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<!--egx--><p style='margin:0in 0in 0pt'><b>1.</b><font style='letter-spacing:9pt'> </font><b>ORGANIZATION AND BUSINESS OF COMPANY</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 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.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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, as well as, the salvage of precious metals from identifiable sources.</p>
<!--egx--><p style='margin:0in 0in 0pt'><b>2.</b><font style='letter-spacing:9pt'> </font><b>BASIS OF PREPARATION</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 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 statements. All significant inter-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 required by accounting principles generally accepted in the United States of America for complete financial statements.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 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.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>Cash and Cash Equivalents</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>Derivative Instruments</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 value of the financial instrument is recognized as a gain or loss in results of operations in the period of change.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>Exploration and Development Costs</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 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 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 value. Carrying values do not necessarily reflect present or future values.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>Fair Value of Financial Instruments</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>ASC Topic 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Our investment in marketable securities is measured at fair value on a recurring basis using Level 1 inputs.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>On March 24, 2014, the Company resigned as the operator of the Joint Venture with Minerals La Negra 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 $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 June 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 impaired the value of the investment as it is uncertain if the Company will be able to obtain such shares.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Our warrant derivative liability and secured convertible promissory note derivative liability is measured at fair value on a recurring basis using Level 3 inputs.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 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 fluctuations, the Company manages exposure through its normal operating and financing activities.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>Mineral Property Rights</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 estimated salvage value in accordance with Accounting Standards Codification (ASC) 360-10-35-15, <i>Impairment or Disposal of Long-Lived Assets</i>.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>Per Share Data</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>Revenue Recognition</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 determinable, and collection of the resulting receivable is reasonably assured.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>Stock-based Compensation</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 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 method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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. 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 estimated in accordance with the provisions of ASC 505.</p> <p style='margin:0in 0in 0pt'> </p>
<!--egx--><p style='margin:0in 0in 0pt'><b>3. GOING CONCERN</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 $17,328,857 at June 30, 2015. These factors, among others, may indicate that the Company may not be able to continue as a going concern.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 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.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The financial statements do not include any adjustments relating to the recoverability 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.</p>
<!--egx--><p style='margin:0in 0in 0pt'><b>4.</b><font style='letter-spacing:9pt'> </font><b>RECENT ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANY</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 more robust framework for addressing revenue issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; and provide more useful 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 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 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 Company is currently evaluating the impact that this standard update will have on its consolidated financial statements.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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. 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 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</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 accounting pronouncements that have been issued that might have a material impact on its consolidated financial statements.</p>
<!--egx--><p style='margin:0in 0in 0pt'><b>5.</b><font style='letter-spacing:9pt'> </font><b>ACCOUNTS PAYABLE – RELATED PARTIES</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>During the three months ended June 30, 2015 and 2014, the Company incurred rent expense to Paul D. Thompson, the sole director and officer of the Company, of $11,400 and $11,400, respectively. At June 30, 2015 and March 31, 2015, $0 and $83,798 for this obligation is outstanding, respectively.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>During the three months ended June 30, 2015, the Company issued subscriptions payable for 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 settlement of accounts payable – related party. On June 10, 2015, the Company issued $625,000 shares of Series A Preferred Stock to Paul Thompson Sr. to satisfy obligations under share subscription agreements for $75,000 for settlement of accounts payable – related party included in share subscriptions payable. See Note 13 Shareholders Equity.</p>
<!--egx--><p style='margin:0in 0in 0pt'><b>6.</b><font style='letter-spacing:9pt'> </font><b>NOTES PAYABLE – RELATED PARTY</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 by Paul D. Thompson, the sole director and officer of the Company. As of June 30, 2015 and March 31, 2015, notes payable due to Taurus Gold Inc. totaled $175,495 and $186,792, respectively.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 annum and is repayable in cash or Company common stock at market value at the option of the Company. As of June 30, 2015 notes payable due to North Pacific Gold totaled $12,057.</p>
<!--egx--><p style='margin:0in 0in 0pt'><b>7.</b><font style='letter-spacing:9pt'> </font><b>NOTES PAYABLE</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 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 Company and certain mining equipment including a radial stacker and cone crushing plant. On April 1, 2013, the Company repaid $50,000 in principal and $140,000 remains outstanding at June 30, 2015 ($140,000 – March 31, 2015). See Note 12 Contingent Liability for further information.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 June 30, 2015 and March 31, 2015, the balance of this note is $30,000 and $30,000, respectively. At June 30, 2015 and March 31, 2015, accrued interest of $6,000 and $6,000 on this note have been included in accounts payable and accrued liabilities, respectively.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 unsecured and are due within 60 days. At June 30, 2015 and March 31, 2015, the balance of these advances totaled $14,500 and $14,500, respectively. At March 31, 2015 and 2014, accrued interest of $2,494 and $2,132 on this note have been included in accounts payable and accrued liabilities, respectively. At June 30, 2015, these notes were in default. There are no default provisions stated in the notes.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 ($0.04 per share) to settle $87,501 in advances. As a result, the Company recorded a gain on settlement of debt of $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. At June 30, 2015 and March 31, 2015, the balance of these advances totaled $52,001 and $52,001, respectively.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>During the year ended March 31, 2015, the Company received various cash advances totaling $286,757 from twenty-two investors. In addition, during the three months ended June 30, 2015, the Company received various cash advances totaling $10,000 from two 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 conversion prices range from $0.011 per share to $0.040 per share. At June 30, 2015 and March 31, 2015, debt discount of $5,444 and $14,922, respectively has been recorded on the consolidated balance sheet related to these cash advances. At June 30, 2015, $69,300 of these notes were in default. There are no default provisions stated in the notes. Of the $304,257 received, $30,000 plus interest of $5,000 is required to be repaid upon the sale of specified equipment.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 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 June 30, 2015 and March 31, 2015, the balances on this note totalled $2,500 and $2,500, respectively. At June 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.</p> <p style='margin:0in 0in 0pt'> </p>
<!--egx--><p style='margin:0in 0in 0pt'><b>8.</b><font style='letter-spacing:9pt'> </font><b>PROMISSORY NOTES</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 June 30, 2015. The Notes are secured by all of Mexus Gold 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 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 basis, which approximates the effective interest rate method, as interest expense over the life of the Promissory Notes.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>As of June 30, 2015, the Company has not made the scheduled payments and is in default on these promissory notes. The default rate on the notes is seven percent. Accrued interest of $34,662 is included in accounts payable and accrued liabilities.</p>
<!--egx--><p style='margin:0in 0in 0pt'><b>9.</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 Notes (“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 three 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 cellspacing="0" cellpadding="0" width="48%" border="0" style='width:48%'> <tr> <td valign="top" width="40%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:40%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:#cceeff;border-bottom:black 1pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>Three Months </b></p> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>Ended </b></p> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>June 30, 2015</b></p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:#cceeff;border-bottom:black 1pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'> </p> <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="40%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:40%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'> </p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'> </p></td></tr> <tr> <td valign="top" width="40%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:40%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Opening balance</p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$ 102,842</p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$ 282,861</p></td></tr> <tr> <td valign="top" width="40%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:40%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'> Conversion of principal into shares of common stock</p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(54,566)</p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(268,663)</p></td></tr> <tr> <td valign="top" width="40%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:40%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Amortization of discount on Note and accrued interest</p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:#cceeff;border-bottom:black 1pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>1,939</p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:#cceeff;border-bottom:black 1pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'> 88,644</p></td></tr> <tr> <td valign="top" width="40%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:40%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'> </p></td></tr> <tr> <td valign="top" width="40%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:40%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Closing balance</p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:#cceeff;border-bottom:black 1.5pt double;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$ 50,215</p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:#cceeff;border-bottom:black 1.5pt double;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right: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>Default of Secured Convertible Promissory Notes</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The Company did not pay the outstanding principal and interest due on July 12, 2014, the maturity date of the Notes, and the Notes went into default. On default, the Holders at their option may redeem the Notes in full or accelerate installments due on the Notes. The Holders may designate whether the installments are due in cash or discounted shares of common stock of the Company or a combination thereof. The default rate on the note is 22%.</p> <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. At June 30, 2015, the first tranche of the Note is recorded net of unamortized debt discount of $36,261.</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 June 30, 2015, the first tranche of the Note is recorded net of unamortized debt discount of $30,965.</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 June 30, 2015, the first tranche of the Note is recorded net of unamortized debt discount of $38,651.</p>
<!--egx--><p style='margin:0in 0in 0pt'><b>10.</b><font style='letter-spacing:9pt'> </font><b>WARRANT DERIVATIVE LIABILITY</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 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 815. Accordingly, the Warrants are not considered to be solely indexed to the Company’s own stock and, as such, recorded as a liability.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The Company’s warrant derivative liability has been measured at fair value at June 30, 2015 and March 31, 2014 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 cash at a price of $0.01 per share and the conversion price has been adjusted accordingly.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The inputs into the binomial model are as follows:</p> <p style='margin:0in 0in 0pt'> </p> <div align="center"> <table cellspacing="0" cellpadding="0" width="30%" border="0" style='width:30%'> <tr> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="18%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:18%;background:#cceeff;border-bottom:black 1pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>June 30, 2015</b></p></td> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:#cceeff;border-bottom:black 1pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>March 31, 2015</b></p></td></tr> <tr> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Market price</p></td> <td valign="top" width="18%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:18%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.0178</p></td> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.0194</p></td></tr> <tr> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Conversion price</p></td> <td valign="top" width="18%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:18%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.0100</p></td> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.0110</p></td></tr> <tr> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Risk free rate</p></td> <td valign="top" width="18%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:18%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>1.01%</p></td> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0.89%</p></td></tr> <tr> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Expected volatility</p></td> <td valign="top" width="18%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:18%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>135%</p></td> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>121%</p></td></tr> <tr> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Dividend yield</p></td> <td valign="top" width="18%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:18%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td></tr> <tr> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Expected life</p></td> <td valign="top" width="18%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:18%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>35 months</p></td> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>38 months</p></td></tr></table></div> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The fair value of the warrant derivative liability is $404,826 at June 30, 2015. The increase (decrease) in the fair value of the warrant liability of $(2,759) and $(475,764) has been recorded as a (gain) loss in the consolidated statements of operations for the three months ended June 30, 2015 and 2014, respectively.</p>
<!--egx--><p style='margin:0in 0in 0pt'><b>11.</b><font style='letter-spacing:9pt'> </font><b>CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITY</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 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 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.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 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.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The inputs into the binomial model are as follows:</p> <p style='margin:0in 0in 0pt'> </p> <div align="center"> <table cellspacing="0" cellpadding="0" width="30%" border="0" style='width:30%'> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:#cceeff;border-bottom:black 1pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>June 30, 2015</b></p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:#cceeff;border-bottom:black 1pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>March 31, 2015</b></p></td></tr> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Closing share price</p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.0183</p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.0194</p></td></tr> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Conversion price</p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.0100</p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.011</p></td></tr> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Risk free rate</p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0.11%</p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0.14%</p></td></tr> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Expected volatility</p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>182%</p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>180%</p></td></tr> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Dividend yield</p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td></tr> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Expected life</p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0.5 years</p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0.5 years</p></td></tr></table></div> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 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 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 June 30, 2015, June 11, 2015, April 6, 2015 and March 31, 2015 using the Black-Scholes model.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The inputs into the Black-Scholes models are as follows:</p> <p style='margin:0in 0in 0pt'> </p> <div align="center"> <table cellspacing="0" cellpadding="0" width="30%" border="0" style='width:30%'> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="14%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:14%;background:#cceeff;border-bottom:black 1pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>June 30, 2015</b></p></td> <td valign="top" width="13%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:13%;background:#cceeff;border-bottom:black 1pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>March 31, 2015</b></p></td></tr> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Closing share price</p></td> <td valign="top" width="14%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:14%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.01826</p></td> <td valign="top" width="13%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:13%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.0194</p></td></tr> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Conversion price</p></td> <td valign="top" width="14%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:14%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.0160</p></td> <td valign="top" width="13%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:13%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.019</p></td></tr> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Risk free rate</p></td> <td valign="top" width="14%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:14%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0.050%</p></td> <td valign="top" width="13%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:13%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0.050%</p></td></tr> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Expected volatility</p></td> <td valign="top" width="14%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:14%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>143% - 151%</p></td> <td valign="top" width="13%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:13%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>129%</p></td></tr> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Dividend yield</p></td> <td valign="top" width="14%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:14%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td> <td valign="top" width="13%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:13%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td></tr> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Expected life</p></td> <td valign="top" width="14%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:14%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>1.58 years – 1.95 years</p></td> <td valign="top" width="13%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:13%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>1.83 years</p></td></tr></table></div> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The fair value of the conversion option derivative liabilities is $204,847 at June 30, 2015. The increase (decrease) in the fair value of the conversion option derivative liability of $159 and $(648,269) is recorded as a (gain) loss in the unaudited condensed consolidated statements of operations for the years ended June 30, 2015 and 2014, respectively.</p> <p style='margin:0in 0in 0pt'> </p>
<!--egx--><p style='margin:0in 0in 0pt'><b>12.</b><font style='letter-spacing:9pt'> </font><b>CONTINGENT LIABILITIES</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 operations of a long-lived asset, except for certain obligations of lessees. While the Company, as of June 30, 2015, does not have a legal obligation associated with the disposal of certain chemicals 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.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>During the year ended March 31, 2014, an unrelated shareholder and note holder of the Company advanced $516,009 of cash to the Company. These cash advances were classified as share subscriptions payable by the Company upon receipt based on fully executed share subscription agreements. At June 30, 2015, the unrelated shareholder, in addition to the shares that were due under the share subscription agreement, is claiming an additional $516,009 notes payable are due. The unrelated shareholder asserts that these notes bearing interest from 4% to 6%, went into default on April 1, 2014 and have default interest of 9%. The Company believes the claim for additional notes payable due of $516,009 plus accrued interest is unlikely to succeed because the Company did not execute notes payable agreements for $516,009 with the unrelated shareholder. As such, no additional liability for this claim has been recorded in these financial statements at June 30, 2015.</p>
<!--egx--><p style='margin:0in 0in 0pt'><b>13.</b><font style='letter-spacing:9pt'> </font><b>STOCKHOLDERS’ EQUITY</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The stockholders’ equity of the Company comprises the following classes of capital stock as of June 30, 2015 and March 31, 2015:</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Preferred Stock, $.001 par value per share; 9,000,000 shares authorized, 0 shares issued and outstanding at June 30, 2015 and March 31, 2014, respectively.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 June 30, 2015 and March 31, 2014, respectively.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 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.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Common Stock, par value of $0.001 per share; 500,000,000 shares authorized: 332,349,890 and 308,236,718 shares issued and outstanding at June 30, 2015 and March 31, 2015, respectively. Holders of Common Stock have one vote per share of Common Stock held.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>Series A Preferred Stock</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 subscription agreements for $75,000 for settlement of accounts payable – related party included in share subscriptions payable.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>Common Stock</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 share subscription agreements for $21,318 for settlement of notes payable and $7,500 in services included in share subscriptions payable.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 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.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 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.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 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.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 share subscription agreements for $12,000 in services and $20,000 in cash receipts included in share subscriptions payable.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 and classified as common stock of $6,720 and additional paid-in capital of $120,166 ($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.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>Series A Preferred Stock Payable</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>During the three months ended June 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 party.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>Common Stock Payable</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>During the three months ended June 30, 2015, the Company issued subscriptions payable for 3,686,652 shares of common stock ($0.0102 per share) for $37,776 in cash.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>During the three months ended June 30, 2015, the Company issued subscriptions payable for 5,831,166 shares of common stock for services valued at $84,974 ($0.0146 per share).</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>During the three months ended June 30, 2015, the Company issued subscriptions payable for 312,500 shares of common stock for purchase of equipment valued at $10,000 ($0.0320 per share).</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>During the three months ended June 30, 2015, the Company issued subscriptions payable for 2,900,000 shares of common stock for settlement of accounts payable valued at $49,448 ($0.0171 per share).</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>During the three months ended June 30, 2015, the Company issued subscriptions payable for 7,863,633 shares of common stock for settlement of notes payable valued at $112,149 ($0.0143 per share).</p> <p style='margin:0in 0in 0pt'> </p>
<!--egx--><p style='margin:0in 0in 0pt'><b>14. SUBSEQUENT EVENTS</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>Common Stock</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>On July 9, 2015 the Company issued 7,796,966 shares of common stock to satisfy obligations under share subscription agreements for $78,037 for settlement of notes payable, $14,200 in services and $12,500 in cash receipts included in share subscriptions payable.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>On July 28, 2015, the Company issued a total of 1,000,000 shares of common stock to JMJ Financial for conversion of principal and interest of $26,000.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>On July 28, 2015, the Company issued a total of 2,877,698 shares of common stock to Typenex Co-Investment, LLC for conversion of principal and interest of $8,100.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>On July 29, 2015 the Company issued 2,078,333 shares of common stock to satisfy obligations under share subscription agreements for $9,740 in services and $15,000 in cash receipts included in share subscriptions payable.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>On August 6, 2015 the Company issued 2,125,000 shares of common stock to satisfy obligations under share subscription agreements for $13,500 in services and $12,000 in cash receipts included in share subscriptions payable.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>On August 10, 2015, the Company issued a total of 1,100,000 shares of common stock to JMJ Financial for conversion of principal and interest of $8,800.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>Common Stock Payable</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>From July 1, 2015 to August 10, 2015, the Company issued subscriptions payable for 2,100,000 shares of common stock for services valued at $36,000 ($0.0171 per share).</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>From July 1, 2015 to August 10, 2015, the Company issued subscriptions payable for 10,232,892 shares of common stock for settlement of notes payable valued at $102,329 ($0.0100 per share).</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b>Option and Joint Venture Agreement</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>On July 6, 2015, Mexus Gold Mining, S.A. de C.V., a wholly owned Mexican subsidiary of the Company (“Mexus”), entered into an Option and Joint Venture Agreement (“Agreement”) with Minera Real Del Oro, S.A. De C.V., a wholly owned Mexican subsidiary of Argonaut Gold, Inc., a Canadian gold company engaged in exploration, mine development and production activities (“Argonaut”). Pursuant to the Agreement, Mexus has granted Argonaut an exclusive and irrevocable option to acquire all rights to Mexus’ mining concessions located in Caborca, Mexico, Sonora State described as the Marta Elena, Julio II-VII and Mexus III Claims (the “Mining Concessions”).</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>According the Agreement, Mexus will transfer its Mining Concessions into a newly formed Mexican Company (“Newco”), and Argonaut will have the sole option to purchase up to 80% ownership of Newco in accordance with the terms of the Agreement. The initial option period expires on December 31, 2015.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>A summary of Argonaut’s required payments to Mexus for the option and required expenditures relating to the Mining Conessions are as follows:</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>1. Argonaut will make a cash payment to Mexus of US$75,000 upon execution of the Agreement plus incur required expenditures relating to the Mining Concessions of not less than US$300,000 by December 31, 2015.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>2. In the event that Argonaut desires to extend the option period to June 30, 2016, Argonaut shall pay a cash payment to Mexus of US$125,000 plus incur required expenditures relating to the Mining Concessions of not less than US$500,000.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>3. In the event that Argonaut desires to extend the option period to December 31, 2016, Argonaut shall pay a cash payment to Mexus of US$350,000 plus incur required expenditures relating to the Mining Concessions of not less than US$1,000,000.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>4. In the event that Argonaut desires to extend the option period to December 31, 2017, Argonaut shall pay a cash payment to Mexus of US$400,000 plus incur required expenditures relating to the Mining Concessions of not less than US$3,300,000.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>5. Argonaut is responsible for paying all land taxes, annual concessions or permit fees and the monthly lease of US$1,000 during the term of the Agreement. In addition, prior to July 6, 2016, Argonaut must expend a minimum of US$600,000 in expenditures relating to drilling Reverse Circulation and/or Core or a combination of both drill holes in relation to the Mining Concessions.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>6. At any time prior to December 31, 2018, Argonaut may exercise the option, provided that it has incurred minimal expenditures on the project of US$5,000,000 and made cash payments to Mexus equal to US$950,000.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Once the option is exercised, Argonaut will hold an 80% interest of Newco and Mexus will hold a 20% interest in Newco. All mining operations will be funded by Argonaut at no cost to Mexus. Newco will be managed by three board members, one of which will be Mexus. Argonaut reserves the right to terminate the Agreement at any time with 30 days written notice provided that the required payments to Mexus have been made in accordance with the terms of the Agreement.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>On July 7, 2015, Mexus deposited $75,000 of cash received from Argonaut in accordance with this Agreement.</p> <p style='margin:0in 0in 0pt'> </p>
<!--egx--><p style='margin:0in 0in 0pt'><b>Cash and Cash Equivalents</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>The Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.</p>
<!--egx--><p style='margin:0in 0in 0pt'><b>Derivative Instruments</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 value of the financial instrument is recognized as a gain or loss in results of operations in the period of change.</p>
<!--egx--><p style='margin:0in 0in 0pt'><b>Exploration and Development Costs</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 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 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 value. Carrying values do not necessarily reflect present or future values.</p>
<!--egx--><p style='margin:0in 0in 0pt'><b>Fair Value of Financial Instruments</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>ASC Topic 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Our investment in marketable securities is measured at fair value on a recurring basis using Level 1 inputs.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>On March 24, 2014, the Company resigned as the operator of the Joint Venture with Minerals La Negra 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 $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 June 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 impaired the value of the investment as it is uncertain if the Company will be able to obtain such shares.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>Our warrant derivative liability and secured convertible promissory note derivative liability is measured at fair value on a recurring basis using Level 3 inputs.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 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 fluctuations, the Company manages exposure through its normal operating and financing activities.</p>
<!--egx--><p style='margin:0in 0in 0pt'><b>Mineral Property Rights</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 estimated salvage value in accordance with Accounting Standards Codification (ASC) 360-10-35-15, <i>Impairment or Disposal of Long-Lived Assets</i>.</p>
<!--egx--><p style='margin:0in 0in 0pt'><b>Per Share Data</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation.</p>
<!--egx--><p style='margin:0in 0in 0pt'><b>Revenue Recognition</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 determinable, and collection of the resulting receivable is reasonably assured.</p>
<!--egx--><p style='margin:0in 0in 0pt'><b>Stock-based Compensation</b></p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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 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 method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.</p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'>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. 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 estimated in accordance with the provisions of ASC 505.</p> <p style='margin:0in 0in 0pt'> </p>
<!--egx--><p style='margin:0in 0in 0pt'>The inputs into the Black-Scholes models are as follows:</p> <p style='margin:0in 0in 0pt'> </p> <div align="center"> <table cellspacing="0" cellpadding="0" width="30%" border="0" style='width:30%'> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="14%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:14%;background:#cceeff;border-bottom:black 1pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>June 30, 2015</b></p></td> <td valign="top" width="13%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:13%;background:#cceeff;border-bottom:black 1pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>March 31, 2015</b></p></td></tr> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Closing share price</p></td> <td valign="top" width="14%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:14%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.01826</p></td> <td valign="top" width="13%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:13%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.0194</p></td></tr> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Conversion price</p></td> <td valign="top" width="14%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:14%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.0160</p></td> <td valign="top" width="13%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:13%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.019</p></td></tr> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Risk free rate</p></td> <td valign="top" width="14%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:14%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0.050%</p></td> <td valign="top" width="13%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:13%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0.050%</p></td></tr> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Expected volatility</p></td> <td valign="top" width="14%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:14%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>143% - 151%</p></td> <td valign="top" width="13%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:13%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>129%</p></td></tr> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Dividend yield</p></td> <td valign="top" width="14%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:14%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td> <td valign="top" width="13%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:13%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td></tr> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Expected life</p></td> <td valign="top" width="14%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:14%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>1.58 years – 1.95 years</p></td> <td valign="top" width="13%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:13%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>1.83 years</p></td></tr></table></div> <p style='margin:0in 0in 0pt'> </p>
<!--egx--><p style='margin:0in 0in 0pt'>The inputs into the binomial model are as follows:</p> <p style='margin:0in 0in 0pt'> </p> <div align="center"> <table cellspacing="0" cellpadding="0" width="30%" border="0" style='width:30%'> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:#cceeff;border-bottom:black 1pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>June 30, 2015</b></p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:#cceeff;border-bottom:black 1pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>March 31, 2015</b></p></td></tr> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Closing share price</p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.0183</p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.0194</p></td></tr> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Conversion price</p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.0100</p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.011</p></td></tr> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Risk free rate</p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0.11%</p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0.14%</p></td></tr> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Expected volatility</p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>182%</p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>180%</p></td></tr> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Dividend yield</p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td></tr> <tr> <td valign="top" width="15%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:15%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Expected life</p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0.5 years</p></td> <td valign="top" width="12%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:12%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0.5 years</p></td></tr></table></div>
<!--egx--><p style='margin:0in 0in 0pt'>The inputs into the binomial model are as follows:</p> <p style='margin:0in 0in 0pt'> </p> <div align="center"> <table cellspacing="0" cellpadding="0" width="30%" border="0" style='width:30%'> <tr> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="18%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:18%;background:#cceeff;border-bottom:black 1pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>June 30, 2015</b></p></td> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:#cceeff;border-bottom:black 1pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>March 31, 2015</b></p></td></tr> <tr> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Market price</p></td> <td valign="top" width="18%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:18%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.0178</p></td> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.0194</p></td></tr> <tr> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Conversion price</p></td> <td valign="top" width="18%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:18%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.0100</p></td> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>$0.0110</p></td></tr> <tr> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Risk free rate</p></td> <td valign="top" width="18%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:18%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>1.01%</p></td> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0.89%</p></td></tr> <tr> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Expected volatility</p></td> <td valign="top" width="18%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:18%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>135%</p></td> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>121%</p></td></tr> <tr> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Dividend yield</p></td> <td valign="top" width="18%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:18%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>0%</p></td></tr> <tr> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Expected life</p></td> <td valign="top" width="18%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:18%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>35 months</p></td> <td valign="top" width="16%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:16%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'>38 months</p></td></tr></table></div> <p style='margin:0in 0in 0pt'> </p>
<!--egx--><p style='margin:0in 0in 0pt'>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 cellspacing="0" cellpadding="0" width="48%" border="0" style='width:48%'> <tr> <td valign="top" width="40%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:40%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:#cceeff;border-bottom:black 1pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>Three Months </b></p> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>Ended </b></p> <p align="center" style='text-align:center;margin:0in 0in 0pt'><b>June 30, 2015</b></p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:#cceeff;border-bottom:black 1pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="center" style='text-align:center;margin:0in 0in 0pt'> </p> <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="40%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:40%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'> </p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'> </p></td></tr> <tr> <td valign="top" width="40%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:40%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Opening balance</p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$ 102,842</p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$ 282,861</p></td></tr> <tr> <td valign="top" width="40%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:40%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'> Conversion of principal into shares of common stock</p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(54,566)</p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>(268,663)</p></td></tr> <tr> <td valign="top" width="40%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:40%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Amortization of discount on Note and accrued interest</p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:#cceeff;border-bottom:black 1pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>1,939</p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:#cceeff;border-bottom:black 1pt solid;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'> 88,644</p></td></tr> <tr> <td valign="top" width="40%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:40%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'> </p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:white;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'> </p></td></tr> <tr> <td valign="top" width="40%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:40%;background:#cceeff;border-bottom:#f0f0f0;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p style='margin:0in 0in 0pt'>Closing balance</p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:#cceeff;border-bottom:black 1.5pt double;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$ 50,215</p></td> <td valign="top" width="20%" style='border-top:#f0f0f0;border-right:#f0f0f0;width:20%;background:#cceeff;border-bottom:black 1.5pt double;padding-bottom:0in;padding-top:0in;padding-left:0in;border-left:#f0f0f0;padding-right:0in'> <p align="right" style='text-align:right;margin:0in 0in 0pt'>$ 102,842</p></td></tr></table></div>
50
0
0
468000
0
0
0
100000
100000
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10-Q
2015-06-30
false
Mexus Gold US
MXSG
0001355677
--03-31
349327887
Smaller Reporting Company
Yes
No
No
2016
Q1
0001355677
2015-08-10
0001355677
2015-04-01
2015-06-30
0001355677
2015-06-30
0001355677
2015-03-31
0001355677
2014-04-01
2014-06-30
0001355677
2014-03-31
0001355677
2014-06-30
0001355677
2014-03-24
0001355677
2015-07-31
0001355677
2014-07-31
0001355677
2015-06-10
0001355677
2015-06-29
0001355677
2013-01-08
0001355677
2013-04-01
0001355677
2014-02-04
0001355677
2014-08-19
0001355677
2015-02-28
0001355677
2010-02-16
0001355677
2013-04-18
0001355677
2013-08-08
0001355677
2013-06-12
0001355677
2014-06-12
0001355677
2014-04-01
2015-03-31
0001355677
2015-01-28
0001355677
2015-04-06
0001355677
2015-06-11
0001355677
2014-04-02
0001355677
2015-04-14
0001355677
2015-04-21
0001355677
2015-05-13
0001355677
2015-06-23
0001355677
2015-04-18
0001355677
2015-05-01
0001355677
2015-07-09
0001355677
2015-07-28
0001355677
2015-07-29
0001355677
2015-08-06
0001355677
2015-07-01
0001355677
2015-07-06
0001355677
2015-07-07
shares
iso4217:USD
iso4217:USD
shares
pure