" style='letter-spacing:0.1pt'>During the year ended March 31, 2014, the Company received cash advances of $15,000 and repaid $500 from an unrelated shareholder of the Company. These advances bear interest of 10%, are</font><font lang="EN-US"> </font>unsecured and are due within 60 days. At September 30, 2015 and March 31, 2015, the balance of these advances totaled $0 and $14,500, respectively.</p> <p style='background:white;text-align:justify;margin:8.4pt 0cm 0pt 0.25pt;line-height:7.45pt'><font lang="EN-US">During the year ended March 31, 2014, the Company received cash advances of $209,502 from three unrelated shareholders of the Company. These advances are non-interest bearing, unsecured and have no specific terms of repayment. On August 19, 2014, the Company issued 1,700,020 shares of common stock valued at $70,000. On August 24, 2015, the remaining balance of this unsecured promissory note of $140,000 was settlement in full on issuance of the convertible promissory note ($0.04 per share) to settle $87,501 in advances. As a result, the Company recorded a gam on settlement of debt of <font style='letter-spacing:-0.05pt'>$17,501. On February 28, 2015, the Company issued 2,272,727 shares of common stock valued at $48,636 ($0.0214 per share) to settle $25,000 in advances. As a result, the Company recorded a loss on settlement of debt of $23,636. On August 24, 2015, $37,001 of these advances were settled on issuance of the convertible promissory note. At September 30, 2015 and March 31, 2015, the balance of these advances totaled $15,000 and $52,001, respectively.</font></font></p> <p style='background:white;text-align:justify;margin:7.45pt 0.5pt 0pt 0.25pt;line-height:7.45pt'><font lang="EN-US" style='letter-spacing:0.05pt'>During the year ended March 31, 2015, the Company received various cash advances totaling $286,757 from twenty-two investors. In addition, during the six months ended September 30, 2015, the </font><font lang="EN-US">Company received various cash advances totaling $62,000 from seven investors. These advances are unsecured and are due within 30 to 90 days of issue. Upon receipt of the cash advance, the Company paid each of the investors the value of their investment in shares of common stock of the Company as a finance fee. The investor has the option to be repaid within 90 days by one of the following: (i) In cash (ii) One-half in cash and one—half in shares converted into common stock of the Company or (iii) The entire amount of the investment converted into shares of common stock of the Company. The <font style='letter-spacing:-0.05pt'>conversion prices range from $0.011 per share to $0,040 per share. At September 30, 2015 and March 31, 2015, the balance of these advances totaled $72,808 and $167,056, respectively. At September 30, 2015 and March 31, 2015, debt discount of $14,756 and $14,922, respectively has been recorded on the consolidated balance sheet related to these cash advances. At September 30, 2015, $12,300 of these </font>notes were in default. There are no default provisions stated in the notes. Of the $348,757 received, $30,000 plus interest of $5,000 is required to be repaid on December 31, 2015 and is secured by an assignment of payments due from Argonaut.</font></p> <p style='background:white;text-align:justify;margin:7.45pt 0.5pt 0pt 0.25pt;line-height:7.45pt'><font lang="EN-US" style='letter-spacing:0.05pt'>On February 16, 2010, the Company made an unsecured Promissory Note Agreement with William McCreary in the amount of $2,500 at eight percent interest and due on demand or no later than </font><font lang="EN-US">September 1, 2010. The Company has not made the scheduled payments and is in default on this note as of December 31, 2011. The default rate on the note is eight percent. At September 30, 2015 and March 31, 2015, the balances on this note totalled $2,500 and $2,500, respectively. At September 30, 2015 and March 31, 2015, accrued interest of $3,540 and $3,540 on this note have been included in accounts payable and accrued liabilities, respectively.</font></p>
<!--egx--><p style='background:white;margin:7.9pt 0cm 0pt 0.5pt'><b><font lang="EN-US" style='letter-spacing:-0.4pt'>9.</font></b><b><font lang="EN-US"> <font style='letter-spacing:-0.25pt'>PROMISSORY NOTES</font></font></b></p> <p style='background:white;text-align:justify;margin:7.7pt 0cm 0pt 0.25pt;line-height:7.45pt'><font lang="EN-US">On April 18, 2013, the Company issued Promissory Notes for $255,000 in cash. The Notes bear interest of 4% per annum and are due on September 30, 2015. The Notes are secured by all of Mexus Gold <font style='letter-spacing:-0.05pt'>US shares of stock in Mexus Resources S.A. de C.V. and a personal guarantee of Paul D. Thompson. In addition, a fee of 2,550,000 shares of common stock of the Company valued at $501,075 ($0.1965 per </font><font style='letter-spacing:0.05pt'>share) was paid to the Note holders on April 18, 2013. These financing fees were capitalized in the consolidated balance sheet as deferred finance expense and were being amortized on a straight-line </font>basis, which approximates the effective interest rate method, as interest expense over the life of the Promissory Notes. On August 24, 2015, $100,000 of these Promissory Notes were settled on issuance of <font style='letter-spacing:-0.05pt'>the convertible promissory note. At September 30, 2015 and March 31, 2015, outstanding Promissory Notes were $155,000 and $255,000, respectively. As of September 30, 2015, the Company has not made </font><font style='letter-spacing:0.05pt'>the scheduled payments and is in default on these promissory notes. The default rate on the notes is seven percent. Accrued interest of $23,832 is included in accounts payable and accrued liabilities.</font></font></p>
<!--egx--><p style='margin:0in 0in 0pt'><b>10.</b><font style='letter-spacing:9pt'> </font><b>CONVERTIBLE PROMISSORY NOTES</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>Typenex Co-Investment, LLC</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>On June 12, 2013, the Company entered into a Securities Purchase Agreement with Typenex Co-Investment, LLC (“Typenex”), for the sale of an 8% Secured Convertible Promissory Note (“Notes”) in the principal amount of $557,500 consisting of an initial tranche of $307,500 comprising of $250,000 of cash at closing, Typenex legal expenses in the amount of $7,500 and a $50,000 original issue discount and an additional tranche $250,000 in cash. On June 12, 2013, the Company closed on the initial tranche and received $250,000 in cash. On August 8, 2013, the Company closed on the second tranche and received $125,000 in cash. The Company has not closed on the final tranche for $125,000 in cash. The Company has no obligation to pay Typenex any amounts on the unfunded portion of the Note. The Notes have a maturity date that is thirteen months after the issuance date. Typenex has been granted a security interest in the property of the Company. At the option of the holder, all principal, costs, charges and interest amounts outstanding under all of the Notes shall be exchanged for shares of the Company’s common stock at the Conversion Price of $0.23 per share. The Conversion Price is subject to an anti-dilution adjustment in the event the Company at any time, while the Notes are outstanding, issues equity securities including common stock or any security convertible or exchangeable for shares of common stock for no consideration or for consideration less than $0.23 a share.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>In conjunction with the issuance of the Notes on June 12, 2013, the Company issued a variable number of warrants of the Company’s common stock equal to $278,750 divided by the Market Price. Market Price is defined as the higher of (i) the closing price of the common stock of the Company on June 12, 2013, and (ii) the VWAP of the common stock for the trading day that is two days prior to the exercise date. The Exercise Price of the warrants are $0.24 per share. The Exercise Price is subject to an anti-dilution adjustment in the event the Company at any time, while the Warrants are outstanding, issues equity securities including common stock or any security convertible or exchangeable for shares of common stock for no consideration or for consideration less than $0.24 a share.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The anti-dilution protection for the Note and Warrants excludes (a) the Company’s issuance of securities in connection with strategic license agreements and other partnering arrangements so long as any such issuances are not for the purpose of raising capital and in which holders of such securities or debt are not at any time granted registration rights, and (b) the Company’s issuance of Common Stock or the issuance or grant of options to purchase Common Stock to employees, directors, officers and consultants, authorized by the Company’s board of directors in place on June 12, 2013. After six months after the issuance date, monthly installments are due on the Note payable at the option of the Company (i) in cash (ii) in shares of common stock of the Company discounted depending on the Company’s share price at either 30% or 35%, or (iii) in any combination of cash or shares.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>On June 12, 2013, the Company recorded a discount on the Note equal to the fair value of the warrant derivative liability and convertible promissory note derivative liability. This discount is amortized using the effective interest rate method over the term of the Note.</p> <p style='margin:0in 0in 0pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="50%" style='width:50%'> <tr> <td valign="top" width="42%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:42%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="14%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:14%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>Six months Ended September 30, 2015</b></p></td> <td valign="top" width="13%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:13%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>Year Ended </b></p> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>March 31, 2015</b></p></td></tr> <tr> <td valign="top" width="42%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:42%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Opening balance</p></td> <td valign="top" width="14%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:14%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$ 102,842</p></td> <td valign="top" width="13%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:13%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$ 282,861</p></td></tr> <tr> <td valign="top" width="42%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:42%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> Conversion of principal into shares of common stock</p></td> <td valign="top" width="14%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:14%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(105,623)</p></td> <td valign="top" width="13%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:13%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(268,663)</p></td></tr> <tr> <td valign="top" width="42%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:42%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Amortization of discount on Note and accrued interest</p></td> <td valign="top" width="14%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:14%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>2,781</p></td> <td valign="top" width="13%" style='border-bottom:black 1.5pt solid;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:13%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'> 88,644</p></td></tr> <tr> <td valign="top" width="42%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:42%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="14%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:14%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="13%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:13%;padding-right:0in;background:#cceeff;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'> </p></td></tr> <tr> <td valign="top" width="42%" style='border-bottom:#f0f0f0;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:42%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p style='margin:0in 0in 0pt'>Closing balance</p></td> <td valign="top" width="14%" style='border-bottom:black 2.25pt double;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:14%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$ -</p></td> <td valign="top" width="13%" style='border-bottom:black 2.25pt double;border-left:#f0f0f0;padding-bottom:0in;padding-left:0in;width:13%;padding-right:0in;background:white;border-top:#f0f0f0;border-right:#f0f0f0;padding-top:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$ 102,842</p></td></tr></table></div> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>JMJ Financial</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>On January 28, 2015, the Company issued a Convertible Promissory Note (“Note”) to JMJ Financial (“Holder”), in the original principal amount of $110,000 bearing a 12% annual interest rate and maturing in two years for $100,000 of consideration paid in cash and a $10,000 original issue discount. The Company may repay the Note any time and if repaid within 90 days of date of issue with an interest rate is 0%. This Note together with any unpaid accrued interest is convertible into shares of common stock at the Holder’s option at a variable conversion price calculated as lessor of (a) $0.029 or (b) 60% of the lowest trade occurring during the 25 consecutive trading days immediately preceding the conversion date. On January 28, 2015, the Company received cash of $50,000 in the first tranche, which was net of original issue discount of $5,000. During the six months ended, the Holder converted 6,200,000 shares of common stock of the Company with a fair value of $116,940 to settle $46,085 of principal and interest. At September 30, 2015, the principal and interest outstanding for the first tranche of the Note of $20,343 is recorded net of unamortized debt discount of $4,928.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>LGH Investments, Inc.</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>On April 6, 2015, the Company issued a Convertible Promissory Note (“Note”) to LGH Investments, Inc. (“Holder”), in the original principal amount of $110,000 bearing a 12% annual interest rate and maturing in two years for $100,000 of consideration paid in cash and a $10,000 original issue discount. This Note together with any unpaid accrued interest is convertible into shares of common stock at the Holder’s option at a variable conversion price calculated as lessor of (a) $0.019 or (b) 60% of the lowest trade occurring during the 25 consecutive trading days immediately preceding the conversion date. On April 6, 2015, the Company received cash of $25,000 in the first tranche, which was net of original issue discount of $2,500. At September 30, 2015, the first tranche of the Note is recorded net of unamortized debt discount of $26,760.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>Lucas Hoppel</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>On June 11, 2015, the Company issued a Convertible Promissory Note (“Note”) to Lucas Hoppel (“Holder”), in the original principal amount of $110,000 bearing a 12% annual interest rate and maturing in two years for $100,000 of consideration paid in cash and a $10,000 original issue discount. This Note together with any unpaid accrued interest is convertible into shares of common stock at the Holder’s option at a variable conversion price calculated as lessor of (a) $0.018 or (b) 60% of the lowest trade occurring during the 25 consecutive trading days immediately preceding the conversion date. On June 11, 2015, the Company received cash of $25,000 in the first tranche, which was net of original issue discount of $2,500. At September 30, 2015, the first tranche of the Note is recorded net of unamortized debt discount of $33,707.</p>
<!--egx--><p style='background:white;margin:8.15pt 0cm 0pt 0.5pt'><b><font lang="EN-US" style='letter-spacing:0.05pt'>11. WARRANT DERIVATIVE LIABILITY</font></b></p> <p style='background:white;text-align:justify;margin:7.7pt 0.7pt 0pt 0.25pt;line-height:7.45pt'><font lang="EN-US" style='letter-spacing:0.05pt'>The Warrants are subject to anti-dilution adjustments that allow for the reduction in the Exercise Price in the event the Company subsequently issues equity securities including common stock or any </font><font lang="EN-US">security convertible or exchangeable for shares of common stock for no consideration or for consideration less than $0.24 a share. The Company accounted for the warrants in accordance with ASC Topic <font style='letter-spacing:0.05pt'>815. Accordingly, the Warrants are not considered to be solely indexed to the Company's own stock and, as such, recorded as a liability.</font></font></p> <p style='background:white;text-align:justify;margin:7.7pt 0.5pt 0pt 0cm;line-height:7.45pt'><font lang="EN-US">The Company's warrant derivative liability has been measured at fair value at September 30, 2015 and March 31, 2015 using a binomial model. Since the Exercise Price contains an anti-dilution adjustment, the probability that the Exercise Price of the Notes would decrease as the share price decreased was incorporated into the valuation calculation. After June 12, 2013, the Company issued common stock for <font style='letter-spacing:0.05pt'>cash at a price of $0.01 per share and the conversion price has been adjusted accordingly.</font></font></p> <p style='background:white;margin:7.9pt 0cm 0pt 0.25pt'><font lang="EN-US">The inputs into the binomial model are as follows:</font></p> <p style='margin:0cm 0cm 7.7pt;line-height:0.05pt'> </p> <table cellspacing="0" cellpadding="0" border="0" style='border-collapse:collapse;margin:auto auto auto 2pt'> <tr style='height:16.3pt'> <td valign="top" width="76" style='border-top:#f0f0f0;height:16.3pt;border-right:#f0f0f0;width:56.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'> </p></td> <td valign="top" width="99" style='border-top:#f0f0f0;height:16.3pt;border-right:#f0f0f0;width:74.4pt;background:white;border-bottom:windowtext 1pt solid;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><b><font lang="EN-US" style='letter-spacing:0.05pt'>September 30,2015</font></b></p></td> <td valign="top" width="95" style='border-top:#f0f0f0;height:16.3pt;border-right:#f0f0f0;width:71.05pt;background:white;border-bottom:windowtext 1pt solid;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><b><font lang="EN-US" style='letter-spacing:0.1pt'>March 31,2015</font></b></p></td></tr> <tr style='height:7.7pt'> <td valign="top" width="76" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:56.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>Market price</font></p></td> <td valign="top" width="99" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:74.4pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>$0.0149</font></p></td> <td valign="top" width="95" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:71.05pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.35pt'>$0.0194</font></p></td></tr> <tr style='height:7.7pt'> <td valign="top" width="76" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:56.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US">Conversion price</font></p></td> <td valign="top" width="99" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:74.4pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>$0.0100</font></p></td> <td valign="top" width="95" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:71.05pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.35pt'>$0.0110</font></p></td></tr> <tr style='height:7.7pt'> <td valign="top" width="76" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:56.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>Risk free rate</font></p></td> <td valign="top" width="99" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:74.4pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.05pt'>0.92%</font></p></td> <td valign="top" width="95" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:71.05pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.35pt'>0.89%</font></p></td></tr> <tr style='height:7.7pt'> <td valign="top" width="76" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:56.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>Expected volatility</font></p></td> <td valign="top" width="99" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:74.4pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.2pt'>138%</font></p></td> <td valign="top" width="95" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:71.05pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.45pt'>121%</font></p></td></tr> <tr style='height:7.2pt'> <td valign="top" width="76" style='border-top:#f0f0f0;height:7.2pt;border-right:#f0f0f0;width:56.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.05pt'>Dividend yield</font></p></td> <td valign="top" width="99" style='border-top:#f0f0f0;height:7.2pt;border-right:#f0f0f0;width:74.4pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US">0%</font></p></td> <td valign="top" width="95" style='border-top:#f0f0f0;height:7.2pt;border-right:#f0f0f0;width:71.05pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US">0%</font></p></td></tr> <tr style='height:8.65pt'> <td valign="top" width="76" style='border-top:#f0f0f0;height:8.65pt;border-right:#f0f0f0;width:56.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>Expected life</font></p></td> <td valign="top" width="99" style='border-top:#f0f0f0;height:8.65pt;border-right:#f0f0f0;width:74.4pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:0.15pt'>35 months</font></p></td> <td valign="top" width="95" style='border-top:#f0f0f0;height:8.65pt;border-right:#f0f0f0;width:71.05pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>38 months</font></p></td></tr></table> <p style='background:white;margin:7.2pt 0cm 0pt 0.25pt'><font lang="EN-US">The fair value of the warrant derivative liability is $334,270 at September 30, 2015. The increase (decrease) in the fair value of the warrant liability of $(73,315) and $(678,055) has been recorded as a (gain)</font><font lang="EN-US"> </font>loss in the consolidated statements of operations for the six months ended September 30, 2015 and 2014, respectively.</p>
<!--egx--><p style='background:white;margin:8.9pt 0cm 0pt 0.5pt'><b><font lang="EN-US" style='letter-spacing:0.05pt'>12. CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITY</font></b></p> <p style='background:white;text-align:justify;margin:7.7pt 0.7pt 0pt 0.25pt;line-height:7.45pt'><font lang="EN-US" style='letter-spacing:0.05pt'>The Convertible Promissory Note with Typenex is subject to anti-dilution adjustments that allow for the reduction in the Conversion Price in the event the Company subsequently issues equity securities </font><font lang="EN-US" style='letter-spacing:0.1pt'>including common stock or any security convertible or exchangeable for shares of common stock for no consideration or for consideration less than $0.23 a share. The Company accounted for the </font><font lang="EN-US" style='letter-spacing:0.05pt'>conversion option in accordance with ASC Topic 815. Accordingly, the Conversion Option is not considered to be solely indexed to the Company's own stock and, as such, recorded as a liability.</font></p> <p style='background:white;text-align:justify;margin:7.2pt 0.5pt 0pt 0.25pt;line-height:7.7pt'><font lang="EN-US">The Company's convertible promissory note derivative liabilities has been measured at fair value at March 31, 2015 and 2014 using a binomial model. Since the Conversion Price contains an anti-dilution <font style='letter-spacing:0.05pt'>adjustment, the probability that the Conversion Price of the Notes would decrease as the share price decreased was incorporated into the valuation calculation. After June 12, 2013, the Company issued common stock for cash at a price of $0.01 per share and the conversion price has been adjusted accordingly. At September 30, 2015, the Convertible Promissory Note with Typenex was paid in full. As</font></font><font lang="EN-US"> </font>such, the fair value of the conversion feature at September 30, 2015 is $0.<font lang="EN-US">The inputs into the binomial model are as follows:</font></p> <p style='margin:0cm 0cm 7.7pt;line-height:0.05pt'> </p> <table cellspacing="0" cellpadding="0" border="0" style='border-collapse:collapse;margin:auto auto auto 2pt'> <tr style='height:8.65pt'> <td valign="top" width="85" style='border-top:#f0f0f0;height:8.65pt;border-right:#f0f0f0;width:63.85pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'> </p></td> <td valign="top" width="90" style='border-top:#f0f0f0;height:8.65pt;border-right:#f0f0f0;width:67.7pt;background:white;border-bottom:windowtext 1pt solid;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><b><font lang="EN-US" style='letter-spacing:0.1pt'>March 31,2015</font></b></p></td></tr> <tr style='height:7.7pt'> <td valign="top" width="85" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:63.85pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.05pt'>Closing share price</font></p></td> <td valign="top" width="90" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:67.7pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.35pt'>$0.0194</font></p></td></tr> <tr style='height:7.7pt'> <td valign="top" width="85" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:63.85pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.05pt'>Conversion price</font></p></td> <td valign="top" width="90" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:67.7pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.5pt'>$0,011</font></p></td></tr> <tr style='height:7.7pt'> <td valign="top" width="85" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:63.85pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>Risk free rate</font></p></td> <td valign="top" width="90" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:67.7pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.4pt'>0.14%</font></p></td></tr> <tr style='height:7.7pt'> <td valign="top" width="85" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:63.85pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>Expected volatility</font></p></td> <td valign="top" width="90" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:67.7pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.55pt'>180%</font></p></td></tr> <tr style='height:7.2pt'> <td valign="top" width="85" style='border-top:#f0f0f0;height:7.2pt;border-right:#f0f0f0;width:63.85pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.05pt'>Dividend yield</font></p></td> <td valign="top" width="90" style='border-top:#f0f0f0;height:7.2pt;border-right:#f0f0f0;width:67.7pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US">0%</font></p></td></tr> <tr style='height:8.65pt'> <td valign="top" width="85" style='border-top:#f0f0f0;height:8.65pt;border-right:#f0f0f0;width:63.85pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>Expected life</font></p></td> <td valign="top" width="90" style='border-top:#f0f0f0;height:8.65pt;border-right:#f0f0f0;width:67.7pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>0.5 years</font></p></td></tr></table> <p style='background:white;text-align:justify;margin:6.5pt 0cm 0pt;line-height:7.45pt'><font lang="EN-US">Additionally, the Convertible Promissory Notes with JMJ Financial with an issue date of January 28, 2015, LGH Investments, Inc. with an issue date of April 6, 2015 and Lucas Hoppel with an issue date of <font style='letter-spacing:0.05pt'>June 11, 2015 was accounted for under ASC 815. The variable conversion price is not considered predominately based on a fixed monetary amount settleable with a variable number of shares due to the </font>volatility and trading volume of the Company's common stock. The Company's convertible promissory note derivative liabilities has been measured at fair value at September 30, 2015, June 11, 2015, April <font style='letter-spacing:-0.05pt'>6, 2015 and March 31, 2015 using the Black-Scholes model.</font></font></p> <p style='background:white;margin:8.15pt 0cm 0pt 0.25pt'><font lang="EN-US">The inputs into the Black-Scholes models are as follows:</font></p> <p style='margin:0cm 0cm 7.45pt;line-height:0.05pt'> </p> <table cellspacing="0" cellpadding="0" border="0" style='border-collapse:collapse;margin:auto auto auto 2pt'> <tr style='height:8.65pt'> <td valign="top" width="86" style='border-top:#f0f0f0;height:8.65pt;border-right:#f0f0f0;width:64.3pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'> </p></td> <td valign="top" width="114" style='border-top:#f0f0f0;height:8.65pt;border-right:#f0f0f0;width:85.45pt;background:white;border-bottom:windowtext 1pt solid;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><b><font lang="EN-US" style='letter-spacing:0.05pt'>September 30,2015</font></b></p></td> <td valign="top" width="92" style='border-top:#f0f0f0;height:8.65pt;border-right:#f0f0f0;width:68.65pt;background:white;border-bottom:windowtext 1pt solid;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><b><font lang="EN-US" style='letter-spacing:0.1pt'>March 31,2015</font></b></p></td></tr> <tr style='height:8.15pt'> <td valign="top" width="86" style='border-top:#f0f0f0;height:8.15pt;border-right:#f0f0f0;width:64.3pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.05pt'>Closing share price</font></p></td> <td valign="top" width="114" style='border-top:#f0f0f0;height:8.15pt;border-right:#f0f0f0;width:85.45pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.05pt'>$0.01826</font></p></td> <td valign="top" width="92" style='border-top:#f0f0f0;height:8.15pt;border-right:#f0f0f0;width:68.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.35pt'>$0.0194</font></p></td></tr> <tr style='height:7.2pt'> <td valign="top" width="86" style='border-top:#f0f0f0;height:7.2pt;border-right:#f0f0f0;width:64.3pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US">Conversion price</font></p></td> <td valign="top" width="114" style='border-top:#f0f0f0;height:7.2pt;border-right:#f0f0f0;width:85.45pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>$0.0160</font></p></td> <td valign="top" width="92" style='border-top:#f0f0f0;height:7.2pt;border-right:#f0f0f0;width:68.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.4pt'>$0,019</font></p></td></tr> <tr style='height:7.7pt'> <td valign="top" width="86" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:64.3pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>Risk free rate</font></p></td> <td valign="top" width="114" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:85.45pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.05pt'>0.050%</font></p></td> <td valign="top" width="92" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:68.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.3pt'>0.050%</font></p></td></tr> <tr style='height:7.7pt'> <td valign="top" width="86" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:64.3pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>Expected volatility</font></p></td> <td valign="top" width="114" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:85.45pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:0.3pt'>143%-151%</font></p></td> <td valign="top" width="92" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:68.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.55pt'>129%</font></p></td></tr> <tr style='height:7.7pt'> <td valign="top" width="86" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:64.3pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.05pt'>Dividend yield</font></p></td> <td valign="top" width="114" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:85.45pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US">0%</font></p></td> <td valign="top" width="92" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:68.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US">0%</font></p></td></tr> <tr style='height:8.15pt'> <td valign="top" width="86" style='border-top:#f0f0f0;height:8.15pt;border-right:#f0f0f0;width:64.3pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>Expected life</font></p></td> <td valign="top" width="114" style='border-top:#f0f0f0;height:8.15pt;border-right:#f0f0f0;width:85.45pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US">1.58 years — 1.95 years</font></p></td> <td valign="top" width="92" style='border-top:#f0f0f0;height:8.15pt;border-right:#f0f0f0;width:68.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>1.83 years</font></p></td></tr></table> <p style='background:white;margin:6.5pt 0cm 0pt 0.25pt;line-height:7.7pt'><font lang="EN-US" style='letter-spacing:0.05pt'>The fair value of the conversion option derivative liabilities is $115,693 at September 30, 2015. The increase (decrease) in the fair value of the conversion option derivative liability of $(119,589) and $(538,641) is recorded as a (gain) loss in the unaudited condensed consolidated statements of operations for the three and six months ended September 30, 2015 and 2014, respectively.</font></p>
<!--egx--><p style='background:white;margin:7.9pt 0cm 0pt 0.5pt'><b><font lang="EN-US" style='letter-spacing:-0.3pt'>13.</font></b><b><font lang="EN-US"> <font style='letter-spacing:-0.35pt'>CONTINGENT LIABILITIES</font></font></b></p> <p style='background:white;margin:7.9pt 0cm 0pt;line-height:7.45pt'><font lang="EN-US" style='letter-spacing:0.05pt'>An asset retirement obligation is a legal obligation associated with the disposal or retirement of a tangible long-lived asset that results from the acquisition, construction or development, or the normal </font><font lang="EN-US">operations of a long-lived asset, except for certain obligations of lessees. While the Company, as of September 30, 2015, does not have a legal obligation associated with the disposal of certain chemicals <font style='letter-spacing:0.05pt'>used in its leaching process, the Company estimates it will incur costs up to $50,000 to neutralize those chemicals at the close of the leaching pond.</font></font></p>
<!--egx--><div> <p style='background:white;margin:1.2pt 0cm 0pt 0.5pt;line-height:15.1pt'><b><font lang="EN-US" style='letter-spacing:-0.3pt'>14.</font></b><b><font lang="EN-US"> <font style='letter-spacing:-0.3pt'>STOCKHOLDERS' EQUITY</font></font></b></p> <p style='background:white;margin:0cm 0cm 0pt 0.25pt;line-height:15.1pt'><font lang="EN-US">The stockholders' equity of the Company comprises the following classes of capital stock as of September 30, 2015 and March 31, 2015:</font></p> <p style='background:white;margin:0cm 0cm 0pt;line-height:15.1pt'><font lang="EN-US">Preferred Stock, $.001 par value per share; 9,000,000 shares authorized, 0 shares issued and outstanding at September 30, 2015 and March 31, 2015, respectively.</font></p> <p style='background:white;margin:5.75pt 0cm 0pt;line-height:7.7pt'><font lang="EN-US" style='letter-spacing:-0.05pt'>Series A Convertible Preferred Stock ('Series A Preferred Stock"), $.001 par value share; 1,000,000 shares authorized: 1,000,000 shares and 325,000 shares issued and outstanding at September 30, 2015 and March 31, 2015, respectively.</font></p> <p style='background:white;margin:7.9pt 0cm 0pt'><font lang="EN-US" style='letter-spacing:0.05pt'>Holders of Series A Preferred Stock may convert one share of Series A Preferred Stock into one share of Common Stock. Holders of Series A Preferred Stock have the number of votes determined by</font></p></div> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.2pt'>multiplying (a) the number of Series A Preferred Stock held by such holder, (b) the number of issued and outstanding Series A Preferred Stock and Common Stock on a fully diluted basis, and (c) 0.000006.</font></p> <p style='background:white;text-align:justify;margin:7.2pt 0cm 0pt 0.25pt;line-height:7.7pt'><font lang="EN-US" style='letter-spacing:-0.25pt'>Common Stock, par value of $0,001 per share; 500,000,000 shares authorized: 376,268,049 and 308,236,718 shares issued and outstanding at September 30, 2015 and March 31, 2015, respectively. Holders of </font><font lang="EN-US" style='letter-spacing:-0.2pt'>Common Stock have one vote per share of Common Stock held.</font></p> <p style='background:white;margin:6.95pt 0cm 0pt 0.25pt'><b><font lang="EN-US" style='letter-spacing:-0.15pt'>Series </font></b><font lang="EN-US" style='letter-spacing:-0.15pt'>A <b>Preferred Stock</b></font></p> <p style='background:white;text-align:justify;margin:7.2pt 0.7pt 0pt 0.25pt;line-height:7.7pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>On June 10, 2015, the Company issued 625,000 shares of Series A Preferred Stock to Paul Thompson Sr., Chief Executive Officer and sole director of the Company, to satisfy obligations under share </font><font lang="EN-US" style='letter-spacing:-0.1pt'>subscription agreements for $75,000 for settlement of accounts payable - related party included in share subscriptions payable.</font></p> <p style='background:white;margin:6.95pt 0cm 0pt 0.25pt'><b><font lang="EN-US" style='letter-spacing:-0.35pt'>Common Stock</font></b></p> <p style='background:white;text-align:justify;margin:7.7pt 0.5pt 0pt 0.25pt;line-height:7.45pt'><font lang="EN-US" style='letter-spacing:-0.2pt'>On April 14, 2015 the Company issued 1,840,908 shares of common stock (valued at $28,818 and classified as common stock of $1,841 and additional paid-in capital of $26,977) to satisfy obligations under </font><font lang="EN-US" style='letter-spacing:-0.1pt'>share subscription agreements for $21,318 for settlement of notes payable and $7,500 in services included in share subscriptions payable.</font></p> <p style='background:white;text-align:justify;margin:7.2pt 0.5pt 0pt 0.25pt;line-height:7.7pt'><font lang="EN-US" style='letter-spacing:-0.2pt'>On April 21, 2015 the Company issued 4,745,452 shares of common stock (valued at $67,241 and classified as common stock of $4,745 and additional paid-in capital of $62,496) to satisfy obligations under </font><font lang="EN-US" style='letter-spacing:-0.15pt'>share subscription agreements for $36,441 for settlement of notes payable, $12,000 in services and $18,800 in cash receipts included in share subscriptions payable.</font></p> <p style='background:white;text-align:justify;margin:7.2pt 0.5pt 0pt 0.25pt;line-height:7.7pt'><font lang="EN-US" style='letter-spacing:-0.2pt'>On May 13, 2015 the Company issued 3,176,134 shares of common stock (valued at $49,289 and classified as common stock of $3,176 and additional paid-in capital of $46,113) to satisfy obligations under </font><font lang="EN-US" style='letter-spacing:-0.15pt'>share subscription agreements for $30,289 for settlement of notes payable, $10,000 in equipment and $9,000 in cash receipts included in share subscriptions payable.</font></p> <p style='background:white;text-align:justify;margin:7.2pt 0.5pt 0pt 0.25pt;line-height:7.7pt'><font lang="EN-US" style='letter-spacing:-0.2pt'>On June 10, 2015 the Company issued 5,830,863 shares of common stock (valued at $81,482 and classified as common stock of $5,831 and additional paid-in capital of $75,651) to satisfy obligations under </font><font lang="EN-US" style='letter-spacing:-0.15pt'>share subscription agreements for $49,448 for settlement of accounts payable, $9,534 in services and $22,500 in cash receipts included in share subscriptions payable.</font></p> <p style='background:white;text-align:justify;margin:7.2pt 0.5pt 0pt 0.25pt;line-height:7.7pt'><font lang="EN-US" style='letter-spacing:-0.2pt'>On June 23, 2015 the Company issued 1,800,000 shares of common stock (valued at $32,000 and classified as common stock of $1,800 and additional paid-in capital of $30,200) to satisfy obligations under </font><font lang="EN-US" style='letter-spacing:-0.15pt'>share subscription agreements for $12,000 in services and $20,000 in cash receipts included in share subscriptions payable.</font></p> <p style='background:white;text-align:justify;margin:7.2pt 0.5pt 0pt 0.25pt;line-height:7.7pt'><font lang="EN-US" style='letter-spacing:-0.2pt'>On April 18, 2015 and May 1, 2015, the Company issued a total of 6,719,815 shares of common stock valued at $126,886 ($0.0189 per share) to Typenex Co-Investment, LLC for conversion of principal and interest of $54,566 and loss on settlement of debt of $72,320.</font></p> <p style='background:white;text-align:justify;margin:7.2pt 0.5pt 0pt 0.25pt;line-height:7.7pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>On July 9, 2015 the Company issued 7,796,966 shares of common stock to satisfy obligations under share subscription agreements for $63,000 for settlement of notes payable, $14,200 in services and </font><font lang="EN-US" style='letter-spacing:-0.15pt'>$12,500 in cash receipts included in share subscriptions payable.</font></p> <p style='background:white;text-align:justify;margin:7.2pt 0.7pt 0pt 0.25pt;line-height:7.7pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>On July 29, 2015 the Company issued 2,078,333 shares of common stock to satisfy obligations under share subscription agreements for $8,490 in services and $15,000 in cash receipts included in share </font><font lang="EN-US" style='letter-spacing:-0.1pt'>subscriptions payable.</font></p> <p style='background:white;margin:1.2pt 0cm 0pt 0.25pt;line-height:15.1pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>On August 6, 2015 the Company issued 2,125,000 shares of common stock to satisfy obligations under share subscription agreements for $25,500 in services included in share subscriptions payable. On August 14, 2015 the Company issued 1,500,000 shares of common stock to satisfy obligations under share subscription agreements for $38,150 in services included in share subscriptions payable.</font></p> <p style='background:white;text-align:justify;margin:6.25pt 0.95pt 0pt 0.25pt;line-height:7.45pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>On September 2, 2015 the Company issued 10,207,799 shares of common stock to satisfy obligations under share subscription agreements for $207,988 for settlement of notes payable, $29,000 in services and $12,776 in cash receipts included in share subscriptions payable.</font></p> <p style='background:white;text-align:justify;margin:7.7pt 0.5pt 0pt 0cm;line-height:7.45pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>On September 18, 2015 the Company issued 1,109,090 shares of common stock to satisfy obligations under share subscription agreements for $10,000 for settlement of notes payable and $2,000 in cash </font><font lang="EN-US" style='letter-spacing:-0.1pt'>receipts included in share subscriptions payable.</font></p> <p style='background:white;text-align:justify;margin:7.7pt 0.95pt 0pt 0.25pt;line-height:7.45pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>On September 21, 2015 the Company issued 6,500,000 shares of common stock to satisfy obligations under share subscription agreements for $48,750 for settlement of notes payable, $48,500 in services and $10,000 in cash receipts included in share subscriptions payable.</font></p> <p style='background:white;text-align:justify;margin:7.7pt 0cm 0pt;line-height:7.45pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>On July 28, 2015 and September 2, 2015, the Company issued a total of 12,370,789 shares of common stock valued at $242,400 ($0.0196 per share) to Typenex Co-Investment, LLC for conversion of </font><font lang="EN-US" style='letter-spacing:-0.2pt'>principal and interest of $96,336 and loss on settlement of debt of $146,064.</font></p> <p style='background:white;text-align:justify;margin:7.2pt 0.5pt 0pt 0.25pt;line-height:7.7pt'><font lang="EN-US" style='letter-spacing:-0.2pt'>On July 28, 2015, August 10, 2015, August 24, 2015, September 1, 2015, September 15, 2015 and September 24, 2015, the Company issued a total of 6,200,000 shares of common stock valued at $116,940 </font><font lang="EN-US" style='letter-spacing:-0.15pt'>($0.0189 per share) to JMJ Financial for conversion of principal and interest of $46,085 and loss on settlement of debt of $70,855.</font></p> <p style='background:white;margin:6.95pt 0cm 0pt 0.25pt'><b><font lang="EN-US" style='letter-spacing:-0.15pt'>Series A Preferred Stock</font></b></p> <p style='background:white;text-align:justify;margin:7.7pt 0cm 0pt;line-height:7.45pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>During the six months ended September 30, 2015, the Company issued subscriptions payable for 625,000 shares of Series A Preferred Stock valued at $75,000 and classified as Series A Preferred Stock of $625 and additional paid-in capital of $74,375 ($0.12 per share) to Paul Thompson Sr., Chief Executive Officer and sole director of the Company, for $75,000 for settlement of accounts payable - related </font><font lang="EN-US" style='letter-spacing:-0.2pt'>party.</font></p> <p style='background:white;margin:1.2pt 0cm 0pt 0.25pt;line-height:15.1pt'><b><font lang="EN-US" style='letter-spacing:0.15pt'>Common Stock Payable</font></b></p> <p style='background:white;margin:0cm 0cm 0pt;line-height:15.1pt'><font lang="EN-US" style='letter-spacing:-0.2pt'>During the six months ended September 30, 2015, the Company issued subscriptions payable for 6,754,833 shares of common stock ($0.0104 per share) for $70,276 in cash.</font></p> <p style='background:white;margin:0cm 0cm 0pt;line-height:15.1pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>During the six months ended September 30, 2015, the Company issued subscriptions payable for 17,431,166 shares of common stock for services valued at $296,124 ($0.0170 per share).</font></p> <p style='background:white;margin:0cm 0cm 0pt;line-height:15.1pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>During the six months ended September 30, 2015, the Company issued subscriptions payable for 1,103,240 shares of common stock for purchase of equipment valued at $31,350 ($0.0284 per share).</font></p> <p style='background:white;text-align:justify;margin:6.25pt 0.5pt 0pt 0.25pt;line-height:7.45pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>During the six months ended September 30, 2015, the Company issued subscriptions payable for 3,525,000 shares of common stock for settlement of accounts payable valued at $124,448 ($0.0353 per </font><font lang="EN-US" style='letter-spacing:-0.2pt'>share).</font></p> <p style='margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.2pt'>During the six months ended September 30, 2015, the Company issued subscriptions payable for 24,270,169 shares of common stock for settlement of notes payable valued at $427,663 ($0.0176 per share). During the six months ended September 30, 2015, the Company issued subscriptions payable for 1,215,674 shares of common stock for settlement of interest payable valued at $36,470 ($0.0300 per share). </font><font lang="EN-US" style='letter-spacing:-0.15pt'>On August 24, 2015, $168,029 of share subscriptions payable for 3,517,040 shares of common stock due William H. Brinker were settled on issuance of the convertible promissory note. </font><b><font lang="EN-US" style='letter-spacing:0.15pt'>15. SUBSEQUENT </font></b><b>15. </b></p>
<!--egx--><div> <p style='margin:0cm 0cm 0pt'><b>SUBSEQUENT EVENTS</b></p> <p style='margin:0cm 0cm 0pt'><b>Common Stock</b></p> <p style='margin:0cm 0cm 0pt'>Form October 1, 2015 to November 20, 2015, the Company issued a total of 12,142,343 shares of common stock valued at $152,432 ($0.0126 per share) to settle various secured convertible promissory notes</p> <p style='background:white;margin:1.2pt 0cm 0pt;line-height:15.1pt'>for conversion of principal and interest of $57,315 and loss on settlement of debt of $95,117.</p></div>
<!--egx--><p style='background:white;margin:1.45pt 0cm 0pt 0.5pt;line-height:15.1pt'><b><font lang="EN-US" style='letter-spacing:-0.35pt'>Cash and Cash Equivalents</font></b></p><font lang="EN-US" style='letter-spacing:-0.15pt'>The Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. </font>
<!--egx--><p style='background:white;margin:0cm 184.3pt 0pt 0.25pt;line-height:15.1pt'><b><font lang="EN-US" style='letter-spacing:-0.3pt'>Derivative Instruments</font></b></p> <p style='background:white;text-align:justify;margin:6.25pt 0.5pt 0pt 0.25pt;line-height:7.45pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>Accounting standards require that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value. A change in the market </font><font lang="EN-US" style='letter-spacing:-0.1pt'>value of the financial instrument is recognized as a gain or loss in results of operations in the period of change.</font></p>
<!--egx--><p style='background:white;margin:7.2pt 0cm 0pt 0.5pt'><b><font lang="EN-US" style='letter-spacing:-0.35pt'>Exploration and Development Costs</font></b></p> <p style='background:white;text-align:justify;margin:7.45pt 0.5pt 0pt 0.25pt;line-height:7.45pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>Exploration costs incurred in locating areas of potential mineralization or evaluating properties or working interests with specific areas of potential mineralization are expensed as incurred. Development </font><font lang="EN-US" style='letter-spacing:-0.1pt'>costs of proven mining properties not yet producing are capitalized at cost and classified as capitalized exploration costs under property, plant and equipment. Property holding costs are charged to operations during the period if no significant exploration or development activities are being conducted on the related properties. Upon commencement of production, capitalized exploration and </font><font lang="EN-US" style='letter-spacing:-0.15pt'>development costs would be amortized based on the estimated proven and probable reserves benefited. Properties determined to be impaired or that are abandoned are written-down to the estimated fair </font><font lang="EN-US" style='letter-spacing:-0.1pt'>value. Carrying values do not necessarily reflect present or future values.</font></p>
<!--egx--><p style='background:white;margin:7.2pt 0cm 0pt 0.25pt'><b><font lang="EN-US" style='letter-spacing:-0.25pt'>Fair Value of Financial Instruments</font></b></p> <p style='background:white;margin:6.95pt 0cm 0pt 0.25pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>ASC Topic 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.</font></p> <p style='background:white;text-align:justify;margin:7.45pt 0.7pt 0pt 0.25pt;line-height:7.45pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>Included in the ASC Topic 820 framework is a three level valuation inputs hierarchy with Level 1 being inputs and transactions that can be effectively fully observed by market participants spanning to Level 3 where estimates are unobservable by market participants outside of the Company and must be estimated using assumptions developed by the Company. The Company discloses the lowest level input significant to each category of asset or liability valued within the scope of ASC Topic 820 and the valuation method as exchange, income or use. The Company uses inputs which are as observable as possible and the methods most applicable to the specific situation of each company or valued item.</font></p> <p style='background:white;text-align:justify;margin:7.7pt 0.7pt 0pt 0.5pt;line-height:7.45pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>The Company's financial instruments consist of cash, accounts payable, accrued liabilities, advances, notes payable, and a loan payable. The carrying amount of these financial instruments approximate fair value due to either length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.</font></p> <p style='background:white;margin:6.95pt 0cm 0pt 0.5pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>Our investment in marketable securities is measured at fair value on a recurring basis using Level 1 inputs.</font></p> <p style='background:white;text-align:justify;margin:7.7pt 0cm 0pt 0.5pt;line-height:7.45pt'><font lang="EN-US" style='letter-spacing:-0.2pt'>On March 24, 2014, the Company resigned as the operator of the Joint Venture with Minerals LaNegra S. de R.L. de C.V. and Trinidad Pacifica S. de R.L. de C.V. and sold 50 shares of the minimum fixed capital stock of Mexus Enterprises S.A. de C.V. to First Pursuit Silver de Mexico S. de R.L. de C.V. for the following consideration: Assumption of $468,000 of accounts payable; Payment of $100,000 and </font><font lang="EN-US" style='letter-spacing:-0.15pt'>$100,000 on July 2014 and July 2015, respectively, on behalf of the Company to Minerales de Tarchi S. de R.L. de C.V. for lease payments under an exploration agreement; 1,660,000 shares of common stock of Silver Pursuit Resources Limited; and $4,000,000 due on or before March 24, 2015. The Company could recover its 50% interest sold should the purchaser not fulfill the terms of the sale. As of September 30, 2015 the Company has not been successful in obtaining the shares we were to receive, accordingly we have recorded an impairment of $96,150 to fully impair the value of the investment as it is uncertain if the Company will be able to obtain such shares.</font></p> <p style='background:white;margin:6.95pt 0cm 0pt 0.5pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>Our warrant derivative liability and secured convertible promissory note derivative liability is measured at fair value on a recurring basis using Level 3 inputs.</font></p> <p style='background:white;text-align:justify;margin:7.7pt 0.7pt 0pt 0.5pt;line-height:7.45pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>Interest rate risk is the risk that the value of a financial instrument might be adversely affected by a change in the interest rates. The notes payable, loans payable and convertible promissory notes have </font><font lang="EN-US" style='letter-spacing:-0.05pt'>fixed interest rates therefore the Company is exposed to interest rate risk in that they could not benefit from a decrease in market interest rates. In seeking to minimize the risks from interest rate </font><font lang="EN-US" style='letter-spacing:-0.15pt'>fluctuations, the Company manages exposure through its normal operating and financing activities.</font></p>
<!--egx--><p style='background:white;margin:6.95pt 0cm 0pt 0.25pt'><b><font lang="EN-US" style='letter-spacing:-0.25pt'>Mineral Property Rights</font></b></p> <p style='background:white;text-align:justify;margin:7.7pt 0cm 0pt 0.25pt;line-height:7.45pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>Costs of acquiring mining properties are capitalized upon acquisition. Mine development costs incurred either to develop new ore deposits, to expand the capacity of mines, or to develop mine areas substantially in advance of current production are also capitalized once proven and probable reserves exist and the property is a commercially mineable property. Costs incurred to maintain current production or to maintain assets on a standby basis are charged to operations. Costs of abandoned projects are charged to operations upon abandonment. The Company evaluates the carrying value of capitalized mining costs and related property and equipment costs, to determine if these costs are in excess of their recoverable amount whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Evaluation of the carrying value of capitalized costs and any related property and equipment costs would be based upon expected future cash flows and/or </font><font lang="EN-US" style='letter-spacing:-0.15pt'>estimated salvage value in accordance with Accounting Standards Codification (ASC) 360-10-35-15, <i>Impairment or Disposal of Long-Lived Asset </i></font></p>
<!--egx--><p style='background:white;margin:6.95pt 0cm 0pt 0.25pt'><b><font lang="EN-US" style='letter-spacing:-0.3pt'>Revenue Recognition</font></b></p> <p style='background:white;text-align:justify;margin:7.2pt 0.5pt 0pt;line-height:7.7pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>The Company recognizes revenues and the related costs when persuasive evidence of an arrangement exists, delivery and acceptance has occurred or service has been rendered, the price is fixed or determmable, and collection of the resulting receivable is reasonably assured.</font></p>
<!--egx--><div> <p style='background:white;margin:6.95pt 0cm 0pt 0.5pt'><b><font lang="EN-US" style='letter-spacing:-0.3pt'>Stock-based Compensation</font></b></p> <p style='background:white;text-align:justify;margin:7.2pt 0.5pt 0pt;line-height:7.7pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>The Company records stock based compensation in accordance with the guidance in ASC Topic 718 which requires the Company to recognize expenses related to the fair value of its employee stock </font><font lang="EN-US" style='letter-spacing:-0.05pt'>option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based</font></p></div> <p style='background:white;margin:0cm 0cm 0pt 0.25pt'><font lang="EN-US" style='letter-spacing:0.05pt'>method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.</font></p> <p style='background:white;text-align:justify;margin:7.45pt 0.7pt 0pt 0.25pt;line-height:7.7pt'><font lang="EN-US" style='letter-spacing:0.05pt'>ASC 505, "Compensation-Stock Compensation", establishes standards for the accounting for transactions in which an entity exchanges its equity instruments to non employees for goods or services. </font><font lang="EN-US">Under this transition method, stock compensation expense includes compensation expense for all stock-based compensation awards granted on or after January 1, 2006, based on the grant-date fair value <font style='letter-spacing:-0.05pt'>estimated in accordance with the provisions of ASC 505.</font></font></p>
<!--egx--><p style='background:white;text-align:justify;margin:7.7pt 0cm 0pt 0.25pt;line-height:7.45pt'><b><font lang="EN-US" style='letter-spacing:-0.25pt'>Per Share Data</font></b></p> <p style='background:white;text-align:justify;margin:7.7pt 0.7pt 0pt 0.25pt;line-height:7.45pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, "Earnings per Share". Basic earnings per common share ("EPS") calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. </font><font lang="EN-US" style='letter-spacing:-0.15pt'>During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation.</font></p>
<!--egx--><p style='background:white;text-align:justify;margin:8.4pt 0.5pt 0pt 0.25pt;line-height:7.45pt'><font lang="EN-US">This discount is amortized using the effective interest rate method over the term of the Note.</font></p> <p style='background:white;margin:7.7pt 138.25pt 0pt 316.3pt;line-height:7.45pt;text-indent:-9.6pt'> </p> <table cellspacing="0" cellpadding="0" width="376" border="0" style='border-top:medium none;border-right:medium none;width:281.85pt;border-collapse:collapse;border-bottom:medium none;margin:auto auto auto 132.4pt;border-left:medium none'> <tr style='height:40.75pt'> <td valign="top" width="98" style='border-top:#f0f0f0;height:40.75pt;border-right:#f0f0f0;width:73.6pt;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:5.4pt;border-left:#f0f0f0;padding-right:5.4pt;background-color:transparent'> <p style='margin:7.7pt -6.1pt 0pt 0cm'> </p></td> <td valign="top" width="126" style='border-top:#f0f0f0;height:40.75pt;border-right:#f0f0f0;width:94.85pt;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:5.4pt;border-left:#f0f0f0;padding-right:5.4pt;background-color:transparent'> <p style='margin:7.7pt 6.6pt 0pt 0cm'><b><font lang="EN-US" style='letter-spacing:0.1pt'>Six months Ended Year Ended </font></b><b><font lang="EN-US" style='letter-spacing:0.15pt'>September</font></b><b><font lang="EN-US" style='letter-spacing:0.2pt'>30, 2015</font></b></p></td> <td valign="top" width="151" style='border-top:#f0f0f0;height:40.75pt;border-right:#f0f0f0;width:4cm;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:5.4pt;border-left:#f0f0f0;padding-right:5.4pt;background-color:transparent'> <p style='margin:7.7pt 0cm 0pt'><b><font lang="EN-US" style='letter-spacing:0.1pt'>Six months Ended Year Ended</font></b><b><font lang="EN-US" style='letter-spacing:0.4pt'> March 31,2015</font></b></p></td></tr> <tr style='height:13.65pt'> <td valign="top" width="98" style='border-top:#f0f0f0;height:13.65pt;border-right:#f0f0f0;width:73.6pt;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:5.4pt;border-left:#f0f0f0;padding-right:5.4pt;background-color:transparent'> <p style='background:white;margin:8.65pt -6.1pt 0pt 0cm'><font lang="EN-US">Opening balance</font></p></td> <td valign="top" width="126" style='border-top:#f0f0f0;height:13.65pt;border-right:#f0f0f0;width:94.85pt;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:5.4pt;border-left:#f0f0f0;padding-right:5.4pt;background-color:transparent'> <p align="right" style='text-align:right;margin:7.7pt 6.6pt 0pt 0cm'><font lang="EN-US" style='letter-spacing:0.1pt'>$ 102,842</font></p></td> <td valign="top" width="151" style='border-top:#f0f0f0;height:13.65pt;border-right:#f0f0f0;width:4cm;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:5.4pt;border-left:#f0f0f0;padding-right:5.4pt;background-color:transparent'> <p align="right" style='text-align:right;margin:7.7pt 0cm 0pt'><font lang="EN-US" style='letter-spacing:0.05pt'>$ 282,861</font></p></td></tr> <tr> <td valign="top" width="98" style='border-top:#f0f0f0;border-right:#f0f0f0;width:73.6pt;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:5.4pt;border-left:#f0f0f0;padding-right:5.4pt;background-color:transparent'> <p style='margin:7.7pt -6.1pt 0pt 0cm'><font lang="EN-US" style='letter-spacing:-0.05pt'>Conversion of principal into shares of common stock</font></p></td> <td valign="top" width="126" style='border-top:#f0f0f0;border-right:#f0f0f0;width:94.85pt;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:5.4pt;border-left:#f0f0f0;padding-right:5.4pt;background-color:transparent'> <p align="right" style='text-align:right;margin:7.7pt 6.6pt 0pt 0cm'><font lang="EN-US" style='letter-spacing:0.1pt'>$ 102,842</font></p></td> <td valign="top" width="151" style='border-top:#f0f0f0;border-right:#f0f0f0;width:4cm;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:5.4pt;border-left:#f0f0f0;padding-right:5.4pt;background-color:transparent'> <p align="right" style='text-align:right;margin:7.7pt 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>(268,663)</font></p></td></tr> <tr> <td valign="top" width="98" style='border-top:#f0f0f0;border-right:#f0f0f0;width:73.6pt;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:5.4pt;border-left:#f0f0f0;padding-right:5.4pt;background-color:transparent'> <p style='background:white;margin:0cm -6.1pt 0pt 0cm'><font lang="EN-US">Amortization of discount on Note and accrued interest</font></p></td> <td valign="top" width="126" style='border-top:#f0f0f0;border-right:#f0f0f0;width:94.85pt;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:5.4pt;border-left:#f0f0f0;padding-right:5.4pt;background-color:transparent'> <p align="right" style='text-align:right;margin:7.7pt 6.6pt 0pt 0cm'><font lang="EN-US" style='letter-spacing:-0.05pt'>(105,623)</font></p></td> <td valign="top" width="151" style='border-top:#f0f0f0;border-right:#f0f0f0;width:4cm;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:5.4pt;border-left:#f0f0f0;padding-right:5.4pt;background-color:transparent'> <p align="right" style='background:white;text-align:right;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>88,644</font></p></td></tr> <tr> <td valign="top" width="98" style='border-top:#f0f0f0;border-right:#f0f0f0;width:73.6pt;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:5.4pt;border-left:#f0f0f0;padding-right:5.4pt;background-color:transparent'> <p style='background:white;margin:0.95pt -6.1pt 0pt 0cm'><font lang="EN-US" style='letter-spacing:-0.05pt'>Closing balance </font></p></td> <td valign="top" width="126" style='border-top:#f0f0f0;border-right:#f0f0f0;width:94.85pt;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:5.4pt;border-left:#f0f0f0;padding-right:5.4pt;background-color:transparent'> <p align="right" style='text-align:right;margin:7.7pt 6.6pt 0pt 0cm'><font lang="EN-US">$<font style='letter-spacing:-0.25pt'>2,781</font></font></p></td> <td valign="top" width="151" style='border-top:#f0f0f0;border-right:#f0f0f0;width:4cm;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:5.4pt;border-left:#f0f0f0;padding-right:5.4pt;background-color:transparent'> <p align="right" style='background:white;text-align:right;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:0.1pt'>$ 102,842</font></p></td></tr></table>
<!--egx--><p style='background:white;margin:7.9pt 0cm 0pt 0.25pt'><font lang="EN-US">The inputs into the binomial model are as follows:</font></p> <p style='margin:0cm 0cm 7.7pt;line-height:0.05pt'> </p> <table cellspacing="0" cellpadding="0" border="0" style='border-collapse:collapse;margin:auto auto auto 2pt'> <tr style='height:16.3pt'> <td valign="top" width="76" style='border-top:#f0f0f0;height:16.3pt;border-right:#f0f0f0;width:56.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'> </p></td> <td valign="top" width="99" style='border-top:#f0f0f0;height:16.3pt;border-right:#f0f0f0;width:74.4pt;background:white;border-bottom:windowtext 1pt solid;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><b><font lang="EN-US" style='letter-spacing:0.05pt'>September 30,2015</font></b></p></td> <td valign="top" width="95" style='border-top:#f0f0f0;height:16.3pt;border-right:#f0f0f0;width:71.05pt;background:white;border-bottom:windowtext 1pt solid;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><b><font lang="EN-US" style='letter-spacing:0.1pt'>March 31,2015</font></b></p></td></tr> <tr style='height:7.7pt'> <td valign="top" width="76" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:56.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>Market price</font></p></td> <td valign="top" width="99" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:74.4pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>$0.0149</font></p></td> <td valign="top" width="95" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:71.05pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.35pt'>$0.0194</font></p></td></tr> <tr style='height:7.7pt'> <td valign="top" width="76" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:56.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US">Conversion price</font></p></td> <td valign="top" width="99" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:74.4pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>$0.0100</font></p></td> <td valign="top" width="95" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:71.05pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.35pt'>$0.0110</font></p></td></tr> <tr style='height:7.7pt'> <td valign="top" width="76" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:56.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>Risk free rate</font></p></td> <td valign="top" width="99" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:74.4pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.05pt'>0.92%</font></p></td> <td valign="top" width="95" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:71.05pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.35pt'>0.89%</font></p></td></tr> <tr style='height:7.7pt'> <td valign="top" width="76" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:56.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>Expected volatility</font></p></td> <td valign="top" width="99" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:74.4pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.2pt'>138%</font></p></td> <td valign="top" width="95" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:71.05pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.45pt'>121%</font></p></td></tr> <tr style='height:7.2pt'> <td valign="top" width="76" style='border-top:#f0f0f0;height:7.2pt;border-right:#f0f0f0;width:56.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.05pt'>Dividend yield</font></p></td> <td valign="top" width="99" style='border-top:#f0f0f0;height:7.2pt;border-right:#f0f0f0;width:74.4pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US">0%</font></p></td> <td valign="top" width="95" style='border-top:#f0f0f0;height:7.2pt;border-right:#f0f0f0;width:71.05pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US">0%</font></p></td></tr> <tr style='height:8.65pt'> <td valign="top" width="76" style='border-top:#f0f0f0;height:8.65pt;border-right:#f0f0f0;width:56.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>Expected life</font></p></td> <td valign="top" width="99" style='border-top:#f0f0f0;height:8.65pt;border-right:#f0f0f0;width:74.4pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:0.15pt'>35 months</font></p></td> <td valign="top" width="95" style='border-top:#f0f0f0;height:8.65pt;border-right:#f0f0f0;width:71.05pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>38 months</font></p></td></tr></table>
<!--egx--><p style='background:white;text-align:justify;margin:7.2pt 0.5pt 0pt 0.25pt;line-height:7.7pt'><font lang="EN-US">The inputs into the binomial model are as follows:</font></p> <p style='margin:0cm 0cm 7.7pt;line-height:0.05pt'> </p> <table cellspacing="0" cellpadding="0" border="0" style='border-collapse:collapse;margin:auto auto auto 2pt'> <tr style='height:8.65pt'> <td valign="top" width="85" style='border-top:#f0f0f0;height:8.65pt;border-right:#f0f0f0;width:63.85pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'> </p></td> <td valign="top" width="90" style='border-top:#f0f0f0;height:8.65pt;border-right:#f0f0f0;width:67.7pt;background:white;border-bottom:windowtext 1pt solid;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><b><font lang="EN-US" style='letter-spacing:0.1pt'>March 31,2015</font></b></p></td></tr> <tr style='height:7.7pt'> <td valign="top" width="85" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:63.85pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.05pt'>Closing share price</font></p></td> <td valign="top" width="90" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:67.7pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.35pt'>$0.0194</font></p></td></tr> <tr style='height:7.7pt'> <td valign="top" width="85" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:63.85pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.05pt'>Conversion price</font></p></td> <td valign="top" width="90" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:67.7pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.5pt'>$0,011</font></p></td></tr> <tr style='height:7.7pt'> <td valign="top" width="85" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:63.85pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>Risk free rate</font></p></td> <td valign="top" width="90" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:67.7pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.4pt'>0.14%</font></p></td></tr> <tr style='height:7.7pt'> <td valign="top" width="85" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:63.85pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>Expected volatility</font></p></td> <td valign="top" width="90" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:67.7pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.55pt'>180%</font></p></td></tr> <tr style='height:7.2pt'> <td valign="top" width="85" style='border-top:#f0f0f0;height:7.2pt;border-right:#f0f0f0;width:63.85pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.05pt'>Dividend yield</font></p></td> <td valign="top" width="90" style='border-top:#f0f0f0;height:7.2pt;border-right:#f0f0f0;width:67.7pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US">0%</font></p></td></tr> <tr style='height:8.65pt'> <td valign="top" width="85" style='border-top:#f0f0f0;height:8.65pt;border-right:#f0f0f0;width:63.85pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>Expected life</font></p></td> <td valign="top" width="90" style='border-top:#f0f0f0;height:8.65pt;border-right:#f0f0f0;width:67.7pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>0.5 years</font></p></td></tr></table>
<!--egx--><p style='background:white;margin:8.15pt 0cm 0pt 0.25pt'><font lang="EN-US">The inputs into the Black-Scholes models are as follows:</font></p> <p style='margin:0cm 0cm 7.45pt;line-height:0.05pt'> </p> <table cellspacing="0" cellpadding="0" border="0" style='border-collapse:collapse;margin:auto auto auto 2pt'> <tr style='height:8.65pt'> <td valign="top" width="86" style='border-top:#f0f0f0;height:8.65pt;border-right:#f0f0f0;width:64.3pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'> </p></td> <td valign="top" width="114" style='border-top:#f0f0f0;height:8.65pt;border-right:#f0f0f0;width:85.45pt;background:white;border-bottom:windowtext 1pt solid;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><b><font lang="EN-US" style='letter-spacing:0.05pt'>September 30,2015</font></b></p></td> <td valign="top" width="92" style='border-top:#f0f0f0;height:8.65pt;border-right:#f0f0f0;width:68.65pt;background:white;border-bottom:windowtext 1pt solid;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><b><font lang="EN-US" style='letter-spacing:0.1pt'>March 31,2015</font></b></p></td></tr> <tr style='height:8.15pt'> <td valign="top" width="86" style='border-top:#f0f0f0;height:8.15pt;border-right:#f0f0f0;width:64.3pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.05pt'>Closing share price</font></p></td> <td valign="top" width="114" style='border-top:#f0f0f0;height:8.15pt;border-right:#f0f0f0;width:85.45pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.05pt'>$0.01826</font></p></td> <td valign="top" width="92" style='border-top:#f0f0f0;height:8.15pt;border-right:#f0f0f0;width:68.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.35pt'>$0.0194</font></p></td></tr> <tr style='height:7.2pt'> <td valign="top" width="86" style='border-top:#f0f0f0;height:7.2pt;border-right:#f0f0f0;width:64.3pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US">Conversion price</font></p></td> <td valign="top" width="114" style='border-top:#f0f0f0;height:7.2pt;border-right:#f0f0f0;width:85.45pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>$0.0160</font></p></td> <td valign="top" width="92" style='border-top:#f0f0f0;height:7.2pt;border-right:#f0f0f0;width:68.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.4pt'>$0,019</font></p></td></tr> <tr style='height:7.7pt'> <td valign="top" width="86" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:64.3pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>Risk free rate</font></p></td> <td valign="top" width="114" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:85.45pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.05pt'>0.050%</font></p></td> <td valign="top" width="92" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:68.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.3pt'>0.050%</font></p></td></tr> <tr style='height:7.7pt'> <td valign="top" width="86" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:64.3pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.1pt'>Expected volatility</font></p></td> <td valign="top" width="114" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:85.45pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:0.3pt'>143%-151%</font></p></td> <td valign="top" width="92" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:68.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.55pt'>129%</font></p></td></tr> <tr style='height:7.7pt'> <td valign="top" width="86" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:64.3pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.05pt'>Dividend yield</font></p></td> <td valign="top" width="114" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:85.45pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US">0%</font></p></td> <td valign="top" width="92" style='border-top:#f0f0f0;height:7.7pt;border-right:#f0f0f0;width:68.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US">0%</font></p></td></tr> <tr style='height:8.15pt'> <td valign="top" width="86" style='border-top:#f0f0f0;height:8.15pt;border-right:#f0f0f0;width:64.3pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p style='background:white;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>Expected life</font></p></td> <td valign="top" width="114" style='border-top:#f0f0f0;height:8.15pt;border-right:#f0f0f0;width:85.45pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US">1.58 years — 1.95 years</font></p></td> <td valign="top" width="92" style='border-top:#f0f0f0;height:8.15pt;border-right:#f0f0f0;width:68.65pt;background:white;border-bottom:#f0f0f0;padding-bottom:0cm;padding-top:0cm;padding-left:2pt;border-left:#f0f0f0;padding-right:2pt'> <p align="center" style='background:white;text-align:center;margin:0cm 0cm 0pt'><font lang="EN-US" style='letter-spacing:-0.15pt'>1.83 years</font></p></td></tr></table>
12142343
152432
0.0126
57315
95117
625000
75000
625
74375
0.12
75000
6754833
0.0104
70276
17431166
0.0170
296124
1103240
0.0284
31350
3525000
0.0353
124448
24270169
0.0176
427663
1215674
0.0300
36470
1840908
4745452
3176134
5830863
1800000
6719815
6719815
7796966
2078333
2125000
1500000
10207799
1109090
6500000
28818
67241
49289
81482
32000
126886
126886
63000
1841
4745
3176
5831
1800
6720
6720
26977
62496
46113
75651
30200
120166
120166
21318
36441
30289
49448
14200
207988
10000
48750
7500
12000
9534
12000
12500
8490
25500
38150
29000
48500
18800
9000
22500
20000
15000
12776
2000
10000
10000
0.0189
0.0196
0.0189
54566
96336
46085
72320
146064
70855
12370789
6200000
242400
116940
0.001
0.001
9000000
9000000
0
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10-Q
2015-09-30
false
Mexus Gold US
0001355677
mxsg
--03-31
388410392
Smaller Reporting Company
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Q2
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0001355677
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0001355677
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0001355677
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0001355677
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0001355677
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0001355677
2010-02-16
shares
iso4217:USD
iso4217:USD
shares
pure