<SEC-DOCUMENT>0001062993-14-004344.txt : 20140724
<SEC-HEADER>0001062993-14-004344.hdr.sgml : 20140724
<ACCEPTANCE-DATETIME>20140723204034
ACCESSION NUMBER:		0001062993-14-004344
CONFORMED SUBMISSION TYPE:	424B3
PUBLIC DOCUMENT COUNT:		3
FILED AS OF DATE:		20140724
DATE AS OF CHANGE:		20140723

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ANAVEX LIFE SCIENCES CORP.
		CENTRAL INDEX KEY:			0001314052
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH [8731]
		IRS NUMBER:				208365999
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		424B3
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-195225
		FILM NUMBER:		14989811

	BUSINESS ADDRESS:	
		STREET 1:		51 W 52ND STREET,
		STREET 2:		7TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019-6163
		BUSINESS PHONE:		800-689-3939

	MAIL ADDRESS:	
		STREET 1:		51 W 52ND STREET,
		STREET 2:		7TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019-6163

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Thrifty Printing Inc.
		DATE OF NAME CHANGE:	20050111
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B3
<SEQUENCE>1
<FILENAME>form424b3.htm
<DESCRIPTION>FORM 424B3
<TEXT>
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   <TITLE>Anavex Life Sciences Corp.: Form 424B3 - Filed by newsfilecorp.com</TITLE>
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  <TR vAlign=top>
    <TD align=center><font color="#FF0000"><B>PROSPECTUS</B> </font></TD>
    <TD align=center width="33%">&nbsp;</TD>
  <TD align=center width="33%"><div align="right">Filed Pursuant to Rule 424(b)(3)<br>
  Registration No. 333-195225</div></TD>
  </TR></TABLE>
<P align=center><IMG src="forms1ax3x1.jpg" border=0> </P>
<P align=center><B>11,011,420 Shares of Common Stock </B></P>
<P align=justify>This prospectus relates to the sale or other disposition from
time to time of shares of common stock, par value $0.001 per share, of Anavex
Life Sciences Corp., a Nevada corporation, by certain of our security holders
(the &#147;<U>Selling Security Holders</U>&#148;). The shares offered for resale by this
prospectus include 11,011,420 shares of the Company&#146;s common stock issuable upon
conversion of the Senior Convertible Debentures issued by the Company on March
18, 2014 and having a term of thirty (30) years and which are convertible at an
initial conversion price of $0.30 per share.</P>
<P align=justify>The Selling Security Holders may sell the shares of common
stock described in this prospectus in a number of different ways and at varying
prices. See &#147;Plan of Distribution&#148; for more information about how the Selling
Security Holders may sell the shares of common stock being registered pursuant
to this prospectus.</P>
<P align=justify>We will pay the expenses incurred in registering the shares,
including legal and accounting fees. See &#147;Plan of Distribution.&#148;</P>
<P align=justify>Our common stock is currently quoted on the OTC Markets - OTCQB
under the symbol &#147;AVXL.&#148; On July 1, 2014, the last reported sale price of our
common stock was $0.38<B> </B>per share. </P>
<P align=justify>This prospectus may only be used where it is legal to offer and
sell the shares covered by this prospectus. We have not taken any action to
register or obtain permission for this offering or the distribution of this
prospectus in any country other than the United States.<B> </B></P>
<P align=justify><B>Investing in our securities involves a high degree of risk.
See &#147;Risk Factors&#148; beginning on page 5 of this prospectus for a discussion of
information that should be considered in connection with an investment in our
securities. </B></P>
<P align=justify><B>Neither the Securities and Exchange Commission nor any state
securities regulators have approved or disapproved of these securities or
determined if this prospectus is truthful or complete. Any representation to the
contrary is a criminal offense. </B></P>
<P align=center>The date of this prospectus is July 23, 2014. </P>
<P align=center>i</P>
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<P align=center><B>TABLE OF CONTENTS</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><a href="#page_5">PROSPECTUS SUMMARY</a> </TD>
    <TD align=right width="15%" bgColor=#eeeeee><a href="#page_5">1</a> </TD></TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_8">THE OFFERING</a> </TD>
    <TD align=right width="15%"><a href="#page_8">4</a> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><a href="#page_8">SECURITIES OFFERED</a> </TD>
    <TD align=right width="15%" bgColor=#eeeeee><a href="#page_8">4</a> </TD></TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_9">RISK FACTORS</a> </TD>
    <TD align=right width="15%"><a href="#page_9">5</a> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><a href="#page_9">RISKS RELATED TO OUR COMPANY</a> </TD>
    <TD align=right width="15%" bgColor=#eeeeee><a href="#page_9">5</a> </TD></TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_10">RISKS RELATED TO OUR BUSINESS</a> </TD>
    <TD align=right width="15%"><a href="#page_10">6</a> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><a href="#page_16">RISKS RELATING TO OUR COMMON STOCK</a> </TD>
    <TD align=right width="15%" bgColor=#eeeeee><a href="#page_16">12</a> </TD></TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_19">SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</a> </TD>
    <TD align=right width="15%"><a href="#page_19">15</a> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><a href="#page_20">USE OF PROCEEDS</a> </TD>
    <TD align=right width="15%" bgColor=#eeeeee><a href="#page_20">16</a> </TD></TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_20">MARKET FOR COMMON EQUITY AND RELATED SHAREHOLDER MATTERS</a></TD>
    <TD align=right width="15%"><a href="#page_20">16</a> </TD></TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><a href="#page_22">SELLING SECURITY HOLDERS </a></TD>
    <TD align=right><a href="#page_22">18</a></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_37">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF
      FINANCIAL CONDITION AND RESULTS OF OPERATIONS</a> </TD>
    <TD align=right width="15%"><a href="#page_37">32</a> </TD>
  </TR>

  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><a href="#page_47">BUSINESS</a> </TD>
    <TD width="15%" align=right><a href="#page_47">42</a> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_53">MANAGEMENT</a> </TD>
    <TD width="15%" align=right><a href="#page_53">48</a> </TD>
  </TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><a href="#page_60">DESCRIPTION OF SECURITIES</a> </TD>
    <TD width="15%" align=right><a href="#page_60">55</a></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_61">PLAN OF DISTRIBUTION</a> </TD>
    <TD width="15%" align=right><a href="#page_61">56</a> </TD>
  </TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><a href="#page_62">LEGAL MATTERS</a> </TD>
    <TD width="15%" align=right><a href="#page_62">57</a> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_63">EXPERTS</a> </TD>
    <TD width="15%" align=right><A href="#page_63">58</A> </TD>
  </TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><a href="#page_63">WHERE YOU CAN FIND ADDITIONAL INFORMATION</a>    </TD>
    <TD width="15%" align=right><a href="#page_63">58</a> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_63">DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION FOR
      SECURITIES ACT LIABILITY</a> </TD>
    <TD width="15%" align=right><a href="#page_63">58</a> </TD>
  </TR>

  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><a href="#page_64">FINANCIAL STATEMENTS</a> </TD>
    <TD width="15%" align=right><a href="#page_64">59</a> </TD>
  </TR>
  </TABLE>
<P align=justify>You should rely only on the information contained in this
prospectus. We have not, and the Selling Security Holders have not, authorized
any person to provide you with different information. If anyone provides you
with different or inconsistent information, you should not rely on it. This
prospectus is not an offer to sell, nor are the Selling Security Holders seeking
an offer to buy, securities in any state where the offer or solicitation is not
permitted. The information contained in this prospectus is complete and accurate
as of the date on the front cover of this prospectus, but information may have
changed since that date. We are responsible for updating this prospectus to
ensure that all material information is included and we will update this
prospectus to the extent required by law. </P>
<P align=justify>This prospectus includes statistical and other industry and
market data that we obtained from industry publications and research, surveys
and studies conducted by third parties. Industry publications and third-party
research, surveys and studies generally indicate that their information has been
obtained from sources believed to be reliable, although they do not guarantee
the accuracy or completeness of such information. While we believe that these
industry publications and third-party research, surveys and studies are
reliable, we have not independently verified such data and we do not make any
representation as to the accuracy of the information. </P>
<P align=center>ii</P>
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<P align=center><B>PROSPECTUS SUMMARY</B></P>
<P align=justify><B><I>Anavex Life Sciences Corp., a Nevada corporation, is
referred to as &#147;</I></B><B><I><U>Anavex</U></I></B><B><I>,&#148;
&#147;</I></B><B><I><U>we</U></I></B><B><I>,&#148;
&#147;</I></B><B><I><U>us</U></I></B><B><I>,&#148;
&#147;</I></B><B><I><U>our</U></I></B><B><I>,&#148; or the
&#147;</I></B><B><I><U>Company</U></I></B><B><I>&#148; throughout this prospectus. The
items in the following summary are described in more detail later in this
prospectus. This summary does not contain all of the information you should
consider. Before investing in our securities, you should read the entire
prospectus carefully, including the &#147;Risk Factors&#148; beginning on page 6 and the
financial statements and related notes beginning on page F-1. </I></B></P>
<P align=center><B>Overview</B></P>
<P align=justify><B><I>Our Current Business </I></B></P>
<P align=justify>We are a pharmaceutical company engaged in the development of
drug candidates. Our lead compounds ANAVEX 2-73 and ANAVEX PLUS, a combination
of ANAVEX 2-73 with donepezil (Aricept), are being developed to treat
Alzheimer&#146;s disease and potentially other central nervous system (CNS) diseases.
</P>
<P align=justify>In pre-clinical studies conducted in France and in Greece,
ANAVEX 2-73 demonstrated anti-amnesic and neuroprotective properties in various
animal models including the transgenic mouse model Tg2576. Based on pre-clinical
studies, we sponsored a Phase 1 single ascending dose study of ANAVEX 2-73,
which was initiated and completed in 2011. This study was conducted in Germany
in collaboration with ABX-CRO Advanced Pharmaceutical Services (ABX-CRO). The
study indicated that ANAVEX 2-73 was well tolerated by study subjects in doses
up to 55mg. As of the end of the period covered by this report, we have not yet
continued our clinical trials due to a lack of funding. </P>
<P align=justify>The Company plans to continue human clinical trials, among them
a multiple ascending dose study of ANAVEX 2-73 and ANAVEX PLUS, and a Phase 2
thereafter by mid-year 2014. Additionally, we intend to identify and initiate
discussions with potential partners in the next 12 months. Further, we may
acquire or develop new intellectual property and assign, license, or otherwise
transfer our intellectual property to further our goals. </P>
<P align=justify><B><I>Our Pipeline</I></B> </P>
<P align=justify>Our pipeline includes one drug candidate and several compounds
in different stages of pre-clinical study. </P>
<P align=justify>Our proprietary SIGMACEPTOR&#153; Discovery Platform produced small
molecule drug candidates with unique modes of action, based on our understanding
of sigma receptors. Sigma receptors may be targets for therapeutics to combat
many human diseases, including Alzheimer&#146;s disease. When bound by the
appropriate ligands, sigma receptors influence the functioning of multiple
biochemical signals that are involved in the pathogenesis (origin or
development) of disease. </P>
<P align=justify>Compounds that have been subjects of our research include the
following: </P>
<P align=justify><B>ANAVEX 2-73</B> </P>
<P align=justify>ANAVEX 2-73 may offer a disease-modifying approach in
Alzheimer&#146;s disease (AD) by using ligands that activate sigma-1 receptors. </P>
<P align=justify>In AD animal models, ANAVEX 2-73 has shown pharmacological,
histological and behavioral evidence as a potential neuroprotective,
anti-amnesic, anti-convulsive and anti-depressive therapeutic agent, due to its
potent affinity to sigma-1 receptors and moderate affinities to M1-4 type
muscarinic receptors. In addition, ANAVEX 2-73 has shown a potential dual
mechanism which may impact both amyloid and tau pathology. In a transgenic AD
animal model Tg2576 ANAVEX 2-73 induced a statistically significant
neuroprotective effect against the development of oxidative stress in the mouse
brain, as well as significantly increased the expression of functional and
synaptic plasticity markers that is apparently amyloid-beta independent. It also
statistically alleviated the learning and memory deficits developed over time in
the animals, regardless of sex, both in terms of spatial working memory and
long-term spatial reference memory. </P>
<P align=center>1</P>
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<P align=justify>Based on the results of pre-clinical testing, we initiated and
completed a Phase 1 single ascending dose (SAD) clinical trial of ANAVEX 2-73 in
2011. In this Phase 1 SAD trial, the maximum tolerated single dose was defined
per protocol as 55-60 mg. This dose is above the equivalent dose shown to have
positive effects in mouse models of AD. There were no significant changes in
laboratory or electrocardiogram (ECG) parameters. ANAVEX 2-73 was well tolerated
below the 55-60 mg dose with only mild adverse events in some subjects. Observed
adverse events at doses above the maximum tolerated single dose included
headache and dizziness, which were moderate in severity and reversible. These
side effects are often seen with drugs that target central nervous system (CNS)
conditions, including AD. </P>
<P align=justify>The ANAVEX 2-73 Phase 1 SAD trial was conducted as a
randomized, placebo-controlled study. Healthy male volunteers between the ages
of 18 and 55 received single, ascending oral doses over the course of the trial.
Study endpoints included safety and tolerability together with pharmacokinetic
parameters. Pharmacokinetics includes the absorption and distribution of a drug,
the rate at which a drug enters the blood and the duration of its effect, as
well as chemical changes of the substance in the body. This study was conducted
in Germany in collaboration with ABX-CRO, a clinical research organization that
has conducted several Alzheimer&#146;s disease studies, and the Technical University
of Dresden. </P>
<P align=justify><B>ANAVEX PLUS</B> </P>
<P align=justify>ANAVEX PLUS, a combination of ANAVEX 2-73 with donepezil
(Aricept) is a potential novel combination drug for Alzheimer&#146;s disease. ANAVEX
2-73, in animal models in combination with donepezil, exhibited an 80%
improvement in memory. These data are consistent with synergistic effect. A
patent application was filed in the US for the combination of donepezil and
ANAVEX 2-73 and, if granted, would give patent protection at least until
2033.</P>
<P align=justify>In a humanized calibrated cortical network computer model the
synergy between ANAVEX 2-73 and donepezil was consistent with the animal model
findings. ANAVEX PLUS exhibited an ADAS-Cog response of 7 points at 12 weeks and
5.5 points at 26 weeks. This response represents more than 2x the ADAS-Cog of
donepezil alone. </P>
<P align=justify><B>ANAVEX 19-144 </B></P>
<P align=justify>ANAVEX 19-144 is the sole active metabolite of ANAVEX 2-73.
Like ANAVEX 2-73, pre-clinical data reveals that ANAVEX 19-144 exhibits
significant anti-amnesic, neuroprotective and anticonvulsant properties in a
variety of in vitro systems and specialized animal models. </P>
<P align=justify>In animal models, ANAVEX 19-144 controls seizures and the
epileptogenesis process. Moreover, its neuroprotective properties may prevent
the process that causes long-term damage to tissue and cells as well as
biochemical and physiological alterations to the brain from epileptic seizures.
</P>
<P align=justify><B>ANAVEX 1-41 </B></P>
<P align=justify>ANAVEX 1-41 is a sigma-1 agonist. Pre-clinical tests revealed
significant neuroprotective benefits (i.e., protects nerve cells from
degeneration or death) through the modulation of endoplasmic reticulum,
mitochondrial and oxidative stress, which damages and destroys cells and is
believed by some scientists to be a primary cause of AD. In addition, in animal
models, ANAVEX 1-41 prevented the expression of caspase-3, an enzyme that plays
a key role in apoptosis (programmed cell death) and loss of cells in the
hippocampus, the part of the brain that regulates learning, emotion and memory.
These activities involve both muscarinic and sigma-1 receptor systems through a
novel mechanism of action. </P>
<P align=center>2</P>
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<P align=justify><B>ANAVEX 1037 </B></P>
<P align=justify>ANAVEX 1037 is designed for the treatment of prostate cancer.
It is a low molecular weight, synthetic compound exhibiting high affinity for
sigma-1 receptors at nanomolar levels and moderate affinity for sigma-2
receptors and sodium channels at micromolar levels. In advanced pre-clinical
studies, this compound revealed antitumor potential with no toxic side effects.
It has also been shown to selectively kill human cancer cells without affecting
normal/healthy cells and also to significantly suppress tumor growth in
immune-deficient mice models. Scientific publications describe sigma receptor
ligands positively, highlighting the possibility that these ligands may stop
tumor growth and induce selective cell death in various tumor cell lines. Sigma
receptors are highly expressed in different tumor cell types. Binding by
appropriate sigma-1 and/or sigma-2 ligands can induce selective apoptosis. In
addition, through tumor cell membrane reorganization and interactions with ion
channels, our drug candidates may play an important role in inhibiting the
processes of metastasis (spreading of cancer cells from the original site to
other parts of the body), angiogenesis (the formation of new blood vessels) and
tumor cell proliferation. </P>
<P align=justify>Our compounds are in the pre-clinical and clinical testing
stages of development, and there is no guarantee that the activity demonstrated
in pre-clinical models will be shown in human testing. </P>
<P align=justify><B><I>Our Target Indications</I></B> </P>
<P align=justify>We have developed compounds with potential application to two
broad categories and several specific indications. The two categories are
diseases of the central nervous system, and cancer. Specific indications
include: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center  ><li></li>&nbsp;</TD>
    <TD align=left width="95%">Alzheimer&#146;s disease &#150; In 2014, an estimated 5.2
      million Americans are suffering from Alzheimer&#146;s disease. The Alzheimer&#146;s
      Association reports that by 2025, 7.1 million Americans will be afflicted
      by the disease, a 40 percent increase from currently affected patients.
      Medications on the market today treat only the symptoms of AD and do not
      have the ability to stop its onset or its progression. There is an urgent
      and unmet need for both a disease modifying cure for Alzheimer&#146;s disease
      as well as for better symptomatic treatments. </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li>&nbsp;</TD>
    <TD align=left width="95%">Depression - Depression is a major cause of
      morbidity worldwide according to the World Health Organization (WHO).
      Pharmaceutical treatment for depression is dominated by blockbuster
      brands, with the leading nine brands accounting for approximately 75% of
      total sales. However, the dominance of the leading brands is waning, in
      part, due to the effects of patent expiration and generic competition. Our
      market research leads us to believe that the worldwide market for
      pharmaceutical treatment of depression exceeds $11 billion annually.
</TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li>&nbsp;</TD>
    <TD align=left width="95%">Epilepsy - Epilepsy is a common chronic
      neurological disorder characterized by recurrent unprovoked seizures.
      These seizures are transient signs and/or symptoms of abnormal, excessive
      or synchronous neuronal activity in the brain. According to the Centers
      for Disease Control and Prevention, epilepsy affects 2.2 million
      Americans. Today, epilepsy is often controlled, but not cured, with
      medication that is categorized as older traditional anti-epileptic drugs
      and second generation anti epileptic drugs. Because epilepsy afflicts
      sufferers in different ways, there is a need for drugs used in combination
      with both traditional anti-epileptic drugs and second generations
      anti-epileptic drugs. Decision Resources, one of the world&#146;s leading
      research and advisory firms for pharmaceutical and healthcare issues,
      finds that the epilepsy market will increase from $2.9 billion in 2011 to
      nearly $3.7 billion in 2016. </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li>&nbsp;</TD>
    <TD align=left width="95%">Neuropathic Pain &#150; We define neuralgia, or
      neuropathic pain, as pain that is not related to activation of pain
      receptor cells in any part of the body. Neuralgia is more difficult to
      treat than some other types of pain because it does not respond well to
      normal pain medications. Special medications have become more specific to
      neuralgia and typically fall under the category of membrane stabilizing
      drugs or antidepressants. Our market research leads us to believe the
      worldwide market for pharmaceutical treatment of neuropathic pain exceeds
      $5 billion annually. </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li>&nbsp;</TD>
    <TD align=left width="95%">Malignant Melanoma - Predominantly a skin
      cancer, malignant melanoma can also occur in melanocytes found in the
      bowel and the eye. Malignant melanoma accounts for 75% of all deaths
      associated with skin cancer. The treatment includes surgical removal of
      the tumor, adjuvant treatment, chemo and immunotherapy, or radiation
      therapy. According to IMS Health, the total Malignant Melanoma market in
      nine key countries is expected to grow from about $900 million in 2012 to
$4.4 billion by 2022. </TD></TR></TABLE><BR>
<P align=center>3</P>
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  <TR vAlign=top>
    <TD align=center><li></li>&nbsp;</TD>
    <TD align=left width="95%">Prostate Cancer &#150; Specific to men, prostate
      cancer is a form of cancer that develops in the prostate, a gland in the
      male reproductive system. The cancer cells may metastasize from the
      prostate to other parts of the body, particularly the bones and lymph
      nodes. Drug therapeutics for Prostate Cancer are expected to increase from
      $8.1 billion in 2012 to nearly $18.6 billion in 2017 according to BCC
      Research. </TD></TR>
  <TR vAlign=top>
    <TD align=center><li></li>&nbsp;</TD>
    <TD align=left width="95%">Pancreatic Cancer - Pancreatic cancer is a
      malignant neoplasm of the pancreas. In the United States approximately
      45,000 new cases of pancreatic cancer will be diagnosed this year and
      approximately 38,000 patients will die as a result of their cancer. Our
      market research leads us to believe that the market for the pharmaceutical
      treatment of pancreatic cancer will exceed $1.2 billion by 2015.
</TD></TR></TABLE>
<P align=justify><B>Corporate Information</B></P>
<P align=justify>Our principal executive office is located at 51 W. 52<SUP>nd
</SUP>Street, 7<SUP>th </SUP>Floor, New York, NY 10019, and our telephone number
is 844.689.3939. Our website address is <U>www.anavex.com</U>. No information
found on our website is part of this prospectus. Also, this prospectus may
include the names of various government agencies or the trade names of other
companies. Unless specifically stated otherwise, the use or display by us of
such other parties&#146; names and trade names in this prospectus is not intended to
and does not imply a relationship with, or endorsement or sponsorship of us by,
any of these other parties.</P>
<P align=justify><B>The Offering </B></P>
<P align=justify>The shares of common stock offered for resale in this
prospectus include the following 11,011,420 shares of the Company&#146;s common stock
issuable upon conversion of the Senior Convertible Debentures having a term of
thirty (30) years and which are convertible at an initial conversion price of
$0.30 per share.</P>
<P align=justify><B>Securities Offered</B></P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD align=left>Common Stock offered by the Selling Security Holders </TD>
    <TD align=left width="75%">11,011,420 shares consisting of shares
      underlying Senior Convertible Debentures issued to the Selling Security
      Holders </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Common stock outstanding prior to the offering </TD>
    <TD align=left width="75%">38,260,098 shares of common stock </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Use of proceeds </TD>
    <TD align=left width="75%">We will not receive any proceeds from the sale
      of the shares of common stock by the Selling Security Holders in this
      offering. However, we received payment for the Securities that the shares of
      common stock underlie. The proceeds that we received from the sale of the
      Securities will be used to further our business plan of advancing human
      clinical trials of ANAVEX 2-73, commercializing our intellectual property,
      and for general corporate purposes. See &#147;Use of Proceeds.&#148; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Risk factors </TD>
    <TD align=left width="75%">This investment involves a high degree of risk.
      See &#147;Risk Factors&#148; for a discussion of factors you should consider
      carefully before making an investment decision. </TD></TR>
  <TR vAlign=top>
    <TD align=left>OTC Markets - OTCQB symbol </TD>
    <TD align=left width="75%">AVXL </TD></TR></TABLE></DIV><BR>
<P align=center>4</P>
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<P align=center><B>RISK FACTORS</B></P>
<P align=justify>Before you make a decision to invest in our securities, you
should consider carefully the risks described below, together with other
information in this prospectus. If any of the following events actually occur,
our business, operating results, prospects or financial condition could be
materially and adversely affected. This could cause the trading price of our
common stock to decline and you may lose all or part of your investment. The
risks described below are not the only ones that we face. Additional risks not
presently known to us or that we currently deem immaterial may also
significantly impair our business operations and could result in a complete loss
of your investment. </P>
<P align=justify><B><I>Risks Related to our Company</I></B> </P>
<P align=justify><B><I>We have had a history of losses and no revenue, which
raise substantial doubt about our ability to continue as a going
concern.</I></B> </P>
<P align=justify>Since inception on January 23, 2004 through March 31, 2014, we
have accumulated losses of $41,314,391. We can offer no assurance that we will
ever operate profitably or that we will generate positive cash flow in the
future. To date, we have not generated any revenues from our operations. Our
history of losses and no revenues raise substantial doubt about our ability to
continue as a going concern. As a result, our management expects the business to
continue to experience negative cash flow for the foreseeable future and cannot
predict when, if ever, our business might become profitable. We will need to
raise additional funds, and such funds may not be available on commercially
acceptable terms, if at all. If we are unable to raise funds on acceptable
terms, we may not be able to execute our business plan, take advantage of future
opportunities, or respond to competitive pressures or unanticipated
requirements. This may seriously harm our business, financial condition and
results of operations.</P>
<P align=justify><B><I>We are an early development stage pharmaceutical research
and development company and may never be able to successfully develop marketable
products or generate any revenue. We have a very limited relevant operating
history upon which an evaluation of our performance and prospects can be made.
There is no assurance that our future operations will result in profits. If we
cannot generate sufficient revenues, we may suspend or cease operations.</I></B>
</P>
<P align=justify>We are an early development stage company and have not
generated any revenues to date and have no operating history. All of our
potential drug compounds are in the concept stage or early clinical development
stage. Moreover, we cannot be certain that our research and development efforts
will be successful or, if successful, that our potential drug compounds will
ever be approved for sales to pharmaceutical companies or generate commercial
revenues. We have no relevant operating history upon which an evaluation of our
performance and prospects can be made. We are subject to all of the business
risks associated with a new enterprise, including, but not limited to, risks of
unforeseen capital requirements, failure of potential drug compounds either in
non-clinical testing or in clinical trials, failure to establish business
relationships and competitive disadvantages against larger and more established
companies. If we fail to become profitable, we may suspend or cease operations.
</P>
<P align=justify><B><I>We will need additional funding and may be unable to
raise additional capital when needed, which would force us to delay, reduce or
eliminate our research and development activities.</I></B> </P>
<P align=justify>We will need to raise additional funding and the current
economic conditions may have a negative impact on our ability to raise
additional needed capital on terms that are favorable to our Company or at all.
We may not be able to generate significant revenues for several years, if at
all. Until we can generate significant revenues, if ever, we expect to satisfy
our future cash needs through equity or debt financing. We cannot be certain
that additional funding will be available on acceptable terms, or at all. If
adequate funds are not available, we may be required to delay, reduce the scope
of, or eliminate one or more of our research and development activities. </P>
<P align=center>5</P>
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<P align=justify><B><I>We may be unable to continue as a going concern in which
case our securities will have little or no value.</I></B> </P>
<P align=justify>Our independent auditors have noted in their report concerning
our annual financial statements for the fiscal year ended September 30, 2013
that we have incurred substantial losses since inception, which raises
substantial doubt about our ability to continue as a going concern. In the event
we are not able to continue operations you will likely suffer a complete loss of
your investment in our securities. </P>
<P align=justify><B><I>Risks Related to our Business</I></B> </P>
<P align=justify><B><I>Even if we are able to develop our potential drug
compounds, we may not be able to receive regulatory approval, or if approved, we
may not be able to generate significant revenues or successfully commercialize
our products, which will adversely affect our financial results and financial
condition and we will have to delay or terminate some or all of our research and
development plans which may force us to cease operations.</I></B></P>
<P align=justify>All of our potential drug compounds will require extensive
additional research and development, including non-clinical testing and clinical
trials, as well as regulatory approvals, before we can market them. We cannot
predict if or when any of the potential drug compounds we intend to develop will
be approved for marketing. There are many reasons that we may fail in our
efforts to develop our potential drug compounds. These include: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">the possibility that non-clinical testing or
      clinical trials may show that our potential drug compounds are ineffective
      and/or cause harmful side effects; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">our potential drug compounds may prove to be
      too expensive to manufacture or administer to patients; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">our potential drug compounds may fail to
      receive necessary regulatory approvals from the United States Food and
      Drug Administration or foreign regulatory authorities in a timely manner,
      or at all; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">even if our potential drug compounds are
      approved, we may not be able to produce them in commercial quantities or
      at reasonable costs; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">even if our potential drug compounds are
      approved, they may not achieve commercial acceptance; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">regulatory or governmental authorities may
      apply restrictions to any of our potential drug compounds, which could
      adversely affect their commercial success; and </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">the proprietary rights of other parties may
      prevent us or our potential collaborative partners from marketing our
potential drug compounds. </TD></TR></TABLE>
<P align=justify>If we fail to develop our potential drug compounds, our
financial results and financial condition will be adversely affected, we will
have to delay or terminate some or all of our research and development plans and
may be forced to cease operations. </P>
<P align=justify><B><I>Our research and development plans will require
substantial additional future funding which could impact our operational and
financial condition. Without the required additional funds, we will likely cease
operations.</I></B> </P>
<P align=justify>It will take several years before we are able to develop
potentially marketable products, if at all. Our research and development plans
will require substantial additional capital, arising from costs to: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center  ><li></li>&nbsp;</TD>
    <TD align=left width="95%">conduct research, non-clinical testing and
      human studies; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li>&nbsp;</TD>
    <TD align=left width="95%">establish pilot scale and commercial scale
      manufacturing processes and facilities; and </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li>&nbsp;</TD>
    <TD align=left width="95%">establish and develop quality control,
      regulatory, marketing, sales, finance and administrative capabilities to
support these programs. </TD></TR></TABLE>
<P align=justify>Our future operating and capital needs will depend on many
factors, including: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">the pace of scientific progress in our research
      and development programs and the magnitude of these programs; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">the scope and results of pre-clinical testing
      and human studies; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">the time and costs involved in obtaining
regulatory approvals; </TD></TR></TABLE><BR>
<P align=center>6</P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
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  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">the time and costs involved in preparing,
      filing, prosecuting, securing, maintaining and enforcing patents; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">competing technological and market
      developments; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">our ability to establish additional
      collaborations; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">changes in our existing collaborations; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">the cost of manufacturing scale-up; and </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">the effectiveness of our commercialization
activities. </TD></TR></TABLE>
<P align=justify>We base our outlook regarding the need for funds on many
uncertain variables. Such uncertainties include the success of our research
initiatives, regulatory approvals, the timing of events outside our direct
control such as negotiations with potential strategic partners and other
factors. Any of these uncertain events can significantly change our cash
requirements as they determine such one-time events as the receipt or payment of
major milestones and other payments. </P>
<P align=justify>Additional funds will be required to support our operations and
if we are unable to obtain them on favorable terms, we may be required to cease
or reduce further research and development of our drug product programs, sell
some or all of our intellectual property, merge with another entity or cease
operations. </P>
<P align=justify><B><I>If we fail to demonstrate efficacy in our non-clinical
studies and clinical trials our future business prospects, financial condition
and operating results will be materially adversely affected.</I></B> </P>
<P align=justify>The success of our research and development efforts will be
greatly dependent upon our ability to demonstrate potential drug compound
efficacy in non-clinical studies, as well as in clinical trials. Non-clinical
studies involve testing potential drug compounds in appropriate non-human
disease models to demonstrate efficacy and safety. Regulatory agencies evaluate
these data carefully before they will approve clinical testing in humans. If
certain non-clinical data reveals potential safety issues or the results are
inconsistent with an expectation of the potential drug compound&#146;s efficacy in
humans, the regulatory agencies may require additional more rigorous testing
before allowing human clinical trials. This additional testing will increase
program expenses and extend timelines. We may decide to suspend further testing
on our potential drug compounds if, in the judgment of our management and
advisors, the non-clinical test results do not support further development. </P>
<P align=justify>Moreover, success in non-clinical testing and early clinical
trials does not ensure that later clinical trials will be successful, and we
cannot be sure that the results of later clinical trials will replicate the
results of prior clinical trials and non-clinical testing. The clinical trial
process may fail to demonstrate that our potential drug compounds are safe for
humans and effective for indicated uses. This failure would cause us to abandon
a drug candidate and may delay development of other potential drug compounds.
Any delay in, or termination of, our non-clinical testing or clinical trials
will delay the filing of an investigational new drug application and new drug
application with the Food and Drug Administration or the equivalent applications
with pharmaceutical regulatory authorities outside the United States and,
ultimately, our ability to commercialize our potential drug compounds and
generate product revenues. In addition, we expect that our early clinical trials
will involve small patient populations. Because of the small sample size, the
results of these early clinical trials may not be indicative of future results.
</P>
<P align=justify>Following successful non-clinical testing, potential drug
compounds will need to be tested in a clinical development program to provide
data on safety and efficacy prior to becoming eligible for product approval and
licensure by regulatory agencies. From the first human trial through to
regulatory approval can take many years and 10-12 years is not unusual for
certain compounds. </P>
<P align=justify>If any of our future clinical development potential drug
compounds become the subject of problems, our ability to sustain our development
programs will become critically compromised. For example, efficacy or safety
concerns may arise, whether or not justified, that could lead to the suspension
or termination of our clinical programs. Examples of problems that could arise
include, among others: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">efficacy or safety concerns with the potential
      drug compounds, even if not justified; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">manufacturing difficulties or concerns; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">regulatory proceedings subjecting the potential
drug compounds to potential recall; </TD></TR></TABLE><BR>
<P align=center>7</P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">publicity affecting doctor prescription or
      patient use of the potential drug compounds; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">pressure from competitive products; or </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">introduction of more effective treatments.
</TD></TR></TABLE>
<P align=justify>Each clinical phase is designed to test attributes of the drug
and problems that might result in the termination of the entire clinical plan
can be revealed at any time throughout the overall clinical program. The failure
to demonstrate efficacy in our clinical trials would have a material adverse
effect on our future business prospects, financial condition and operating
results. </P>
<P align=justify><B><I>If we do not obtain the support of qualified scientific
collaborators, our revenue, growth and profitability will likely be limited,
which would have a material adverse effect on our business.</I></B> </P>
<P align=justify>We will need to establish relationships with leading scientists
and research institutions. We believe that such relationships are pivotal to
establishing products using our technologies as a standard of care for various
indications. Additionally, although in discussion, there is no assurance that
our current research partners will continue to work with us or that we will be
able to attract additional research partners. If we are not able to establish
scientific relationships to assist in our research and development, we may not
be able to successfully develop our potential drug compounds. If this happens,
our business will be adversely affected. </P>
<P align=justify><B><I>We may not be able to develop, market or generate sales
of our products to the extent anticipated. Our business may fail and investors
could lose all of their investment in our Company.</I></B> </P>
<P align=justify>Assuming that we are successful in developing our potential
drug compounds and receiving regulatory clearances to market our products, our
ability to successfully penetrate the market and generate sales of those
products may be limited by a number of factors, including the following: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center  ><li></li>&nbsp;</TD>
    <TD align=left width="95%">If our competitors receive regulatory approvals
      for and begin marketing similar products in the United States, the
      European Union, Japan and other territories before we do, greater
      awareness of their products as compared to ours will cause our competitive
      position to suffer; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li>&nbsp;</TD>
    <TD align=left width="95%">Information from our competitors or the
      academic community indicating that current products or new products are
      more effective or offer compelling other benefits than our future products
      could impede our market penetration or decrease our future market share;
      and </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li>&nbsp;</TD>
    <TD align=left width="95%">The pricing and reimbursement environment for
      our future products, as well as pricing and reimbursement decisions by our
      competitors and by payers, may have an effect on our revenues.
</TD></TR></TABLE>
<P align=justify>If this happens, our business will be adversely affected. </P>
<P align=justify><B><I>None of our potential drug compounds may reach the
commercial market for a number of reasons and our business may fail.</I></B>
</P>
<P align=justify>Successful research and development of pharmaceutical products
is high risk. Most products and development candidates fail to reach the market.
Our success depends on the discovery of new drug compounds that we can
commercialize. It is possible that our products may never reach the market for a
number of reasons. They may be found ineffective or may cause harmful
side-effects during non-clinical testing or clinical trials or fail to receive
necessary regulatory approvals. We may find that certain products cannot be
manufactured at a commercial scale and, therefore, they may not be economical to
produce. Our potential products could also fail to achieve market acceptance or
be precluded from commercialization by proprietary rights of third parties. Our
patents, patent applications, trademarks and other intellectual property may be
challenged and this may delay or prohibit us from effectively commercializing
our products. Furthermore, we do not expect our potential drug compounds to be
commercially available for a number of years, if at all. If none of our
potential drug compounds reach the commercial market, our business will likely
fail and investors will lose all of their investment in our Company. If this
happens, our business will be adversely affected. </P>
<P align=center>8</P>
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<P align=justify><B><I>If our competitors succeed in developing products and
technologies that are more effective or with a better profile than our own, or
if scientific developments change our understanding of the potential scope and
utility of our potential products, then our technologies and future products may
be rendered undesirable or obsolete.</I></B> </P>
<P align=justify>We face significant competition from industry participants that
are pursuing technologies in similar disease states to those that we are
pursuing and are developing pharmaceutical products that are competitive with
our products. Nearly all of our industry competitors have greater capital
resources, larger overall research and development staffs and facilities, and a
longer history in drug discovery and development, obtaining regulatory approval
and pharmaceutical product manufacturing and marketing than we do. With these
additional resources, our competitors may be able to respond to the rapid and
significant technological changes in the biotechnology and pharmaceutical
industries faster than we can. Our future success will depend in large part on
our ability to maintain a competitive position with respect to these
technologies. Rapid technological development, as well as new scientific
developments, may result in our products becoming obsolete before we can recover
any of the expenses incurred to develop them. For example, changes in our
understanding of the appropriate population of patients who should be treated
with a targeted therapy like we are developing may limit the drug&#146;s market
potential if it is subsequently demonstrated that only certain subsets of
patients should be treated with the targeted therapy. </P>
<P align=justify><B><I>Our reliance on third parties, such as university
laboratories, contract manufacturing organizations and contract or clinical
research organizations, may result in delays in completing, or a failure to
complete, non-clinical testing or clinical trials if they fail to perform under
our agreements with them.</I></B> </P>
<P align=justify>In the course of product development, we may engage university
laboratories, other biotechnology companies or contract or clinical
manufacturing organizations to manufacture drug material for us to be used in
non-clinical and clinical testing and contract research organizations to conduct
and manage non-clinical and clinical studies. If we engage these organizations
to help us with our non-clinical and clinical programs, many important aspects
of this process have been and will be out of our direct control. If any of these
organizations we may engage in the future fail to perform their obligations
under our agreements with them or fail to perform non-clinical testing and/or
clinical trials in a satisfactory manner, we may face delays in completing our
clinical trials, as well as commercialization of any of our potential drug
compounds. Furthermore, any loss or delay in obtaining contracts with such
entities may also delay the completion of our clinical trials, regulatory
filings and the potential market approval of our potential drug compounds. </P>
<P align=justify><B><I>If we fail to compete successfully with respect to
partnering, licensing, mergers, acquisitions, joint venture and other
collaboration opportunities, we may be limited in our ability to research and
develop our potential drug compounds.</I></B> </P>
<P align=justify>Our competitors compete with us to attract established
biotechnology and pharmaceutical companies or organizations for partnering,
licensing, mergers, acquisitions, joint ventures or other collaborations.
Collaborations include contracting with academic research institutions for the
performance of specific scientific testing. If our competitors successfully
enter into partnering arrangements or license agreements with academic research
institutions, we will then be precluded from pursuing those specific
opportunities. Since each of these opportunities is unique, we may not be able
to find a substitute. Other companies have already begun many drug development
programs, which may target diseases that we are also targeting, and have already
entered into partnering and licensing arrangements with academic research
institutions, reducing the pool of available opportunities. </P>
<P align=justify>Universities and public and private research institutions also
compete with us. While these organizations primarily have educational or basic
research objectives, they may develop proprietary technology and acquire patent
applications and patents that we may need for the development of our potential
drug compounds. In some instances, we will attempt to license this proprietary
technology, if available. These licenses may not be available to us on
acceptable terms, if at all. If we are unable to compete successfully with
respect to acquisitions, joint venture and other collaboration opportunities, we
may be limited in our ability to develop new products. </P>
<P align=center>9</P>
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<P align=justify><B><I>The use of any of our products in clinical trials may
expose us to liability claims, which may cost us significant amounts of money to
defend against or pay out, causing our business to suffer.</I></B> </P>
<P align=justify>The nature of our business exposes us to potential liability
risks inherent in the testing, manufacturing and marketing of our products. We
currently have one drug compound in clinical trials, however, when any of our
products enter into clinical trials or become marketed products, they could
potentially harm people or allegedly harm people possibly subjecting us to
costly and damaging product liability claims. Some of the patients who
participate in clinical trials are already ill when they enter a trial or may
intentionally or unintentionally fail to meet the exclusion criteria. The
waivers we obtain may not be enforceable and may not protect us from liability
or the costs of product liability litigation. Although we intend to obtain
product liability insurance which we believe is adequate, we are subject to the
risk that our insurance will not be sufficient to cover claims. The insurance
costs along with the defense or payment of liabilities above the amount of
coverage could cost us significant amounts of money and management distraction
from other elements of the business, causing our business to suffer. </P>
<P align=justify><B><I>The patent positions of biopharmaceutical products are
complex and uncertain and we may not be able to protect our patented or other
intellectual property. If we cannot protect this property, we may be prevented
from using it or our competitors may use it and our business could suffer
significant harm. Also, the time and money we spend on acquiring and enforcing
patents and other intellectual property will reduce the time and money we have
available for our research and development, possibly resulting in a slow down or
cessation of our research and development.</I></B> </P>
<P align=justify>We own patent applications (or have contractual obligations of
assignment) related to our potential drug compounds. However, neither patents
nor patent applications ensure the protection of our intellectual property for a
number of reasons, including the following:</P>
<TABLE style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; " cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top align=center width="5%">1. </TD>
    <TD>
      <P align=justify>Competitors may interfere with our patenting process in a
      variety of ways. Competitors may claim that they invented the claimed
      invention prior to us. Competitors may also claim that we are infringing
      their patents and restrict our freedom to operate. Competitors may also
      contest our patents and patent applications, if issued, by showing in
      various patent offices that, among other reasons, the patented subject
      matter was not original, was not novel or was obvious. In litigation, a
      competitor could claim that our patents and patent applications are not
      valid or enforceable for a number of reasons. If a court agrees, we would
      lose some or all of our patent protection. As a company, we have no
      meaningful experience with competitors interfering with our patents or
      patent applications.</P></TD></TR>
  <TR>
    <TD vAlign=top align=center width="5%">2. </TD>
    <TD>
      <P align=justify>Because of the time, money and effort involved in
      obtaining and enforcing patents, our management may spend less time and
      resources on developing potential drug compounds than they otherwise
      would, which could increase our operating expenses and delay product
      programs.</P></TD></TR>
  <TR>
    <TD vAlign=top align=center width="5%">3. </TD>
    <TD>
      <P align=justify>Issuance of a patent may not provide much practical
      protection. If we receive a patent of narrow scope, then it may be easier
      for competitors to design products that do not infringe our
    patent(s).</P></TD></TR>
  <TR>
    <TD vAlign=top align=center width="5%">4. </TD>
    <TD>
      <P align=justify>No patents have yet been issued in the United
    States.</P></TD></TR>
  <TR>
    <TD vAlign=top align=center width="5%">5. </TD>
    <TD>
      <P align=justify>Our primary patent application for the combination of
      ANAVEX 2-73 with donepezil is pending only in the United States Patent and
      Trademark Office. The lack of patent protection in global markets may
      inhibit our ability to advance our compounds and may make Anavex less
      attractive to potential partners.</P></TD></TR>
  <TR>
    <TD vAlign=top align=center width="5%">6. </TD>
    <TD>
      <P align=justify>Defending a patent lawsuit takes significant time and can
      be very expensive.</P></TD></TR>
  <TR>
    <TD vAlign=top align=center width="5%">7. </TD>
    <TD>
      <P align=justify>If a court decides that our drug compound, its method of
      manufacture or use, infringes on the competitor&#146;s patent, we may have to
      pay substantial damages for infringement.</P></TD></TR>
  <TR>
    <TD vAlign=top align=center width="5%">8. </TD>
    <TD>
      <P align=justify>A court may prohibit us from making, selling or licensing
      the potential drug compound unless the patent holder grants a license. A
      patent holder is not required to grant a license. If a license is
      available, we may have to pay substantial royalties or grant cross
      licenses to our patents, and the license terms may be
  unacceptable.</P></TD></TR>
  <TR>
    <TD vAlign=top align=center width="5%">9. </TD>
    <TD>
      <P align=justify>Redesigning our potential drug compounds so that they do
      not infringe on other patents may not be possible or could require
      substantial funds and time.</P></TD></TR></TABLE>
<P align=justify>It is also unclear whether our trade secrets are adequately
protected. While we use reasonable efforts to protect our trade secrets, our
employees or consultants may unintentionally or willfully disclose our
information to competitors. Enforcing a claim that someone illegally obtained
and is using our trade secrets, like patent litigation, is expensive and time
consuming, and the outcome is unpredictable. In addition, courts outside the
United States are sometimes <FONT face="Times New Roman" size=2><FONT
face="Times New Roman" size=2>less willing to protect trade secrets. Our
competitors may independently develop equivalent knowledge, methods and
know-how.</P>
<P align=center>10</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_15></A>
<P align=justify>We may also support and collaborate in research conducted by
government organizations, hospitals, universities or other educational
institutions. These research partners may be unable or unwilling to grant us
exclusive rights to technology or products derived from these collaborations
prior to entering into the relationship. </P>
<P align=justify>If we do not obtain required intellectual property licenses or
rights, we could encounter delays in our product development efforts while we
attempt to design around other patents or even be prohibited from developing,
manufacturing or selling potential drug compounds requiring these rights or
licenses. There is also a risk that disputes may arise as to the rights to
technology or potential drug compounds developed in collaboration with other
parties. </P>
<P align=justify><B><I>Our substantial debt and other financial obligations
could impair our financial condition and our ability to fulfill our debt
obligations. Any refinancing of this substantial debt could be at significantly
higher interest rates.</I></B> </P>
<P align=justify>As of March 31, 2014, we had total liabilities of $1,884,336
and accumulated deficit of $41,865,195. Our substantial indebtedness and other
current financial obligations and any that we may become a party to in the
future could:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">impair our ability to obtain financing in the
      future for working capital, capital expenditures, or general corporate
      purposes; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li>&nbsp;</TD>
    <TD align=left width="95%">have a material adverse effect on us if we fail
      to comply with financial and affirmative and restrictive covenants in debt
      agreements and an event of default occurs as a result of a failure that is
      not cured or waived; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li>&nbsp;</TD>
    <TD align=left width="95%">require us to dedicate a substantial portion of
      our cash flow for interest payments on our indebtedness and other
      financial obligations, thereby reducing the availability of our cash flow
      to fund working capital and capital expenditures; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">limit our flexibility in planning for, or
      reacting to, changes in our business and the industry in which we operate;
      and </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">place us at a competitive disadvantage compared
      to our competitors that have proportionally less debt.
</TD></TR></TABLE>
<P align=justify>If we are unable to meet our debt service obligations and other
financial obligations, we could be forced to restructure or refinance our
indebtedness and other financial transactions, seek additional equity capital,
sell our assets or curtail our operations. We might then be unable to obtain
such financing or capital or sell our assets on satisfactory terms, if at all.
Any refinancing of our indebtedness could be at significantly higher interest
rates, and/or incur significant transaction fees. </P>
<P align=justify><B><I>In the past we have experienced material weaknesses in
our internal control over financial reporting, which if continued, could impair
our financial condition.</I></B> </P>
<P align=justify>As reported in our most recent annual report on Form 10-K, our
management concluded that our internal control over financial reporting was not
effective as of September 30, 2013. Such ineffectiveness was due to material
weaknesses regarding our control environment (the maintenance of sufficient
personnel with an appropriate level of accounting knowledge, experience, and
training in the applicable of GAAP commensurate with our financial reporting
requirements, and an insufficient segregation of duties in our finance and
accounting functions due to limited personnel), a lack of monitoring controls to
determine the adequacy or our internal control over financial reporting and
related policies, and we did not establish and maintain effective controls to
ensure the correct application of GAAP related to equity transactions. Due to
our size and nature, segregation of all conflicting duties has not always been
possible and may not be economically feasible. As stated in the Form 10-K, we
have endeavored to take appropriate and reasonable steps to make improvements to
remediate these deficiencies, and intend to consider the results of our
remediation efforts and related testing as part of our year-end 2014 assessment
of the effectiveness of our internal control over financial reporting in light
of our strategic plan and make any changes that our management deems
appropriate. If we have continued material weaknesses in our internal financial
reporting, our financial condition could be impaired. </P>
<P align=center>11</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<!--$$/page=--><A name=page_16></A>
<P align=justify><B><I>Risks Related to our Common Stock</I></B> </P>
<P align=justify><B><I>A decline in the price of our common stock could affect
our ability to raise further working capital and adversely impact our operations
and would severely dilute existing or future investors if we were to raise funds
at lower prices.</I></B> </P>
<P align=justify>A prolonged decline in the price of our common stock could
result in a reduction in our ability to raise capital. Because our operations
have been financed through the sale of equity securities, a decline in the price
of our common stock could be especially detrimental to our continued operations.
Any reduction in our ability to raise equity capital in the future would force
us to reallocate funds from other planned uses and would have a significant
negative effect on our business plans and operations, including our ability to
develop new products and continue our current operations. If our stock price
declines, there can be no assurance that we can raise additional capital or
generate funds from operations sufficient to meet our obligations. We believe
the following factors could cause the market price of our common stock to
continue to fluctuate widely and could cause our common stock to trade at a
price below the price at which you purchase your shares of common stock: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center><li></li></TD>
    <TD align=left width="95%">actual or anticipated variations in our
      quarterly operating results; </TD></TR>
  <TR vAlign=top>
    <TD align=center><li></li></TD>
    <TD align=left width="95%">announcements of new services, products,
      acquisitions or strategic relationships by us or our competitors; </TD></TR>
  <TR vAlign=top>
    <TD align=center><li></li></TD>
    <TD align=left width="95%">changes in accounting treatments or principles;
    </TD></TR>
  <TR vAlign=top>
    <TD align=center><li></li></TD>
    <TD align=left width="95%">changes in earnings estimates by securities
      analysts and in analyst recommendations; and </TD></TR>
  <TR vAlign=top>
    <TD align=center><li></li></TD>
    <TD align=left width="95%">general political, economic, regulatory and
market conditions. </TD></TR></TABLE>
<P align=justify>The market price for our common stock may also be affected by
our ability to meet or exceed expectations of analysts or investors. Any failure
to meet these expectations, even if minor, could materially adversely affect the
market price of our common stock. </P>
<P align=justify><B><I>If we issue additional shares of common stock in the
future it will result in the dilution of our existing stockholders.</I></B> </P>
<P align=justify>Our articles of incorporation authorize the issuance of
150,000,000 shares of common stock. Our board of directors has the authority to
issue additional shares of common stock up to the authorized capital stated in
the articles of incorporation. Our board of directors may choose to issue some
or all of such shares of common stock to acquire one or more businesses or to
provide additional financing in the future. The issuance of any such shares of
common stock will result in a reduction of the book value or market price of the
outstanding shares of our common stock. If we do issue any such additional
shares of common stock, such issuance also will cause a reduction in the
proportionate ownership and voting power of all other stockholders. Further, any
such issuance may result in a change of control of our corporation. </P>
<P align=justify><B><I>Trading of our common stock may be volatile and sporadic,
which could depress the market price of our common stock and make it difficult
for our stockholders to resell their shares.</I></B> </P>
<P align=justify>There is currently a limited market for our common stock and
the volume of our common stock traded on any day may vary significantly from one
period to another. Our common stock is quoted on OTC Market&#146;s OTCQB. Trading in
stock quoted on OTC Market&#146;s OTCQB is often thin and characterized by wide
fluctuations in trading prices, due to many factors that may have little to do
with our operations or business prospects. The availability of buyers and
sellers represented by this volatility could lead to a market price for our
common stock that is unrelated to operating performance. Moreover, OTC Market&#146;s
OTCQB is not a stock exchange, and trading of securities quoted on OTC Market&#146;s
OTCQB is often more sporadic than the trading of securities listed on a stock
exchange like NASDAQ. There is no assurance that a sufficient market will
develop in the stock, in which case it could be difficult for our stockholders
to resell their stock. </P>
<P align=center>12</P>
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<P align=justify><B><I>Our stock is classed as a &#147;penny stock.&#148; Trading of our
stock may be restricted by the Securities and Exchange Commission&#146;s penny stock
regulations which may limit a stockholder&#146;s ability to buy and sell our
stock.</I></B> </P>
<P align=justify>Our stock is a penny stock. The Securities and Exchange
Commission has adopted Rule 15g-9 which generally defines &#147;penny stock&#148; to be
any equity security that has a market price (as defined) less than $5.00 per
share or an exercise price of less than $5.00 per share, subject to certain
exceptions. Our securities are covered by the penny stock rules, which impose
additional sales practice requirements on broker-dealers who sell to persons
other than established customers and &#147;accredited investors.&#148; The term
&#147;accredited investor&#148; refers generally to institutions with assets in excess of
$5,000,000 or individuals with a net worth in excess of $1,000,000 (excluding
the value of the primary residence of such individuals) or annual income
exceeding $200,000 or $300,000 jointly with their spouse. The penny stock rules
require a broker-dealer, prior to a transaction in a penny stock not otherwise
exempt from the rules, to deliver a standardized risk disclosure document in a
form prepared by the Securities and Exchange Commission which provides
information about penny stocks and the nature and level of risks in the penny
stock market. The broker-dealer also must provide the customer with current bid
and offer quotations for the penny stock, the compensation of the broker-dealer
and its salesperson in the transaction and monthly account statements showing
the market value of each penny stock held in the customer&#146;s account. The bid and
offer quotations, and the broker-dealer and salesperson compensation
information, must be given to the customer orally or in writing prior to
effecting the transaction and must be given to the customer in writing before or
with the customer&#146;s confirmation. In addition, the penny stock rules require
that prior to a transaction in a penny stock not otherwise exempt from these
rules; the broker-dealer must make a special written determination that the
penny stock is a suitable investment for the purchaser and receive the
purchaser&#146;s written agreement to the transaction. These disclosure requirements
may have the effect of reducing the level of trading activity in the secondary
market for the stock that is subject to these penny stock rules. Consequently,
these penny stock rules may affect the ability of broker-dealers to trade our
securities. We believe that the penny stock rules discourage investor interest
in and limit the marketability of our common stock. </P>
<P align=justify><B><I>The Financial Industry Regulatory Authority sales
practice requirements may also limit a stockholder&#146;s ability to buy and sell our
stock.</I></B> </P>
<P align=justify>In addition to the &#147;penny stock&#148; rules described above, the
Financial Industry Regulatory Authority or FINRA has adopted rules that require
that in recommending an investment to a customer, a broker-dealer must have
reasonable grounds for believing that the investment is suitable for that
customer. Prior to recommending speculative low-priced securities to their
non-institutional customers, broker-dealers must make reasonable efforts to
obtain information about the customer&#146;s financial status, tax status, investment
objectives and other information. Under interpretations of these rules, FINRA
believes that there is a high probability that speculative low-priced securities
will not be suitable for at least some customers. The FINRA requirements make it
more difficult for broker-dealers to recommend that their customers buy our
common stock, which may limit your ability to buy and sell our stock and have an
adverse effect on the market for shares of our common stock. </P>
<P align=justify><B><I>The sale or issuance of our common stock to Lincoln Park
may cause dilution and the sale of the shares of common stock acquired by
Lincoln Park, or the perception that such sales may occur, could cause the price
of our common stock to fall</I></B>.</P>
<P align=justify>On July 5, 2013, we entered into a Purchase Agreement (the
&#147;<U>Purchase Agreement</U>&#148;) with Lincoln Park Capital Fund, LLC (&#147;<U>Lincoln
Park</U>&#148;), pursuant to which Lincoln Park committed to purchase up to
$10,000,000 of our common stock. Concurrently with the execution of the Purchase
Agreement, we issued 341,858 shares of our common stock to Lincoln Park as a fee
for its commitment to purchase shares of our common stock under the Purchase
Agreement. The purchase shares that may be sold pursuant to the Purchase
Agreement may be sold by us to Lincoln Park at our discretion from time to time
over a 25-month period commencing after the SEC declared effective the related
registration statement. The purchase price for the shares that we may sell to
Lincoln Park under the Purchase Agreement will fluctuate based on the price of
our common stock. Depending on market liquidity at the time, sales of such
shares may cause the trading price of our common stock to fall. </P>
<P align=justify>We generally have the right to control the timing and amount of
any sales of our shares to Lincoln Park, except that, pursuant to the terms of
our agreements with Lincoln Park, we would be unable to sell shares to Lincoln
Park if and when the closing sale price of our common stock is below $0.50 per
share, subject to adjustment as set forth in the Purchase Agreement. Additional
sales of our common stock, if any, to Lincoln Park will depend upon market
conditions and other factors to be determined by us. Lincoln Park may ultimately
purchase all of the shares of our <FONT face="Times New Roman" size=2><FONT
face="Times New Roman" size=2>common stock that may be sold pursuant to the
Purchase Agreement and, after it has acquired shares, Lincoln Park may sell all,
some or none of those shares. Therefore, sales to Lincoln Park by us could
result in substantial dilution to the interests of other holders of our common
stock. Additionally, the sale of a substantial number of shares of our common
stock to Lincoln Park, or the anticipation of such sales, could make it more
difficult for us to sell equity or equity-related securities in the future at a
time and at a price that we might otherwise wish to effect
sales.</P>
<P align=center>13</P>
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<P align=justify><B><I>The exercise or conversion of the Warrants and Debentures
issued to the Selling Security Holders and Placement Agent may cause
dilution.</I></B></P>
<P align=justify>On March 13, 2014, we entered into a Securities Purchase
Agreement (the &#147;<U>Securities Purchase Agreement</U>&#148;) with the Selling Security
Holders pursuant to which the Company agreed to sell, and the Selling Security
Holders agreed to purchase, Senior Convertible Debentures due March 18, 2044
(the &#147;<U>Debentures</U>&#148;) in the aggregate principal amount of $10,000,000. In
addition to the Debentures, we agreed to issue to the Selling Security Holders
and the placement agent two (2) series of warrants representing the right to
purchase up to an aggregate of 67,666,666 shares of the Company&#146;s common stock
(the &#147;<U>Warrants</U>&#148; and together with the Debentures, the
&#147;<U>Securities</U>&#148;). The purchase and sale of the Securities was consummated on
March 18, 2014 (such transaction, the &#147;<U>Investment</U>&#148;), and resulted in
gross proceeds to the Company in the amount of $10,000,000, before deducting
agent fees and other transaction-related expenses. The exercise or conversion of
the Securities could result in the dilution to the interests of other holders of
our common stock. </P>
<P align=center>14</P>
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<P align=center><B>SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</B></P>
<P align=justify>This prospectus contains forward-looking statements that
involve substantial risks and uncertainties. The forward-looking statements are
contained principally in the sections entitled &#147;Prospectus Summary,&#148; &#147;Risk
Factors,&#148; &#147;Management&#146;s Discussion and Analysis of Financial Condition and
Results of Operations&#148; and &#147;Business&#148; but are also contained elsewhere in this
prospectus. In some cases, you can identify forward-looking statements by the
words &#147;may,&#148; &#147;might,&#148; &#147;will,&#148; &#147;could,&#148; &#147;would,&#148; &#147;should,&#148; &#147;expect,&#148; &#147;intend,&#148;
&#147;plan,&#148; &#147;objective,&#148; &#147;anticipate,&#148; &#147;believe,&#148; &#147;estimate,&#148; &#147;predict,&#148; &#147;project,&#148;
&#147;potential,&#148; &#147;continue&#148; and &#147;ongoing,&#148; or the negative of these terms, or other
comparable terminology intended to identify statements about the future. These
statements involve known and unknown risks, uncertainties and other factors that
may cause our actual results, levels of activity, performance or achievements to
be materially different from the information expressed or implied by these
forward-looking statements. </P>
<P align=justify>The forward-looking statements contained in this prospectus
involve a number of risks and uncertainties, many of which are outside of our
control. Factors that could cause actual results to differ materially from
projected results include, but are not limited to, those discussed in &#147;Risk
Factors&#148; elsewhere in this prospects. Readers are expressly advised to review
and consider those Risk Factors, which include risks associated with (1) our
ability to successfully conduct clinical and pre-clinical trials for our product
candidates, (2) our ability to obtain required regulatory approvals to develop
and market our product candidates, (3) our ability to raise additional capital
on favorable terms, (4) our ability to execute our development plan on time and
on budget, (5) our ability to obtain commercial partners, (6) our ability,
whether alone or with commercial partners, to successfully commercialize any of
our product candidates that may be approved for sale, and (7) our ability to
identify and obtain additional product candidates. Although we believe that the
assumptions underlying the forward-looking statements contained in this
prospectus are reasonable, any of the assumptions could be inaccurate, and
therefore there can be no assurance that such statements will be accurate. In
light of the significant uncertainties inherent in the forward-looking
statements included herein, the inclusion of such information should not be
regarded as a representation by us or any other person that the results or
conditions described in such statements or our objectives and plans will be
achieved. Furthermore, past performance in operations and share price is not
necessarily indicative of future performance. Except as required by applicable
laws including the securities laws of the United States, we disclaim any
intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.</P>
<P align=center>15</P>
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<P align=center><B>USE OF PROCEEDS</B></P>
<P align=justify>This prospectus relates to shares of our common stock that may
be offered and sold from time to time by the Selling Security Holders. We will
not receive any proceeds upon the sale of shares of common stock by the Selling
Security Holders in this offering. However, we received net proceeds of
  $9,299,160 upon the sale of the Debentures which such common stock underlies. We
retain broad discretion in determining how we allocate such cash. However, we
expect that such cash will be used to further our business plan of advancing
human clinical trials of AVAVEX 2-73 and for general corporate and
administrative purposes. Although we have no specific plans for use of such cash
as of the date of this prospectus, we believe that approximately 65% of the
proceeds received from the sale of the Debentures may be used towards our
advancing human clinical trials of AVAVEX 2-73 and commercializing our
intellectual property, and approximately 35% may be used for our general
corporate and administrative activities related to our operations as a reporting
public company and related corporate compliance requirements. </P>
<P align=center><B>MARKET FOR COMMON EQUITY AND RELATED SHAREHOLDER
MATTERS</B></P>
<P align=justify><B><I>Market information</I></B></P>
<P align=justify>Our common stock is quoted on OTCQB under the symbol &#147;AVXL.&#148;
</P>
<P align=justify>The following table shows the quarterly range of high and low
bid information for our common stock over the fiscal quarters for the last two
(2) fiscal years as quoted on OTCQB. We obtained the following high and low bid
information from OTCQB. These over-the-counter market quotations reflect
inter-dealer prices without retail mark-up, mark-down or commission, and may not
represent actual transactions. Investors should not rely on historical prices of
our common stock as an indication of its future price performance. On July 1,
2014, the closing price of our common stock as reported by OTCQB was $0.38 per
share. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>Quarter Ended </TD>
    <TD vAlign=bottom noWrap align=center width="16%">
    <P align=justify>High </P></TD>
    <TD vAlign=bottom noWrap align=center width="16%">
    <P align=justify>Low </P></TD>
  <TD vAlign=bottom noWrap align=left width="3%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left bgColor=#e6efff>March 31, 2014 </TD>
    <TD vAlign=bottom noWrap align=center width="16%" bgColor=#e6efff>
    <P align=justify>$0.60 </P></TD>
    <TD vAlign=bottom noWrap align=center width="16%" bgColor=#e6efff>
    <P align=justify>$0.25 </P></TD>
  <TD vAlign=bottom noWrap align=left width="3%"
bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>December 31, 2013 </TD>
    <TD vAlign=bottom noWrap align=center width="16%">
    <P align=justify>$0.65 </P></TD>
    <TD vAlign=bottom noWrap align=center width="16%">
    <P align=justify>$0.25 </P></TD>
  <TD vAlign=bottom noWrap align=left width="3%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left bgColor=#e6efff>September 30, 2013 </TD>
    <TD vAlign=bottom noWrap align=center width="16%" bgColor=#e6efff>
    <P align=justify>$0.75 </P></TD>
    <TD vAlign=bottom noWrap align=center width="16%" bgColor=#e6efff>
    <P align=justify>$0.49 </P></TD>
  <TD vAlign=bottom noWrap align=left width="3%"
bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>June 30, 2013 </TD>
    <TD vAlign=bottom noWrap align=center width="16%">
    <P align=justify>$0.83 </P></TD>
    <TD vAlign=bottom noWrap align=center width="16%">
    <P align=justify>$0.45 </P></TD>
  <TD vAlign=bottom noWrap align=left width="3%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left bgColor=#e6efff>March 31, 2013 </TD>
    <TD vAlign=bottom noWrap align=center width="16%" bgColor=#e6efff>
    <P align=justify>$0.81 </P></TD>
    <TD vAlign=bottom noWrap align=center width="16%" bgColor=#e6efff>
    <P align=justify>$0.51 </P></TD>
  <TD vAlign=bottom noWrap align=left width="3%"
bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>December 31, 2012 </TD>
    <TD vAlign=bottom noWrap align=center width="16%">
    <P align=justify>$1.12 </P></TD>
    <TD vAlign=bottom noWrap align=center width="16%">
    <P align=justify>$.072 </P></TD>
  <TD vAlign=bottom noWrap align=left width="3%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left bgColor=#e6efff>September 30, 2012 </TD>
    <TD vAlign=bottom noWrap align=center width="16%" bgColor=#e6efff>
    <P align=justify>$1.35 </P></TD>
    <TD vAlign=bottom noWrap align=center width="16%" bgColor=#e6efff>
    <P align=justify>$0.75 </P></TD>
  <TD vAlign=bottom noWrap align=left width="3%"
bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>June 30, 2012 </TD>
    <TD vAlign=bottom noWrap align=center width="16%">
    <P align=justify>$1.26 </P></TD>
    <TD vAlign=bottom noWrap align=center width="16%">
    <P align=justify>$0.51 </P></TD>
  <TD vAlign=bottom noWrap align=left width="3%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left bgColor=#e6efff>March 31, 2012 </TD>
    <TD vAlign=bottom noWrap align=center width="16%" bgColor=#e6efff>
    <P align=justify>$1.94 </P></TD>
    <TD vAlign=bottom noWrap align=center width="16%" bgColor=#e6efff>
    <P align=justify>$1.10 </P></TD>
  <TD vAlign=bottom noWrap align=left width="3%"
  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=justify><B><I>Transfer Agent</I></B></P>
<P align=justify>Shares of our common stock are issued in registered form. The
Nevada Agency and Transfer Company, 50 West Liberty Street, Reno, Nevada
(Telephone: (775) 322-0626; Facsimile: (775) 322-5623) is the registrar and
transfer agent for shares of our common stock.</P>
<P align=justify><B><I>Holders of Common Stock </I></B></P>
<P align=justify>As of July 1, 2014, there were 90 holders of record of our
common stock. As of such date, 38,260,098 shares of our common stock were issued
and outstanding. </P>
<P align=justify><B><I>Dividends </I></B></P>
<P align=justify>We have not paid any cash dividends on our common stock and
have no intention of paying any dividends on the shares of our common stock. Our
current policy is to retain earnings, if any, for use in our operations and in
the development of our business. Our future dividend policy will be determined
from time to time by our board of directors.</P>
<P align=center>16</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_21></A>
<P align=justify><B><I>Securities Authorized for Issuance under Equity
Compensation Plans or Individual Compensation Arrangements </I></B></P>
<P align=justify>The following table summarizes certain information regarding
our equity compensation plan or individual compensation arrangements as at
September 30, 2013: </P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=bottom>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom noWrap align=center colSpan=4>&nbsp;<B>Equity Compensation
      Plan Information</B>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=center noWrap align=center><B>Plan Category</B> </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom noWrap align=center width="32%"><B>Number of securities</B>
      <B>to be issued upon</B> <BR><B>exercise of</B> <BR><B>outstanding
      options,</B> <BR><B>warrants and rights</B> <BR><B>(a)</B> </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom noWrap align=center width="22%"><B>Weighted-average</B>
      <BR><B>exercise price of</B> <BR><B>outstanding options,</B>
      <BR><B>warrants and rights</B> <BR><B>(b)</B> </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom noWrap align=center width="22%"><B>Number of securities</B>
      <BR><B>remaining available</B> <BR><B>for future issuances</B>
      <BR><B>under equity</B> <BR><B>compensation plans</B> <BR><B>(excluding
      securities</B> <BR><B>reflected in column</B> <BR><B>(a))</B>
      <BR><B>(c)</B> </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom noWrap align=left>Equity compensation plans <BR>approved by
      security <BR>holders </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom noWrap align=right width="32%">3,075,000 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom noWrap align=right width="22%">1.26 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom noWrap align=right width="22%">925,000 </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom noWrap align=left>Equity compensation plans <BR>not approved
      by security <BR>holders </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom noWrap align=right width="32%">Nil </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom noWrap align=right width="22%">NA </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom noWrap align=right width="22%">NA </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom noWrap align=left><B>Total</B> </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom noWrap align=right width="32%"><B>3,075,000</B> </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom noWrap align=right width="22%"><B>1.26</B> </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom noWrap align=right width="22%"><B>925,000</B>
</TD></TR></TABLE></DIV>
<P align=justify><B><I>Stock Option Plan </I></B></P>
<P align=justify>On April 17, 2007, our directors adopted the 2007 Stock Option
Plan. On May 25, 2007, our stockholders ratified and approved the 2007 Stock
Option Plan at the annual meeting of stockholders. As of September 30, 2012, our
most recent fiscal year end 1,775,000 options had been granted to employees,
directors, officers and consultants of our Company.</P>
<P align=justify>The purpose of the 2007 Stock Option Plan is to retain the
services of valued key employees and consultants of our Company and such other
persons as will be select in accordance with the 2007 Stock Option Plan, and to
encourage such persons to acquire a greater proprietary interest in our Company,
thereby strengthening their incentive to achieve the objectives of the
shareholders of our Company, and to serve as an aid and inducement in the hiring
of new employees and to provide an equity incentive to consultants.</P>
<P align=justify>On February 2, 2011, we amended and restated our 2007 stock
option plan to increase the number of shares authorized to be issued under the
plan to 4,000,000. </P>
<P align=justify><B><I>Recent Sales of Unregistered Securities </I></B></P>
<P align=justify>Since the beginning of our fiscal year that ended September 30,
2013, we have not sold any equity securities that were not registered under the
Securities Act of 1933 that were not previously reported in a quarterly report
on Form 10-Q or in a current report on Form 8-K. </P>
<P align=justify><B><I>Purchases of Equity Securities by Our Company and
Affiliated Purchasers</I></B></P>
<P align=justify>None. <B></B></P>
<P align=center>17</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_22></A>
<P align=center><B>SELLING SECURITY HOLDERS </B></P>
<P align=justify>When we refer to &#147;Selling Security Holders&#148; in this prospectus,
we mean those persons listed in the table below, and the pledgees, donees,
permitted transferees, assignees, successors, and others who later come to hold
any of the Selling Security Holders&#146; interests in shares of our common stock
other than through a public sale.</P>
<P align=justify>The following table sets forth as of the date of this
prospectus the name of each Selling Security Holder for whom we have registered
shares of common stock for resale to the public and the number of shares of
common stock that each Selling Security Holder may offer pursuant to this
prospectus. The information set forth below is based on information known to us.
The common stock being offered by the Selling Security Holders consists of
11,011,420 shares of the common stock issuable upon conversion of the  Debentures having a term of thirty (30) years and which are
convertible at an initial conversion price of $0.30 per share.</P>
<P align=justify>The Company initially intended to register all of the shares of
common stock underlying all of the Securities sold in the Investment transaction
pursuant to its obligations to do so under the applicable definitive documents
enforceable by the Selling Security Holders to register a secondary offering on
such Selling Security Holders&#146; behalf. However, in consideration of comments
received from the U.S. Securities and Exchange Commission regarding the size of
the shares registered, the Company has registered hereunder 11,011,420 shares of
common stock underlying the Debentures. </P>
<P align=justify>Based on information known to us or provided to us by each
Selling Security Holder and as of the date the information was known to us or
was provided to us, the Selling Security Holders hold the security interests in
the Company as described in the table below. We cannot advise you as to whether
the Selling Security Holders will exercise their rights under the Debentures or
if the Selling Security Holders will sell any or all of the shares of common
stock in the event their rights under the Debentures are exercised. </P>
<P align=justify>Beneficial ownership is determined in accordance with SEC rules
and includes voting or investment power with respect to the securities. However,
the Debentures are subject to certain limitations upon exercise and provide that
the Selling Security Holder may not exercise its Debentures if the exercise
would cause a holder&#146;s beneficial ownership of our common stock (excluding
shares underlying any of their unconverted Debentures) to exceed 4.99% or 9.99%,
as the case may be, of the outstanding shares of common stock. Therefore,
although they are included in the table below, the number of shares of common
stock for some listed persons may include shares that may not be purchased
during a given 60-day period used for purpose of determining beneficial
ownership. </P>
<P align=justify>Except for relationships noted in the Selling Security Holder
table, none of the Selling Security Holders has, or within the past three years
has had, any position, office or material relationship with us or any of our
predecessors or affiliates. </P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD rowSpan=8 align=center valign="top" noWrap><BR>
      <BR><BR><BR><BR><BR><B>Selling
      Security</B> <BR><B>Holder</B> </TD>
    <TD width="16%" rowSpan=8 align=center valign="top" noWrap><BR>
      <BR><B>Shares</B>
      <BR><B>Beneficially</B> <BR><B>Owned</B> <BR><B>Prior to</B>
      <BR><B>Offering</B> <BR><B>(#)</B><B><SUP>(1)</SUP></B> </TD>
    <TD width="16%" rowSpan=8 align=center valign="top" noWrap><BR>
      <B>Percentage of</B>
      <BR><B>Outstanding</B> <BR><B>Shares</B> <BR><B>Beneficially</B>
      <BR><B>Owned Before</B> <BR><B>this Offering</B><B><SUP>(4)</SUP></B>
    <BR></TD>
    <TD width="16%" rowSpan=8 align=center valign="top" noWrap><BR>
      <BR><B>Number of</B>
      <BR><B>Shares being</B> <BR><B>Registered/offered</B> <BR><B>and sold in
      this</B> <BR><B>Offering (#)</B><B><SUP>(2)</SUP></B> <BR></TD>
    <TD width="16%" rowSpan=8 align=center valign="top" noWrap><B>Number of</B>
      <BR>
      <B>Shares</B> <BR><B>Beneficially</B> <BR><B>Owned</B> <BR><B>Post</B>
      <BR><B>Offering</B> <BR><B>(3)</B> <BR></TD>
    <TD width="16%" rowSpan=8 align=center valign="top" noWrap><B>Percentage of</B>
      <BR>
      <B>Outstanding</B> <BR><B>Shares</B> <BR><B>Beneficially</B>
      <BR><B>Owned</B> <BR><B>Post Offering</B> <BR><B>(4)</B> <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR>
    <TD valign="top" noWrap>Auriga Global <BR>
    Investors SU, SA <BR></TD>
    <TD width="16%" align=center valign="top" noWrap>1,909,179<B><SUP>(5)</SUP></B>
      <BR>
    <BR></TD>
    <TD width="16%" align=center valign="top" noWrap>4.99% <BR>
    <BR></TD>
    <TD width="16%" align=center valign="top" noWrap>1,101,142 <BR>
    <BR></TD>
    <TD width="16%" align=center valign="top" noWrap>1,909,179<B><SUP>(5)</SUP></B>
      <BR>
    <BR></TD>
  <TD width="16%" align=center valign="top" noWrap>4.99%</TD>
  </TR>
  <TR vAlign=top>
    <TD rowSpan=4 align=left valign="top" noWrap>Auriga Investors- <BR>
      Montserrat Global
    <BR>Fund <BR></TD>
    <TD width="16%"
      rowSpan=4 align=center valign="top" noWrap>1,909,179<B><SUP>(5)</SUP></B> <BR>
    <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="top" noWrap>4.99% <BR>
    <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="top" noWrap>550,571 <BR>
    <BR><BR></TD>
    <TD width="16%"
      rowSpan=4 align=center valign="top" noWrap>1,909,179<B><SUP>(5)</SUP></B> <BR>
    <BR><BR></TD>
  <TD width="16%" rowSpan=4 align=center valign="top" noWrap>4.99% <BR>
  <BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD rowSpan=3 align=left valign="top" noWrap>Hudson Bay Master <BR>
    Fund LTD <BR></TD>
    <TD width="16%"
      rowSpan=3 align=center valign="top" noWrap>1,909,179<B><SUP>(5)</SUP></B> <BR>
    <BR></TD>
    <TD width="16%" rowSpan=3 align=center valign="top" noWrap>4.99% <BR>
    <BR></TD>
    <TD width="16%" rowSpan=3 align=center valign="top" noWrap>1,651,713 <BR>
    <BR></TD>
    <TD width="16%"
      rowSpan=3 align=center valign="top" noWrap>1,909,179<B><SUP>(5)</SUP></B> <BR>
    <BR></TD>
  <TD width="16%" rowSpan=3 align=center valign="top" noWrap>4.99% <BR>
  <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD rowSpan=3 align=left valign="top" noWrap>DAFNA <BR>
    LifeScience LP <BR></TD>
    <TD width="16%"
      rowSpan=3 align=center valign="top" noWrap>1,909,179<B><SUP>(5)</SUP></B> <BR>
    <BR></TD>
    <TD width="16%" rowSpan=3 align=center valign="top" noWrap>4.99% <BR>
    <BR></TD>
    <TD width="16%" rowSpan=3 align=center valign="top" noWrap>852,416 <BR>
    <BR></TD>
    <TD width="16%"
      rowSpan=3 align=center valign="top" noWrap>1,909,179<B><SUP>(5)</SUP></B> <BR>
    <BR></TD>
  <TD width="16%" rowSpan=3 align=center valign="top" noWrap>4.99% <BR>
  <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR>
    <TD rowSpan=5 valign="top" noWrap>DAFNA <BR>
      LifeScience Market <BR>Neutral L.P.
    <BR></TD>
    <TD width="16%" rowSpan=5 align=center valign="top" noWrap>1,386,000
<BR>
<BR><BR></TD>
    <TD width="16%" rowSpan=5 align=center valign="top" noWrap>3.62% <BR>
    <BR><BR></TD>
    <TD width="16%" rowSpan=5 align=center valign="top" noWrap>152,618 <BR>
    <BR><BR></TD>
    <TD width="16%" rowSpan=5 align=center valign="top" noWrap>1,233,382
<BR>
<BR><BR></TD>
  <TD width="16%" rowSpan=5 align=center valign="top" noWrap>3.22% <BR>
  <BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD rowSpan=3 align=left valign="top" noWrap>DAFNA <BR>
    LifeScience Select <BR>L.P. </TD>
    <TD width="16%"
      rowSpan=3 align=center valign="top" noWrap>1,909,179<B><SUP>(5)</SUP></B> <BR>
    <BR></TD>
    <TD width="16%" rowSpan=3 align=center valign="top" noWrap>4.99% <BR>
    <BR></TD>
    <TD width="16%" rowSpan=3 align=center valign="top" noWrap>646,679 <BR>
    <BR></TD>
    <TD width="16%"
      rowSpan=3 align=center valign="top" noWrap>1,909,179<B><SUP>(5)</SUP></B> <BR>
    <BR></TD>
  <TD width="16%" rowSpan=3 align=center valign="top" noWrap>4.99% <BR>
  <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR>
    <TD rowSpan=3 valign="top" noWrap>Joann Mostovoy <BR></TD>
    <TD width="16%"
      rowSpan=3 align=center valign="top" noWrap>1,909,179<B><SUP>(5)</SUP></B> <BR></TD>
    <TD width="16%" rowSpan=3 align=center valign="top" noWrap>4.99% <BR></TD>
    <TD width="16%" rowSpan=3 align=center valign="top" noWrap>550,571 <BR></TD>
    <TD width="16%"
      rowSpan=3 align=center valign="top" noWrap>1,909,179<B><SUP>(5)</SUP></B> <BR></TD>
  <TD width="16%" rowSpan=3 align=center valign="top" noWrap>4.99% <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD rowSpan=4 align=left valign="top" noWrap>Sabby Healthcare <BR>
      Volatility Master
    <BR>Fund, Ltd. <BR></TD>
    <TD width="16%"
      rowSpan=4 align=center valign="top" noWrap>1,909,179<B><SUP>(5)</SUP></B> <BR>
    <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="top" noWrap>4.99% <BR>
    <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="top" noWrap>2,202,284 <BR>
    <BR><BR></TD>
    <TD width="16%"
      rowSpan=4 align=center valign="top" noWrap>1,909,179<B><SUP>(5)</SUP></B> <BR>
    <BR><BR></TD>
  <TD width="16%" rowSpan=4 align=center valign="top" noWrap>4.99% <BR>
  <BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD rowSpan=4 align=left valign="top" noWrap>Sabby Volatility <BR>
      Warrant Master
    <BR>Fund, Ltd. <BR></TD>
    <TD width="16%"
      rowSpan=4 align=center valign="top" noWrap>1,909,179<B><SUP>(5)</SUP></B> <BR>
    <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="top" noWrap>4.99% <BR>
    <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="top" noWrap>1,101,142 <BR>
    <BR><BR></TD>
    <TD width="16%"
      rowSpan=4 align=center valign="top" noWrap>1,909,179<B><SUP>(5)</SUP></B> <BR>
    <BR><BR></TD>
  <TD width="16%" rowSpan=4 align=center valign="top" noWrap>4.99% <BR>
  <BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD rowSpan=4 align=left valign="top" noWrap>Sphera Global <BR>
      Healthcare Master
    <BR>Fund <BR></TD>
    <TD width="16%"
      rowSpan=4 align=center valign="top" noWrap>3,822,184<B><SUP>(6)</SUP></B> <BR>
    <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="top" noWrap>9.99% <BR>
    <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="top" noWrap>2,084,682 <BR>
    <BR><BR></TD>
    <TD width="16%"
      rowSpan=4 align=center valign="top" noWrap>3,822,184<B><SUP>(6)</SUP></B> <BR>
    <BR><BR></TD>
  <TD width="16%" rowSpan=4 align=center valign="top" noWrap>9.99% <BR>
  <BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD rowSpan=3 align=left valign="top" noWrap>HFR HE Sphera <BR>
      Global Healthcare
    <BR>Master Trust </TD>
    <TD width="16%" rowSpan=3 align=center valign="top" noWrap>1,068,000 <BR>
    <BR></TD>
    <TD width="16%" rowSpan=3 align=center valign="top" noWrap>2.79% <BR>
    <BR></TD>
    <TD width="16%" rowSpan=3 align=center valign="top" noWrap>117,602 <BR>
    <BR></TD>
    <TD width="16%" rowSpan=3 align=center valign="top" noWrap>950,398 <BR>
    <BR></TD>
  <TD width="16%" rowSpan=3 align=center valign="top" noWrap>2.48% <BR>
  <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR></TABLE>
</BR>
<P align=center>18</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_23></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left colSpan=2>(*) Less than 1%. </TD></TR>
  <TR vAlign=top>
    <TD align=left>(1) </TD>
    <TD align=left width="95%">Includes all shares of common stock
      beneficially owned by the Selling Security Holders as of July 1, 2014,
      including shares of common stock the Selling Security Holder has the right
      to acquire within 60 days upon exercise of the Series A Warrants, Series B
      Warrants and conversion of the Debentures. </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(2) </TD>
    <TD align=left width="95%">The numbers in the column reflect the number of
      shares of the common stock issuable upon conversion of the Senior
      Convertible Debentures that are being registered hereunder. </TD></TR>
  <TR vAlign=top>
    <TD align=left>(3) </TD>
    <TD align=left width="95%">Assumes that all underlying shares of the
      Senior Convertible Debentures registered hereunder have been issued to and
      sold by the respective Selling Security Holder. </TD></TR>
  <TR vAlign=top>
    <TD align=left>(4) </TD>
    <TD align=left width="95%">Based on 38,260,098 shares of common stock
      issued and outstanding as of July 1, 2014. </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(5) </TD>
    <TD align=left width="95%">Includes shares issuable upon
      exercise/conversion of the Securities up to a 4.99% limitation applicable
      thereto. </TD></TR>
  <TR vAlign=top>
    <TD align=left>(6) </TD>
    <TD align=left width="95%">Includes shares issuable upon
      exercise/conversion of the Securities up to a 9.99% limitation applicable
      thereto. </TD></TR></TABLE>
<P align=justify><B><I>Voting/Dispositive Power for Selling Security Holders
</I></B></P>
<P align=justify>Set forth below is the natural person or persons who exercise
the sole or shared voting and/or dispositive powers with respect to the shares
to be offered by the Selling Security Holders that are legal entities.</P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD noWrap align=center>Selling Security Holder Entity </TD>
    <TD noWrap align=center width="33%">Natural Person(s) Who Exercise Sole
      <BR>or Shared Voting Powers </TD>
    <TD noWrap align=center width="33%">Natural Person(s) Who Exercise
      <BR>Sole or Shared Dispositive Powers </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>Auriga Global Investors SU, SA </TD>
    <TD noWrap align=left width="33%">Dr. Raj Mehra </TD>
    <TD noWrap align=left width="33%">Dr. Raj Mehra </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>Auriga Investors-Montserrat <BR>Global Fund </TD>
    <TD noWrap align=left width="33%">Dr. Raj Mehra </TD>
    <TD noWrap align=left width="33%">Dr. Raj Mehra </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>Hudson Bay Master Fund LTD<SUP>(1)</SUP> </TD>
    <TD noWrap align=left width="33%">Sander Gerber </TD>
    <TD noWrap align=left width="33%">Sander Gerber </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>DAFNA LifeScience LP </TD>
    <TD noWrap align=left width="33%">Fariba Ghodsian, C.I.O.; Nathan Fischel,
      C.E.O. </TD>
    <TD noWrap align=left width="33%">Fariba Ghodsian, C.I.O.; Nathan Fischel,
      C.E.O. </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>DAFNA LifeScience Market Neutral
      L.P.</TD>
    <TD noWrap align=left width="33%">Fariba Ghodsian, C.I.O.; Nathan Fischel,
      C.E.O. </TD>
    <TD noWrap align=left width="33%">Fariba Ghodsian, C.I.O.; Nathan <FONT
      face="Times New Roman" size=2><FONT face="Times New Roman" size=2>Fischel,
      C.E.O.</FONT></FONT> </TD></TR>
  <TR vAlign=top>
    <TD align=left>DAFNA LifeScience Select L.P. </TD>
    <TD align=left width="33%">Fariba Ghodsian, C.I.O.; Nathan Fischel, C.E.O.
    </TD>
    <TD align=left width="33%">Fariba Ghodsian, C.I.O.; Nathan Fischel, C.E.O.
    </TD></TR>
  <TR vAlign=top>
    <TD align=left>Sabby Healthcare Volatility Master Fund, Ltd.
      <SUP>(2)</SUP> </TD>
    <TD align=left width="33%">Hal Mintz </TD>
    <TD align=left width="33%">Hal Mintz </TD></TR>
  <TR vAlign=top>
    <TD align=left>Sabby Volatility Warrant Master Fund, Ltd. <SUP>(2)</SUP>
    </TD>
    <TD align=left width="33%">Hal Mintz </TD>
    <TD align=left width="33%">Hal Mintz </TD></TR>
  <TR vAlign=top>
    <TD align=left>Sphera Global Healthcare Master Fund <SUP>(3)</SUP> </TD>
    <TD align=left width="33%">Doron Breen </TD>
    <TD align=left width="33%">Doron Breen </TD></TR>
  <TR vAlign=top>
    <TD align=left>HFR HE Sphera Global Healthcare Master Trust <SUP>(3)</SUP>
    </TD>
    <TD align=left width="33%">Doron Breen </TD>
    <TD align=left width="33%">Doron Breen </TD></TR></TABLE>
	<P align=justify>(1) Hudson Bay Capital Management LP serves as investment
manager of Hudson Bay Master Fund Ltd., and as such, has voting and dispositive
powers over the Securities. Sander Gerber is the managing member of Hudson Bay
Capital GP LLC, which is the general partner of Hudson Bay Capital Management
LP. Sander Gerber disclaims beneficial ownership over the Securities. </P>
<P align=justify>(2) Sabby Management, LLC serves as the investment manager of
Sabby Healthcare Volatility Master Fund, Ltd. and Sabby Volatility Warrant
Master Fund, Ltd. Hal Mintz is the manager of Sabby Management, LLC. Each of
Sabby Management, LLC and Hal Mintz disclaims beneficial ownership over the
Securities covered by the Form S-1 except to the extent of its pecuniary
interest therein.</P>
<P align=justify>(3) Sphera Global Healthcare Management L.P. has the sole
voting and dispositive powers over the Securities. Doron Breen is the natural
person exercising such control at such entity.</P>
<P align=center>19</P>
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noShade SIZE=5>
<!--$$/page=--><A name=page_24></A><BR>
<P align=justify><B><I>Value of the Securities as of the Investment Date
</I></B></P>
<P align=justify>On the date of the sale of the Securities, March 18, 2014, the
closing price of our common stock was $0.44 per share. As such, the dollar value
of the total 33,333,336 shares underlying the Debentures would be $14,666,668.
The dollar value of the 101,000,004 shares underlying all of the Securities
would be $44,440,002, and the dollar value of the 11,011,420 shares of common
stock registered hereunder underlying the Debentures would be $4,845,025. </P>
<P align=justify><B><I>Payments in Connection with Sale of the Securities
</I></B></P>
<P align=justify>Set forth in the chart below is the dollar amount of each
payment (including the value of any payments to be made in common stock) in
connection with the issuance of the Securities to the Selling Security Holders
made by the Company or that may be required to made by the Company to any
Selling Security Holder, any affiliate of a Selling Security Holder, or any
person with whom any Selling Security Holder has a contractual relationship
regarding the Investment (including any interest payments, liquidated damages,
payments made to &#147;finders&#148; or &#147;placement agents,&#148; and any other payments or
potential payments): </P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<U>Selling Security Holders</U>
    </TD>
    <TD noWrap align=center width="50%"><U>Dollar Amount/Payment</U> </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>Auriga Global Investors SU, SA<SUP>(1)</SUP> </TD>
    <TD noWrap align=center width="50%">- </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>Auriga Investors-Montserrat Global
      Fund<SUP>(1)</SUP> </TD>
    <TD noWrap align=center width="50%">- </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>Hudson Bay Master Fund LTD<SUP>(1)</SUP> </TD>
    <TD noWrap align=center width="50%">- </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>DAFNA LifeScience LP<SUP>(1)</SUP> </TD>
    <TD noWrap align=center width="50%">- </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>DAFNA LifeScience Market Neutral L.P. <SUP>(1)</SUP>
    </TD>
    <TD noWrap align=center width="50%">- </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>
      <P align=justify>DAFNA LifeScience Select L.P. <SUP>(1)</SUP> </P></TD>
    <TD noWrap align=center width="50%">- </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>
      <P align=justify>&nbsp;Joann Mostovoy<SUP>(1)</SUP> </P></TD>
    <TD noWrap align=center width="50%">- </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>
      <P align=justify>Sabby Healthcare Volatility Master Fund, Ltd.
      <SUP>(1)</SUP> </P></TD>
    <TD noWrap align=center width="50%">- </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>
      <P align=justify>Sabby Volatility Warrant Master Fund, Ltd. <SUP>(1)</SUP>
      </P></TD>
    <TD noWrap align=center width="50%">- </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>
      <P align=justify>Sphera Global Healthcare Master Fund<SUP>(1)</SUP>
</P></TD>
    <TD noWrap align=center width="50%">- </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>
      <P align=justify>HFR HE Sphera Global Healthcare Master
      Trust<SUP>(1)</SUP> </P></TD>
    <TD noWrap align=center width="50%">- </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>
      <P align=justify>Maxim Partners LLC<SUP>(2)</SUP> </P></TD>
    <TD noWrap align=center width="50%">$700,840.00 </TD></TR></TABLE>
	<P align=justify><SUP>(1) </SUP>The Company was not required to pay, and no
Selling Security Holder having shares registered hereunder has received payment
from the Company, in connection with the Investment transaction.</P>
<P align=justify><SUP>(2)</SUP>Maxim Partners LLC is an affiliate of Maxim.
Maxim served as the exclusive placement agent in connection with the Investment
transaction. Maxim was paid $700,840.00 and was issued Warrants, in the name of
Maxim Partners LLC, representing the right to purchase up to an aggregate of
1,000,000 shares of Common Stock. Maxim Partners LLC is not a Selling Security
Holder hereunder and its shares underlying such Warrants are not being
registered in this registration statement.</P>

<P align=center>20</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_25></A><BR>
<P align=justify>The net proceeds received by the Company in connection with the
issuance of the Securities pursuant to the Securities Purchase Agreement was
  $9,299,160. No cash amounts are due and payable on the principal amount
outstanding on the Debentures in the first year following their sale, and no
scheduled interest payments will be due thereon. </P>
<P align=justify><B><I>Total Profit to Selling Security Holders for the
Registered Shares </I></B></P>
<P align=justify>The table below provides the total value the Selling Security
Holders could realize as a result of the conversion discount for the common
stock underlying all of the Debentures registered hereunder: </P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD rowSpan=7 align=center noWrap bgcolor="#BFBFBF"><BR>
      <BR>Selling Security <BR>Holder
      <BR><BR></TD>
    <TD width="11%" rowSpan=7 align=center noWrap bgcolor="#BFBFBF"><BR>
      Market <BR>Price Per
      <BR>Share <SUP>(1)</SUP> <BR><BR></TD>
    <TD width="11%" rowSpan=7 align=center noWrap bgcolor="#BFBFBF"><BR>
      <BR>Type of
      <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security <SUP>(2)</SUP> <BR><BR></TD>
    <TD width="11%" rowSpan=7 align=center noWrap bgcolor="#BFBFBF"><BR>
      <BR>Conversion <BR>Price
      <SUP>(3)</SUP> <BR><BR></TD>
    <TD width="11%" rowSpan=7 align=center noWrap bgcolor="#BFBFBF">Underlying <BR>
      Common Stock
      <BR>Registered in this <BR>Registration<BR>&nbsp;Statement <SUP>(4)</SUP>
    </TD>
    <TD width="11%" rowSpan=7 align=center noWrap bgcolor="#BFBFBF"><BR>
      <BR>Market
      <BR>&nbsp;&nbsp;&nbsp; Price <SUP>(5)</SUP><BR><BR></TD>
    <TD width="11%" rowSpan=7 align=center noWrap bgcolor="#BFBFBF"><BR>
      <BR>Value of&nbsp;
      <BR>Shares <SUP>(6)</SUP> <BR><BR></TD>
    <TD width="11%" rowSpan=7 align=center noWrap bgcolor="#BFBFBF">Total <BR>
      Possible
  <BR>Discount To <BR>Market<BR>Price<SUP>(7)</SUP> </TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD noWrap align=left rowSpan=2>Auriga Global <BR>Investors SU, SA </TD>
    <TD noWrap align=center width="11%" rowSpan=2><BR>$0.44 </TD>
    <TD noWrap align=center width="11%" rowSpan=2><BR>Debenture </TD>
    <TD noWrap align=center width="11%" rowSpan=2><BR>$0.30 </TD>
    <TD noWrap align=center width="11%" rowSpan=2><BR>1,101,142 </TD>
    <TD noWrap align=center width="11%" rowSpan=2><BR>$484,502.48 </TD>
    <TD noWrap align=center width="11%" rowSpan=2><BR>$330,342.60 </TD>
    <TD noWrap align=center width="11%" rowSpan=2><BR>$154,159.88 </TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD rowSpan=3 align=left noWrap bgcolor="#BFBFBF">Auriga Investors- <BR>
      Montserrat
    <BR>Global Fund </TD>
    <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
    $0.44 <BR></TD>
    <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
    Debenture <BR><BR></TD>
    <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
    $0.30 <BR></TD>
    <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
    550,571 <BR></TD>
    <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
    $242,251.24 <BR></TD>
    <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
    $165,171.30 <BR></TD>
  <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
  $77,079.94 <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD noWrap align=left rowSpan=3>Hudson Bay <BR>Master Fund LTD <BR></TD>
    <TD noWrap align=center width="11%" rowSpan=3>$0.44 <BR><BR></TD>
    <TD noWrap align=center width="11%" rowSpan=3>Debenture <BR><BR></TD>
    <TD noWrap align=center width="11%" rowSpan=3>$0.30 <BR><BR></TD>
    <TD noWrap align=center width="11%" rowSpan=3>1,651,713 <BR><BR></TD>
    <TD noWrap align=center width="11%" rowSpan=3>$726,753.72 <BR><BR></TD>
    <TD noWrap align=center width="11%" rowSpan=3>$495,513.90 <BR><BR></TD>
    <TD noWrap align=center width="11%" rowSpan=3>$231,239.82 <BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD rowSpan=2 align=left noWrap bgcolor="#BFBFBF">DAFNA <BR>
    LifeScience LP </TD>
    <TD width="11%" rowSpan=2 align=center noWrap bgcolor="#BFBFBF">$0.44 <BR></TD>
    <TD width="11%" rowSpan=2 align=center noWrap bgcolor="#BFBFBF">Debenture <BR></TD>
    <TD width="11%" rowSpan=2 align=center noWrap bgcolor="#BFBFBF">$0.30 <BR></TD>
    <TD width="11%" rowSpan=2 align=center noWrap bgcolor="#BFBFBF">852,416 <BR></TD>
    <TD width="11%" rowSpan=2 align=center noWrap bgcolor="#BFBFBF">$375,063.04 <BR></TD>
    <TD width="11%" rowSpan=2 align=center noWrap bgcolor="#BFBFBF">$255,724.80 <BR></TD>
  <TD width="11%" rowSpan=2 align=center noWrap bgcolor="#BFBFBF">$119,338.24 <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD noWrap align=left rowSpan=4>DAFNA <BR>LifeScience <BR>Market Neutral
      <BR>L.P. </TD>
    <TD noWrap align=center width="11%" rowSpan=4><BR>$0.44 <BR><BR></TD>
    <TD noWrap align=center width="11%" rowSpan=4><BR>Debenture <BR><BR></TD>
    <TD noWrap align=center width="11%" rowSpan=4><BR>$0.30 <BR><BR></TD>
    <TD noWrap align=center width="11%" rowSpan=4><BR>152,618 <BR><BR></TD>
    <TD noWrap align=center width="11%" rowSpan=4><BR>$67,151.92 <BR><BR></TD>
    <TD noWrap align=center width="11%" rowSpan=4><BR>$45,785.40 <BR><BR></TD>
    <TD noWrap align=center width="11%" rowSpan=4><BR>$21,366.52
<BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD rowSpan=3 align=left noWrap bgcolor="#BFBFBF">DAFNA <BR>
    LifeScience <BR>Select L.P. </TD>
    <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
    $0.44 <BR></TD>
    <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
    Debenture <BR></TD>
    <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
    $0.30 <BR></TD>
    <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
    646,679 <BR></TD>
    <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
    $284,538.76 <BR></TD>
    <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
    $194,003.70 <BR></TD>
  <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
  $90,535.06 <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD noWrap align=left>Joann Mostovoy </TD>
    <TD noWrap align=center width="11%">$0.44 </TD>
    <TD noWrap align=center width="11%">Debenture </TD>
    <TD noWrap align=center width="11%">$0.30 </TD>
    <TD noWrap align=center width="11%">550,571 </TD>
    <TD noWrap align=center width="11%">$242,251.24 </TD>
    <TD noWrap align=center width="11%">$165,171.30 </TD>
    <TD noWrap align=center width="11%">$77,079.94
</TD></TR>
  <TR vAlign=top>
    <TD rowSpan=3 align=left noWrap bgcolor="#BFBFBF">Sabby Healthcare <BR>
      Volatility Master
    <BR>Fund, Ltd. </TD>
    <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
    $0.44 <BR></TD>
    <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
    Debenture <BR></TD>
    <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
    $0.30 <BR></TD>
    <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
    2,202,284 <BR></TD>
    <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
    $969,004.96 <BR></TD>
    <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
    $660,685.20 <BR></TD>
  <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
  $308,319.76 <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD noWrap align=left rowSpan=3>Sabby Volatility <BR>Warrant Master
      <BR>Fund, Ltd. </TD>
    <TD noWrap align=center width="11%" rowSpan=3><BR>$0.44 <BR></TD>
    <TD noWrap align=center width="11%" rowSpan=3><BR>Debenture <BR></TD>
    <TD noWrap align=center width="11%" rowSpan=3><BR>$0.30 <BR></TD>
    <TD noWrap align=center width="11%" rowSpan=3><BR>1,101,142 <BR></TD>
    <TD noWrap align=center width="11%" rowSpan=3><BR>$484,502.48 <BR></TD>
    <TD noWrap align=center width="11%" rowSpan=3><BR>$330,342.60 <BR></TD>
    <TD noWrap align=center width="11%" rowSpan=3><BR>$154,159.88 <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD rowSpan=3 align=left noWrap bgcolor="#BFBFBF">Sphera Global <BR>
      Healthcare <BR>Master
      Fund </TD>
    <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
    $0.44 <BR></TD>
    <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
    Debenture <BR></TD>
    <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
    $0.30 <BR></TD>
    <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
    2,084,682 <BR></TD>
    <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
    $917,260.08 <BR></TD>
    <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
    $625,404.60 <BR></TD>
  <TD width="11%" rowSpan=3 align=center noWrap bgcolor="#BFBFBF"><BR>
  $291,855.48 <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD noWrap align=left rowSpan=4>HFR HE Sphera <BR>Global <BR>Healthcare
      <BR>Master Trust </TD>
    <TD noWrap align=center width="11%" rowSpan=4><BR>$0.44 <BR><BR></TD>
    <TD noWrap align=center width="11%" rowSpan=4><BR>Debenture <BR><BR></TD>
    <TD noWrap align=center width="11%" rowSpan=4><BR>$0.30 <BR><BR></TD>
    <TD noWrap align=center width="11%" rowSpan=4><BR>117,602 <BR><BR></TD>
    <TD noWrap align=center width="11%" rowSpan=4><BR>$51,744.88 <BR><BR></TD>
    <TD noWrap align=center width="11%" rowSpan=4><BR>$35,280.60 <BR><BR></TD>
    <TD noWrap align=center width="11%" rowSpan=4><BR>$16,464.28
<BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR></TABLE>
</BR>
<P align=center>21</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_26></A><BR>
<P align=justify><sup>(1)</B></sup>Market price per share of the common
stock underlying the Debentures on the date of the sale of the Debentures.</P>
<P align=justify>  <SUP>(2) </SUP>The shares of common stock set forth in this table are the amount
  underlying the Debentures registered in this registration statement. <SUP></SUP></P>
<P align=justify><SUP>(3)</SUP>Conversion/exercise price per share of the
underlying common stock on the date of the sale of the Debentures is calculated
using the fixed conversion/exercise price per share set forth in the
Debentures.</P>
<P align=justify><SUP>(4)</SUP> The amount of shares underlying each Debenture
for each Selling Security Holder registered hereunder. </P>
<P align=justify><SUP>(5) </SUP>Market price of the number of shares underlying
the registered shares, calculated by using the common stock&#146;s market price per
share on the date of the sale of the Debentures multiplied by the number of
registered shares underlying the Debentures. </P>
<P align=justify><SUP>(6) </SUP>Value of shares underlying the Debentures using
the conversion price on the date of sale multiplied by the number of registered
shares the Selling Security Holders may receive under the Debentures. Note: the
Debentures have fixed conversion prices. </P>
<P align=justify><SUP>(7) </SUP>Total possible discount to the market price as
of the date of the sale of the Debentures calculated by subtracting the
conversion price on the date of the sale of the Debentures from the market price
of the registered shares underlying the Debentures on that date. </P>
<P align=justify>There are no set, or prescribed, pre-determined adjustments to
the conversion price per share under the Debentures. Pursuant to the terms of
the Debentures (Section 5(a)), there are four (4) circumstances in which the
conversion price of such instruments would change, which is intended to maintain
the initial ratio of conversion shares to be issued relative to the initial
conversion price. Such four (4) circumstances are: If the Company, at any time
while the Debenture is outstanding: (i) pays a stock dividend or otherwise makes
a distribution or distributions payable in shares of the common stock on shares
of common stock or any common stock equivalents (which, do not include any
shares of common stock issued by the Company upon conversion of the Debentures),
(ii) subdivides the number of outstanding shares of common stock into a larger
number of shares, (iii) combines (including by way of a reverse stock split) the
number of outstanding shares of common stock into a smaller number of shares or
(iv) issues, in the event of a reclassification of shares of the common stock,
any shares of capital stock of the Company, then the conversion price shall be
multiplied by a fraction of which the numerator shall be the number of shares of
common stock outstanding immediately before such event, and of which the
denominator shall be the number of shares of common stock outstanding
immediately after such event (which effectively maintains the initial ratio of
conversion shares issued to debt amount outstanding under each such convertible
debenture). </P>
<P align=justify><B><I>Total Profit to Selling Security Holders </I></B></P>
<P align=justify>The table below provides the total value the Selling Security
Holders and placement agent could realize as a result of the conversion discount
for the common stock underlying all of the Securities if all of such shares
could be sold hereunder. Note that the Selling Security Holders are not
registering the total possible number of shares underlying the Securities,
rather only 11,011,420 shares underlying the Securities (specifically,
underlying the Debentures) are being registered hereunder.</P>
<P align=center>22</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR>
    <TD align=center vAlign=top bgcolor="#BFBFBF">Selling<BR>
        Security<BR>Holder</TD>
    <TD width="12%" align=center vAlign=top bgcolor="#BFBFBF">Market<BR>
      Price Per<BR>
      Share <SUP>(1)</SUP></TD>
    <TD width="12%" align=center vAlign=top bgcolor="#BFBFBF">Type of<br>
Security <SUP>(2)</SUP></TD>
    <TD width="12%" align=center vAlign=top bgcolor="#BFBFBF">Conversion<BR>
      Price <SUP>(3)</SUP></TD>
    <TD width="12%" align=center vAlign=top bgcolor="#BFBFBF">Total Possible<BR>
    Shares<BR>
     Underlying<BR>Securities <SUP>(4)</SUP><BR></TD>
    <TD width="12%" align=center vAlign=top bgcolor="#BFBFBF">Combined<BR>
      Market Price <SUP>(5)</SUP></TD>
    <TD width="12%" align=center vAlign=top bgcolor="#BFBFBF">Total Value of<BR>
      Shares <SUP>(6)</SUP></TD>
    <TD width="12%" align=center vAlign=top bgcolor="#BFBFBF">Total Possible<BR>
     Discount To<BR>
     Market Price <SUP>(7)</SUP></TD>
  </TR>
  <TR vAlign=top>
    <TD rowSpan=14 align=left valign="middle">Auriga Global <BR>
      Investors
      SU, <BR>SA </TD>
    <TD width="12%" rowSpan=14 align=center valign="middle">$0.44      <BR></TD>
    <TD width="12%" rowSpan=2 align=center valign="middle">Debenture <BR></TD>
    <TD width="12%" rowSpan=2 align=center valign="middle">$0.30 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle">3,333,334 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle">$1,466,666.96 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle">$1,000,000.20 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle">$466,666.76 <BR></TD></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD width="12%" rowSpan=3 align=center valign="middle">Series A <BR>
      Warrant</TD>
    <TD width="12%" rowSpan=3 align=center valign="middle">$0.30 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle">3,333,333 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle">$1,466,666.52 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle">$999,999.90 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle">$466,666.62 <BR>
    <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD width="12%" rowSpan=2 align=center valign="middle">Series B <BR>
      Warrant </TD>
    <TD width="12%" rowSpan=2 align=center valign="middle">$0.42 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle">3,333,333 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle">$1,466,666.52 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle">$1,399,999.86 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle">$66,666.66 <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR>
    <TD width="12%" rowSpan=7 align=center valign="middle">Debenture/ <BR>
      Series A
      <BR>Warrant/Series B <BR>Warrant <BR></TD>
    <TD width="12%" rowSpan=7 align=center valign="middle">- <BR></TD>
    <TD width="12%" rowSpan=7 align=left valign="middle">10,000,000      <BR></TD>
    <TD width="12%" rowSpan=7 align=left valign="middle">$4,400,000      <BR></TD>
    <TD width="12%" rowSpan=7 align=left valign="middle">$3,399,999.96    </TD>
    <TD width="12%" rowSpan=7 align=left valign="middle">$1,000,000.04    </TD>
  </TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD rowSpan=14 align=left valign="middle" bgcolor="#BFBFBF">Auriga <BR>
      Investors-
      <BR>Montserrat <BR>Global Fund </TD>
    <TD width="12%" rowSpan=14 align=center valign="middle" bgcolor="#BFBFBF">$0.44 </TD>
    <TD width="12%" rowSpan=2 align=center valign="middle" bgcolor="#BFBFBF">Debenture <BR></TD>
    <TD width="12%" rowSpan=2 align=center valign="middle" bgcolor="#BFBFBF">$0.30 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle" bgcolor="#BFBFBF">1,666,667 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle" bgcolor="#BFBFBF">$733,333.48 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle" bgcolor="#BFBFBF">$500,000.10 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle" bgcolor="#BFBFBF">$233,333.38 <BR></TD></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD width="12%" rowSpan=3 align=center valign="middle" bgcolor="#BFBFBF">Series A <BR>
      Warrant <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="middle" bgcolor="#BFBFBF">$0.30 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle" bgcolor="#BFBFBF">1,666,667 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle" bgcolor="#BFBFBF">$733,333.48 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle" bgcolor="#BFBFBF">$500,000.10 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle" bgcolor="#BFBFBF">$233,333.38 <BR>
    <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD width="12%" rowSpan=3 align=center valign="middle" bgcolor="#BFBFBF">Series B <BR>
      Warrant </TD>
    <TD width="12%" rowSpan=3 align=center valign="middle" bgcolor="#BFBFBF">$0.42 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle" bgcolor="#BFBFBF">1,666,667 </TD>
    <TD width="12%" rowSpan=3 align=left valign="middle" bgcolor="#BFBFBF">$733,333.48 </TD>
    <TD width="12%" rowSpan=3 align=left valign="middle" bgcolor="#BFBFBF">$700,000.14 </TD>
    <TD width="12%" rowSpan=3 align=left valign="middle" bgcolor="#BFBFBF">$33,333.34 </TD>
  </TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD width="12%" rowSpan=6 align=center valign="middle" bgcolor="#BFBFBF">Debenture/ <BR>
      Series A
      <BR>Warrant/Series B <BR>Warrant </TD>
    <TD width="12%" rowSpan=6 align=center valign="middle" bgcolor="#BFBFBF">- <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle" bgcolor="#BFBFBF">5,000,001 <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle" bgcolor="#BFBFBF">$2,200,000.44 <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle" bgcolor="#BFBFBF">$1,700,000.34 <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle" bgcolor="#BFBFBF">$500,000.10      <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD rowSpan=14 align=left valign="middle">Hudson Bay <BR>
      Master
      Fund <BR>LTD </TD>
    <TD width="12%" rowSpan=14 align=center valign="middle">$0.44 </TD>
    <TD width="12%" rowSpan=2 align=center valign="middle">Debenture <BR></TD>
    <TD width="12%" rowSpan=2 align=center valign="middle">$0.30 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle">5,000,000 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle">$2,200,000 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle">$1,500,000 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle">$700,000 <BR></TD></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD width="12%" rowSpan=3 align=center valign="middle">Series A <BR>
      Warrant <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="middle">$0.30 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle">5,000,000 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle">$2,200,000 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle">$1,500,000 </TD>
    <TD width="12%" rowSpan=3 align=left valign="middle">$700,000 <BR>
    <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD width="12%" rowSpan=3 align=center valign="middle">Series B <BR>
      Warrant <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="middle">$0.42 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle">5,000,000 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle">$2,200,000 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle">$2,100,000 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle">$100,000 <BR>
    <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD width="12%" rowSpan=6 align=center valign="middle">Debenture/ <BR>
      Series A
      <BR>Warrant/Se <BR>ries B <BR>Warrant <BR></TD>
    <TD width="12%" rowSpan=6 align=center valign="middle">- <BR>
      <BR><BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle"><BR>
      <BR>15,000,000 <BR><BR><BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle"><BR>
      <BR>$660,000 <BR><BR><BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle"><BR>
      <BR>$5,100,000 <BR><BR><BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle"><BR>
    <BR>$1,500,000 <BR><BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD rowSpan=7 align=left valign="middle" bgcolor="#BFBFBF">DAFNA <BR>
      LifeScience <BR>LP </TD>
    <TD width="12%" rowSpan=7 align=center valign="middle" bgcolor="#BFBFBF">$0.44 </TD>
    <TD width="12%" rowSpan=2 align=center valign="middle" bgcolor="#BFBFBF">Debenture <BR></TD>
    <TD width="12%" rowSpan=2 align=center valign="middle" bgcolor="#BFBFBF">$0.30 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle" bgcolor="#BFBFBF">2,580,400 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle" bgcolor="#BFBFBF">$1,135,376 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle" bgcolor="#BFBFBF">$774,120 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle" bgcolor="#BFBFBF">$361,256 <BR></TD></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD width="12%" rowSpan=3 align=center valign="middle" bgcolor="#BFBFBF">Series A <BR>
      Warrant <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="middle" bgcolor="#BFBFBF">$0.30 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle" bgcolor="#BFBFBF">2,580,400 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle" bgcolor="#BFBFBF">$1,135,376 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle" bgcolor="#BFBFBF">$774,120 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle" bgcolor="#BFBFBF">$361,256 <BR>
    <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD width="12%" rowSpan=2 align=center valign="top" bgcolor="#BFBFBF">Series B <BR>
      Warrant</TD>
    <TD width="12%" rowSpan=2 align=center valign="top" bgcolor="#BFBFBF">$0.42 </TD>
    <TD width="12%" rowSpan=2 align=left valign="top" bgcolor="#BFBFBF">2,580,400 </TD>
    <TD width="12%" rowSpan=2 align=left valign="top" bgcolor="#BFBFBF">$1,135,376 </TD>
    <TD width="12%" rowSpan=2 align=left valign="top" bgcolor="#BFBFBF">$1,083,768 </TD>
    <TD width="12%" rowSpan=2 align=left valign="top" bgcolor="#BFBFBF">$51,608 </TD>
  </TR>
<TR vAlign=top></TR></TABLE></DIV><BR>
<P align=center>23</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD rowSpan=6 align=left bgcolor="#BFBFBF"><BR>
      <BR><BR><BR><BR></TD>
    <TD width="12%" rowSpan=6 align=center bgcolor="#BFBFBF"><BR>
      <BR><BR><BR><BR></TD>
    <TD width="12%" rowSpan=6 align=center bgcolor="#BFBFBF">Debenture/ <BR>
      Series A
      <BR>Warrant/Series B <BR>Warrant <BR></TD>
    <TD width="12%" rowSpan=6 align=center bgcolor="#BFBFBF"><BR>
      <BR>- <BR><BR><BR></TD>
    <TD width="12%" rowSpan=6 align=left bgcolor="#BFBFBF"><BR>
      <BR>7,741,200 <BR><BR><BR></TD>
    <TD width="12%" rowSpan=6 align=left bgcolor="#BFBFBF"><BR>
      <BR>$3,406,128 <BR><BR><BR></TD>
    <TD width="12%" rowSpan=6 align=left bgcolor="#BFBFBF"><BR>
      <BR>$2,632,008 <BR><BR><BR></TD>
    <TD width="12%" rowSpan=6 align=left bgcolor="#BFBFBF"><BR>
    <BR>$774,120 <BR><BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD rowSpan=14 align=left valign="middle">DAFNA <BR>
      LifeScience
      <BR>Market <BR>Neutral L.P. </TD>
    <TD width="12%" rowSpan=14 align=center valign="middle">$0.44 </TD>
    <TD align=center width="12%" rowSpan=2>Debenture <BR></TD>
    <TD align=center width="12%" rowSpan=2>$0.30 <BR></TD>
    <TD align=left width="12%" rowSpan=2>462,000 <BR></TD>
    <TD align=left width="12%" rowSpan=2>$203,280 <BR></TD>
    <TD align=left width="12%" rowSpan=2>$138,600 <BR></TD>
    <TD align=left width="12%" rowSpan=2>$64,680 <BR></TD></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD align=center width="12%" rowSpan=3>Series A <BR>Warrant <BR></TD>
    <TD align=center width="12%" rowSpan=3>$0.30 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>462,000 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>$203,280 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>$138,600 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>$64,680 <BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD align=center width="12%" rowSpan=3>Series B <BR>Warrant <BR></TD>
    <TD align=center width="12%" rowSpan=3>$0.42 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>462,000 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>$203,280 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>$194,040 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>$9,240 <BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD width="12%" rowSpan=6 align=center valign="middle">Debenture/ <BR>
      Series A
      <BR>Warrant/Series B <BR>Warrant <BR></TD>
    <TD width="12%" rowSpan=6 align=center valign="middle">- <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle">1,386,000 <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle">$609,840 <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle">$471,240 <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle">$138,600 <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD rowSpan=14 align=left valign="middle" bgcolor="#BFBFBF">DAFNA <BR>
      LifeScience
      <BR>Select L.P. </TD>
    <TD width="12%" rowSpan=14 align=center valign="middle" bgcolor="#BFBFBF">$0.44 </TD>
    <TD width="12%" rowSpan=2 align=center valign="middle" bgcolor="#BFBFBF">Debenture <BR></TD>
    <TD width="12%" rowSpan=2 align=center valign="middle" bgcolor="#BFBFBF">$0.30 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle" bgcolor="#BFBFBF">1,957,600 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle" bgcolor="#BFBFBF">$861,344 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle" bgcolor="#BFBFBF">$587,280 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle" bgcolor="#BFBFBF">$274,064 <BR></TD></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD width="12%" rowSpan=3 align=center valign="middle" bgcolor="#BFBFBF">Series A <BR>
      Warrant <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="middle" bgcolor="#BFBFBF">$0.30 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle" bgcolor="#BFBFBF">1,957,600 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle" bgcolor="#BFBFBF">$861,344 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle" bgcolor="#BFBFBF">$587,280 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle" bgcolor="#BFBFBF">$274,064 <BR>
    <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD width="12%" rowSpan=3 align=center valign="middle" bgcolor="#BFBFBF">Series B <BR>
      Warrant <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="middle" bgcolor="#BFBFBF">$0.42 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle" bgcolor="#BFBFBF">1,957,600 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle" bgcolor="#BFBFBF">$861,344 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle" bgcolor="#BFBFBF">$822,192 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left valign="middle" bgcolor="#BFBFBF">$39,152 <BR>
    <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD width="12%" rowSpan=6 align=center valign="middle" bgcolor="#BFBFBF">Debenture/ <BR>
      Series A
      <BR>Warrant/Series B <BR>Warrant <BR></TD>
    <TD width="12%" rowSpan=6 align=center valign="middle" bgcolor="#BFBFBF">- <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle" bgcolor="#BFBFBF">5,872,800 <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle" bgcolor="#BFBFBF">$2,584,032 <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle" bgcolor="#BFBFBF">$1,996,752 <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle" bgcolor="#BFBFBF">$587,280 <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD rowSpan=14 align=left valign="middle">Joann <BR>
      Mostovoy </TD>
    <TD width="12%" rowSpan=14 align=center valign="middle">$0.44 </TD>
    <TD align=center width="12%" rowSpan=2>Debenture <BR></TD>
    <TD align=center width="12%" rowSpan=2>$0.30 <BR></TD>
    <TD align=left width="12%" rowSpan=2>1,666,667 <BR></TD>
    <TD align=left width="12%" rowSpan=2>$733,333.48 <BR></TD>
    <TD align=left width="12%" rowSpan=2>$500,000.10 <BR></TD>
    <TD align=left width="12%" rowSpan=2>$233,333.38 <BR></TD></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD align=center width="12%" rowSpan=3>Series A <BR>Warrant <BR></TD>
    <TD align=center width="12%" rowSpan=3>$0.30 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>1,666,667 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>$733,333.48 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>$500,000.10 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>$233,333.38 <BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD align=center width="12%" rowSpan=3>Series B <BR>Warrant <BR></TD>
    <TD align=center width="12%" rowSpan=3>$0.42 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>1,666,667 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>$733,333.48 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>$700,000.14 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>$33,333.34 <BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD width="12%" rowSpan=6 align=center valign="middle">Debenture/ <BR>
      Series A
      <BR>Warrant/Series B <BR>Warrant <BR></TD>
    <TD width="12%" rowSpan=6 align=center valign="middle">- <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle">5,000,001 <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle">$2,200,000.44 <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle">$1,700,000.34 <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle">$500,000.10      <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD rowSpan=5 align=left valign="middle" bgcolor="#BFBFBF">Sabby Healthcare <BR>
      Volatility <BR>        Master
      Fund, Ltd. </TD>
    <TD width="12%" rowSpan=5 align=center valign="middle" bgcolor="#BFBFBF">$0.44</TD>
    <TD width="12%" rowSpan=2 align=center valign="middle" bgcolor="#BFBFBF">Debenture </TD>
    <TD width="12%" rowSpan=2 align=center valign="middle" bgcolor="#BFBFBF">$0.30 <BR></TD>
    <TD width="12%" rowSpan=2 align=left valign="middle" bgcolor="#BFBFBF">6,666,667 </TD>
    <TD width="12%" rowSpan=2 align=left valign="middle" bgcolor="#BFBFBF">$2,933,333.48 </TD>
    <TD width="12%" rowSpan=2 align=left valign="middle" bgcolor="#BFBFBF">$2,000,000.10 </TD>
    <TD width="12%" rowSpan=2 align=left valign="middle" bgcolor="#BFBFBF">$933,333.38 </TD>
  </TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD width="12%" rowSpan=3 align=center valign="middle" bgcolor="#BFBFBF">Series A <BR>
      Warrant <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="middle" bgcolor="#BFBFBF">$0.30 </TD>
    <TD width="12%" rowSpan=3 align=left valign="middle" bgcolor="#BFBFBF">6,666,667 </TD>
    <TD width="12%" rowSpan=3 align=left valign="middle" bgcolor="#BFBFBF">$2,933,333.48 </TD>
    <TD width="12%" rowSpan=3 align=left valign="middle" bgcolor="#BFBFBF">$2,000,000.10 </TD>
    <TD width="12%" rowSpan=3 align=left valign="middle" bgcolor="#BFBFBF">$933,333.38 </TD>
  </TR>
  <TR vAlign=top></TR>
<TR vAlign=top></TR></TABLE></DIV><BR>
<P align=center>24</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_29></A><BR>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD rowSpan=9 align=left bgcolor="#BFBFBF">&nbsp;</TD>
    <TD width="12%" rowSpan=9 align=left bgcolor="#BFBFBF">&nbsp;</TD>
    <TD width="12%" rowSpan=3 align=center bgcolor="#BFBFBF">Series B <BR>
      Warrant <BR></TD>
    <TD width="12%" rowSpan=3 align=center bgcolor="#BFBFBF">$0.42 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=center bgcolor="#BFBFBF">6,666,667 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left bgcolor="#BFBFBF">$2,933,333.48 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left bgcolor="#BFBFBF">$2,800,000.14 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left bgcolor="#BFBFBF">$133,333.34 <BR>
    <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD width="12%" rowSpan=6 align=center valign="middle" bgcolor="#BFBFBF">Debenture/ <BR>
      Series A
      <BR>Warrant/Series B <BR>Warrant </TD>
    <TD width="12%" rowSpan=6 align=center valign="middle" bgcolor="#BFBFBF">- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=6 align=center valign="middle" bgcolor="#BFBFBF">20,000,001 <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle" bgcolor="#BFBFBF">$8,800,000.44 <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle" bgcolor="#BFBFBF">$6,800,000.34 <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle" bgcolor="#BFBFBF">$2,000,000.10 <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD rowSpan=14 align=left valign="middle">Sabby <BR>
      Volatility
      <BR>Warrant <BR>Master Fund, <BR>Ltd. </TD>
    <TD width="12%" rowSpan=14 align=center valign="middle">$0.44</TD>
    <TD align=center width="12%" rowSpan=2>Debenture <BR></TD>
    <TD align=center width="12%" rowSpan=2>$0.30 <BR></TD>
    <TD align=center width="12%" rowSpan=2>3,333,334 <BR></TD>
    <TD align=left width="12%" rowSpan=2>$1,466,666.96 <BR></TD>
    <TD align=left width="12%" rowSpan=2>$1,000,000.20 <BR></TD>
    <TD align=left width="12%" rowSpan=2>$466,666.76 <BR></TD></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD align=center width="12%" rowSpan=4>Series A <BR>Warrant <BR></TD>
    <TD align=center width="12%" rowSpan=4>$0.30 <BR></TD>
    <TD align=center width="12%" rowSpan=4>3,333,333 <BR></TD>
    <TD align=left width="12%" rowSpan=4>$1,466,666.52 <BR></TD>
    <TD align=left width="12%" rowSpan=4>$999,999.90 <BR></TD>
    <TD align=left width="12%" rowSpan=4>$466,666.62 <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD align=center width="12%" rowSpan=3>Series B <BR>Warrant <BR></TD>
    <TD align=center width="12%" rowSpan=3>$0.42 <BR><BR></TD>
    <TD align=center width="12%" rowSpan=3>3,333,333 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>$1,466,666.52 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>$1,399,999.86 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>$66,666.66 <BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD width="12%" rowSpan=5 align=center valign="middle">Debenture/ <BR>
      Series A
      <BR>Warrant/Series B <BR>Warrant </TD>
    <TD width="12%" rowSpan=5 align=center valign="middle">- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=5 align=center valign="middle">10,000,000 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=5 align=left valign="middle">$4,400,000 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=5 align=left valign="middle">$3,399,999.96 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=5 align=left valign="middle">$1,000,000.04 <BR>
    <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD rowSpan=14 align=left valign="middle" bgcolor="#BFBFBF">      Sphera Global <BR>
      Healthcare
      <BR>Master Fund </TD>
    <TD width="12%"
      rowSpan=14 align=center valign="middle" bgcolor="#BFBFBF">      $0.44 <BR></TD>
    <TD width="12%" rowSpan=2 align=center bgcolor="#BFBFBF">Debenture <BR></TD>
    <TD width="12%" rowSpan=2 align=center bgcolor="#BFBFBF">$0.30 <BR></TD>
    <TD width="12%" rowSpan=2 align=center bgcolor="#BFBFBF">6,310,667 <BR></TD>
    <TD width="12%" rowSpan=2 align=left bgcolor="#BFBFBF">$2,776,693.48 <BR></TD>
    <TD width="12%" rowSpan=2 align=left bgcolor="#BFBFBF">$1,893,200.10 <BR></TD>
    <TD width="12%" rowSpan=2 align=left bgcolor="#BFBFBF">$883,493.38 <BR></TD></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD width="12%" rowSpan=3 align=center bgcolor="#BFBFBF">Series A <BR>
      Warrant <BR></TD>
    <TD width="12%" rowSpan=3 align=center bgcolor="#BFBFBF">$0.30 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=center bgcolor="#BFBFBF">6,310,667 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left bgcolor="#BFBFBF">$2,776,693.48 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left bgcolor="#BFBFBF">$1,893,200.10 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left bgcolor="#BFBFBF">$883,493.38 <BR>
      <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD width="12%" rowSpan=3 align=center bgcolor="#BFBFBF">Series B <BR>
      Warrant <BR></TD>
    <TD width="12%" rowSpan=3 align=center bgcolor="#BFBFBF">$0.42 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=center bgcolor="#BFBFBF">6,310,667 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left bgcolor="#BFBFBF">$2,776,693.48 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left bgcolor="#BFBFBF">$2,650,480.14 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left bgcolor="#BFBFBF">$126,213.34 <BR>
      <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD width="12%" rowSpan=6 align=center valign="middle" bgcolor="#BFBFBF">Debenture/ <BR>
      Series A
      <BR>Warrant/Series B <BR>Warrant <BR></TD>
    <TD width="12%" rowSpan=6 align=center valign="middle" bgcolor="#BFBFBF"><BR>
      - <BR>
      <BR></TD>
    <TD width="12%" rowSpan=6 align=center valign="middle" bgcolor="#BFBFBF"><BR>
      18,932,001<BR>
      <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle" bgcolor="#BFBFBF"><BR>
      $8,330,080.44 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle" bgcolor="#BFBFBF"><BR>
      $6,436,880.34 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle" bgcolor="#BFBFBF"><BR>
      $1,893,200.10
        <BR>
      <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD rowSpan=14 align=left valign="middle">      HFR HE <BR>
      Sphera Global
      <BR>Healthcare <BR>Master Trust </TD>
    <TD width="12%" rowSpan=14 align=center valign="middle">$0.44      </TD>
    <TD align=center width="12%" rowSpan=2>Debenture <BR></TD>
    <TD align=center width="12%" rowSpan=2>$0.30 <BR></TD>
    <TD align=center width="12%" rowSpan=2>356,000 <BR></TD>
    <TD align=left width="12%" rowSpan=2>$156,640 <BR></TD>
    <TD align=left width="12%" rowSpan=2>$106,800 <BR></TD>
    <TD align=left width="12%" rowSpan=2>$49,840 <BR></TD></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD align=center width="12%" rowSpan=3>Series A <BR>Warrant <BR></TD>
    <TD align=center width="12%" rowSpan=3>$0.30 <BR><BR></TD>
    <TD align=center width="12%" rowSpan=3>356,000 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>$156,640 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>$106,800 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>$49,840 <BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD align=center width="12%" rowSpan=3>Series B <BR>Warrant <BR></TD>
    <TD align=center width="12%" rowSpan=3>$0.42 <BR><BR></TD>
    <TD align=center width="12%" rowSpan=3>356,000 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>$156,640 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>$149,520 <BR><BR></TD>
    <TD align=left width="12%" rowSpan=3>$7,120 <BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD width="12%" rowSpan=6 align=center valign="middle">Debenture/ <BR>
      Series A
      <BR>Warrant/Series B <BR>Warrant <BR></TD>
    <TD width="12%" rowSpan=6 align=center valign="middle">      - </TD>
    <TD width="12%" rowSpan=6 align=center valign="middle">      1,068,000 <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle">      $469,920 <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle">      $363,120 <BR></TD>
    <TD width="12%" rowSpan=6 align=left valign="middle">      $106,800 <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD rowSpan=2 align=left bgcolor="#BFBFBF">Maxim <BR>
      Partners LLC </TD>
    <TD width="12%" rowSpan=2 align=center bgcolor="#BFBFBF">$0.44 <BR></TD>
    <TD width="12%" rowSpan=2 align=center bgcolor="#BFBFBF">Debenture <BR></TD>
    <TD width="12%" rowSpan=2 align=center bgcolor="#BFBFBF">- <BR></TD>
    <TD width="12%" rowSpan=2 align=center bgcolor="#BFBFBF">- <BR></TD>
    <TD width="12%" rowSpan=2 align=center bgcolor="#BFBFBF">- <BR></TD>
    <TD width="12%" rowSpan=2 align=center bgcolor="#BFBFBF">- <BR></TD>
    <TD width="12%" rowSpan=2 align=left bgcolor="#BFBFBF"><BR></TD></TR>
<TR vAlign=top></TR></TABLE></DIV><BR>
<P align=center>25</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_30></A><BR>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD rowSpan=11 align=left bgcolor="#BFBFBF"><BR>
      <BR><BR><BR></TD>
    <TD width="12%" rowSpan=11 align=left bgcolor="#BFBFBF"><BR>
      <BR><BR><BR><BR></TD>
    <TD width="12%" rowSpan=3 align=center bgcolor="#BFBFBF">Series A <BR>
      Warrant <BR></TD>
    <TD width="12%" rowSpan=3 align=center bgcolor="#BFBFBF">$0.30 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left bgcolor="#BFBFBF">500,000 </TD>
    <TD width="12%" rowSpan=3 align=left bgcolor="#BFBFBF">$220,000 </TD>
    <TD width="12%" rowSpan=3 align=left bgcolor="#BFBFBF">$150,000 </TD>
    <TD width="12%" rowSpan=3 align=left bgcolor="#BFBFBF">$70,000 </TD>
  </TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD width="12%" rowSpan=3 align=center bgcolor="#BFBFBF">Series B <BR>
      Warrant <BR></TD>
    <TD width="12%" rowSpan=3 align=center bgcolor="#BFBFBF">$0.42 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left bgcolor="#BFBFBF">500,000 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left bgcolor="#BFBFBF">$220,000 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left bgcolor="#BFBFBF">$210,000 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=left bgcolor="#BFBFBF">$10,000 <BR>
    <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR vAlign=top>
    <TD width="12%" rowSpan=5 align=center valign="middle" bgcolor="#BFBFBF">Debenture/ <BR>
      Series A
      <BR>Warrant/Series B <BR>Warrant </TD>
    <TD width="12%" rowSpan=5 align=center valign="middle" bgcolor="#BFBFBF">- <BR></TD>
    <TD width="12%" rowSpan=5 align=left valign="middle" bgcolor="#BFBFBF">1,000,000 <BR>
      <BR></TD>
    <TD width="12%" rowSpan=5 align=left valign="middle" bgcolor="#BFBFBF">$440,000 <BR></TD>
    <TD width="12%" rowSpan=5 align=left valign="middle" bgcolor="#BFBFBF">$360,000 <BR></TD>
    <TD width="12%" rowSpan=5 align=left valign="middle" bgcolor="#BFBFBF">$80,000 <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
<TR vAlign=top></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="95%">
      <P align=justify><SUP>(1)</SUP> Market price per share of the
      common stock underlying the Securities on the date of the sale of the
    Securities. </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="95%">
      <P align=justify><SUP>(2) </SUP>The shares of common stock set forth in
      this table are the total amount underlying Debentures, Series A Warrants
      and Series B Warrants that were sold in the Investment transaction.
  </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="95%">
      <P align=justify><SUP>(3)</SUP>Conversion/exercise price per share of the
      underlying common stock on the date of the sale of the Securities is
      calculated using the fixed conversion/exercise price per share set forth
      in the Securities. </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="95%">
      <P align=justify><SUP>(4) </SUP>Total possible shares underlying the
      Securities (assuming no interest payments and complete conversion
      throughout the term). Note: the number listed does not take into account
      that each Selling Security Holder is subject to a 4.99% conversion cap,
      except for Sphera Global Healthcare Master Fund and HFR HE Sphera Global
      Healthcare Master Trust, which are subject to a 9.99% conversion cap.
    </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="95%">
      <P align=justify><SUP>(5) </SUP>Combined market price of the total number
      of shares underlying the Securities, calculated by using the common
      stock&#146;s market price per share on the date of the sale of the Securities
      multiplied by the total possible shares underlying the Securities.
  </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="95%">
      <P align=justify><SUP>(6) </SUP>Total value of shares underlying the
      Securities using the conversion price on the date of sale multiplied by
      the total number of shares the Selling Security Holders may receive under
      the Securities. Note: the Debentures and Warrants have fixed conversion
      prices. </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="95%">
      <P align=justify><SUP>(7) </SUP>Total possible discount to the market
      price as of the date of the sale of the Securities calculated by
      subtracting the total conversion price on the date of the sale of the
      Securities from the combined market price of the total number of shares
      underlying the Securities on that date. </P></TD></TR></TABLE>
<P align=justify>There are no set, or prescribed, pre-determined adjustments to
the conversion price per share under the Debentures. Pursuant to the terms of
the Debentures (Section 5(a)), there are four (4) circumstances in which the
conversion price of such instruments would change, which is intended to maintain
the initial ratio of conversion shares to be issued relative to the initial
conversion price. Such four circumstances are: If the Company, at any time while
the Debenture is outstanding: (i) pays a stock dividend or otherwise makes a
distribution or distributions payable in shares of the common stock on shares of
common stock or any common stock equivalents (which, do not include any shares
of common stock issued by the Company upon conversion of the Debentures), (ii)
subdivides the number of outstanding shares of common stock into a larger number
of shares, (iii) combines (including by way of a reverse stock split) the number
of outstanding shares of common stock into a smaller number of shares or (iv)
issues, in the event of a reclassification of shares of the common stock, any
shares of capital stock of the Company, then the conversion price shall be
multiplied by a fraction of which the numerator shall be the number of shares of
common stock outstanding immediately before such event, and of which the
denominator shall be the number of shares of common stock outstanding
immediately after such event (which effectively maintains the initial ratio of
conversion shares issued to debt amount outstanding under each such convertible
debenture).</P>
<P align=justify><B><I>Total Profits from Other Company Securities Held by the
Selling Security Holders </I></B></P>
<P align=justify>The following table sets forth information regarding
non-Investment transaction issued Company securities held by the Selling
Security Holders:** </P>
<P align=center>26</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<DIV>

<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD align=center rowSpan=3>Selling Security <BR>Holder <BR></TD>
    <TD align=center width="16%" rowSpan=3>Total Possible
      <BR>Profit<SUP>(1)</SUP> <BR></TD>
    <TD align=center width="16%" rowSpan=3>Total Possible
      <BR>Shares<SUP>(2)</SUP> <BR></TD>
    <TD align=center width="16%" rowSpan=3>Combined Market
      <BR>Price<SUP>(3)</SUP> <BR></TD>
    <TD align=center width="16%" rowSpan=3>
      <P>Total <BR>Possible <BR>Shares <BR>
        <FONT face="Times New Roman"><FONT
      face="Times New Roman">Receivable<SUP>(4)</SUP>
        <BR>
      </FONT></FONT><BR></P></TD>
    <TD align=center width="16%" rowSpan=3>Total <BR>Possible <BR>Discount To
      <BR>
      <FONT face="Times New Roman"><FONT face="Times New Roman">Market<BR>
    Price(5)</FONT></FONT><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>

  <TR vAlign=top>
    <TD rowSpan=2 align=left valign="middle" noWrap>Auriga Global <BR>Investors SU, SA </TD>
    <TD width="16%" rowSpan=2 align=center valign="middle" noWrap>- <BR></TD>
    <TD width="16%" rowSpan=2 align=center valign="middle" noWrap>- <BR></TD>
    <TD width="16%" rowSpan=2 align=center valign="middle" noWrap>-<BR></TD>
    <TD width="16%" rowSpan=2 align=center valign="middle" noWrap>- <BR></TD>
    <TD width="16%" rowSpan=2 align=center valign="middle" noWrap>- <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR>
    <TD rowSpan=4 valign="middle" noWrap>Auriga Investors- <BR>Montserrat <BR>Global Fund    </TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>- <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>- <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>-<BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>- <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>- <BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR>
    <TD rowSpan=4 valign="middle" noWrap>Hudson Bay <BR>Master Fund <BR>LTD </TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>- <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>- <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>-<BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>- <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>- <BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD rowSpan=2 align=left valign="middle" noWrap>DAFNA <BR>LifeScience LP </TD>
    <TD width="16%" rowSpan=2 align=center valign="middle" noWrap>- <BR></TD>
    <TD width="16%" rowSpan=2 align=center valign="middle" noWrap>- <BR></TD>
    <TD width="16%" rowSpan=2 align=center valign="middle" noWrap>-<BR></TD>
    <TD width="16%" rowSpan=2 align=center valign="middle" noWrap>- <BR></TD>
    <TD width="16%" rowSpan=2 align=center valign="middle" noWrap>- <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD rowSpan=4 align=left valign="middle" noWrap>DAFNA <BR>LifeScience <BR>Market Neutral
      <BR>L.P. </TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>- <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>- <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>-<BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>- <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>- <BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD align=left valign="middle" noWrap>DAFNA <BR>LifeScience <BR>Select L.P. </TD>
    <TD width="16%" align=center valign="middle" noWrap>- </TD>
    <TD width="16%" align=center valign="middle" noWrap>- </TD>
    <TD width="16%" align=center valign="middle" noWrap>&nbsp;-</TD>
    <TD width="16%" align=center valign="middle" noWrap>-</TD>
    <TD width="16%" align=center valign="middle" noWrap>- </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>Joann Mostovoy </TD>
    <TD noWrap align=center width="16%">- </TD>
    <TD noWrap align=center width="16%">- </TD>
    <TD noWrap align=center width="16%">&nbsp;-</TD>
    <TD noWrap align=center width="16%">- </TD>
    <TD noWrap align=center width="16%">- </TD></TR>
  <TR>
    <TD rowSpan=5 valign="middle" noWrap>Sabby Healthcare <BR>Volatility Master <BR>Fund, Ltd.    </TD>
    <TD width="16%" rowSpan=5 align=center valign="middle" noWrap>- <BR><BR></TD>
    <TD width="16%" rowSpan=5 align=center valign="middle" noWrap>- <BR><BR></TD>
    <TD width="16%" rowSpan=5 align=center valign="middle" noWrap>-<BR><BR></TD>
    <TD width="16%" rowSpan=5 align=center valign="middle" noWrap>- <BR><BR></TD>
    <TD width="16%" rowSpan=5 align=center valign="middle" noWrap>- <BR><BR></TD></TR>
  <TR></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR>
    <TD rowSpan=4 valign="middle" noWrap>Sabby Volatility <BR>Warrant Master <BR>Fund,
      Ltd. </TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>- <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>- <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>-<BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>- <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>- <BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR>
    <TD rowSpan=4 valign="middle" noWrap>Sphera Global <BR>Healthcare <BR>Master Fund </TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>- <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>- <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>-<BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>- <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>- <BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD rowSpan=4 align=left valign="middle" noWrap>HFR HE Sphera <BR>Global <BR>Healthcare
      <BR>Master Trust </TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>- <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>- <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>-<BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>- <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="middle" noWrap>- <BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR></TABLE>
</DIV>
<P align=justify><SUP>(1)</SUP>&nbsp;&nbsp;The total possible profit to be
realized as a result of any conversion discounts for securities underlying any
other warrants, options, notes, or other securities of the issuer that are held
by the Selling Security Holders or any affiliates of the Selling Security
Holders. <br>
<SUP>(2)</SUP> The total possible shares to be received under
the particular securities (assuming complete conversion/exercise). <br>
<sup>(3)</sup><SUP></SUP>The combined market price of the total number of underlying shares,
calculated by using the market price per share on the date of the sale of that
other security and the total possible shares to be received.<SUP> </SUP><br>
<SUP>(4) </SUP>The total possible shares to be received and the
combined conversion price of the total number of shares underlying that other
security calculated by using the conversion price on the date of the sale of
that other security and the total possible number of underlying shares.<SUP>
</SUP><br>
<SUP>(5)</SUP> The total possible discount to the market price
as of the date of the sale of that other security, calculated by subtracting the
total conversion/exercise price on the date of the sale of that other security
from the combined market price of the total number of underlying shares on that
date. <br>
**To the knowledge of the Company, none of the Selling Security
Holders, nor their affiliates, own of record any securities underlying any other
warrants, options, notes, or other securities of the Company. </P>
<P align=justify><B><I>Gross Proceeds, Payments Made to Selling Security Holders
</I></B></P>
<P align=justify>The following table sets forth the gross proceeds paid or
payable to the Company in the Investment transaction, all payments that have
been made or that may be required to be made by the Company, the resulting net
proceeds to the The following table sets forth the gross proceeds paid or
payable to the Company in the Investment transaction, all payments that have
been made or that may be required to be made by the Company, the resulting net
proceeds to the Company, and the combined total possible profit or be realized
as a result of any conversion discounts regarding the securities under all
securities held by the Selling Security Holders and the placement agent.</P>
<P align=center>27</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_32></A>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD rowSpan=3 align=center valign="middle" noWrap>Selling Security <BR>
      Holder <BR></TD>
    <TD width="20%" rowSpan=3 align=center valign="middle" noWrap>Gross Proceeds <BR>
      Payable
      to Issuer<SUP>(1)</SUP> <BR></TD>
    <TD width="20%" rowSpan=3 align=center valign="middle" noWrap>Payments Made To <BR>
      Selling
      Security <BR>Holders<SUP>(2)</SUP> </TD>
    <TD width="20%" rowSpan=3 align=center valign="middle" noWrap>Resulting Net
      <BR>
      Proceeds<SUP>(3)</SUP> <BR></TD>
    <TD width="20%" rowSpan=3 align=center valign="middle" noWrap>Combined Total <BR>
      Possible
      Profit<SUP>(4)</SUP> <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR>
    <TD rowSpan=3 valign="middle" noWrap>Auriga Global <BR>
      Investors SU, SA </TD>
    <TD width="20%" rowSpan=3 align=center valign="middle" noWrap>$1,000,000.00 </TD>
    <TD width="20%" rowSpan=3 align=center valign="middle" noWrap>- <BR></TD>
    <TD width="20%" rowSpan=3 align=center valign="middle" noWrap>$1,000,000.00 </TD>
    <TD width="20%" rowSpan=3 align=center valign="middle" noWrap>$1,000,000.00 <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR>
    <TD rowSpan=4 valign="middle" noWrap>Auriga Investors- <BR>
      Montserrat <BR>Global Fund
    </TD>
    <TD width="20%" rowSpan=4 align=center valign="middle" noWrap>$500,000.00 <BR></TD>
    <TD width="20%" rowSpan=4 align=center valign="middle" noWrap>- <BR></TD>
    <TD width="20%" rowSpan=4 align=center valign="middle" noWrap>$500,000.00 <BR></TD>
    <TD width="20%" rowSpan=4 align=center valign="middle" noWrap>$500,000.00      <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR>
    <TD rowSpan=4 valign="middle" noWrap>Hudson Bay <BR>
      Master Fund <BR>LTD </TD>
    <TD width="20%" rowSpan=4 align=center valign="middle" noWrap>$1,500,000.00
<BR></TD>
    <TD width="20%" rowSpan=4 align=center valign="middle" noWrap>- <BR></TD>
    <TD width="20%" rowSpan=4 align=center valign="middle" noWrap>$1,500,000.00</TD>
    <TD width="20%" rowSpan=4 align=center valign="middle" noWrap>$1,500,000.00      <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD rowSpan=2 align=left valign="middle" noWrap>DAFNA <BR>
      LifeScience LP </TD>
    <TD width="20%" rowSpan=2 align=center valign="middle" noWrap>$774,120.00 </TD>
    <TD width="20%" rowSpan=2 align=center valign="middle" noWrap>- <BR></TD>
    <TD width="20%" rowSpan=2 align=center valign="middle" noWrap>$774,120.00 </TD>
    <TD width="20%" rowSpan=2 align=center valign="middle" noWrap>$774,120.00 <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD rowSpan=4 align=left valign="middle" noWrap>DAFNA <BR>
      LifeScience <BR>Market Neutral
      <BR>L.P. </TD>
    <TD width="20%" rowSpan=4 align=center valign="middle" noWrap>$138,600.00 </TD>
    <TD width="20%" rowSpan=4 align=center valign="middle" noWrap>- </TD>
    <TD width="20%" rowSpan=4 align=center valign="middle" noWrap>$138,600.00 </TD>
    <TD width="20%" rowSpan=4 align=center valign="middle" noWrap>$138,600.00      <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR>
    <TD rowSpan=4 valign="middle" noWrap>DAFNA <BR>
      LifeScience <BR>Select L.P. </TD>
    <TD width="20%" rowSpan=4 align=center valign="middle" noWrap>$587,280.00 <BR></TD>
    <TD width="20%" rowSpan=4 align=center valign="middle" noWrap>- <BR></TD>
    <TD width="20%" rowSpan=4 align=center valign="middle" noWrap>$587,280.00 </TD>
    <TD width="20%" rowSpan=4 align=center valign="middle" noWrap>$587,280.00        <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD noWrap align=left rowSpan=2>Joann Mostovoy </TD>
    <TD noWrap align=center width="20%" rowSpan=2>$500,000.00 </TD>
    <TD noWrap align=center width="20%" rowSpan=2>- </TD>
    <TD noWrap align=center width="20%" rowSpan=2>$500,000.00 </TD>
    <TD noWrap align=center width="20%" rowSpan=2>$500,000.00 </TD>
  </TR>
  <TR vAlign=top></TR>
  <TR>
    <TD noWrap rowSpan=4>Sabby Healthcare <BR>
      Volatility Master <BR>Fund,
      Ltd. </TD>
    <TD noWrap align=center width="20%" rowSpan=4>$2,000,000.00
<BR></TD>
    <TD noWrap align=center width="20%" rowSpan=4>- <BR></TD>
    <TD noWrap align=center width="20%" rowSpan=4>$2,000,000.00</TD>
    <TD noWrap align=center width="20%" rowSpan=4>$2,000,000.00      <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR>
    <TD noWrap rowSpan=4>Sabby Volatility <BR>
      Warrant Master <BR>Fund,
      Ltd. </TD>
    <TD noWrap align=center width="20%" rowSpan=4>$1,000,000.00</TD>
    <TD noWrap align=center width="20%" rowSpan=4>- <BR>
      <BR></TD>
    <TD noWrap align=center width="20%" rowSpan=4>$1,000,000.00</TD>
    <TD noWrap align=center width="20%" rowSpan=4>$1,000,000.00      <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR>
    <TD noWrap rowSpan=4>Sphera Global <BR>
      Healthcare <BR>Master Fund </TD>
    <TD noWrap align=center width="20%" rowSpan=4>$1,893,200.00</TD>
    <TD noWrap align=center width="20%" rowSpan=4>- </TD>
    <TD noWrap align=center width="20%" rowSpan=4>$1,893,200.00</TD>
    <TD noWrap align=center width="20%" rowSpan=4>$1,893,198.00      <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD rowSpan=4 align=left valign="middle" noWrap>HFR HE Sphera <BR>
      Global <BR>Healthcare
      <BR>Master Trust </TD>
    <TD width="20%" rowSpan=4 align=center valign="middle" noWrap>$106,800.00 </TD>
    <TD width="20%" rowSpan=4 align=center valign="middle" noWrap>- <BR></TD>
    <TD width="20%" rowSpan=4 align=center valign="middle" noWrap>$106,800.00 <BR></TD>
    <TD width="20%" rowSpan=4 align=center valign="middle" noWrap>$106,800.00<BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD rowSpan=2 align=left valign="middle" noWrap>Maxim Partners <BR>
      LLC<SUP>(5)</SUP> </TD>
    <TD width="20%" rowSpan=2 align=center valign="middle" noWrap>$0.00.00 <BR></TD>
    <TD width="20%" rowSpan=2 align=center valign="middle" noWrap>$700,840.00 <BR></TD>
    <TD width="20%" rowSpan=2 align=center valign="middle" noWrap>($700,840.00) <BR></TD>
    <TD width="20%" rowSpan=2 align=center valign="middle" noWrap>$80,000.00 <BR></TD></TR>
  <TR vAlign=top></TR></TABLE></DIV>
<P align=justify><SUP>(1) </SUP>Gross proceeds paid or payable to the Company in
the Investment transaction. <br>
<SUP>(2)</SUP> All payments that have been made or that may be
required to be made by the Company in connection with the issuance of Warrants
and Debentures to the Selling Security Holders or the placement agent, any
affiliate of a Selling Security Holder or the placement agent, or any person
with whom any Selling Security Holder or the placment agnet has a contractual
relationship regarding the Investment transaction (including any interest
payments, liquidated damages, payments made to &#147;finders&#148; or &#147;placement agents,&#148;
and any other payments or potential payments).<SUP> </SUP><br>
<SUP>(3) </SUP>Resulting net proceeds to the Company. Note that
these figures do not include the $4,000 fee paid to the Investment transaction&#146;s
escrow agent, or the $30,000 fee paid to the placement agent&#146;s attorneys. <SUP></SUP><br>
<SUP>(4) </SUP>Combined total possible profit to be realized as
a result of any conversion discounts regarding the common stock underlying the
Securities, options, notes, or other securities of the issuer that are held by
the Selling Security Holders or any affiliates of the Selling Security Holders
and the placement agent. <br>
<SUP>(5) </SUP>Maxim Partners LLC is an affiliate of Maxim.
Maxim served as the exclusive placement agent in connection with the Investment
transaction. Maxim was paid $700,840.00 and was issued Warrants, in the name of
Maxim Partners LLC, representing the right to purchase up to an aggregate of
1,000,000 shares of Common Stock. Maxim Partners LLC is not a Selling Security
Holder&#146;s shares underlying such Warrants are not being registered in this
registration statement. </P>
<P align=center>28</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<P align=justify>The total amount of all payments as disclosed ($700,840)
divided by the net proceeds from the issuer from the sale of the Debentures
($9,299,160) is 7.54%, which averages over the thirty (30) year term of the
Debentures to 0.25% . The total possible discount to the market price of the
shares underlying the Debentures ($4,666,666.04) divided by the net proceeds
from the issuer from the sale of the Debentures ($9,299,160) is 50.18%, which
averages over the thirty (30) year term of the Debentures to 1.67% .</P>
<P align=justify><B><I>Prior Securities Transactions between the Company and
Selling Security Holders </I></B></P>
<P align=justify>The following table that describes all prior securities
transactions between the Company (or any of its predecessors) and the Selling
Security Holders, any affiliates of the Selling Security Holders, or any person
with whom any Selling Security Holder has a contractual relationship regarding
the transaction (or any predecessors of those persons), and the placement
agent:* </P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD noWrap align=center rowSpan=8>Selling <BR>Security <BR>Holder
      <BR><BR><BR><BR><BR></TD>
    <TD noWrap align=center width="12%" rowSpan=8>Date of
      <BR>Transaction<SUP>(1)</SUP> <BR><BR><BR><BR><BR><BR></TD>
    <TD noWrap align=center width="12%" rowSpan=8># of Shares <BR>Outstanding
      <BR>Prior To <BR>Transaction<SUP>(2)</SUP> <BR><BR><BR><BR></TD>
    <TD noWrap align=center width="12%" rowSpan=8># of Shares <BR>Outstanding
      <BR>Prior To <BR>Transaction <BR>&amp; Held by <BR>Non-Selling
      <BR>Security <BR>Holders<SUP>(3)</SUP> </TD>
    <TD noWrap align=center width="12%" rowSpan=8># of Shares
      <BR>Issued<SUP>(4)</SUP> <BR><BR><BR><BR><BR><BR></TD>
    <TD noWrap align=center width="12%" rowSpan=8>% Of Total <BR>Issued &amp;
      <BR>Outstanding <BR>(5) <BR><BR><BR><BR></TD>
    <TD noWrap align=center width="12%" rowSpan=8>Market Price <BR>Per Share
      Prior <BR>To <BR>Transaction<SUP>(6)</SUP> <BR><BR><BR><BR></TD>
    <TD noWrap align=center width="12%" rowSpan=8>Current <BR>Market <BR>Price
      Per <BR>Share<SUP>(7)</SUP> <BR><BR><BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR>
    <TD rowSpan=4 valign="top" noWrap>Auriga Global <BR>
      Investors SU, <BR>SA </TD>
    <TD width="12%" rowSpan=4 align=center valign="top" noWrap>- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=4 align=center valign="top" noWrap>- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=4 align=center valign="top" noWrap>- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=4 align=center valign="top" noWrap>- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=4 align=center valign="top" noWrap>- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=4 align=center valign="top" noWrap>- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=4 align=center valign="top" noWrap>- <BR>
    <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD rowSpan=4 align=left valign="top" noWrap>Auriga <BR>
      Investors- <BR>Montserrat
      <BR>Global Fund </TD>
    <TD width="12%" rowSpan=4 align=center valign="top" noWrap>- <BR>
      <BR><BR></TD>
    <TD width="12%" rowSpan=4 align=center valign="top" noWrap>- <BR>
      <BR><BR></TD>
    <TD width="12%" rowSpan=4 align=center valign="top" noWrap>- <BR>
      <BR><BR></TD>
    <TD width="12%" rowSpan=4 align=center valign="top" noWrap>- <BR>
      <BR><BR></TD>
    <TD width="12%" rowSpan=4 align=center valign="top" noWrap>- <BR>
      <BR><BR></TD>
    <TD width="12%" rowSpan=4 align=center valign="top" noWrap>- <BR>
      <BR><BR></TD>
    <TD width="12%" rowSpan=4 align=center valign="top" noWrap>- <BR>
    <BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD rowSpan=3 align=left valign="top" noWrap>Hudson Bay <BR>
      Master Fund <BR>LTD </TD>
    <TD width="12%" rowSpan=3 align=center valign="top" noWrap>- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="top" noWrap>- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="top" noWrap>- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="top" noWrap>- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="top" noWrap>- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="top" noWrap>- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="top" noWrap>- <BR>
    <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD rowSpan=3 align=left valign="top" noWrap>DAFNA <BR>
      LifeScience <BR>LP </TD>
    <TD width="12%" rowSpan=3 align=center valign="top" noWrap>- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="top" noWrap>- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="top" noWrap>- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="top" noWrap>- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="top" noWrap>- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="top" noWrap>- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="top" noWrap>- <BR>
    <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD rowSpan=4 align=left valign="top" noWrap>DAFNA <BR>
      LifeScience <BR>Market
      <BR>Neutral L.P. </TD>
    <TD width="12%" rowSpan=4 align=center valign="top" noWrap>- <BR>
      <BR><BR></TD>
    <TD width="12%" rowSpan=4 align=center valign="top" noWrap>- <BR>
      <BR><BR></TD>
    <TD width="12%" rowSpan=4 align=center valign="top" noWrap>- <BR>
      <BR><BR></TD>
    <TD width="12%" rowSpan=4 align=center valign="top" noWrap>- <BR>
      <BR><BR></TD>
    <TD width="12%" rowSpan=4 align=center valign="top" noWrap>- <BR>
      <BR><BR></TD>
    <TD width="12%" rowSpan=4 align=center valign="top" noWrap>- <BR>
      <BR><BR></TD>
    <TD width="12%" rowSpan=4 align=center valign="top" noWrap>- <BR>
    <BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD rowSpan=3 align=left valign="top" noWrap>DAFNA <BR>
      LifeScience <BR>Select L.P. </TD>
    <TD width="12%" rowSpan=3 align=center valign="top" noWrap>- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="top" noWrap>- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="top" noWrap>- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="top" noWrap>- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="top" noWrap>- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="top" noWrap>- <BR>
      <BR></TD>
    <TD width="12%" rowSpan=3 align=center valign="top" noWrap>- <BR>
    <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD noWrap align=left rowSpan=2>Joann <BR>Mostovoy </TD>
    <TD noWrap align=center width="12%" rowSpan=2>- <BR></TD>
    <TD noWrap align=center width="12%" rowSpan=2>- <BR></TD>
    <TD noWrap align=center width="12%" rowSpan=2>- <BR></TD>
    <TD noWrap align=center width="12%" rowSpan=2>- <BR></TD>
    <TD noWrap align=center width="12%" rowSpan=2>- <BR><BR></TD>
    <TD noWrap align=center width="12%" rowSpan=2>- <BR></TD>
    <TD noWrap align=center width="12%" rowSpan=2>- <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD noWrap align=left rowSpan=4>Sabby <BR>Healthcare <BR>Volatility
      <BR>Master Fund, Ltd.</TD>
    <TD noWrap align=center width="12%" rowSpan=4>- <BR><BR><BR></TD>
    <TD noWrap align=center width="12%" rowSpan=4>- <BR><BR><BR></TD>
    <TD noWrap align=center width="12%" rowSpan=4>- <BR><BR><BR></TD>
    <TD noWrap align=center width="12%" rowSpan=4>- <BR><BR><BR></TD>
    <TD noWrap align=center width="12%" rowSpan=4>- <BR><BR><BR></TD>
    <TD noWrap align=center width="12%" rowSpan=4>- <BR><BR><BR></TD>
    <TD noWrap align=center width="12%" rowSpan=4>- <BR><BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=5>Sabby <BR>Volatility <BR>Warrant <BR>Master Fund,
      <BR>Ltd. </TD>
    <TD align=center width="12%" rowSpan=5>- <BR><BR><BR><BR></TD>
    <TD align=center width="12%" rowSpan=5>- <BR><BR><BR><BR></TD>
    <TD align=center width="12%" rowSpan=5>-<BR><BR><BR><BR></TD>
    <TD align=center width="12%" rowSpan=5>- <BR><BR><BR><BR></TD>
    <TD align=center width="12%" rowSpan=5>- <BR><BR><BR><BR></TD>
    <TD align=center width="12%" rowSpan=5>- <BR><BR><BR><BR></TD>
    <TD align=center width="12%" rowSpan=5>-<BR><BR><BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=3>Sphera Global <BR>Healthcare <BR>Master Fund </TD>
    <TD align=center width="12%" rowSpan=3>- <BR><BR></TD>
    <TD align=center width="12%" rowSpan=3>- <BR><BR></TD>
    <TD align=center width="12%" rowSpan=3>-<BR><BR></TD>
    <TD align=center width="12%" rowSpan=3>- <BR><BR></TD>
    <TD align=center width="12%" rowSpan=3>- <BR><BR></TD>
    <TD align=center width="12%" rowSpan=3>- <BR><BR></TD>
    <TD align=center width="12%" rowSpan=3>-<BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=4>HFR HE <BR>Sphera Global <BR>Healthcare
      <BR>Master Trust </TD>
    <TD align=center width="12%" rowSpan=4>- <BR><BR><BR></TD>
    <TD align=center width="12%" rowSpan=4>- <BR><BR><BR></TD>
    <TD align=center width="12%" rowSpan=4>-<BR><BR><BR></TD>
    <TD align=center width="12%" rowSpan=4>- <BR><BR><BR></TD>
    <TD align=center width="12%" rowSpan=4>- <BR><BR><BR></TD>
    <TD align=center width="12%" rowSpan=4>- <BR><BR><BR></TD>
    <TD align=center width="12%" rowSpan=4>-<BR><BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Maxim <BR>Partners LLC </TD>
    <TD align=center width="12%" rowSpan=2>- <BR></TD>
    <TD align=center width="12%" rowSpan=2>- <BR></TD>
    <TD align=center width="12%" rowSpan=2>-<BR></TD>
    <TD align=center width="12%" rowSpan=2>- <BR></TD>
    <TD align=center width="12%" rowSpan=2>- <BR></TD>
    <TD align=center width="12%" rowSpan=2>- <BR></TD>
    <TD align=center width="12%" rowSpan=2>-<BR></TD></TR>
  <TR vAlign=top></TR></TABLE>
</DIV> </BR>

<P align=center>29</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<P align=justify><SUP>*</SUP>None of the Selling Security Holders or placement
agent had any business relationship or entered into any securities related
transactions with the Company prior to the Investment. <SUP></SUP><br>
<SUP>(1) </SUP>Date of the transaction. <br>
<SUP>(2)</SUP>Number of shares of the class of securities
subject to the transaction that were outstanding prior to the transaction.
<br>
<SUP>(3) </SUP>Number of shares of the class of securities subject to the
transaction that were outstanding prior to the transaction and held by persons
other than the Selling Security Holders, affiliates of the Company, or
affiliates of the Selling Security Holders.<br>
<SUP>(4) </SUP>Number of shares of the class of securities
subject to the transaction that were issued or issuable in connection with the
transaction.<br>
<SUP>(5) </SUP>Percentage of total issued and outstanding
securities that were issued or issuable in the transaction (assuming full
issuance), with the percentage calculated by taking the number of shares issued
and outstanding prior to the applicable transaction and held by persons other
than the Selling Security Holders, affiliates of the Company, or affiliates of
the Selling Security Holders, and dividing that number by the number of shares
issued or issuable in connection with the applicable transaction.<SUP>
</SUP><br>
<SUP>(6) </SUP>Market price per share of the class of
securities subject to the transaction immediately prior to the Investment
transaction (reverse split adjusted, if necessary). <SUP></SUP><br>
<SUP>(7)</SUP> Current market price per share of the class of
securities subject to the transaction (reverse split adjusted, if necessary).</P>
<P align=justify><B><I>Pre-Investment Transaction Securities held by Selling
Security Holders </I></B></P>
<P align=justify>The following table sets forth the pre-Investment transaction
securities held by the Selling Security Holders: </P>
<P align=center>30</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_35></A><BR>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD align=center rowSpan=8>Selling Security <BR>Holder
      <BR><BR><BR><BR><BR><BR></TD>
    <TD width="16%" rowSpan=8 align=center nowrap># of Shares <BR>
      Outstanding
      <BR>Prior to the <BR>Investment <BR>Transaction <BR>Held by Non-
      <BR>Selling Security <BR>Holders </TD>
    <TD width="16%" rowSpan=8 align=center nowrap># of Shares <BR>
      Registered for
      <BR>Resale by <BR>Selling Security <BR>Holders in Prior <BR>Registration
      <BR>Statements <BR></TD>
    <TD width="16%" rowSpan=8 align=center nowrap># of Shares <BR>
      Registered for
      <BR>Resale by <BR>Selling Security <BR>Holders Still <BR>Held by Selling
      <BR>Security Holders <BR></TD>
    <TD width="16%" rowSpan=8 align=center nowrap># of Shares Sold <BR>
      by Selling
      <BR>Security Holders <BR>in Registered <BR>Resales <BR><BR><BR></TD>
    <TD width="16%" rowSpan=8 align=center nowrap># of Shares <BR>
      Registered for
      <BR>Resale on <BR>Behalf of <BR>Selling Security <BR>Holders in
      <BR>Current <BR>Transaction** </TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR>
    <TD rowSpan=4>Auriga Global <BR>
      Investors SU, <BR>SA </TD>
    <TD width="16%" rowSpan=4 align=center valign="top">33,034,265* <BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="top">- <BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="top">- <BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="top">- <BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="top">1,101,142 <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=4>Auriga <BR>Investors- <BR>Montserrat <BR>Global
      Fund </TD>
    <TD width="16%" rowSpan=4 align=center valign="top">33,034,265* <BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="top">- <BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="top">- <BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="top">-</TD>
    <TD width="16%" rowSpan=4 align=center valign="top">550,571 <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=3>Hudson Bay <BR>Master Fund <BR>LTD </TD>
    <TD width="16%" rowSpan=3 align=center valign="top">33,034,265* <BR>
      <BR></TD>
    <TD width="16%" rowSpan=3 align=center valign="top">- <BR>
      <BR></TD>
    <TD width="16%" rowSpan=3 align=center valign="top">- <BR>
      <BR></TD>
    <TD width="16%" rowSpan=3 align=center valign="top">- <BR>
      <BR></TD>
    <TD width="16%" rowSpan=3 align=center valign="top">1,651,713 <BR>
    <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>DAFNA <BR>LifeScience LP </TD>
    <TD width="16%" rowSpan=2 align=center valign="top">33,034,265* <BR></TD>
    <TD width="16%" rowSpan=2 align=center valign="top">- <BR></TD>
    <TD width="16%" rowSpan=2 align=center valign="top">- <BR></TD>
    <TD width="16%" rowSpan=2 align=center valign="top">- <BR></TD>
    <TD width="16%" rowSpan=2 align=center valign="top">852,416 <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=4>DAFNA <BR>LifeScience <BR>Market Neutral <BR>L.P.
    </TD>
    <TD width="16%" rowSpan=4 align=center valign="top">33,034,265* <BR>
      <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="top">- <BR>
      <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="top">- <BR>
      <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="top">- <BR>
      <BR><BR></TD>
    <TD width="16%" rowSpan=4 align=center valign="top">152,618 <BR>
    <BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD align=left>DAFNA <BR>LifeScience <BR>Select L.P. <BR></TD>
    <TD width="16%" align=center valign="top">33,034,265* <BR>
      <BR></TD>
    <TD width="16%" align=center valign="top">- </TD>
    <TD width="16%" align=center valign="top">- </TD>
    <TD width="16%" align=center valign="top">-&nbsp;</TD>
    <TD width="16%" align=center valign="top">646,679 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Joann Mostovoy </TD>
    <TD width="16%" align=center valign="top">33,034,265* </TD>
    <TD width="16%" align=center valign="top">- </TD>
    <TD width="16%" align=center valign="top">- </TD>
    <TD width="16%" align=center valign="top">-&nbsp;</TD>
    <TD width="16%" align=center valign="top">550,571 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left rowSpan=5>Sabby <BR>Healthcare <BR>Volatility <BR>Master
      Fund, <BR>Ltd. </TD>
    <TD width="16%" rowSpan=5 align=center valign="top">33,034,265* <BR>
      <BR></TD>
    <TD width="16%" rowSpan=5 align=center valign="top">- <BR>
      <BR></TD>
    <TD width="16%" rowSpan=5 align=center valign="top">- <BR>
      <BR></TD>
    <TD width="16%" rowSpan=5 align=center valign="top">- <BR>
      <BR></TD>
    <TD width="16%" rowSpan=5 align=center valign="top">2,202,284 <BR>
    <BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=3>Sabby Volatility <BR>Warrant Master <BR>Fund,
      Ltd. </TD>
    <TD align=center width="16%" rowSpan=3>33,034,265* <BR><BR></TD>
    <TD align=center width="16%" rowSpan=3>- <BR><BR></TD>
    <TD align=center width="16%" rowSpan=3>- <BR><BR></TD>
    <TD align=center width="16%" rowSpan=3>- <BR><BR></TD>
    <TD align=center width="16%" rowSpan=3>1,101,142 <BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=3>Sphera Global <BR>Healthcare <BR>Master Fund </TD>
    <TD align=center width="16%" rowSpan=3>33,034,265* <BR><BR></TD>
    <TD align=center width="16%" rowSpan=3>- <BR><BR></TD>
    <TD align=center width="16%" rowSpan=3>- <BR><BR></TD>
    <TD align=center width="16%" rowSpan=3>- <BR><BR></TD>
    <TD align=center width="16%" rowSpan=3>2,084,682 <BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=4>HFR HE Sphera <BR>Global <BR>Healthcare
      <BR>Master Trust </TD>
    <TD align=center width="16%" rowSpan=4>33,034,265* <BR><BR><BR></TD>
    <TD align=center width="16%" rowSpan=4>- <BR><BR><BR></TD>
    <TD align=center width="16%" rowSpan=4>- <BR><BR><BR></TD>
    <TD align=center width="16%" rowSpan=4>- <BR><BR><BR></TD>
    <TD align=center width="16%" rowSpan=4>117,602 <BR><BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Maxim Partners <BR>LLC*** </TD>
    <TD align=center width="16%" rowSpan=2>33,034,265* <BR></TD>
    <TD align=center width="16%" rowSpan=2>- <BR></TD>
    <TD align=center width="16%" rowSpan=2>- <BR></TD>
    <TD align=center width="16%" rowSpan=2>- <BR></TD>
    <TD align=center width="16%" rowSpan=2>- <BR></TD></TR>
  <TR vAlign=top></TR></TABLE></DIV>
<P align=justify>* Prior to the Investment and as of the date hereof, the
Company has 38,260,098 shares of common stock issued and outstanding, with
5,225,832 shares directly held by affiliates, and 0 shares held by the Selling
Security Holders.</P>
<P align=justify>** Such shares of common stock underlie the Debentures issued
pursuant to the Investment transaction. Note that each of the Selling Security
Holders remains subject to conversion caps imposed by the Securities that limit
the amount of shares of common stock that they can convert/exercise into at
4.99% of the outstanding shares of common stock (except for Sphera Global
Healthcare Master Fund and HFR HE Sphera Global Healthcare Master Trust which
have a 9.99% limitation). </P>
<P align=justify>*** The Company has not submitted for registration any shares
underlying the Securities held by Maxim Partners LLC that were issued in the
Investment transaction.</P>
<P align=justify><B><I>Payment of Debt Evidenced by the Debentures </I></B></P>
<P align=justify>The Company has the intention, and believes that it has a
reasonable basis to believe that it will have the ability to make all payments
on the overlying debt instruments, the Debentures, issued in the Investment
transaction. Cash amounts owed under the Debentures are due and payable in 2044,
thirty (30) years after their issuance date, and do not impose any regularly
scheduled interest payments thereon. While the Company currently is in the
process of developing and commercializing its core product offerings, it
believes that by the year 2044 it will have thriving operations affording it the
ability to repay any amounts remaining outstanding under the Debentures. The
Company is not aware of and has not obtained, reviewed or been presented with any information indicating that any of the
Selling Security Holders have an existing short position in the Common Stock.</P>
<P align=center>31</P>
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<!--$$/page=--><A name=page_37></A>
<P align=center><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF <BR>OPERATIONS</B></P>
<P align=justify>The following discussion should be read in conjunction with our
audited consolidated financial statements and notes thereto for the fiscal year
ended September 30, 2013 and the last fiscal quarter ended March 31, 2014,
included elsewhere in this prospectus. The following Management&#146;s Discussion and
Analysis of Financial Condition and Results of Operations contains
&#147;forward-looking statements.&#148; Forward-looking statements are generally written
in the future tense and/or are preceded by words such as &#147;may,&#148; &#147;should,&#148;
&#147;forecast,&#148; &#147;could,&#148; &#147;expect,&#148; &#147;suggest,&#148; &#147;believe,&#148; &#147;anticipate,&#148; &#147;intend,&#148;
&#147;plan,&#148; or other similar words. The forward-looking statements contained in this
prospectus involve a number of risks and uncertainties, many of which are
outside of our control. Factors that could cause actual results to differ
materially from projected results include, but are not limited to, those
discussed in &#147;Risk Factors&#148; elsewhere in this prospectus. Readers are expressly
advised to review and consider those Risk Factors, which include risks
associated with (1) our ability to successfully conduct clinical and
pre-clinical trials for our product candidates, (2) our ability to obtain
required regulatory approvals to develop and market our product candidates, (3)
our ability to raise additional capital on favorable terms, (4) our ability to
execute our development plan on time and on budget, (5) our ability to obtain
commercial partners, (6) our ability, whether alone or with commercial partners,
to successfully commercialize any of our product candidates that may be approved
for sale, and (7) our ability to identify and obtain additional product
candidates. Although we believe that the assumptions underlying the
forward-looking statements contained in this prospectus are reasonable, any of
the assumptions could be inaccurate, and therefore there can be no assurance
that such statements will be accurate. In light of the significant uncertainties
inherent in the forward-looking statements included herein, the inclusion of
such information should not be regarded as a representation by us or any other
person that the results or conditions described in such statements or our
objectives and plans will be achieved. Furthermore, past performance in
operations and share price is not necessarily indicative of future performance.
Except as required by applicable laws including the securities laws of the
United States and Canada, we disclaim any intention or obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise.</P>
<P align=justify><B><I>Our Business </I></B></P>
<P align=justify>We are a pharmaceutical company engaged in the development of
drug candidates. Our lead compounds ANAVEX 2-73 and ANAVEX PLUS, a combination
of ANAVEX 2-73 with donepezil (Aricept), are being developed to treat
Alzheimer&#146;s disease and potentially other central nervous system (CNS) diseases.
</P>
<P align=justify>In pre-clinical studies conducted in France and in Greece,
ANAVEX 2-73 demonstrated anti-amnesic and neuroprotective properties in various
animal models including the transgenic mouse model Tg2576. Based on pre-clinical
studies, we sponsored a Phase 1 single ascending dose study of ANAVEX 2-73,
which was initiated and completed in 2011. This study was conducted in Germany
in collaboration with ABX-CRO Advanced Pharmaceutical Services (ABX-CRO). The
study indicated that ANAVEX 2-73 was well tolerated by study subjects in doses
up to 55mg. As of the end of the period covered by this report, we have not yet
continued our clinical trials due to a lack of funding. </P>
<P align=justify>The Company plans to continue human clinical trials, among them
a multiple ascending dose study of ANAVEX 2-73 and ANAVEX PLUS, and a Phase 2
thereafter by mid-year 2014. Additionally, we intend to identify and initiate
discussions with potential partners in the next 12 months. Further, we may
acquire or develop new intellectual property and assign, license, or otherwise
transfer our intellectual property to further our goals. </P>
<P align=justify><B><I>Our Pipeline</I></B> </P>
<P align=justify>Our pipeline includes one drug candidate and several compounds
in different stages of pre-clinical study. </P>
<P align=justify>Our proprietary SIGMACEPTOR&#153; Discovery Platform produced small
molecule drug candidates with unique modes of action, based on our understanding
of sigma receptors. Sigma receptors may be targets for therapeutics to combat
many human diseases, including Alzheimer&#146;s disease. When bound by the
appropriate ligands, sigma receptors influence the functioning of multiple
biochemical signals that are involved in the pathogenesis (origin or
development) of disease. </P>
<P align=center>32</P>
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<P align=justify>Compounds that have been subjects of our research include the
following: </P>
<P align=justify><B>ANAVEX 2-73</B> </P>
<P align=justify>ANAVEX 2-73 may offer a disease-modifying approach in
Alzheimer&#146;s disease (AD) by using ligands that activate sigma-1 receptors. </P>
<P align=justify>In AD animal models, ANAVEX 2-73 has shown pharmacological,
histological and behavioral evidence as a potential neuroprotective,
anti-amnesic, anti-convulsive and anti-depressive therapeutic agent, due to its
potent affinity to sigma-1 receptors and moderate affinities to M1-4 type
muscarinic receptors. In addition, ANAVEX 2-73 has shown a potential dual
mechanism which may impact both amyloid and tau pathology. In a transgenic AD
animal model Tg2576 ANAVEX 2-73 induced a statistically significant
neuroprotective effect against the development of oxidative stress in the mouse
brain, as well as significantly increased the expression of functional and
synaptic plasticity markers that is apparently amyloid-beta independent. It also
statistically alleviated the learning and memory deficits developed over time in
the animals, regardless of sex, both in terms of spatial working memory and
long-term spatial reference memory. </P>
<P align=justify>Based on the results of pre-clinical testing, we initiated and
completed a Phase 1 single ascending dose (SAD) clinical trial of ANAVEX 2-73 in
2011. In this Phase 1 SAD trial, the maximum tolerated single dose was defined
per protocol as 55-60 mg. This dose is above the equivalent dose shown to have
positive effects in mouse models of AD. There were no significant changes in
laboratory or electrocardiogram (ECG) parameters. ANAVEX 2-73 was well tolerated
below the 55-60 mg dose with only mild adverse events in some subjects. Observed
adverse events at doses above the maximum tolerated single dose included
headache and dizziness, which were moderate in severity and reversible. These
side effects are often seen with drugs that target central nervous system (CNS)
conditions, including AD. </P>
<P align=justify>The ANAVEX 2-73 Phase 1 SAD trial was conducted as a
randomized, placebo-controlled study. Healthy male volunteers between the ages
of 18 and 55 received single, ascending oral doses over the course of the trial.
Study endpoints included safety and tolerability together with pharmacokinetic
parameters. Pharmacokinetics includes the absorption and distribution of a drug,
the rate at which a drug enters the blood and the duration of its effect, as
well as chemical changes of the substance in the body. This study was conducted
in Germany in collaboration with ABX-CRO, a clinical research organization that
has conducted several Alzheimer&#146;s disease studies, and the Technical University
of Dresden. </P>
<P align=justify><B>ANAVEX PLUS</B> </P>
<P align=justify>ANAVEX PLUS, a combination of ANAVEX 2-73 with donepezil
(Aricept) is a potential novel combination drug for Alzheimer&#146;s disease. Aricept
(donepezil) is now generic. ANAVEX 2-73 showed in combination with donepezil an
unexpected and clear synergic effect of memory improvement by up to 80% in
animal models. A patent application was filed in the US for the combination of
donepezil and ANAVEX 2-73 and if granted would give patent protection at least
until 2033.</P>
<P align=justify>In a humanized calibrated cortical network computer model the
unexpected pre-clinical synergy between ANAVEX 2-73 and donepezil was confirmed
and ANAVEX PLUS showed an anticipated ADAS-Cog response of 7 points at 12 weeks
and 5.5 points at 26 weeks, which represents more than 2x the ADAS-Cog of
donepezil alone. </P>
<P align=justify><B>ANAVEX 19-144</B> </P>
<P align=justify>ANAVEX 19-144 is the sole active metabolite of ANAVEX 2-73.
Like ANAVEX 2-73, pre-clinical data reveals that ANAVEX 19-144 exhibits
significant anti-amnesic, neuroprotective and anticonvulsant properties in a
variety of in vitro systems and specialized animal models. </P>
<P align=justify>In animal models, ANAVEX 19-144 controls seizures and the
epileptogenesis process. Moreover, its neuroprotective properties may prevent
the process that causes long-term damage to tissue and cells as well as
biochemical and physiological alterations to the brain from epileptic seizures.
</P>
<P align=center>33</P>
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<P align=justify><B>ANAVEX 1-41 </B></P>
<P align=justify>ANAVEX 1-41 is a sigma-1 agonist. Pre-clinical tests revealed
significant neuroprotective benefits (i.e., protects nerve cells from
degeneration or death) through the modulation of endoplasmic reticulum,
mitochondrial and oxidative stress, which damages and destroys cells and is
believed by some scientists to be a primary cause of AD. In addition, in animal
models, ANAVEX 1-41 prevented the expression of caspase-3, an enzyme that plays
a key role in apoptosis (programmed cell death) and loss of cells in the
hippocampus, the part of the brain that regulates learning, emotion and memory.
These activities involve both muscarinic and sigma-1 receptor systems through a
novel mechanism of action. </P>
<P align=justify><B>ANAVEX 1037 </B></P>
<P align=justify>ANAVEX 1037 is designed for the treatment of prostate cancer.
It is a low molecular weight, synthetic compound exhibiting high affinity for
sigma-1 receptors at nanomolar levels and moderate affinity for sigma-2
receptors and sodium channels at micromolar levels. In advanced pre-clinical
studies, this compound revealed antitumor potential with no toxic side effects.
It has also been shown to selectively kill human cancer cells without affecting
normal/healthy cells and also to significantly suppress tumor growth in
immune-deficient mice models. Scientific publications describe sigma receptor
ligands positively, highlighting the possibility that these ligands may stop
tumor growth and induce selective cell death in various tumor cell lines. Sigma
receptors are highly expressed in different tumor cell types. Binding by
appropriate sigma-1 and/or sigma-2 ligands can induce selective apoptosis. In
addition, through tumor cell membrane reorganization and interactions with ion
channels, our drug candidates may play an important role in inhibiting the
processes of metastasis (spreading of cancer cells from the original site to
other parts of the body), angiogenesis (the formation of new blood vessels) and
tumor cell proliferation. </P>
<P align=justify>Our compounds are in the pre-clinical and clinical testing
stages of development, and there is no guarantee that the activity demonstrated
in pre-clinical models will be shown in human testing. </P>
<P align=justify><B><I>Our Target Indications</I></B> </P>
<P align=justify>We have developed compounds with potential application to two
broad categories and several specific indications. The two categories are
diseases of the central nervous system, and cancer. Specific indications
include: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center><li></li>&nbsp;</TD>
    <TD align=left width="95%"><div align="justify">Alzheimer&#146;s disease &#150; In 2014, an estimated 5.2
      million Americans are suffering from Alzheimer&#146;s disease. The Alzheimer&#146;s
      Association reports that by 2025, 7.1 million Americans will be afflicted
      by the disease, a 40 percent increase from currently affected patients.
      Medications on the market today treat only the symptoms of AD and do not
      have the ability to stop its onset or its progression. There is an urgent
      and unmet need for both a disease modifying cure for Alzheimer&#146;s disease
      as well as for better symptomatic treatments. </div></TD></TR>
  <TR>
    <TD align=center >&nbsp;</TD>
    <TD align=left width="95%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=center><li></li>&nbsp;</TD>
    <TD align=left width="95%"><div align="justify">Depression - Depression is a major cause of
      morbidity worldwide according to the World Health Organization (WHO).
      Pharmaceutical treatment for depression is dominated by blockbuster
      brands, with the leading nine brands accounting for approximately 75% of
      total sales. However, the dominance of the leading brands is waning,
      largely due to the effects of patent expiration and generic competition.
      Our market research leads us to believe that the worldwide market for
      pharmaceutical treatment of depression exceeds $11 billion annually.
    </div></TD></TR></TABLE><BR>
<P align=center>34</P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center  ><li></li>&nbsp;</TD>
    <TD align=left width="95%"><div align="justify">Epilepsy - Epilepsy is a common chronic
      neurological disorder characterized by recurrent unprovoked seizures.
      These seizures are transient signs and/or symptoms of abnormal, excessive
      or synchronous neuronal activity in the brain. According to the Centers
      for Disease Control and Prevention, epilepsy affects 2.2 million
      Americans. Today, epilepsy is often controlled, but not cured, with
      medication that is categorized as older traditional anti-epileptic drugs
      and second generation anti epileptic drugs. Because epilepsy afflicts
      sufferers in different ways, there is a need for drugs used in combination
      with both traditional anti-epileptic drugs and second generations
      anti-epileptic drugs. Decision Resources, one of the world&#146;s leading
      research and advisory firms for pharmaceutical and healthcare issues,
      finds that the epilepsy market will increase from $2.9 billion in 2011 to
      nearly $3.7 billion in 2016. </div></TD></TR>
  <TR>
    <TD align="center"  >&nbsp;</TD>
    <TD width="95%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li>&nbsp;</TD>
    <TD align=left width="95%"><div align="justify">Neuropathic Pain &#150; We define neuralgia, or
      neuropathic pain, as pain that is not related to activation of pain
      receptor cells in any part of the body. Neuralgia is more difficult to
      treat than some other types of pain because it does not respond well to
      normal pain medications. Special medications have become more specific to
      neuralgia and typically fall under the category of membrane stabilizing
      drugs or antidepressants. Our market research leads us to believe the
      worldwide market for pharmaceutical treatment of neuropathic pain exceeds
      $5 billion annually. </div></TD></TR>
  <TR>
    <TD align="center"  >&nbsp;</TD>
    <TD width="95%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li>&nbsp;</TD>
    <TD align=left width="95%"><div align="justify">Malignant Melanoma - Predominantly a skin
      cancer, malignant melanoma can also occur in melanocytes found in the
      bowel and the eye. Malignant melanoma accounts for 75% of all deaths
      associated with skin cancer. The treatment includes surgical removal of
      the tumor, adjuvant treatment, chemo and immunotherapy, or radiation
      therapy. According to IMS Health the worldwide Malignant Melanoma market
      is expected to grow from about $900 million in 2012 to $4.4 billion by
      2022. </div></TD></TR>
  <TR>
    <TD align="center"  >&nbsp;</TD>
    <TD width="95%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li>&nbsp;</TD>
    <TD align=left width="95%"><div align="justify">Prostate Cancer &#150; Specific to men, prostate
      cancer is a form of cancer that develops in the prostate, a gland in the
      male reproductive system. The cancer cells may metastasize from the
      prostate to other parts of the body, particularly the bones and lymph
      nodes. Drug therapeutics for Prostate Cancer are expected to increase from
      $8.1 billion in 2012 to nearly $18.6 billion in 2017 according to BCC
      Research. </div></TD></TR>
  <TR>
    <TD align="center"  >&nbsp;</TD>
    <TD width="95%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li>&nbsp;</TD>
    <TD align=left width="95%"><div align="justify">Pancreatic Cancer - Pancreatic cancer is a
      malignant neoplasm of the pancreas. In the United States approximately
      45,000 new cases of pancreatic cancer will be diagnosed this year and
      approximately 38,000 patients will die as a result of their cancer. Our
      market research leads us to believe that the market for the pharmaceutical
      treatment of pancreatic cancer will exceed $1.2 billion by 2015.
    </div></TD></TR></TABLE>
<P align=justify><B><I>Recent Corporate Developments </I></B></P>
<P align=justify>Since the commencement of our fourth quarter ended September
30, 2013, we have experienced the following significant corporate developments:
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%"><div align="justify">On July 5, 2013, we issued 4,208,910 units in
      settlement of $549,000 in promissory notes, $26,058 of accrued interest on
      these notes, and $1,108,506 in other accounts payable and accrued
      liabilities. Each unit consisted of one common share and one common share
      purchase warrant entitling the holder to purchase an additional common
      share at $0.75 per share until July 5, 2018. </div></TD></TR>
  <TR>
    <TD align="center"  >&nbsp;</TD>
    <TD width="95%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%"><div align="justify">On July 5, 2013, we issued 2,196,133 units at
      $0.40 per unit for gross proceeds of $878,453 pursuant to private
      placement agreements. Each unit consisted of one common share and one
      common share purchase warrant entitling the holder to purchase an
      additional common share at $0.75 per share until July 5, 2018. We paid
      finder&#146;s fees of $89,680 and issued warrants to purchase 43,923 shares of
      our common stock at $0.75 per share until July 5, 2018 in connection with
      this private placement. In addition, we incurred share issuance costs of
      $16,494. </div></TD></TR>
  <TR>
    <TD align="center"  >&nbsp;</TD>
    <TD width="95%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%"><div align="justify">On July 5, 2013, we entered into a $10,000,000
      Purchase Agreement with Lincoln Park Capital Fund, LLC (the
      &#147;<U>Financing</U>&#148;) pursuant to which we may sell and issue to Lincoln
      Park, and Lincoln Park is obligated to purchase, up to $10,000,000 in
      value of our shares of common stock from time to time over a 25-month
      period. In connection with the Financing, we also entered into a
      registration rights agreement with Lincoln <FONT face="Times New Roman"><FONT face="Times New Roman">Park whereby we agreed to file
        a registration statement with the SEC covering the shares of our common
        stock that may be issued to Lincoln Park under the Purchase Agreement. On
        October 23, 2013, the registration statement was declared effective by the
        SEC. In consideration for entering into the such purchase agreement, we
        issued to Lincoln Park 341,858 shares of common stock as a commitment fee
        and shall issue up to 133,409 shares pro rata, when and if, Lincoln Park
        purchases at the Company's discretion the $10 Million aggregate
    commitment.</FONT></FONT></div></TD>
  </TR>
</TABLE><BR>
<P align=center>35</P>
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<TABLE
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  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%"><div align="justify">On July 5, 2013, Christopher U. Missling, PhD.
      accepted the appointment by our board of directors to serve as our
      President, Chief Executive Officer, Chief Financial Officer, Secretary and
      Treasurer, and to serve as a director of the Company. Dr. Missling has
      over twenty (20) years of healthcare industry experience in big
      pharmaceutical, biotech industry and investment banking. Most recently,
      from March, 2007 until his appointment, Dr. Missling served as the head of
      healthcare investment banking at Brimberg &amp; Co. in New York, New York.
      Also, Dr. Missling served as the Chief Financial Officer of Curis, Inc.
      (NASDAQ:CRIS) and ImmunoGen, Inc. (NASDAQ:IMGN). Dr. Missling earned his
      MS and PhD from the University of Munich and an MBA from Northwestern
      University Kellogg School of Management. </div></TD></TR>
  <TR>
    <TD align="center"  >&nbsp;</TD>
    <TD width="95%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%"><div align="justify">On March 13, 2014, we entered into a Securities
      Purchase Agreement (the &#147;<U>Securities Purchase</U> <U>Agreement</U>&#148;)
      with the Selling Security Holders pursuant to which the Company agreed to
      sell, and the Selling Security Holders agreed to purchase, Senior
      Convertible Debentures due March 18, 2044 (the &#147;<U>Debentures</U>&#148;) in the
      aggregate principal amount of $10,000,000. In addition to the Debentures,
      we agreed to issue to the Selling Security Holders and placement agent two
      (2) series of warrants representing the right to purchase up to an
      aggregate of 67,666,666 shares of the Company&#146;s common stock (the
      &#147;<U>Warrants</U>&#148; and together with the Debentures, the
      &#147;<U>Securities</U>&#148;). The purchase and sale of the Securities was
      consummated on March 18, 2014, and resulted in gross proceeds to the
      Company in the amount of $10,000,000, before deducting agent fees and
      other transaction-related expenses. </div></TD></TR>
  <TR>
    <TD align="center"  >&nbsp;</TD>
    <TD width="95%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%"><div align="justify">In March, 2014, we agreed with Lincoln Park to
      issue up to $500,000 worth of common stock at $0.30 per share and that
      with such investment, Lincoln Park will receive a Series A Warrant with an
      exercise price of $0.30 and a Series B Warrant with an exercise price of
      $0.42, each respectively representing the right to purchase up to an
      aggregate of 1,666,667 shares of the Company&#146;s common stock. </div></TD></TR>
  <TR>
    <TD align="center"  >&nbsp;</TD>
    <TD width="95%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li>&nbsp;</li></TD>
    <TD align=left width="95%"><div align="justify">On May 6, 2014, in favor of new directors Bernd
      Metzner, PhD and Elliot Favus, MD, our board of directors (the
      &#147;<U>Board</U>&#148;) approved the grant to each of options to purchase one
      hundred fifty thousand (150,000) shares of our Company&#146;s common stock at
      the closing market price for the common stock as of May 7, 2014 ($0.30),
      with said options to vest annually over a three year period commencing on
      the first anniversary of the date of each director&#146;s appointment, as
      applicable. </div></TD></TR>
  <TR>
    <TD align="center"  >&nbsp;</TD>
    <TD width="95%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%"><div align="justify">On May 9, 2014, the Board approved a cash bonus
      in the amount of $400,000 to our company&#146;s President and CEO, Christopher
      Missling, related to our Company&#146;s success in securing $10,000,000 in
      financing under the March 13, 2014 Securities Purchase Agreement (the
      &#147;<U>March Financing</U>&#148;). Additionally, the Board granted to Mr. Missling
      500,000 options to purchase shares of our Company&#146;s common stock at a
      price per share equal to the common stock&#146;s closing price on May 8, 2014
      ($0.33). The Board determined that the March Financing constituted the
      achievement of certain milestones under Mr. Missling&#146;s employment
      agreement, entitling Mr. Missling to receive the applicable distributions
    and benefits thereunder. </div></TD></TR></TABLE>
<P align=justify><B>RESULTS OF OPERATIONS </B></P>
<P align=justify><B><I>Revenue </I></B></P>
<P align=justify>We have not earned any revenues since our inception on January
23, 2004. We are still in the development stage and do not anticipate earning
any revenues until we can establish an alliance with other companies to develop,
co-develop, license, acquire or market our products.</P>
<P align=justify><B><I>Expenses</I></B></P>
<P align=justify>Our expenses for the fiscal years ended September 30, 2013 and
2012 were as follows: </P>
<P align=center>36</P>
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<TABLE
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  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=center>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="23%" colSpan=4>Year ended
      September 30, </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="10%">Change </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="10%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=center>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="10%">2013 </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="10%">2012 </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">$</TD>
    <TD vAlign=bottom noWrap align=center width="10%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="10%">% </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left bgColor=#e6efff>Accounting and audit
      fees </TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom noWrap align=right width="10%"
      bgColor=#e6efff>&nbsp;136,758 </TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom noWrap align=right width="10%"
      bgColor=#e6efff>&nbsp;139,761 </TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%" bgColor=#e6efff>(3,003</TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%" bgColor=#e6efff>(2.1%</TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>Amortization </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%">576 </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%">1,858 </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%">(1,282</TD>
    <TD vAlign=bottom noWrap align=left width="2%">) </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%">(69.0%</TD>
    <TD vAlign=bottom noWrap align=left width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left bgColor=#e6efff>Bank charges and
      interest </TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%" bgColor=#e6efff>4,397 </TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%" bgColor=#e6efff>5,963 </TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%" bgColor=#e6efff>(1,566</TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%" bgColor=#e6efff>(26.3%</TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>Consulting </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%">271,898 </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%">1,155,366 </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%">(883,468</TD>
    <TD vAlign=bottom noWrap align=left width="2%">) </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%">(76.5%</TD>
    <TD vAlign=bottom noWrap align=left width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left bgColor=#e6efff>Insurance </TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%" bgColor=#e6efff>16,125
</TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%" bgColor=#e6efff>10,844
</TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%" bgColor=#e6efff>5,281 </TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%" bgColor=#e6efff>48.7% </TD>
    <TD vAlign=bottom noWrap align=left width="2%"
bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>Investor relations </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%">128,575 </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%">108,138 </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%">20,437 </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%">18.9% </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left bgColor=#e6efff>Legal fees </TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%" bgColor=#e6efff>176,318
    </TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%" bgColor=#e6efff>142,923
    </TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%" bgColor=#e6efff>33,395
</TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%" bgColor=#e6efff>23.4% </TD>
    <TD vAlign=bottom noWrap align=left width="2%"
bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>Office and miscellaneous </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%">4,019 </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%">9,147 </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%">(5,128</TD>
    <TD vAlign=bottom noWrap align=left width="2%">) </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%">(56.1%</TD>
    <TD vAlign=bottom noWrap align=left width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left bgColor=#e6efff>Registration and
      filing fees </TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%" bgColor=#e6efff>33,634
</TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%" bgColor=#e6efff>26,794
</TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%" bgColor=#e6efff>6,840 </TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%" bgColor=#e6efff>25.5% </TD>
    <TD vAlign=bottom noWrap align=left width="2%"
bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>Rent </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%">12,000 </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%">- </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%">12,000 </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%">NA </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left bgColor=#e6efff>Research and
      development </TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%" bgColor=#e6efff>263,847
    </TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%" bgColor=#e6efff>2,653,860
    </TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%"
    bgColor=#e6efff>(2,390,013</TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%" bgColor=#e6efff>(90.1%</TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>Salaries and wages </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%">1,067,294 </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%">- </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%">1,067,294 </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%">NA </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left bgColor=#e6efff>Travel </TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%" bgColor=#e6efff>19,695
</TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%" bgColor=#e6efff>66,837
</TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%"
bgColor=#e6efff>(47,142</TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%" bgColor=#e6efff>(70.5%</TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>Website design and maintenance </TD>
    <TD width="1%" align=left vAlign=bottom noWrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right vAlign=bottom noWrap style="BORDER-BOTTOM: #000000 1px solid">2,231 </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom noWrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right vAlign=bottom noWrap style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom noWrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right vAlign=bottom noWrap style="BORDER-BOTTOM: #000000 1px solid">2,231 </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom noWrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right vAlign=bottom noWrap style="BORDER-BOTTOM: #000000 1px solid">NA </TD>
  <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left bgColor=#e6efff><B>Total expenses</B>
    </TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff><B>$</B></TD>
    <TD vAlign=bottom noWrap align=right width="10%"
      bgColor=#e6efff><B>&nbsp;2,137,367</B> </TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff><B>$</B></TD>
    <TD vAlign=bottom noWrap align=right width="10%"
      bgColor=#e6efff><B>&nbsp;4,321,491</B> </TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%"
      bgColor=#e6efff><B>2,184,124</B> </TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="10%"
      bgColor=#e6efff><B>(50.5%</B></TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff><B>)</B>
  </TD></TR></TABLE>
<P align=justify><I>Year ended September 30, 2013 and 2012</I></P>
<P align=justify>Expenses for the fiscal year ended September 30, 2013 decreased
by $2,184,124 over the same period in 2012. The principal contributors to the
decrease were:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top align=center width="5%">1. </TD>
    <TD>
      <P align=justify>A decrease in consulting fees of $883,468 primarily as a
      result of decreased management infrastructure as well as a decrease in
      stock based compensation expense from stock options granted to consultants
      and vesting during the comparative period;</P></TD></TR>
  <TR>
    <TD align=center width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top align=center width="5%">2. </TD>
    <TD>
      <P align=justify>A decrease in research and development expenses of
      $2,390,013 due to the delay of clinical trials pending the closing of
      financing to fund these trials. This included the termination of lab fees
      of $125,000 per month accruing during the comparative period;
and</P></TD></TR>
  <TR>
    <TD align=center width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top align=center width="5%">3. </TD>
    <TD>
      <P align=justify>These decreases were offset by an increase in salaries
      and wages expense of $1,067,294 in connection with the appointment of our
      President, Chief Executive Officer, Chief Financial Officer, Secretary and
      Treasurer, which included stock based compensation expense of $1,002,500
      associated with the granting of fully vested options upon his
      appointment.</P></TD></TR></TABLE>
<P align=justify><I>Other income </I></P>
<P align=justify>Other income and (loss) for the year ended September 30, 2013,
amounted to $(1,562,679) as compared to a loss of $(3,980,214) for the year
ended September 30, 2012. The decrease in net other losses is primarily
attributable to </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top align=center width="5%">a) </TD>
    <TD>
      <P align=justify>a reduction of losses from the extinguishment of debt of
      $3,334,005, offset by an increase in losses on extinguishment of accounts
      payable of $976,880. During fiscal 2013, we recorded a loss of $1,472,208
      in connection with the extinguishment of five promissory notes plus
      accrued interest totaling $575,058, and trade accounts payable totaling
      $1,108,506. During fiscal 2012, we recorded a loss of $3,829,333 for the
      extinguishment of four promissory notes and accrued interest totaling
      $1,350,251. The reduced loss is a result of different settlement terms
      agreed to with the lenders;</P></TD></TR>
  <TR>
    <TD align=center width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top align=center width="5%">b) </TD>
    <TD>
      <P align=justify>a reduction in interest expense of $87,000 as a result of
      the decreased debt levels during the current period from the settlement of
      promissory notes in the fourth quarter of 2013;</P></TD></TR>
  <TR>
    <TD align=center width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top align=center width="5%">c) </TD>
    <TD>
      <P align=justify>a reduction of accretion expense of $98,081 as a result
      of promissory notes settled during the 2012 fiscal
year.</P></TD></TR></TABLE>
<P align=justify><I>Three months ended March 31, 2014 compared to three months
ended March 31, 2013</I></P>
<P align=justify>Our operating expenses for the three months ended March 31,
2014 were $1,021,167, which represents an increase of $894,056, or 703.4%
compared to $127,111 for the three month period ended March 31, 2013. The
increase was mainly attributable to (i) the non-cash compensation of $610,000
relating to the vesting of common stock under our President&#146;s employment
agreement, pursuant to performance conditions met during the period; and (ii) an
increase in research and development expenses in the current period and an
increase in investor relations expense and other professional fees as a result
of our capital raising efforts. We expect our research and development expenses
will continue to increase over the remaining quarters in the current fiscal year
as a result of funding secured during the current period. We continue to target
potential research partners to further advance our clinical trials.</P>
<P align=center>37</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<P align=justify><I>Other income (expenses) </I></P>
<P align=justify>The aggregate amount in the other income (expense) for the
three month period ended March 31, 2014, amounted to $2,307 as compared to
$21,011 for the comparable three month period ended March 31, 2013. The largest
single decrease was as a result of a decrease in interest expense in the current
period as a result of the settlement of various promissory notes during the
fourth quarter of fiscal 2013. </P>
<P align=justify><I>Six months ended March 31, 2014 compared to six months ended
March 31, 2013</I></P>
<P align=justify>Our operating expenses for the six months ended March 31, 2014
were $1,330,775, which represents an increase of $787,797, or 145.1% compared to
$542,978 for the six month period ended March 31, 2013. The increase was mainly
attributable to (i) the non-cash compensation of $610,000 relating to the
vesting of common stock under our President&#146;s employment agreement, pursuant to
performance conditions met during the period; and (ii) an increase in investor
relations expenses and other professional fees and incidentals as a result of
our capital raising efforts.</P>
<P align=justify><I>Other income (expenses) </I></P>
<P align=justify>The aggregate amount in the other income (expense) for the six
month period ended March 31, 2014, amounted to $670,552 as compared to $(16,639)
for the comparable six month period ended March 31, 2013. The largest single
increase was as a result of a non-cash benefit related to a change in the
calculated fair value during the period of stock purchase warrants being
accounted for as derivative liabilities in accordance with US GAAP. These gains
arose as a result of the requirement of generally accepted accounting principles
in the United States to re-measure derivatives to their respective fair values
each reporting period with the changes in fair value being reported as a
non-operating item on the consolidated statement of operations. </P>
<P align=justify>On December 21, 2013, we entered into amendment agreements with
all of the holders of these warrants such that these warrants are no longer
required to be accounted for in this manner. As a result of the modification, we
expect this type of non-operating income will not occur in future periods.</P>
<P align=justify><B><I>Liquidity and Capital Resources</I></B></P>
<P align=justify><B><I>Working Capital</I></B> </P>
<P align=justify>Our working capital for the years ended September 30, 2013 and
September 30, 2012 was as follows:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=right width="12%">2013 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=right width="12%">2012 </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=left
    width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left bgColor=#e6efff>Current Assets </TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="12%" bgColor=#e6efff>393,449
    </TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="12%" bgColor=#e6efff>12,577
</TD>
    <TD vAlign=bottom noWrap align=left width="2%"
bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>Current Liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=right width="12%">1,952,660 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=right width="12%">2,888,324 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left bgColor=#e6efff>Working Capital
      Deficiency </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=left
    width="1%" bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=right width="12%" bgColor=#e6efff>&nbsp;(1,559,211</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=right width="12%" bgColor=#e6efff>(2,875,747</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=left
    width="2%" bgColor=#e6efff>) </TD>
  </TR></TABLE>
<P align=justify>As of September 30, 2013, we had $345,074 in cash, an increase
of $333,712 from September 30, 2012. As of September 30, 2013, we had a working
capital deficiency of $1,559,211, a decrease in deficit of $1,316,536 from
September 30, 2012. </P>
<P align=center>38</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_44></A>
<P align=justify>The principal reason for the increase in working capital
relates to the extinguishment of five promissory notes plus accrued interest
totaling $575,058, and trade accounts payable totaling $1,108,506, in exchange
for shares of our common stock. </P>
<P align=justify>The increase in cash during the period relates to cash
generated through financing activities from debt and equity issuances. We
generated cash of $861,285, after issuance costs, from the issuance of capital
stock, and we generated cash of $250,000 through the issuance of promissory
notes. Some of these promissory notes issued were also settled in exchange for
the issuance of capital stock during the year.</P>
<P align=justify>Our working capital for the three and six months ended March
31, 2014 and 2013 was as follows:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=center width="12%"><B>March 31, 2014</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=center
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=center
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap
    align=center width="12%"><B>September 30, 2013</B> </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left bgColor=#e6efff>Current Assets </TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="12%" bgColor=#e6efff>9,222,036
    </TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="12%" bgColor=#e6efff>393,449
    </TD>
    <TD vAlign=bottom noWrap align=left width="2%"
bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>Current Liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 0px solid" vAlign=bottom noWrap align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 0px solid" vAlign=bottom noWrap
    align=right width="12%">1,883,325 </TD>
    <TD style="BORDER-BOTTOM: #000000 0px solid" vAlign=bottom noWrap align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 0px solid" vAlign=bottom noWrap align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 0px solid" vAlign=bottom noWrap
    align=right width="12%">1,952,660 </TD>
    <TD style="BORDER-BOTTOM: #000000 0px solid" vAlign=bottom noWrap align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left bgColor=#e6efff>Working Capital
      (Deficiency) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom noWrap align=left
    width="1%" bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom noWrap
    align=right width="12%" bgColor=#e6efff>&nbsp;7,338,711 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom noWrap align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom noWrap align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom noWrap
    align=right width="12%" bgColor=#e6efff>(1,559,211</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom noWrap align=left
    width="2%" bgColor=#e6efff>) </TD></TR></TABLE>
<P align=justify>As of March 31, 2014, we had $9,193,558 in cash, an increase of
$8,848,484 from September 30, 2013. The principal reason for this increase is
due to cash received in respect of the issuance of senior convertible debentures
in the aggregate principal amount of $10,000,000 that were issued in the current
period. We intend to use the funds from these debentures to implement our plan
of operation of researching and developing our compounds, the related patents
and any further intellectual property we may acquire. We intend to use the
majority of our capital resources to complete the next clinical trial for ANAVEX
PLUS, and to perform work necessary to prepare for further clinical
development.</P>
<P align=justify><B><I>Cash Flows</I></B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=center>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="27%" colSpan=4><B>Six Month
      Period Ended March 31,</B> </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=center>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="12%"><B>2014</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="12%"><B>2013</B> </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left bgColor=#e6efff>Cash flows used in
      operating activities </TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom noWrap align=right width="12%"
      bgColor=#e6efff>&nbsp;(782,519</TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom noWrap align=right width="12%"
      bgColor=#e6efff>&nbsp;(260,875</TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>Cash flows from investing activities
    </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="12%">(2,327</TD>
    <TD vAlign=bottom noWrap align=left width="2%">) </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="12%">Nil </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left bgColor=#e6efff>Cash flows from
      financing activities </TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="12%" bgColor=#e6efff>9,633,330
    </TD>
    <TD vAlign=bottom noWrap align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right width="12%" bgColor=#e6efff>250,000
    </TD>
    <TD vAlign=bottom noWrap align=left width="2%"
bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>Increase (decrease) in cash </TD>
    <TD vAlign=bottom noWrap align=left width="1%">$</TD>
    <TD vAlign=bottom noWrap align=right width="12%">&nbsp;8,848,484 </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=left width="1%">$</TD>
    <TD vAlign=bottom noWrap align=right width="12%">&nbsp;(10,875</TD>
    <TD vAlign=bottom noWrap align=left width="2%">) </TD></TR></TABLE>
<P align=justify><I>Cash flow used in operating activities </I></P>
<P align=justify>Our cash used in operating activities for the six month period
ended March 31, 2014 was $782,519 compared to $260,875 used in operating
activities for the comparative six month period ended March 31, 2013. The
increase in cash used in operating activities was primarily as a result of the
repayment of current trade payables in the current period as a result of cash
available from financings. </P>
<P align=justify><I>Cash used in investing activities</I> </P>
<P align=justify>Cash used in investing activities was $2,327 in the current six
month period ended March 31, 2014 as compared to $Nil in the comparative period.
This is as a result of a small equipment purchase in the current period. </P>
<P align=justify><I>Cash flow provided by financing activities </I></P>
<P align=justify>Our cash provided by financing activities for the six month
period ended March 31, 2014 was $9,633,330, attributable to cash received from
the issuance of convertible debentures in the aggregate principal amount of
$10,000,000, less related fees and expenses of $734,840 incurred in connection
with the closing of these debentures. We also received cash from the issuance of
common shares under the Purchase Agreement with Lincoln Park Capital Fund, LLC
(described under <I>Future Financing</I> below). </P>
<P align=justify>In the comparative six month period ended March 31, 2013, we
had cash inflows of $250,000 from activities related to the issuance of short
term debt.</P>
<P align=center>39</P>
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<P align=justify><B><I>Future Financing</I></B></P>
<P align=justify>We will require additional financing to fund our planned
operations, including further strengthening our patent portfolio, securing
patents for other compounds and for other intellectual property, and for
clinical development.</P>
<P align=justify>On July 5, 2013, the Company entered into the Purchase
Agreement with Lincoln Park. Pursuant to the Purchase Agreement, Lincoln Park
initially purchased 250,000 shares of the Company&#146;s common stock for $100,000.
The Company has the right, in its sole discretion over a 25-month period, to
sell to Lincoln Park up to the additional aggregate commitment of $9.9 Million
of shares of common stock. There are no upper limits on the per share price that
Lincoln Park may pay to purchase such common stock. Furthermore, the Company
controls the timing and amount of any future sales, if any, of shares of common
stock to Lincoln Park except that, pursuant to the terms of the Purchase
Agreement, we would be unable to sell shares to Lincoln Park if and when the
closing sale price of our common stock is below $0.50 per share, subject to
adjustment as set forth in the Purchase Agreement. Lincoln Park has no right to
require any sales and is obligated to purchase common stock as directed by the
Company. </P>
<P align=justify>Other than our rights related to the Lincoln Park financing,
there can be no assurance that additional financing will be available to us when
needed or, if available, that it can be obtained on commercially reasonable
terms. If we are not able to obtain the additional financing on a timely basis,
if and when it is needed, we will be forced to delay or scale down some or all
of our research and development activities or perhaps even cease the operation
of our business. </P>
<P align=justify>Since inception we have funded our operations primarily through
equity and debt financings and we expect that we will continue to fund our
operations through the equity and debt financing. If we raise additional
financing by issuing equity securities, our existing stockholders&#146; ownership
will be diluted. Obtaining commercial loans, assuming those loans would be
available, will increase our liabilities and future cash commitments. </P>
<P align=justify>There is no assurance that we will be able to maintain
operations at a level sufficient for investors to obtain a return on their
investment in our common stock. Further, we may continue to be unprofitable.
</P>
<P align=justify><B>Off-Balance Sheet Arrangements</B></P>
<P align=justify>We have no off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on our financial condition,
changes in financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources that are material to our
stockholders. </P>
<P align=justify><B>Application of Critical Accounting Policies </B></P>
<P align=justify>Our financial statements and accompanying notes are prepared in
accordance with generally accepted accounting principles in the United States.
Preparing financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets, liabilities, revenue and
expenses. These estimates and assumptions are affected by management&#146;s
application of accounting policies. We believe that understanding the basis and
nature of the estimates and assumptions involved with the following aspects of
our financial statements is critical to an understanding of our financial
statements. </P>
<P align=justify>We base our assumptions and estimates on historical experience
and other sources that we believe to be reasonable at the time. Actual results
may vary from our estimates due to changes in circumstances, weather, politics,
global economics, mechanical problems, general business conditions and other
factors. Our significant estimates are related to the valuation of warrants and
options. </P>
<P align=center>40</P>
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<P align="justify">
There are accounting policies that we believe are significant to the presentation of our financial statements. The most significant of these accounting policies relates to the accounting for our research and development expenses and stock-based
compensation expense.</P>
<P align="justify">
<I>Research and Development Expenses </I> </P>
<P align="justify">
Research and developments costs are expensed as incurred. These expenses are comprised of the costs of our proprietary research and development efforts, including salaries, facilities costs, overhead costs and other related expenses as well as costs
incurred in connection with third-party collaboration efforts. Milestone payments made by us to third parties are expensed when the specific milestone has been achieved.</P>
<P align="justify">
In addition, we incur expenses in respect of the acquisition of intellectual property relating to patents and trademarks. The probability of success and length of time to developing commercial applications of the drugs subject to the acquired
intellectual property and trademarks is difficult to determine and numerous risks and uncertainties exist with respect to the timely completion of the development projects. There is no assurance the acquired patents and trademarks will ever be
successfully commercialized. Due to these risks and uncertainties, we expense the acquisition of patents rights and trademarks.</P>
<P align="justify">
<I>Stock-based Compensation </I> </P>
<P align="justify">
We account for all stock-based payments and awards under the fair value based method. </P>
<P align="justify">
Stock-based payments to non-employees are measured at the fair value of the consideration received, or the fair value of the equity instruments issued, or liabilities incurred, whichever is more reliably measurable. The fair value of stock-based
payments to non-employees is periodically re-measured until the counterparty performance is complete, and any change therein is recognized over the vesting period of the award and in the same manner as if we had paid cash instead of paying with or
using equity based instruments. The cost of the stock-based payments to non-employees that are fully vested and non-forfeitable as at the grant date is measured and recognized at that date, unless there is a contractual term for services in which
case such compensation would be amortized over the contractual term.</P>
<P align="justify">
We account for the granting of share purchase options to employees using the fair value method whereby all awards to employees will be recorded at fair value on the date of the grant. The fair value of all share purchase options are expensed over
their vesting period with a corresponding increase to additional capital surplus. Upon exercise of share purchase options, the consideration paid by the option holder, together with the amount previously recognized in additional capital surplus, is
recorded as an increase to share capital. </P>
<P align="justify">
We use the Black-Scholes option valuation model to calculate the fair value of share purchase options at the date of the grant. Option pricing models require the input of highly subjective assumptions, including the expected price volatility.
Changes in assumptions can materially affect the fair value estimate and therefore the Black-Scholes model does not necessarily provide a reliable single measure of the fair value of our share purchase options.</P>
<P align="justify">
<B><I>Derivative Liabilities </I></B> </P>
<P align="justify">
From time to time, we may issue convertible promissory notes which include embedded conversion options which, dependent on their specific contractual terms, may be required to be accounted for as separate derivative liabilities. These liabilities
are required to be measured at fair value. These instruments are then adjusted to reflect fair value at each period end. Any increase or decrease in the fair value is recorded in results of operations as change in fair value of derivative
liabilities. In determining the appropriate fair value, we use the binomial pricing model.</P>
<P align="justify">
Option pricing models require the input of highly subjective assumptions, including the expected price volatility. Changes in assumptions can materially affect the fair value estimate and therefore the binomial model does not necessarily provide a
reliable single measure of the fair value of these instruments. </P>
<P align="center">41</P>
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<P align=justify><B><I>Recent Accounting Pronouncements </I></B></P>
<P align=justify>There are no new accounting pronouncements that we recently
adopted or are pending our adoption that are expected to have a material impact
on the Company&#146;s results of operations, financial position or cash flows. </P>
<P align=center><B>BUSINESS</B></P>
<P align=justify><B><I>Our Current Business</I></B></P>
<P align=justify>We are a pharmaceutical company engaged in the development of
drug candidates. Our lead compounds ANAVEX 2-73 and ANAVEX PLUS, a combination
of ANAVEX 2-73 with donepezil (Aricept), are being developed to treat
Alzheimer&#146;s disease and potentially other central nervous system (CNS) diseases.
</P>
<P align=justify>In pre-clinical studies conducted in France and in Greece,
ANAVEX 2-73 demonstrated anti-amnesic and neuroprotective properties in various
animal models including the transgenic mouse model Tg2576. Based on pre-clinical
studies, we sponsored a Phase 1 single ascending dose study of ANAVEX 2-73,
which was initiated and completed in 2011. This study was conducted in Germany
in collaboration with ABX-CRO Advanced Pharmaceutical Services (ABX-CRO). The
study indicated that ANAVEX 2-73 was well tolerated by study subjects in doses
up to 55mg. As of the end of the period covered by this report, we have not yet
continued our clinical trials due to a lack of funding. </P>
<P align=justify>The Company plans to continue human clinical trials, among them
a multiple ascending dose study of ANAVEX 2-73 and ANAVEX PLUS, and a Phase 2
thereafter by mid-year 2014. Additionally, we intend to identify and initiate
discussions with potential partners in the next 12 months. Further, we may
acquire or develop new intellectual property and assign, license, or otherwise
transfer our intellectual property to further our goals. </P>
<P align=justify><B><I>Our Pipeline</I></B> </P>
<P align=justify>Our pipeline includes one drug candidate and several compounds
in different stages of pre-clinical study. </P>
<P align=justify>Our proprietary SIGMACEPTOR&#153; Discovery Platform produced small
molecule drug candidates with unique modes of action, based on our understanding
of sigma receptors. Sigma receptors may be targets for therapeutics to combat
many human diseases, including Alzheimer&#146;s disease. When bound by the
appropriate ligands, sigma receptors influence the functioning of multiple
biochemical signals that are involved in the pathogenesis (origin or
development) of disease. </P>
<P align=justify>Compounds that have been subjects of our research include the
following: </P>
<P align=justify><B>ANAVEX 2-73</B> </P>
<P align=justify>ANAVEX 2-73 may offer a disease-modifying approach in
Alzheimer&#146;s disease (AD) by using ligands that activate sigma-1 receptors. </P>
<P align=justify>In AD animal models, ANAVEX 2-73 has shown pharmacological,
histological and behavioral evidence as a potential neuroprotective,
anti-amnesic, anti-convulsive and anti-depressive therapeutic agent, due to its
potent affinity to sigma-1 receptors and moderate affinities to M1-4 type
muscarinic receptors. In addition, ANAVEX 2-73 has shown a potential dual
mechanism which may impact both amyloid and tau pathology. In a transgenic AD
animal model Tg2576 ANAVEX 2-73 induced a statistically significant
neuroprotective effect against the development of oxidative stress in the mouse
brain, as well as significantly increased the expression of functional and
synaptic plasticity markers that is apparently amyloid-beta independent. It also
statistically alleviated the learning and memory deficits developed over time in
the animals, regardless of sex, both in terms of spatial working memory and
long-term spatial reference memory. </P>
<P align=center>42</P>
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<P align=justify>Based on the results of pre-clinical testing, we initiated and
completed a Phase 1 single ascending dose (SAD) clinical trial of ANAVEX 2-73 in
2011. In this Phase 1 SAD trial, the maximum tolerated single dose was defined
per protocol as 55-60 mg. This dose is above the equivalent dose shown to have
positive effects in mouse models of AD. There were no significant changes in
laboratory or electrocardiogram (ECG) parameters. ANAVEX 2-73 was well tolerated
below the 55-60 mg dose with only mild adverse events in some subjects. Observed
adverse events at doses above the maximum tolerated single dose included
headache and dizziness, which were moderate in severity and reversible. These
side effects are often seen with drugs that target central nervous system (CNS)
conditions, including AD. </P>
<P align=justify>The ANAVEX 2-73 Phase 1 SAD trial was conducted as a
randomized, placebo-controlled study. Healthy male volunteers between the ages
of 18 and 55 received single, ascending oral doses over the course of the trial.
Study endpoints included safety and tolerability together with pharmacokinetic
parameters. Pharmacokinetics includes the absorption and distribution of a drug,
the rate at which a drug enters the blood and the duration of its effect, as
well as chemical changes of the substance in the body. This study was conducted
in Germany in collaboration with ABX-CRO, a clinical research organization that
has conducted several Alzheimer&#146;s disease studies, and the Technical University
of Dresden. </P>
<P align=justify><B>ANAVEX PLUS</B> </P>
<P align=justify>ANAVEX PLUS, a combination of ANAVEX 2-73 with donepezil
(Aricept) is a potential novel combination drug for Alzheimer&#146;s disease. Aricept
(donepezil) is now generic. ANAVEX 2-73 showed in combination with donepezil an
unexpected and clear synergic effect of memory improvement by up to 80% in
animal models. A patent application was filed in the US for the combination of
donepezil and ANAVEX 2-73 and if granted would give patent protection at least
until 2033.</P>
<P align=justify>In a humanized calibrated cortical network computer model the
unexpected pre-clinical synergy between ANAVEX 2-73 and donepezil was confirmed
and ANAVEX PLUS showed an anticipated ADAS-Cog response of 7 points at 12 weeks
and 5.5 points at 26 weeks, which represents more than 2x the ADAS-Cog of
donepezil alone. </P>
<P align=justify><B>ANAVEX 19-144 </B></P>
<P align=justify>ANAVEX 19-144 is the sole active metabolite of ANAVEX 2-73.
Like ANAVEX 2-73, pre-clinical data reveals that ANAVEX 19-144 exhibits
significant anti-amnesic, neuroprotective and anticonvulsant properties in a
variety of in vitro systems and specialized animal models. </P>
<P align=justify>In animal models, ANAVEX 19-144 controls seizures and the
epileptogenesis process. Moreover, its neuroprotective properties may prevent
the process that causes long-term damage to tissue and cells as well as
biochemical and physiological alterations to the brain from epileptic seizures.
</P>
<P align=justify><B>ANAVEX 1-41 </B></P>
<P align=justify>ANAVEX 1-41 is a sigma-1 agonist. Pre-clinical tests revealed
significant neuroprotective benefits (i.e., protects nerve cells from
degeneration or death) through the modulation of endoplasmic reticulum,
mitochondrial and oxidative stress, which damages and destroys cells and is
believed by some scientists to be a primary cause of AD. In addition, in animal
models, ANAVEX 1-41 prevented the expression of caspase-3, an enzyme that plays
a key role in apoptosis (programmed cell death) and loss of cells in the
hippocampus, the part of the brain that regulates learning, emotion and memory.
These activities involve both muscarinic and sigma-1 receptor systems through a
novel mechanism of action. </P>
<P align=justify><B>ANAVEX 1037 </B></P>
<P align=justify>ANAVEX 1037 is designed for the treatment of prostate cancer.
It is a low molecular weight, synthetic compound exhibiting high affinity for
sigma-1 receptors at nanomolar levels and moderate affinity for sigma-2
receptors and sodium channels at micromolar levels. In advanced pre-clinical
studies, this compound revealed antitumor potential with no toxic side effects.
It has also been shown to selectively kill human cancer cells without affecting
normal/healthy cells and also to significantly suppress tumor growth in
immune-deficient mice models. Scientific publications describe sigma receptor
ligands positively, highlighting the possibility that these ligands may stop
tumor growth and induce selective cell death in various tumor cell lines. Sigma
receptors are highly expressed in different tumor cell types. Binding by
appropriate sigma-1 and/or sigma-2 ligands can induce selective apoptosis. In
addition, through tumor cell membrane reorganization and interactions with ion
channels, our drug candidates may play an important role in inhibiting the
processes of metastasis (spreading of cancer cells from the original site to
other parts of the body), angiogenesis (the formation of new blood vessels) and
tumor cell proliferation. </P>
<P align=justify>Our compounds are in the pre-clinical and clinical testing
stages of development, and there is no guarantee that the activity demonstrated
in pre-clinical models will be shown in human testing. </P>
<P align=center>43</P>
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<P align=justify><B><I>Our Target Indications</I></B> </P>
<P align=justify>We have developed compounds with potential application to two
broad categories and several specific indications. The two categories are
diseases of the central nervous system, and cancer. Specific indications
include: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center><li></li></TD>
    <TD align=left width="95%"><div align="justify">Alzheimer&#146;s disease &#150; In 2014, an estimated 5.2
      million Americans are suffering from Alzheimer&#146;s disease. The Alzheimer&#146;s
      Association reports that by 2025, 7.1 million Americans will be afflicted
      by the disease, a 40 percent increase from currently affected patients.
      Medications on the market today treat only the symptoms of AD and do not
      have the ability to stop its onset or its progression. There is an urgent
      and unmet need for both a disease modifying cure for Alzheimer&#146;s disease
      as well as for better symptomatic treatments. </div></TD></TR>
  <TR vAlign=top>
    <TD align=center><li></li></TD>
    <TD align=left width="95%"><div align="justify">Depression - Depression is a major cause of
      morbidity worldwide according to the World Health Organization (WHO).
      Pharmaceutical treatment for depression is dominated by blockbuster
      brands, with the leading nine brands accounting for approximately 75% of
      total sales. However, the dominance of the leading brands is waning,
      largely due to the effects of patent expiration and generic competition.
      Our market research leads us to believe that the worldwide market for
      pharmaceutical treatment of depression exceeds $11 billion annually.</div></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><li></li></TD>
    <TD align=left width="95%"><div align="justify">Epilepsy - Epilepsy is a common chronic
      neurological disorder characterized by recurrent unprovoked seizures.
      These seizures are transient signs and/or symptoms of abnormal, excessive
      or synchronous neuronal activity in the brain. According to the Centers
      for Disease Control and Prevention, epilepsy affects 2.2 million
      Americans. Today, epilepsy is often controlled, but not cured, with
      medication that is categorized as older traditional anti-epileptic drugs
      and second generation anti epileptic drugs. Because epilepsy afflicts
      sufferers in different ways, there is a need for drugs used in combination
      with both traditional anti-epileptic drugs and second generations
      anti-epileptic drugs. Decision Resources, one of the world&#146;s leading
      research and advisory firms for pharmaceutical and healthcare issues,
      finds that the epilepsy market will increase from $2.9 billion in 2011 to
      nearly $3.7 billion in 2016. </div></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><li></li></TD>
    <TD align=left width="95%"><div align="justify">Neuropathic Pain &#150; We define neuralgia, or
      neuropathic pain, as pain that is not related to activation of pain
      receptor cells in any part of the body. Neuralgia is more difficult to
      treat than some other types of pain because it does not respond well to
      normal pain medications. Special medications have become more specific to
      neuralgia and typically fall under the category of membrane stabilizing
      drugs or antidepressants. Our market research leads us to believe the
      worldwide market for pharmaceutical treatment of neuropathic pain exceeds
      $5 billion annually. </div></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><li></li></TD>
    <TD align=left width="95%"><div align="justify">Malignant Melanoma - Predominantly a skin
      cancer, malignant melanoma can also occur in melanocytes found in the
      bowel and the eye. Malignant melanoma accounts for 75% of all deaths
      associated with skin cancer. The treatment includes surgical removal of
      the tumor, adjuvant treatment, chemo and immunotherapy, or radiation
      therapy. According to IMS Health the worldwide Malignant Melanoma market
      is expected to grow from about $900 million in 2012 to $4.4 billion by
      2022. </div></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><li></li></TD>
    <TD align=left width="95%"><div align="justify">Prostate Cancer &#150; Specific to men, prostate
      cancer is a form of cancer that develops in the prostate, a gland in the
      male reproductive system. The cancer cells may metastasize from the
      prostate to other parts of the <FONT face="Times New Roman"><FONT
      face="Times New Roman">body, particularly the bones and lymph
        nodes. Drug therapeutics for Prostate Cancer are expected to increase from
        $8.1 billion in 2012 to nearly $18.6 billion in 2017 according to BCC
      Research.</FONT></FONT></div></TD>
  </TR>
  <TR>
    <TD align=center ><li></li></TD>
    <TD align=left width="95%" >      <P align=justify><font face="Times New Roman">Pancreatic Cancer - Pancreatic cancer is a malignant
        neoplasm of the pancreas. In the United States approximately 45,000 new
        cases of pancreatic cancer will be diagnosed this year and approximately
        38,000 patients will die as a result of their cancer. Our market research
        leads us to believe that the market for the pharmaceutical treatment of
        pancreatic cancer will exceed $1.2 billion by
  2015.</font></P></TD>
  </TR></TABLE>
<BR>
<P align=center>44</P>
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<P align=justify><B><I>Competition</I></B> </P>
<P align=justify>The pharmaceutical industry is intensely competitive. </P>
<P align=justify>At this time, we view our competition as biomedical development
companies that are trying to discover and develop compounds to be used in the
treatment of Alzheimer&#146;s disease, and those companies already doing so. Those
companies include Prana Biotechnology Ltd. (NASDAQ:PRAN), Perrigo Company PLC
(NYSE:PRGO), Pfizer Inc. (NYSE:PFE), Forest Laboratories Inc. (NYSE:FRX),
Novartis AG (NYSE:NVS), GlaxoSmithKline PLC (NYSE:GSK), Merck &amp; Co. Inc.
(NYSE:MRK), Eli Lilly &amp; Co. (NYSE: LLY), Johnson &amp; Johnson (NYSE:JNJ)
and Roche Holding AG (VTX:ROG). </P>
<P align=justify>Each of our competitors have greater capital resources, larger
overall research and development staffs and facilities, and a longer history in
drug discovery and development, obtaining regulatory approval, and
pharmaceutical product manufacturing and marketing than we do. With these
additional resources, our competitors will be able to respond to the rapid and
significant technological changes in the biotechnology and pharmaceutical
industries faster than we can. Our future success will depend in large part on
our ability to acquire funding for our research and development. To continue to
acquire funding for our research and development, we will likely have to show
progress toward our goals and we will eventually be expected to develop a
compound that may result in a transaction with another pharmaceutical company.
</P>
<P align=justify><B><I>Patents, Trademarks and Intellectual Property
</I></B></P>
<P align=justify>We are pursuing three U.S. patent applications. The most recent
of the three applications was filed July 12, 2013. On this most recent patent
application, Anavex is awaiting a contractually obligated patent assignment
document from one of the two named inventors. </P>
<P align=justify>We regard patents and other intellectual property rights as
corporate assets. Accordingly, we attempt to optimize the value of intellectual
property in developing our business strategy including the selective
development, protection, and exploitation of our intellectual property rights.
</P>
<P align=justify>In addition to filings made with intellectual property
organizations, we protect our intellectual property and confidential information
by means of carefully considered processes of communication and the sharing of
information, and by the use of confidentiality and non-disclosure agreements and
provisions for the same in contractor&#146;s agreements. While no agreement offers
absolute protection, such agreements provide some form of recourse in the event
of disclosure, or anticipated disclosure. </P>
<P align=justify>Our intellectual property position, like that of many
biomedical companies, is uncertain and involves complex legal and technical
questions for which important legal principles are unresolved. We may file
additional patent applications in the United States, or in other jurisdictions
for further inventions. We may not be successful in obtaining critical claims or
in protecting our potential drug compounds or processes. Even if we do obtain
patents, they may not adequately protect the technology we own or have licensed.
In addition, others may challenge, seek to invalidate, infringe or circumvent
any patents we own or license, and rights we receive under those patents may not
provide competitive advantages to us. Further, the manufacture, use or sale of
our potential drug compounds may infringe the patent rights of others. </P>
<P align=justify>Our success will also depend in part on our ability to
commercialize our compounds without infringing the proprietary rights of others.
We have not conducted extensive freedom of use patent searches and no assurance
can be given that patents do not exist or could not be filed which would have an
adverse effect on our ability to market our technology or maintain our
competitive position with respect to our technology. If our compounds or other
subject matter are claimed under other existing United States or other patents
or are otherwise protected by third party proprietary rights, we may be subject
to infringement actions. In such event, we may challenge the validity of such
patents or other proprietary rights or we may be required to obtain licenses
from such companies in order to develop, manufacture or market our technology.
There can be no assurances that we would be able to obtain such licenses or that
such licenses, if available, could be obtained on commercially reasonable terms.
Furthermore, the failure to either develop a commercially viable alternative or
obtain such licenses could result in delays in marketing all of our potential
drug compounds based on our drug technology or the inability to proceed with the
development, manufacture or sale of potential drug compounds requiring such
licenses, which could have a material adverse effect on our business, financial
condition and results of operations. If we defend ourselves against charges of
patent infringement or to protect our proprietary rights against third parties,
substantial costs will be incurred regardless of whether we are successful. Such
proceedings are typically protracted with no certainty of success. An adverse
outcome could subject us to significant liabilities to third parties and force
us to curtail or cease our research and development of our technology. </P>
<P align=center>45</P>
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<P align=justify><B><I>Government Approval </I></B></P>
<P align=justify>Regulation by governmental authorities in the United States and
foreign countries is a significant factor in the development, manufacture, and
expected marketing of our potential drug compounds and in potential future
research and development activities. The nature and extent to which such
regulation will apply to us will vary depending on the nature of any potential
drug compounds developed. We anticipate that all of our potential drug compounds
will require regulatory approval by governmental agencies prior to
commercialization. </P>
<P align=justify>In particular, human therapeutic products are subject to
rigorous non-clinical and clinical testing and other approval procedures of the
FDA and similar regulatory authorities in other countries. Various federal
statutes and regulations also govern or influence testing, manufacturing,
safety, labeling, storage, and record-keeping related to such products and their
marketing. The process of obtaining these approvals and the subsequent
compliance with the appropriate federal statutes and regulations requires
substantial time and financial resources. Any failure by us or our collaborators
to obtain, or any delay in obtaining, regulatory approval could adversely affect
the marketing of any potential drug compounds developed by us, our ability to
receive product revenues, and our liquidity and capital resources. </P>
<P align=justify>The steps ordinarily required before a new drug may be marketed
in the United States, which are similar to steps required in most other
countries, include: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">non-clinical laboratory tests, non-clinical
      studies in animals, formulation studies and the submission to the FDA of
      an investigational new drug application; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">adequate and well-controlled clinical trials to
      establish the safety and efficacy of the drug; </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">the submission of a new drug application or
      biologic license application to the FDA; and </TD></TR>
  <TR vAlign=top>
    <TD align=center  ><li></li></TD>
    <TD align=left width="95%">FDA review and approval of the new drug
application or biologics license application. </TD></TR></TABLE>
<P align=justify>Non-clinical tests include laboratory evaluation of potential
drug compound chemistry, formulation and toxicity, as well as animal studies.
The results of non-clinical testing are submitted to the FDA as part of an
investigational new drug application. A 30-day waiting period after the filing
of each investigational new drug application is required prior to commencement
of clinical testing in humans. At any time during the 30-day period or at any
time thereafter, the FDA may halt proposed or ongoing clinical trials until the
FDA authorizes trials under specified terms. The investigational new drug
application process may be extremely costly and substantially delay the
development of our potential drug compounds. Moreover, positive results of
non-clinical tests will not necessarily indicate positive results in subsequent
clinical trials. The FDA may require additional animal testing after an initial
investigational new drug application is approved and prior to Phase III trials.
</P>
<P align=justify>Clinical trials to support new drug applications are typically
conducted in three sequential phases, although the phases may overlap. During
Phase I, clinical trials are conducted with a small number of subjects to assess
<FONT face="Times New Roman" size=2><FONT face="Times New Roman"
size=2>metabolism, pharmacokinetics, and pharmacological actions and safety,
including side effects associated with increasing doses. Phase II usually
involves studies in a limited patient population to assess the efficacy of the
drug in specific, targeted indications; assess dosage tolerance and optimal
dosage; and identify possible adverse effects and safety
risks.</P>
<P align=center>46</P>
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<P align=justify>If a compound is found to be potentially effective and to have
an acceptable safety profile in Phase I and II evaluations, Phase III trials are
undertaken to further demonstrate clinical efficacy and to further test for
safety within an expanded patient population at geographically dispersed
clinical trial sites. </P>
<P align=justify>After successful completion of the required clinical trials, a
new drug application is generally submitted. The FDA may request additional
information before accepting the new drug application for filing, in which case
the new drug application must be resubmitted with the additional information.
Once the submission has been accepted for filing, the FDA reviews the new drug
application and responds to the applicant. The FDA&#146;s requests for additional
information or clarification often significantly extends the review process. The
FDA may refer the new drug application to an appropriate advisory committee for
review, evaluation, and recommendation as to whether the new drug application
should be approved, although the FDA is not bound by the recommendation of an
advisory committee. </P>
<P align=justify>Sales outside the United States of potential drug compounds we
develop will also be subject to foreign regulatory requirements governing human
clinical trials and marketing for drugs. The requirements vary widely from
country to country, but typically the registration and approval process takes
several years and requires significant resources. In most cases, if the FDA has
not approved a potential drug compound for sale in the United States, the
potential drug compound may be exported for sale outside of the United States,
only if it has been approved in any one of the following: the European Union,
Canada, Australia, New Zealand, Japan, Israel, Switzerland and South Africa.
There are specific FDA regulations that govern this process. </P>
<P align=justify><B><I>Research and Development Expenses</I></B> </P>
<P align=justify>Historically, a significant portion of our operating expenses
has related to research and development. Recently, we have significantly
curtailed our spending on research and development. See &#147;Financial Statements
and Supplementary Data&#148; of this prospectus for costs and expenses related to
research and development, and other financial information for fiscal years 2013
and 2012. </P>
<P align=justify><B><I>Scientific Advisors</I></B> </P>
<P align=justify>We are advised by scientists and physicians with experience
relevant to our Company and our product candidates. In the past twelve months,
our advisors included Dr. Michael Gold, John Harrison, Ph.D., Dr, Ottavio
Arancio, Ph.D., Tangui Nicolas Maurice, Ph.D., Christopher U. Missling, Ph.D.,
Dr. Paul Aisen, and Dr. Jeffrey Cummings. </P>
<P align=justify><B><I>Officers</I></B> </P>
<P align=justify>One of our directors is engaged as an officer-employee of the
Company serving in the capacity of president, secretary, treasurer, chief
executive officer and chief financial officer. </P>
<P align=justify><B><I>Employees</I></B> </P>
<P align=justify>We currently have one (1) full-time employee, and we retain
several independent contractors on an as-needed basis. We believe that we have
good relations with our employees. </P>
<P align=justify><B><I>Legal Proceedings</I></B></P>
<P align=justify>We are not currently a party to or engaged in any material
legal proceedings. However, we may be subject to various claims and legal
actions arising in the ordinary course of business from time to time. </P>
<P align=center>47</P>
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<P align=center><B>MANAGEMENT</B></P>
<P align=justify><B><I>Directors and Executive Officers </I></B></P>
<P align=justify>Our directors are to be elected at our annual meeting and each
director elected is to hold office until his or her successor is elected and
qualified. Our board of directors may remove our officers at any time.</P>
<P align=justify>Our directors and executive officers, their age, positions
held, and duration of such, are as follows:</P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD vAlign=top noWrap align=left>Name </TD>
    <TD vAlign=top noWrap align=left width="25%">Position </TD>
    <TD vAlign=top noWrap align=left width="25%">Age </TD>
    <TD vAlign=top noWrap align=left width="25%">Date first appointed </TD></TR>
  <TR vAlign=top>
    <TD vAlign=top noWrap align=left>Christopher Missling, PhD </TD>
    <TD vAlign=top noWrap align=left width="25%">Director, President,
      <BR>Chief Executive <BR>Officer, Chief Financial <BR>Officer, Secretary,
      <BR>Treasurer </TD>
    <TD vAlign=top noWrap align=left width="25%">48 </TD>
    <TD vAlign=top noWrap align=left width="25%">July 5, 2013 </TD></TR>
  <TR vAlign=top>
    <TD vAlign=top noWrap align=left>Elliot Favus M.D. </TD>
    <TD vAlign=top noWrap align=left width="25%">Director </TD>
    <TD vAlign=top noWrap align=left width="25%">39 </TD>
    <TD vAlign=top noWrap align=left width="25%">May 7, 2014 </TD></TR>
  <TR vAlign=top>
    <TD vAlign=top noWrap align=left>Bernd Metzner </TD>
    <TD vAlign=top noWrap align=left width="25%">Director </TD>
    <TD vAlign=top noWrap align=left width="25%">44 </TD>
    <TD vAlign=top noWrap align=left width="25%">May 7, 2014 </TD></TR>
  <TR vAlign=top>
    <TD vAlign=top noWrap align=left>Athanasios Skarpelos </TD>
    <TD vAlign=top noWrap align=left width="25%">Director </TD>
    <TD vAlign=top noWrap align=left width="25%">46 </TD>
    <TD vAlign=top noWrap align=left width="25%">January 9, 2013
</TD></TR></TABLE></DIV>
<P align=justify><B><I>Business Experience </I></B></P>
<P align=justify>The following is a brief account of the education and business
experience of directors and executive officers during at least the past five (5)
years, indicating their principal occupation during the period, and the name and
principal business of the organization by which they were employed. </P>
<P align=justify><U>Christopher Missling, PhD</U>. Christopher Missling has over
twenty (20) years of healthcare industry experience in big pharmaceutical,
biotech industry and investment banking. Most recently, from March, 2007 until
his appointment by our Company, Mr. Missling served as the head of healthcare
investment banking at Brimberg &amp; Co. in New York, New York. Also, Mr.
Missling served as the Chief Financial Officer of Curis, Inc. (NASDAQ:CRIS) and
ImmunoGen, Inc. (NASDAQ:IMGN). Mr. Missling earned his MS and PhD from the
University of Munich and an MBA from Northwestern University Kellogg School of
Management. </P>
<P align=justify><U>Elliot Favus M.D</U>. Dr. Elliot Favus, M.D. is the Founder
of Favus Institutional Research, LLC and serves as its Chief Executive Officer.
Dr. Favus serves as a Business Advisor of Science House Capital. He has an
expertise in Healthcare Equity Research. He has been Healthcare Equity Research
Analyst at Wall Street since 2006, at Lazard Capital Markets and Och-Ziff
Capital Management Group. Prior to working on Wall Street, Dr. Favus was an
Instructor in Medicine at Mount Sinai School of Medicine in New York. Since
2004, he is board-certified in Internal Medicine. Dr. Favus has ten (10) years
of basic science laboratory experience, working on human genetics projects at
Harvard Medical School, The University of Chicago, and the University of
Pittsburgh. Dr. Favus completed the NYU-Bellevue Hospital Internal Medicine
Residency Program in 2004, and earned an M.D. from the University of Chicago
Pritzker School of Medicine in 2001, and a B.A. from The University of Michigan
in 1996. </P>
<P align=justify><U>Bernd Metzner, PhD</U>. Bernd Metzner serves as Chief
Financial Officer of the Doehler Group. Mr. Metzner served as a Member of the
Executive Board at Dhler GmbH. Mr. Metzner served as the Chief Administrator and
member of the Board of Management at Bayer Schering Pharma AG. Mr. Metzner held
worldwide financial responsibility for the Bayer Pharma Group. In his almost
10-years with Bayer AG, Mr. Metzner also held several senior international
management positions in the corporate finance organization of Bayer AG,
including Chief Financial Officer of Bayer S.p.A. Italy and heading the
coordination of the successful spin-off of Lanxess. Mr. Metzner started his
career at the law firm Flick Gocke Schaumburg. Dr. Metzner served as Head of
Finance - Bayer Italy. Mr. Metzner served as Member of the Board of Management
of Bayer Schering Pharma AG since October 1, 2008. He studied business
administration at the University of Siegen and, after obtaining his doctorate,
he became a chartered accountant. </P>
<P align=center>48</P>
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<P align=justify><U>Athanasios Skarpelos</U>. Athanasios (Tom) Skarpelos is a
self-employed investor with 17 years of experience working with private and
public companies. For the past 10 years, he has been focused on biotechnology
companies involved in drug discovery and drug development projects. Mr.
Skarpelos was engaged as a consultant to our Company for one year effective
August 2, 2010. His experience has led to relationships with researchers at
academic institutes in Europe and North America. Mr. Skarpelos is a founder of
Anavex. </P>
<P align=justify><B><I>Family Relationships</I></B></P>
<P align=justify>There are no family relationships between any director or
executive officer.</P>
<P align=justify><B><I>Involvement in Certain Legal Proceedings</I></B></P>
<P align=justify>There are no material proceedings to which any director or
executive officer or any associate of any such director or officer is a party
adverse to our Company or has a material interest adverse to our Company. </P>
<P align=justify>No director or executive officer has been involved in any of
the following events during the past ten years: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top align=center width="5%">1. </TD>
    <TD>
      <P align=justify>any bankruptcy petition filed by or against any business
      of which such person was a general partner or executive officer either at
      the time of the bankruptcy or within two years prior to that
  time;</P></TD></TR>
  <TR>
    <TD align=center width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top align=center width="5%">2. </TD>
    <TD>
      <P align=justify>any conviction in a criminal proceeding or being subject
      to a pending criminal proceeding (excluding traffic violations and other
      minor offences);</P></TD></TR>
  <TR>
    <TD align=center width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top align=center width="5%">3. </TD>
    <TD>
      <P align=justify>being subject to any order, judgment, or decree, not
      subsequently reversed, suspended or vacated, of any court of competent
      jurisdiction, permanently or temporarily enjoining, barring, suspending or
      otherwise limiting his involvement in any type of business, securities or
      banking activities;</P></TD></TR>
  <TR>
    <TD align=center width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top align=center width="5%">4. </TD>
    <TD>
      <P align=justify>being found by a court of competent jurisdiction (in a
      civil action), the Securities and Exchange Commission or the Commodity
      Futures Trading Commission to have violated a federal or state securities
      or commodities law, and the judgment has not been reversed, suspended, or
      vacated;</P></TD></TR>
  <TR>
    <TD align=center width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top align=center width="5%">5. </TD>
    <TD>
      <P align=justify>being the subject of, or a party to, any federal or state
      judicial or administrative order, judgment, decree, or finding, not
      subsequently reversed, suspended or vacated, relating to an alleged
      violation of: (i) any federal or state securities or commodities law or
      regulation; or (ii) any law or regulation respecting financial
      institutions or insurance companies including, but not limited to, a
      temporary or permanent injunction, order of disgorgement or restitution,
      civil money penalty or temporary or permanent cease- and- desist order, or
      removal or prohibition order; or (iii) any law or regulation prohibiting
      mail or wire fraud or fraud in connection with any business entity;
    or</P></TD></TR>
  <TR>
    <TD align=center width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top align=center width="5%">6. </TD>
    <TD>
      <P align=justify>being the subject of, or a party to, any sanction or
      order, not subsequently reversed, suspended or vacated, of any
      self-regulatory organization (as defined in Section 3(a)(26) of the
      Securities Exchange Act of 1934), any registered entity (as defined in
      Section 1(a)(29) of the Commodity Exchange Act), or any equivalent
      exchange, association, entity or organization that has disciplinary
      authority over its members or persons associated with a
  member.</P></TD></TR></TABLE>
<P align=justify><B><I>Compliance with Section 16(a) of the Securities Exchange
Act of 1934 </I></B></P>
<P align=justify>Section 16(a) of the Securities Exchange Act of 1934 requires
our executive officers and directors and persons who own more than 10% of our
common stock to file with the Securities and Exchange Commission initial
statements of beneficial ownership, reports of changes in ownership and annual
reports concerning their ownership of our common stock and other equity
securities, on Forms 3, 4 and 5 respectively. Executive officers, directors and
greater than 10% shareholders are required by the Securities and Exchange
Commission regulations to furnish us with copies of all Section 16(a) reports
that they file.</P>
<P align=justify>Based solely on our review of the copies of such forms received
by us, or written representations from certain reporting persons, we believe
that during fiscal year ended September 30, 2013, all filing requirements
applicable to our officers, directors and greater than 10% percent beneficial
owners were complied. </P>
<P align=center>49</P>
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<P align=justify><B><I>Code of Ethics</I></B></P>
<P align=justify>We have adopted a code of ethics that applies to our principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions. We have posted our policy
on our website at <U>www.anavex.com</U>.</P>
<P align=justify><B><I>Audit Committee and Audit Committee Financial
Experts</I></B></P>
<P align=justify>We do not have a standing audit committee at the present time.
We believe that our board of directors is capable of analyzing and evaluating
our financial statements and understanding internal controls and procedures for
financial reporting. The board of directors of our Company does not believe that
it is necessary to have an audit committee at this time because management
believes the functions of an audit committee can be adequately performed by the
board of directors.<B> </B></P>
<P align=justify>We do not deem either of our directors as an &#147;audit committee
financial expert&#148; as defined in Item 407(d)(5)(ii) of Regulation S-K.</P>
<P align=justify><B><I>Nominating and Compensation Committees </I></B></P>
<P align=justify>We do not have standing nominating or compensation committees,
or committees performing similar functions. Our board of directors believes that
it is not necessary to have a standing compensation committee at this time
because the functions of such committee are adequately performed by our board of
directors. Our board of directors has not adopted a charter for the compensation
committee.</P>
<P align=justify>Our board of directors also is of the view that it is
appropriate for us not to have a standing nominating committee because our board
of directors has performed and is expected to perform adequately the functions
of a nominating committee. Our board of directors has not adopted a charter for
the nominating committee. There has not been any defined policy or procedure
requirements for stockholders to submit recommendations or nomination for
directors. Our board of directors does not believe that a defined policy with
regard to the consideration of candidates recommended by stockholders is
necessary at this time because we believe that, at this stage of our
development, a specific nominating policy would be premature and of little
assistance until our business operations are at a more advanced level. There are
no specific, minimum qualifications that our board of directors believes must be
met by a candidate recommended by our board of directors. There is neither a
defined, nor a typical process of identifying and evaluating nominees for
director.</P>
<P align=justify><B><I>Summary Compensation</I></B></P>
<P align=justify>The particulars of compensation paid to the following persons
for the last two completed fiscal years: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top align=center width="5%">a) </TD>
    <TD>
      <P align=justify>our principal executive officers;</P></TD></TR>
  <TR>
    <TD vAlign=top align=center width="5%">b) </TD>
    <TD>
      <P align=justify>each of our two most highly compensated executive
      officers who were serving as executive officers at the end of the fiscal
      year ended September 30, 2013 who had total compensation exceeding
      $100,000; and</P></TD></TR>
  <TR>
    <TD vAlign=top align=center width="5%">c) </TD>
    <TD>
      <P align=justify>up to two additional individuals for whom disclosure
      would have been provided under (b) but for the fact that the individual
      was not serving as our executive officer at the end of the most recently
      completed financial year, who we will collectively refer to as the named
      executive officers, for our fiscal years ended September 30, 2013 and
      2012, are set out in the following summary compensation
  table:</P></TD></TR></TABLE>
<BR>
<BR>
<P align=center>50</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>Other</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>Annual</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>Stock</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>Option</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>Compen-</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left><B>Name and Principal</B> </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>Salary</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>Bonus</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>Awards</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>Awards</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>sation</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>Total</B> </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left><B>Position</B> </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>Year</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>($)</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>($)</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>($)</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>($)</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>($)</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>($)</B> </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left bgColor=#e6efff>Christopher </TD>
    <TD vAlign=bottom noWrap align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%" bgColor=#e6efff>2013 </TD>
    <TD vAlign=bottom noWrap align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%" bgColor=#e6efff>60,000
</TD>
    <TD vAlign=bottom noWrap align=center width="2%" bgColor=#e6efff>&nbsp;</TD>

    <TD vAlign=bottom noWrap align=center width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%" bgColor=#e6efff>Nil </TD>
    <TD vAlign=bottom noWrap align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"
    bgColor=#e6efff>1,600,000</TD>
    <TD vAlign=bottom noWrap align=center width="2%"
      bgColor=#e6efff><SUP>(5)</SUP> </TD>
    <TD vAlign=bottom noWrap align=center width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%" bgColor=#e6efff>1,002,500
    </TD>
    <TD vAlign=bottom noWrap align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%" bgColor=#e6efff>Nil </TD>
    <TD vAlign=bottom noWrap align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%" bgColor=#e6efff>2,662,500
    </TD>
    <TD vAlign=bottom noWrap align=left width="2%"
bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom noWrap bgcolor="#e6efff">Missling, </TD>
    <TD width="1%" align=left vAlign=bottom noWrap bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom noWrap bgcolor="#e6efff">2012 </TD>
    <TD width="2%" align=center vAlign=bottom noWrap bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom noWrap bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom noWrap bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom noWrap bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom noWrap bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom noWrap bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom noWrap bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom noWrap bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom noWrap bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom noWrap bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom noWrap bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom noWrap bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom noWrap bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom noWrap bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom noWrap bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom noWrap bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom noWrap bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom noWrap bgcolor="#e6efff">Nil </TD>
  <TD
width="2%" align=left vAlign=bottom noWrap bgcolor="#e6efff">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom bgcolor="#e6efff">PhD<SUP>(1)</SUP> </TD>
    <TD width="1%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
  <TD width="2%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom bgcolor="#e6efff">President, Chief </TD>
    <TD width="1%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
  <TD width="2%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom bgcolor="#e6efff">Executive Officer, </TD>
    <TD width="1%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
  <TD width="2%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom bgcolor="#e6efff">Chief </TD>
    <TD width="1%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
  <TD width="2%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom bgcolor="#e6efff">Financial Officer and </TD>
    <TD width="1%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
  <TD width="2%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom bgcolor="#e6efff">Director </TD>
    <TD width="1%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
  <TD width="2%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom>Robert Chisholm<SUP>(2)</SUP> </TD>
    <TD width="1%" align=left vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>2013 </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>24,677 </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>Nil </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>Nil </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>Nil </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>Nil </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>24,677 </TD>
  <TD width="2%" align=left vAlign=bottom>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom>President, Chief </TD>
    <TD width="1%" align=left vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>2012 </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>96,217 </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>Nil </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>Nil </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>Nil </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>Nil </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>96,217 </TD>
  <TD width="2%" align=left vAlign=bottom>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom>Financial Officer and </TD>
    <TD width="1%" align=left vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>&nbsp; </TD>
  <TD width="2%" align=left vAlign=bottom>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom>Director </TD>
    <TD width="1%" align=left vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>&nbsp; </TD>
  <TD width="2%" align=left vAlign=bottom>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom bgcolor="#e6efff">Harvey Lalach <SUP>(3)</SUP> </TD>
    <TD width="1%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">2013 </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
  <TD width="2%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom bgcolor="#e6efff">Former President, </TD>
    <TD width="1%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">2012 </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">130,000 </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">75,000 </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">18,600 </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">223,600 </TD>
  <TD width="2%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom bgcolor="#e6efff">Former Chief </TD>
    <TD width="1%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
  <TD width="2%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom bgcolor="#e6efff">Operating, Former </TD>
    <TD width="1%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
  <TD width="2%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom bgcolor="#e6efff">Director </TD>
    <TD width="1%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
  <TD width="2%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom>George Tidmarsh <SUP>(4)</SUP> </TD>
    <TD width="1%" align=left vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>2013 </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>Nil </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>Nil </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>Nil </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>Nil </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>Nil </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>Nil </TD>
  <TD width="2%" align=left vAlign=bottom>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom>Former Executive </TD>
    <TD width="1%" align=left vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>2012 </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>42,012 </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>Nil </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>15,896 </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>33,493 </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>Nil </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>91,401 </TD>
  <TD width="2%" align=left vAlign=bottom>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom>Director </TD>
    <TD width="1%" align=left vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom>&nbsp; </TD>
  <TD width="2%" align=left vAlign=bottom>&nbsp;</TD>
  </TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%">&nbsp;</TD>
    <TD vAlign=top width="3%">(1) </TD>
    <TD width="92%">
      <P align=justify>Christopher Missling was appointed as director,
      President, Chief Executive Officer, Chief Financial Officer, Secretary and
      Treasurer on July 5, 2013.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">&nbsp;</TD>
    <TD vAlign=top width="3%">(2) </TD>
    <TD>
      <P align=justify>Robert Chisholm was appointed President and Chief
      Financial Officer on June 26, 2012. Prior to that date, Mr. Chisholm
      served as a director to the Company. Mr. Chisholm resigned as President
      and Chief Financial Officer and director on January 9, 2013. These fees
      are included in consulting fees in our consolidated financial
      statements.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">&nbsp;</TD>
    <TD vAlign=top width="3%">(3) </TD>
    <TD>
      <P align=justify>Harvey Lalach was appointed President and Secretary on
      April 25, 2006. On August 27, 2011, Mr. Lalach was appointed Chief
      Operating Officer and on May 13, 2011 he was appointed interim Chief
      Financial Officer. Mr. Lalach resigned as an officer and director of our
      Company on June 26, 2012.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">&nbsp;</TD>
    <TD vAlign=top width="3%">(4) </TD>
    <TD>
      <P align=justify>George Tidmarsh was appointed as an executive director on
      October 12, 2011 and received consulting fees and stock option awards in
      his capacity as Executive Director. Mr. Tidmarsh resigned on March 17,
      2012.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">&nbsp;</TD>
    <TD vAlign=top width="3%">(5) </TD>
    <TD>
      <P align=justify>Mr. Missling was granted 4,000,000 shares of restricted
      common stock that vest upon the occurrence of certain financial and
      clinical milestones. The value of stock awards issued to Christopher
      Missling is presented at the quoted market price of these shares on the
      date of issuance in accordance with FASB ASC Topic 718 for the awards that
      are expected to vest.</P></TD></TR></TABLE>
<P align=justify><B><I>Consulting Agreements</I></B></P>
<P align=justify><B>Robert Chisholm </B></P>
<P align=justify>Effective June 26, 2012, Robert Chisholm was appointed
President and Chief Financial Officer of the Company. Mr. Chisholm was
remunerated at a rate of CDN$7,500 per month through a company with which he is
associated. Effective January 9, 2013, Mr. Chisholm resigned from his positions
as both an officer and a director and his agreement was terminated in connection
therewith. </P>
<P align=justify><B>Harvey Lalach </B></P>
<P align=justify>We had a consulting agreement dated February 1, 2007 with
Harvey Lalach to provide management services to our Company for consideration of
$7,000 per month. The contract had a two year term, and was extended for an
additional two year term expiring January 31, 2011. During the fiscal year ended
September 30, 2008, we agreed to increase the compensation of Mr. Lalach to
$12,500 per month. Effective February 1, 2011 we entered into a consulting
agreement with Mr. Lalach whereby Mr. Lalach agreed to continue to provide
management services to our Company in return for compensation of $12,500 per
month for an additional two years. </P>
<P align=justify>Effective June 26, 2012 Mr. Lalach resigned his positions as
both an officer and a director. Mr. Lalach continued to consult for the Company
until September 30, 2012 and was paid $15,000. In addition, we issued an
aggregate of 75,000 shares of our common stock at a deemed value of $1.00 per
share to Mr. Lalach for his past services and in final settlement of his
Consulting Agreement dated February 1, 2007 and we extended the expiry date to
June 30, 2014 of 200,000 stock options held by Mr. Lalach. </P>
<P align=center>51</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<P align=justify><B>Dr. George Tidmarsh </B></P>
<P align=justify>Effective October 10, 2011 we entered into a consulting
agreement with Dr. Tidmarsh to act as our executive director for the following
consideration:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top align=center width="5%">a) </TD>
    <TD>
      <P align=justify>a monthly consulting fee of $10,000;</P></TD></TR>
  <TR>
    <TD vAlign=top align=center width="5%">b) </TD>
    <TD>
      <P align=justify>500,000 Share purchase options exercisable at $1.50 per
      option share until October 10, 2016 (subject to certain vesting
      provisions);</P></TD></TR>
  <TR>
    <TD vAlign=top align=center width="5%">c) </TD>
    <TD>
      <P align=justify>reimbursement of all reasonable
  expenditures.</P></TD></TR></TABLE>
<P align=justify>On February 9, 2012 we issued an aggregate of 8,000 units of
our securities at a price of $1.25 per unit to George Tidmarsh, a former
director of our Company, for his services during the month of January, 2012.
Each unit consisted of one share of our common stock and one-half of one share
purchase warrant. Each whole warrant is exercisable at $2.00 for one share of
common stock for a period of 12 months. </P>
<P align=justify>On March 18, 2012 Dr. Tidmarsh delivered notice to us of his
resignation as both an officer and a director. On March 21, 2012, Dr. Tidmarsh
withdrew his original notice, and issued an amended notice of resignation. </P>
<P align=justify><B>Christopher Missling</B> </P>
<P align=justify>In connection with Mr. Missling&#146;s appointment as Chief
Executive Officer, the Company and Mr. Missling entered into an employment
agreement commencing on July 5, 2013 and ending on July 5, 2016, whereby: (a)
the Company shall pay to Mr. Missling an initial monthly base salary of $20,000
with Mr. Missling being eligible for bonuses and salary increases; (b) Mr.
Missling received a sign-on stock option grant; (c) Mr. Missling shall receive a
restricted stock grant subject to certain vesting milestones; (d) Mr. Missling
shall be able to participate in the Company&#146;s employee benefit plans; and (e)
the Company agreed to indemnify Mr. Missling in connection with his provision of
services to the Company. </P>
<P align=justify><B><I>Outstanding Equity Awards at Fiscal Year-End</I></B></P>
<P align=justify>The following table sets forth for each named executive officer
and director certain information concerning the outstanding equity awards as of
September 30, 2013.</P>
<P align=center>52</P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="17%" colSpan=4>Option Awards
    </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Stock Awards </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Equity </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Incentive </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Equity </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Plan </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Incentive </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Awards: </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Plan </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Number </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Awards: </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Equity </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">of </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Market or </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Incentive </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Unearned </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Payout </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Plan </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Number </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Shares, </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Value of </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Awards: </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">of </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Market </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Units or </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Unearned </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Number </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Number of </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Shares of </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Value of </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Other </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Shares, </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">of </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Number of </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Securities </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Units of </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Shares or </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Rights </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Units or </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Securities </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Securities </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Underlying&nbsp;&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Stock </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Units of </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">that </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Other </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Underlying </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Underlying </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center
width="7%">Unexercised&nbsp;&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Option </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">that have </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Stock that </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">have </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Rights that </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Exercisable </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center
    width="7%">Unexercisable&nbsp;&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Unearned&nbsp;&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Exercise </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Option </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">not </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">have not </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">not </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">have not </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Options </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Options </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Options </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Price </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Expiration </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Vested </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Vested </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Vested </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Vested </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=center>Name </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">(#) </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">(#) </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">(#) </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">($) </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">Date </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">(#) </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">($) </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">(#) </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="7%">($) </TD>
    <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom bgcolor="#e6efff">Christopher <BR>Missling </TD>
    <TD width="1%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">2,000,000 </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">0.40 </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">July 5, 2023 </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">4,000,000 </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">1,600,000 </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
  <TD width="2%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom bgcolor="#e6efff">Athanasios <BR>Skarpelos </TD>
    <TD width="1%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">N/A </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">N/A </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">N/A </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">N/A </TD>
  <TD width="2%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom bgcolor="#e6efff">Robert </TD>
    <TD width="1%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">N/A </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">N/A </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">N/A </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" align=center vAlign=bottom bgcolor="#e6efff">N/A </TD>
  <TD width="2%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD rowSpan=5 align=left bgcolor="#e6efff">Chisholm <BR>Sean Lowry <BR>Harvey <BR>Lalach
    <BR></TD>
    <TD width="1%" rowSpan=5 align=left bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=5 align=center bgcolor="#e6efff"><BR>Nil <BR>150,000 <BR>50,000 </TD>
    <TD width="2%" rowSpan=5 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" rowSpan=5 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=5 align=center bgcolor="#e6efff"><BR>Nil <BR>Nil </TD>
    <TD width="2%" rowSpan=5 align=center bgcolor="#e6efff"><BR><BR></TD>
    <TD width="1%" rowSpan=5 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=5 align=center bgcolor="#e6efff"><BR>Nil <BR>Nil </TD>
    <TD width="2%" rowSpan=5 align=center bgcolor="#e6efff"><BR><BR></TD>
    <TD width="1%" rowSpan=5 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=5 align=center bgcolor="#e6efff"><BR>N/A <BR>3.10 <BR>3.50 </TD>
    <TD width="2%" rowSpan=5 align=center bgcolor="#e6efff"><BR></TD>
    <TD width="1%" rowSpan=5 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=5 align=center bgcolor="#e6efff"><BR>N/A <BR>June 30, <BR>2014 </TD>
    <TD width="2%" rowSpan=5 align=center bgcolor="#e6efff"><BR></TD>
    <TD width="1%" rowSpan=5 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=5 align=center bgcolor="#e6efff"><BR>Nil <BR>Nil </TD>
    <TD width="2%" rowSpan=5 align=center bgcolor="#e6efff"><BR><BR></TD>
    <TD width="1%" rowSpan=5 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=5 align=center bgcolor="#e6efff"><BR>N/A <BR>N/A </TD>
    <TD width="2%" rowSpan=5 align=center bgcolor="#e6efff"><BR><BR></TD>
    <TD width="1%" rowSpan=5 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=5 align=center bgcolor="#e6efff"><BR>Nil <BR>Nil </TD>
    <TD width="2%" rowSpan=5 align=center bgcolor="#e6efff"><BR><BR></TD>
    <TD width="1%" rowSpan=5 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=5 align=center bgcolor="#e6efff"><BR>N/A <BR>N/A </TD>
  <TD width="2%" rowSpan=5 align=left bgcolor="#e6efff"><BR><BR></TD></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR vAlign=top></TR>
  <TR></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp; </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp; </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp; </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp; </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp; </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp; </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp; </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp; </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp; </TD>
    <TD align=center width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD rowSpan=2 align=left bgcolor="#e6efff"><B>Elliot Favus</B> <BR></TD>
    <TD width="1%" rowSpan=2 align=left bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=2 align=center bgcolor="#e6efff">Nil </TD>
    <TD width="2%" rowSpan=2 align=center bgcolor="#e6efff"><BR></TD>
    <TD width="1%" rowSpan=2 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=2 align=center bgcolor="#e6efff">Nil </TD>
    <TD width="2%" rowSpan=2 align=center bgcolor="#e6efff"><BR></TD>
    <TD width="1%" rowSpan=2 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=2 align=center bgcolor="#e6efff">Nil </TD>
    <TD width="2%" rowSpan=2 align=center bgcolor="#e6efff"><BR></TD>
    <TD width="1%" rowSpan=2 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=2 align=center bgcolor="#e6efff">N/A </TD>
    <TD width="2%" rowSpan=2 align=center bgcolor="#e6efff"><BR></TD>
    <TD width="1%" rowSpan=2 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=2 align=center bgcolor="#e6efff">N/A </TD>
    <TD width="2%" rowSpan=2 align=center bgcolor="#e6efff"><BR></TD>
    <TD width="1%" rowSpan=2 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=2 align=center bgcolor="#e6efff">Nil </TD>
    <TD width="2%" rowSpan=2 align=center bgcolor="#e6efff"><BR></TD>
    <TD width="1%" rowSpan=2 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=2 align=center bgcolor="#e6efff">N/A </TD>
    <TD width="2%" rowSpan=2 align=center bgcolor="#e6efff"><BR></TD>
    <TD width="1%" rowSpan=2 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=2 align=center bgcolor="#e6efff">Nil </TD>
    <TD width="2%" rowSpan=2 align=center bgcolor="#e6efff"><BR></TD>
    <TD width="1%" rowSpan=2 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=2 align=center bgcolor="#e6efff">N/A </TD>
    <TD width="2%" rowSpan=2 align=left bgcolor="#e6efff"><BR></TD></TR>
  <TR></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp;</TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp;</TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp;</TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp;</TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp;</TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp;</TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp;</TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp;</TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp;</TD>
    <TD align=center width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD rowSpan=2 align=left bgcolor="#e6efff"><B>Bernd</B> <BR><B>Metzner</B> </TD>
    <TD width="1%" rowSpan=2 align=left bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=2 align=center bgcolor="#e6efff">Nil </TD>
    <TD width="2%" rowSpan=2 align=center bgcolor="#e6efff"><BR></TD>
    <TD width="1%" rowSpan=2 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=2 align=center bgcolor="#e6efff">Nil </TD>
    <TD width="2%" rowSpan=2 align=center bgcolor="#e6efff"><BR></TD>
    <TD width="1%" rowSpan=2 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=2 align=center bgcolor="#e6efff">Nil </TD>
    <TD width="2%" rowSpan=2 align=center bgcolor="#e6efff"><BR></TD>
    <TD width="1%" rowSpan=2 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=2 align=center bgcolor="#e6efff">N/A </TD>
    <TD width="2%" rowSpan=2 align=center bgcolor="#e6efff"><BR></TD>
    <TD width="1%" rowSpan=2 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=2 align=center bgcolor="#e6efff">N/A </TD>
    <TD width="2%" rowSpan=2 align=center bgcolor="#e6efff"><BR></TD>
    <TD width="1%" rowSpan=2 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=2 align=center bgcolor="#e6efff">Nil </TD>
    <TD width="2%" rowSpan=2 align=center bgcolor="#e6efff"><BR></TD>
    <TD width="1%" rowSpan=2 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=2 align=center bgcolor="#e6efff">N/A </TD>
    <TD width="2%" rowSpan=2 align=center bgcolor="#e6efff"><BR></TD>
    <TD width="1%" rowSpan=2 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=2 align=center bgcolor="#e6efff">Nil </TD>
    <TD width="2%" rowSpan=2 align=center bgcolor="#e6efff"><BR></TD>
    <TD width="1%" rowSpan=2 align=center bgcolor="#e6efff">&nbsp;</TD>
    <TD width="7%" rowSpan=2 align=center bgcolor="#e6efff">N/A </TD>
    <TD width="2%" rowSpan=2 align=left bgcolor="#e6efff"><BR></TD></TR>
  <TR vAlign=top></TR></TABLE>
<P align=justify>We have not adopted any other equity compensation plan other
than our 2007 Stock Option Plan. </P>
<P align=justify><B><I>Compensation of Directors</I></B></P>
<P align=justify>The table below shows the compensation of our directors who
were not our named executive officers for the fiscal year ended September 30,
2013: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>Non-Equity</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>Nonqualified</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
  <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>Fees Earned</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>Stock</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>Option</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>Incentive Plan</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>Deferred</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>All Other</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%">&nbsp; </TD>
  <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left>&nbsp; </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>or Paid in</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>Awards</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>Awards</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>Compensation </B></TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center
      width="8%"><STRONG>Compensation</STRONG></TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center
      width="8%"><STRONG>Compensation</STRONG></TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>Total</B> </TD>
  <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left><B>Name</B> </TD>
    <TD vAlign=bottom noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>Cash</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>($)</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>($)</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>($)</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>Earnings ($)</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>($)</B> </TD>
    <TD vAlign=bottom noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom noWrap align=center width="8%"><B>($)</B> </TD>
  <TD vAlign=bottom noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>&nbsp; </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom nowrap><B>($)</B> </TD>
    <TD width="2%" align=center vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom nowrap>&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom nowrap>&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom nowrap>&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom nowrap>&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom nowrap>&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom nowrap>&nbsp; </TD>
  <TD vAlign=bottom align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom bgcolor="#e6efff">Athanasios </TD>
    <TD width="1%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
  <TD width="2%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom bgcolor="#e6efff">Skarpelos </TD>
    <TD width="1%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp; </TD>
  <TD width="2%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom bgcolor="#e6efff">Sean Lowry <SUP>(1)</SUP> </TD>
    <TD width="1%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">30,977 </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">30,977 </TD>
  <TD width="2%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom>&nbsp; </TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom bgcolor="#e6efff">Elliot Favus </TD>
    <TD width="1%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom>&nbsp; </TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=center width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left vAlign=bottom bgcolor="#e6efff">Bernd Metzner </TD>
    <TD width="1%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="1%" align=center vAlign=bottom bgcolor="#e6efff">&nbsp;</TD>
    <TD width="8%" align=center vAlign=bottom bgcolor="#e6efff">Nil </TD>
    <TD width="2%" align=left vAlign=bottom bgcolor="#e6efff">&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%">&nbsp;</TD>
    <TD vAlign=top width="3%">(1) </TD>
    <TD width="92%">
      <P align=justify>Sean Lowry was paid a fee for his service as chairman of
      the Company&#146;s audit committee.</P></TD></TR></TABLE>
<P align=justify>We reimburse our directors for expenses incurred in connection
with attending board meetings. </P>
<P align=justify>During the fiscal year ended September 30, 2013, there were no
standard arrangements pursuant to which any of our directors were compensated
for services provided in their capacity as directors.</P>
<P align=justify>We currently have no formal plan for compensating our directors
for their services in their capacity as directors, although we may elect to
issue stock options to such persons in the future. Directors are entitled to
reimbursement for reasonable travel and other out-of-pocket expenses incurred in
connection with attendance at meetings of our board of directors. Our board of
directors may award special remuneration to any director undertaking any special
services on our behalf other than services ordinarily required of a director.
</P>
<P align=justify><B><I>Retirement or Similar Benefit Plans </I></B></P>
<P align=justify>There are no arrangements or plans in which we provide
retirement or similar benefits for our directors or executive officers. </P>
<P align=justify><B><I>Resignation, Retirement, Other Termination, or Change in
Control Arrangements </I></B></P>
<P align=justify>Our employment agreement with Christopher Missling, PhD
contains provisions regarding our obligations to Mr. Missling upon his
termination and upon a change of control. In the event of a change of control,
as such term is defined in the employment agreement, all of the restricted
stock granted to Mr. Missling shall vest. Depending on the nature of the
termination of Mr. Missling&#146;s services, certain of his salary, bonus and granted
securities shall vest in the amounts at such time as set forth in the agreement.
A copy of the employment agreement is set forth in its entirety as an exhibit to
the Company&#146;s Quarterly Report on Form 10-Q filed with the SEC on August 14,
2013.</P>
<P align=center>53</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<!--$$/page=--><A name=page_59></A>
<P align=center><B>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT AND <BR>RELATED STOCKHOLDER MATTERS </B></P>
<P align=justify>The following table sets forth, as of July 1, 2014, certain
information with respect to the beneficial ownership of our common stock by each
stockholder known by us to be the beneficial owner of more than 5% of our common
stock and by each of our current directors and our named executive officers and
by our current directors and executive officers as a group. We have determined
the number and percentage of shares beneficially owned by such person in
accordance with Rule 13d-3 under the Securities Exchange Act of 1934. This
information does not necessarily indicate beneficial ownership for any other
purpose. </P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD vAlign=bottom align=center><B>Title of class</B> </TD>
    <TD vAlign=bottom align=center width="25%"><B>Name and address of</B>
      <BR><B>beneficial owner</B> </TD>
    <TD vAlign=bottom align=center width="25%"><B>Amount and nature of</B>
      <BR><B>beneficial ownership</B> </TD>
    <TD vAlign=bottom align=center width="25%"><B>Percent of</B> <B>class
      </B><B><SUP>(1)</SUP></B> </TD></TR>
  <TR vAlign=top>
    <TD vAlign=top align=center>Common Stock </TD>
    <TD vAlign=bottom align=left width="25%">Athanasios Skarpelos <BR>2, Place
      du Port <BR>Geneva, Switzerland CH 1204 </TD>
    <TD vAlign=top align=center width="25%">5,225,832 Direct </TD>
    <TD vAlign=top align=center width="25%">13.66% </TD></TR>
  <TR vAlign=top>
    <TD vAlign=top align=center>Common Stock </TD>
    <TD vAlign=bottom align=left width="25%">Christopher Missling <BR>51 W
      52nd Street, <BR>7th floor <BR>New York, NY 10019 </TD>
    <TD vAlign=top align=center width="25%">2,000,000<SUP>(2)</SUP> </TD>
    <TD vAlign=top align=center width="25%">5.23% </TD></TR>
  <TR vAlign=top>
    <TD vAlign=top align=center>Common Stock </TD>
    <TD vAlign=bottom align=left width="25%">Bernd Metzner <BR>51 W 52nd
      Street, <BR>7th floor <BR>New York, NY 10019 </TD>
    <TD vAlign=top align=center width="25%">0 </TD>
    <TD vAlign=top align=center width="25%">0% </TD></TR>
  <TR vAlign=top>
    <TD vAlign=top align=center>Common Stock </TD>
    <TD vAlign=bottom align=left width="25%">Elliot Favus <BR>51 W 52nd
      Street, <BR>7th floor <BR>New York, NY 10019 </TD>
    <TD vAlign=top align=center width="25%">0 </TD>
    <TD vAlign=top align=center width="25%">0% </TD></TR>
  <TR vAlign=top>
    <TD vAlign=top align=center>Common Stock </TD>
    <TD vAlign=bottom align=center width="25%"><B>Directors &amp;
      Executive</B> <BR><B>Officers as a group (2</B> <BR><B>persons)</B> </TD>
    <TD vAlign=top align=center width="25%"><B>7,225,832</B> </TD>
    <TD vAlign=top align=center width="25%"><B>18.89%</B> </TD></TR>
  <TR vAlign=top>
    <TD vAlign=top align=center>Common Stock </TD>
    <TD vAlign=bottom align=left width="25%">Euro Genet Labs S.A. <BR>27
      Marathonos Avenue <BR>15351 Pallini <BR>Athens, Greece </TD>
    <TD vAlign=top align=center width="25%">2,771,265 Direct </TD>
    <TD vAlign=top align=center width="25%">7.24% </TD></TR>
  <TR vAlign=top>
    <TD vAlign=top align=center>Common Stock </TD>
    <TD vAlign=bottom align=left width="25%">The Stone Hedge Ltd. <BR>Maritime
      House <BR>Frederick Street <BR>Nassau, Bahamas </TD>
    <TD vAlign=top align=center width="25%">2,306,179 Direct </TD>
    <TD vAlign=top align=center width="25%">6.03% </TD></TR>
  <TR vAlign=top>
    <TD vAlign=top align=center>Common Stock </TD>
    <TD vAlign=bottom align=left width="25%">Sphera Global Healthcare Master
      <BR>Fund* <BR>Sphera Funds Mgmt <BR>21 Ha&#146;arbaa St. <BR>Tel-Aviv, Israel
    </TD>
    <TD vAlign=top align=center width="25%">3,822,184<SUP>(3)</SUP> </TD>
    <TD vAlign=top align=center width="25%">9.99%
</TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top align=center width="5%">(1) </TD>
    <TD>
      <P align=justify>Percentage of ownership is based on 38,260,098 shares of
      our common stock issued and outstanding as of July 1, 2014. Except as
      otherwise indicated, we believe that the beneficial owners of the common
      stock listed above, based on information furnished by such owners, have
      sole investment and voting power with respect to such shares, subject to
      community property laws where applicable. Beneficial ownership is
      determined in accordance with the rules of the Securities and Exchange
      Commission and generally includes voting or investment power with respect
      to securities. Shares of common stock subject to options or warrants
      currently exercisable or exercisable within 60 days, are deemed
      outstanding for purposes of computing the percentage ownership of the
      person holding such option or warrants, but are not deemed outstanding for
      purposes of computing the percentage ownership of any <FONT
      face="Times New Roman" size=2><FONT face="Times New Roman" size=2>other
    person.</P></TD>
  </TR>
  <TR>
    <TD vAlign=top align=center width="5%">&nbsp;(2)&nbsp;</TD>
    <TD>      <P align=left><font face="Times New Roman">Includes 2,000,000 stock options that have vested. Does not
        include 4,000,000 shares of restricted common stock that vest pursuant to
  the achievement of certain objectives.</font></P></TD>
  </TR>
  <TR>
    <TD vAlign=top align=center width="5%">(3)</TD>
    <TD>      <P><font face="Times New Roman">Includes shares issuable upon conversion of the Securities up to a
        9.99% limitation applicable
  thereto.</font></P></TD>
  </TR></TABLE>
<BR>
<P align=center>54</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_60></A>
<P align=justify><B><I>Changes in Control </I></B></P>
<P align=justify>We are unaware of any contract or other arrangement the
operation of which may at a subsequent date result in a change of control of our
Company. </P>
<P align=justify><B><I>Transactions with related persons </I></B></P>
<P align=justify>Prior to his appointment as an officer and director of the
Company, Christopher Missling, PhD was employed by the Company&#146;s financial
advisor and placement agent that participated in our July, 2013 private
placement. There have been no other transactions, since October 1, 2012, or
currently proposed transactions, in which we were or are to be a participant and
the amount involved exceeds the lesser of $120,000 or one percent of the average
of our total assets at year end for the last two completed fiscal years, and in
which any of the following persons had or will have a direct or indirect
material interest:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top align=right width="5%">i.&nbsp; </TD>
    <TD>
      <P align=justify>any director or executive officer of our
  Company;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top align=right width="5%">ii&nbsp;. </TD>
    <TD>
      <P align=justify>any beneficial owner of shares carrying more than 5% of
      the voting rights attached to our outstanding shares of common stock;
      and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top align=right width="5%">iii.&nbsp; </TD>
    <TD>
      <P align=justify>any member of the immediate family (including spouse,
      parents, children, siblings and in-laws) of any of the foregoing
      persons.</P></TD></TR></TABLE>
<P align=justify><B><I>Compensation of Named Executive Officers and Directors
</I></B></P>
<P align=justify>For information regarding compensation of named executive
officers and directors, please see &#147;Item 11. Executive Compensation.&#148;</P>
<P align=justify><B><I>Director Independence </I></B></P>
<P align=justify>We deem that Christopher Missling, PhD is not independent as
that term is defined by NASDAQ 5605(a)(2) because Mr. Missling serves as our
President, Chief Executive Officer, Secretary, Treasurer and Chief Financial
Officer. We have also determined that Athanasios Skarpelos is not independent.
</P>
<P align=center><B>DESCRIPTION OF SECURITIES</B></P>
<P align=justify>We are authorized to issue 150,000,000 shares of common stock
with a par value of $0.001. As at July 1, 2014 we had 38,260,098  common shares
outstanding. Upon liquidation, dissolution or winding up of the corporation, the
holders of common stock are entitled to share ratably in all net assets
available for distribution to stockholders after payment to creditors. The
common stock is not convertible or redeemable and has no preemptive,
subscription or conversion rights. There are no conversion, redemption, sinking
fund or similar provisions regarding the common stock. Each outstanding share of
common stock is entitled to one vote on all matters submitted to a vote of
stockholders. There are no cumulative voting rights. </P>
<P align=justify>Each stockholder is entitled to receive the dividends as may be
declared by our board of directors out of funds legally available for dividends
and, in the event of liquidation, to share pro rata in any distribution of our
assets after payment of liabilities. Our board of directors is not obligated to
declare a dividend. Any future dividends will be subject to the discretion of
our board of directors and will depend upon, among other things, future
earnings, the operating and financial condition of our Company, its capital
requirements, general business conditions and other pertinent factors. It is not
anticipated that dividends will be paid in the foreseeable future.</P>
<P align=center>55</P>
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noShade SIZE=5>
<!--$$/page=--><A name=page_61></A>
<P align=justify><B>Nevada Anti-Takeover Law and Charter and Bylaws
Provisions</B> </P>
<P align=justify>Nevada Revised Statutes sections 78.378 to 78.3793 provide
state regulation over the acquisition of a controlling interest in certain
Nevada corporations unless the articles of incorporation or bylaws of the
corporation provide that the provisions of these sections do not apply. The
statute creates a number of restrictions on the ability of a person or entity to
acquire control of a Nevada company by setting down certain rules of conduct and
voting restrictions in any acquisition attempt, among other things. The statute
is limited to corporations that are organized in the state of Nevada and that
have 200 or more shareholders, at least 100 of whom are shareholders of record
and residents of the State of Nevada; and do business in the State of Nevada
directly or through an affiliated corporation. Because of these conditions, the
statute does not apply to our Company. </P>
<P align=justify>There are no provisions in our articles of incorporation or our
bylaws that would delay, defer or prevent a change in control of our
Company.</P>
<P align=justify><B>OTC Markets - OTCQB Quotation</B></P>
<P align=justify>Our common stock is quoted on the OTC Markets - OTCQB under the
trading symbol &#147;AVXL.&#148;</P>
<P align=center><B>PLAN OF DISTRIBUTION</B></P>
<P align=justify>Each Selling Security Holder of the securities and any of their
pledgees, assignees and successors-in-interest may, from time to time, sell any
or all of their securities covered hereby on the OCTQB or any other stock
exchange, market or trading facility on which the securities are traded or in
private transactions. These sales may be at fixed or negotiated prices. A
Selling Security Holder may use any one or more of the following methods when
selling securities: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center><li></li></TD>
    <TD align=left width="95%">ordinary brokerage transactions and
      transactions in which the broker-dealer solicits purchasers; </TD></TR>
  <TR vAlign=top>
    <TD align=center><li></li></TD>
    <TD align=left width="95%">block trades in which the broker-dealer will
      attempt to sell the securities as agent but may position and resell a
      portion of the block as principal to facilitate the transaction; </TD></TR>
  <TR vAlign=top>
    <TD align=center><li></li></TD>
    <TD align=left width="95%">purchases by a broker-dealer as principal and
      resale by the broker-dealer for its account; </TD></TR>
  <TR vAlign=top>
    <TD align=center><li></li></TD>
    <TD align=left width="95%">an exchange distribution in accordance with the
      rules of the applicable exchange; </TD></TR>
  <TR vAlign=top>
    <TD align=center><li></li></TD>
    <TD align=left width="95%">privately negotiated transactions; </TD></TR>
  <TR vAlign=top>
    <TD align=center><li></li></TD>
    <TD align=left width="95%">settlement of short sales; </TD></TR>
  <TR vAlign=top>
    <TD align=center><li>&nbsp;</li></TD>
    <TD align=left width="95%">in transactions through broker-dealers that
      agree with the Selling Stockholders to sell a specified number of </TD></TR>
  <TR vAlign=top>
    <TD align=center><li></li></TD>
    <TD align=left width="95%">such securities at a stipulated price per
      security; </TD></TR>
  <TR vAlign=top>
    <TD align=center><li></li></TD>
    <TD align=left width="95%">through the writing or settlement of options or
      other hedging transactions, whether through an options exchange or
      otherwise; </TD></TR>
  <TR vAlign=top>
    <TD align=center><li></li></TD>
    <TD align=left width="95%">a combination of any such methods of sale; or
    </TD></TR>
  <TR vAlign=top>
    <TD align=center><li></li></TD>
    <TD align=left width="95%">any other method permitted pursuant to
applicable law. </TD></TR></TABLE>
<P align=justify>The Selling Security Holders may also sell securities under
Rule 144 under the Securities Act, if available, rather than under this
prospectus. </P>
<P align=justify>Broker-dealers engaged by the Selling Security Holders may
arrange for other brokers-dealers to participate in sales. Broker-dealers may
receive commissions or discounts from the Selling Security Holders (or, if any
broker-dealer acts as agent for the purchaser of securities, from the purchaser)
in amounts to be negotiated, but, except as set forth in a supplement to this
prospectus, in the case of an agency transaction not in excess of a customary
brokerage commission in compliance with FINRA Rule 2440; and in the case of a
principal transaction a markup or markdown in compliance with FINRA IM-2440.</P>
<P align=justify>In connection with the sale of the securities or interests
therein, the Selling Security Holders may enter into hedging transactions with
broker-dealers or other financial institutions, which may in turn engage in
short sales of the securities in the course of hedging the positions they
assume. The Selling Security Holders may also sell securities short and deliver
these securities to close out their short positions, or loan or pledge the
securities to broker-dealers that in turn may sell these securities. The Selling
Security Holders may also enter into option or other transactions with
broker-dealers or other financial institutions or create one or more derivative
securities which require the delivery to such broker-dealer or other financial
institution of securities offered by this prospectus, which securities such
broker-dealer or other financial institution may resell pursuant to this
prospectus (as supplemented or amended to reflect such transaction). </P>
<P align=center>56</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<!--$$/page=--><A name=page_62></A>
<P align=justify>The Selling Security Holders and any broker-dealers or agents
that are involved in selling the securities may be deemed to be &#147;underwriters&#148;
within the meaning of the Securities Act in connection with such sales. In such
event, any commissions received by such broker-dealers or agents and any profit
on the resale of the securities purchased by them may be deemed to be
underwriting commissions or discounts under the Securities Act. Each Selling
Security Holder has informed the Company that it does not have any written or
oral agreement or understanding, directly or indirectly, with any person to
distribute the securities.</P>
<P align=justify>The Company is required to pay certain fees and expenses
incurred by the Company incident to the registration of the securities. The
Company has agreed to indemnify the Selling Security Holders against certain
losses, claims, damages and liabilities, including liabilities under the
Securities Act.</P>
<P align=justify>Because Selling Security Holders may be deemed to be
&#147;underwriters&#148; within the meaning of the Securities Act, they will be subject to
the prospectus delivery requirements of the Securities Act including Rule 172
thereunder. In addition, any securities covered by this prospectus which qualify
for sale pursuant to Rule 144 under the Securities Act may be sold under Rule
144 rather than under this prospectus. The Selling Security Holders have advised
us that there is no underwriter or coordinating broker acting in connection with
the proposed sale of the resale securities by the Selling Security Holders. </P>
<P align=justify>We agreed to keep this prospectus effective until the earlier
of (i) the date on which the securities may be resold by the Selling Security
Holders without registration and without regard to any volume or manner-of-sale
limitations by reason of Rule 144, without the requirement for the Company to be
in compliance with the current public information under Rule 144 under the
Securities Act or any other rule of similar effect or (ii) all of the securities
have been sold pursuant to this prospectus or Rule 144 under the Securities Act
or any other rule of similar effect. The resale securities will be sold only
through registered or licensed brokers or dealers if required under applicable
state securities laws. In addition, in certain states, the resale securities
covered hereby may not be sold unless they have been registered or qualified for
sale in the applicable state or an exemption from the registration or
qualification requirement is available and is complied with.</P>
<P align=justify>Under applicable rules and regulations under the Exchange Act,
any person engaged in the distribution of the resale securities may not
simultaneously engage in market making activities with respect to the common
stock for the applicable restricted period, as defined in Regulation M, prior to
the commencement of the distribution. In addition, the Selling Security Holders
will be subject to applicable provisions of the Exchange Act and the rules and
regulations thereunder, including Regulation M, which may limit the timing of
purchases and sales of the common stock by the Selling Security Holders or any
other person. We will make copies of this prospectus available to the Selling
Security Holders and have informed them of the need to deliver a copy of this
prospectus to each purchaser at or prior to the time of the sale (including by
compliance with Rule 172 under the Securities Act). </P>
<P align=justify>Our common stock is quoted on the OTCQB under the symbol
&#147;AVXL.&#148;</P>
<P align=center><B>LEGAL MATTERS</B></P>
<P align=justify>The validity of the securities being offered by this prospectus
has been passed upon for us by Burton Bartlett &amp; Glogovac, Reno, Nevada.</P>
<P align=center>57</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=center><B>EXPERTS</B></P>
<P align=justify>The financial statements as of September 30, 2013 and for the
year then ended included in this Prospectus and in the Registration Statement
have been so included in reliance on the report of BDO USA, LLP, an independent
registered public accounting firm (the report on the financial statements
contains an explanatory paragraph regarding the Company&#146;s ability to continue as
a going concern), appearing elsewhere herein and in the Registration Statement,
given on the authority of said firm as experts in auditing and accounting.</P>
<P align=justify>The financial statements as of September 30, 2012 and for the
year then ended included in this Prospectus and in the Registration Statement
have been so included in reliance on the report of BDO Canada LLP, an
independent registered public accounting firm (the report on the financial
statements contains an explanatory paragraph regarding the company&#146;s ability to
continue as a going concern), appearing elsewhere herein and in the Registration
Statement, given on the authority of said firm as experts in auditing and
accounting. </P>
<P align=center><B>WHERE YOU CAN FIND ADDITIONAL INFORMATION</B></P>
<P align=justify>We filed with the Securities and Exchange Commission a
registration statement under the Securities Act of 1933 for the shares of common
stock in this offering. This prospectus does not contain all of the information
in the registration statement and the exhibits and schedule that were filed with
the registration statement. For further information with respect to us and our
common stock, we refer you to the registration statement and the exhibits and
schedule that were filed with the registration statement. Statements contained
in this prospectus about the contents of any contract or any other document that
is filed as an exhibit to the registration statement are not necessarily
complete, and we refer you to the full text of the contract or other document
filed as an exhibit to the registration statement. A copy of the registration
statement and the exhibits and schedules that were filed with the registration
statement may be inspected without charge at the Public Reference Room
maintained by the Securities and Exchange Commission at 100 F Street, N.E.
Washington, DC 20549, and copies of all or any part of the registration
statement may be obtained from the Securities and Exchange Commission upon
payment of the prescribed fee. Information regarding the operation of the Public
Reference Room may be obtained by calling the Securities and Exchange Commission
at 1-800-SEC-0330. The Securities and Exchange Commission maintains a website
that contains reports, proxy and information statements, and other information
regarding registrants that file electronically with the SEC. The address of the
website is <U>www.sec.gov</U>.</P>
<P align=justify>We file periodic reports under the Securities Exchange Act of
1934, including annual, quarterly and special reports, and other information
with the Securities and Exchange Commission. These periodic reports and other
information are available for inspection and copying at the regional offices,
public reference facilities and website of the Securities and Exchange
Commission referred to above.</P>
<P align=justify>We make available free of charge on or through our internet
website our annual reports on Form 10-K, quarterly reports on Form 10-Q, current
reports on Form 8-K, and amendments to those reports filed or furnished pursuant
to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as soon as
reasonably practicable after we electronically file such material with, or
furnish it to, the Securities and Exchange Commission.</P>
<P align=center><B>DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION FOR
SECURITIES ACT <BR>LIABILITY</B></P>
<P align=justify>Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers or persons
controlling the registrant pursuant to the foregoing provisions, the registrant
has been informed that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Securities Act
and is, therefore, unenforceable.</P>
<P align=center>58</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_64></A>
<P align=center><B>ANAVEX LIFE SCIENCES CORP.</B></P>
<P align=center><B>FINANCIAL STATEMENTS</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=center width="15%">Page </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Consolidated Financial Statements For the Years Ended
      September 30, 2013 and 2012</B> </TD>
    <TD align=left width="15%">&nbsp; </TD></TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><U>Reports of Independent Registered Public
      Accounting Firms</U> </TD>
  <TD align=center width="15%"><U>F-2</U> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><U>Balance Sheets</U> </TD>
    <TD align=center width="15%"><U>F-5</U> </TD></TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><U>Statements of Operations</U> </TD>
  <TD align=center width="15%"><U>F-6</U> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><U>Statements of Cash Flow</U> </TD>
    <TD align=center width="15%"><U>F-7</U> </TD></TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><U>Statement of Changes in Capital
      Deficit</U> </TD>
  <TD align=center width="15%"><U>F-8</U> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><U>Notes to Financial Statements</U> </TD>
    <TD align=center width="15%"><U>F-14</U> </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Unaudited Interim Condensed Consolidated Financial
      Statements For the Six Months</B> </TD>
    <TD align=left width="15%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Ended March 31, 2014 and 2013</B> </TD>
    <TD align=left width="15%">&nbsp; </TD></TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><U>Balance Sheets</U> </TD>
  <TD align=center width="15%"><U>F-46</U> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><U>Statements of Operations</U> </TD>
    <TD align=center width="15%"><U>F-47</U> </TD></TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><U>Statements of Cash Flow</U> </TD>
  <TD align=center width="15%"><U>F-48</U> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><U>Statement of Changes in Capital Deficit</U> </TD>
    <TD align=center width="15%"><U>F-49</U> </TD></TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><U>Notes to Financial Statements</U> </TD>
    <TD align=center width="15%"><U>F-56</U></TD>
  </TR></TABLE>
<p>&nbsp; </p>
<P align=center>59</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-1></A>
<P align=justify>&nbsp;</P>
<P align=justify>&nbsp;</P>
<P align=justify>&nbsp;</P>
<P align=center>&nbsp;</P>
<P align=center><B>ANAVEX LIFE SCIENCES CORP.</B></P>
<P align=center>(A Development Stage Company)</P>
<P align=center>CONSOLIDATED FINANCIAL STATEMENTS</P>
<P align=center>September 30, 2013 and 2012</P>
<P align=center>&nbsp;</P>
<P align=center>&nbsp;</P>
<P align=center>F-1</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-2></A>&nbsp;<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left  ><IMG
      src="bdo.gif"
      border=0 width="114" height="60"></TD>
    <TD align=left width="25%">Tel: 212-885-8000 <BR>
      Fax: 212-697-1299 <BR>
      <B>www.bdo.com </B></TD>
    <TD align=left width="25%">100 Park Avenue <BR>
      New York, NY 10017 <BR></TD>
  </TR>
</TABLE>
<P align=justify>&nbsp;</P>
<P align=justify><B>Report of Independent Registered Public Accounting Firm </B></P>
<P align=justify>To the Directors and Stockholders, <BR>
  Anavex Life Sciences
  Corp. <BR>
  (a Development Stage Company) <BR>
  New York, NY <BR>
</P>
<P align=justify>We have audited the accompanying balance sheet of Anavex Life
  Sciences Corp. (a corporation in the development stage) as of September 30, 2013
  and the related consolidated statements of operations, cash flows, and changes
  in capital deficit for the year then ended and for the period from inception
  (January 23, 2004) to September 30, 2013. These financial statements are the
  responsibility of the Company&#146;s management. Our responsibility is to express an
  opinion on these financial statements based on our audit. We did not audit the
  consolidated statements of operations, cash flows and changes in capital deficit
  for the period from inception (January 23, 2004) to September 30, 2012. Such
  statements are included in the cumulative inception to September 30, 2013 totals
  of the consolidated statements of operations and cash flows and reflect total
  revenues and net loss of $0 and $36,954,122, respectively, of the related
  cumulative totals. Those statements were audited by other auditors whose report
  has been furnished to us, and our opinion, insofar as it relates to amounts for
  the period from inception (January 23, 2004) to September 30, 2012, included in
  the cumulative totals, is based solely on the reports of the other auditors.</P>
<P align=justify>We conducted our audit in accordance with standards of the
  Public Company Accounting Oversight Board (United States). Those standards
  require that we plan and perform the audit to obtain reasonable assurance about
  whether the consolidated financial statements are free of material misstatement.
  The Company is not required to have, nor were we engaged to perform, an audit of
  its internal control over financial reporting. Our audit included consideration
  of internal control over financial reporting as a basis for designing audit
  procedures that are appropriate in the circumstances, but not for the purpose of
  expressing an opinion on the effectiveness of the Company&#146;s internal control
  over financial reporting. Accordingly, we express no such opinion. An audit also
  includes examining, on a test basis, evidence supporting the amounts and
  disclosures in the financial statements, assessing the accounting principles
  used and significant estimates made by management, as well as evaluating the
  overall financial statement presentation. We believe that our audit provides a
  reasonable basis for our opinion. </P>
<P align=justify>In our opinion, the consolidated financial statements referred
  to above present fairly, in all material respects, the financial position of
  Anavex Life Sciences Corp. at September 30, 2013, and the results of its
  operations and its cash flows for the year then ended and for the period from
  inception to September 30, 2013, in conformity with accounting principles
  generally accepted in the United States of America. </P>
<P align=justify>&nbsp;</P>
<P align=justify><FONT size=1>BDO USA, LLP, a Delaware limited liability
  partnership, is the U.S. member of BDO International Limited, a UK company
  limited by guarantee, and forms part of the international BDO network of
  independent member firms.</FONT></P>
<P align=justify><FONT size=1>BDO is the brand name for the BDO network and for
  each of the BDO Member Firms. </FONT></P>
<P align=center>F-2</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-3></A><br>
<IMG src="bdo.gif" border=0 width="114" height="60"> <BR>
<P align=justify>&nbsp;</P>
<P align=justify>The accompanying consolidated financial statements have been
  prepared assuming that the Company will continue as a going concern. As
  described in Note 1 to the consolidated financial statements, the Company had an
  accumulated deficit of $41,204,972 and negative working capital of $1,559,211 at
  September 30, 2013 and incurred a net loss of $3,700,046 for the year then ended. These conditions raise substantial doubt about the
  Company&#146;s ability to continue as a going concern. Management&#146;s plans in regard
  to these matters are also described in Note 1. The consolidated financial
  statements do not include any adjustments that might result from the outcome of
  this uncertainty. Our opinion is not modified with respect to this matter. </P>
<P align=justify>/s/ BDO USA, LLP </P>
<P align=justify>New York, NY <BR>
  December 30, 2013 </P>
<P align=center>F-3</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-4></A><br>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left  ><IMG
      src="bdo.gif"
      border=0 width="114" height="60"></TD>
    <TD align=left width="25%">Tel: 604&nbsp; 688 5421 <BR>
      Fax: 604&nbsp; 688  5132 <BR>
      <B>www.bdo.ca </B></TD>
    <TD align=left width="25%"><p>BDO Canada LLP<br>
      600  Cathedral Place<br>
      925 West  Georgia Street<br>
      Vancouver BC&nbsp; V6C  3L2&nbsp; Canada<BR>
    </p></TD>
  </TR>
</TABLE>
<P align=justify>&nbsp;</P>
<p align="center"><b>REPORT OF  INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</b></p>
<P align=justify>To the Directors and Stockholders, <BR>
  Anavex Life Sciences
  Corp. <BR>
  (a Development Stage Company) <BR>
</P>
<p>We have audited the accompanying consolidated  balance sheet of Anavex Life Sciences Corp. (the &ldquo;Company&rdquo;) as of September 30,  2012 and the related consolidated statements of operations, cash flows and  changes in capital deficit for the year then ended and for the period from  January 23, 2004 (date of inception) to September 30, 2012. These financial  statements are the responsibility of the Company&rsquo;s management. Our  responsibility is to express an opinion on these financial statements based on  our audits.</p>
<p>We conducted our audits in accordance with the standards of the Public  Company Accounting Oversight Board (United States). Those standards require  that we plan and perform the audit to obtain reasonable assurance about whether  the financial statements are free of material misstatement. The Company is not  required to have, nor were we engaged to perform, an audit of its internal  control over financial reporting. Our audit included consideration of internal  control over financial reporting as a basis for designing audit procedures that  are appropriate in the circumstances, but not for the purpose of expressing an  opinion on the effectiveness of the Company&rsquo;s internal control over financial  reporting. Accordingly, we express no such opinion. An audit also includes  examining, on a test basis, evidence supporting the amounts and disclosures in  the financial statements. An audit also includes assessing the accounting  principles used and significant estimates made by management, as well as  evaluating the overall presentation of the financial statements. We believe  that our audits provide a reasonable basis for our opinion.</p>
<p>In our opinion, the consolidated financial statements referred to above  present fairly, in all material respects, the financial position of Anavex Life  Sciences Corp. at September 30, 2012 and the results of its operations and its  cash flows for the year then ended and for the period from January 23, 2004  (date of inception) to September 30, 2012, in conformity with accounting  principles generally accepted in the United States.</p>
<p>The  accompanying financial statements were prepared assuming that the Company will  continue as a going concern. As at September 30, 2012, the Company had an  accumulated deficit of $37,504,926 and had incurred a net loss of $8,301,705  for the year then ended. These conditions raised substantial doubt about the  Company&rsquo;s ability to continue as a going concern. Management&rsquo;s plans in regard  to these matters were described in Note 1 to the financial statements for the  period ended September 30, 2012. The financial statements did not include any  adjustments that might result from the outcome of this uncertainty.</p>
<p>/s/  BDO Canada LLP</p>
<p>Chartered  Accountants</p>
<p>Vancouver,  Canada</p>
<p>December 28,  2012</p>
<P align=justify>&nbsp;</P>
<P align=justify>&nbsp;</P>
<P align=justify><FONT size=1>BDO Canada LLP, a  Canadian limited liability partnership,&nbsp;is a member of BDO International  Limited, a UK company limited by guarantee, and forms part of the international  BDO network of independent member firms.</FONT></P>
<P align=center>F-4</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-4></A>
<P align=justify><B>ANAVEX LIFE SCIENCES CORP.</B><BR>
  (A Development Stage
  Company)<BR>
  CONSOLIDATED BALANCE SHEETS<BR>
  September 30, 2013 and 2012<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=center valign="bottom" ><B><U>ASSETS</U></B> </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="17%" align=center valign="bottom">&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="17%" align=center valign="bottom">&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="17%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">2013 </TD>
    <TD width="2%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="17%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">2012 </TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=right valign="bottom" >&nbsp;</TD>
    <TD width="17%" align=right valign="bottom">&nbsp;</TD>
    <TD width="2%" align=right valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=right valign="bottom" >&nbsp;</TD>
    <TD width="17%" align=right valign="bottom">&nbsp;</TD>
    <TD width="2%" align=right valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Current </TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Cash </TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="17%">&nbsp;345,074 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="17%">&nbsp;11,362 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Prepaid expenses </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>48,375 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Deferred financing charge </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%">1,215 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>393,449 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>12,577 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Equipment </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%">576 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="17%" bgColor=#e6efff>&nbsp;393,449 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="17%" bgColor=#e6efff>&nbsp;13,153 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center valign="bottom" bgColor=#e6efff ><B><U>LIABILITIES</U></B> </TD>
    <TD vAlign=bottom align=center width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="17%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="17%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Current </TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp; &nbsp;Accounts payable and accrued
      liabilities </TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="17%">1,741,797</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="17%">&nbsp;2,589,324 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >&nbsp; &nbsp;Promissory notes
      payable </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%" bgColor=#e6efff>210,863 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%" bgColor=#e6efff>299,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">1,952,660 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">2,888,324 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Derivative liability </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%" bgColor=#e6efff>904,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%">2,856,660 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%">2,888,324 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center valign="bottom" bgColor=#e6efff ><B><U>CAPITAL
      DEFICIT</U></B> </TD>
    <TD vAlign=bottom align=center width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="17%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="17%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Capital stock </TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" nowrap
      >&nbsp;&nbsp;&nbsp;Authorized:&nbsp;<BR>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;150,000,000
      common shares, par value $0.001 per
      share&nbsp;<BR>
      &nbsp;&nbsp;&nbsp;Issued and
      outstanding:&nbsp;<BR>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37,237,588
      common shares (September 30, 2012 - 30,240,687) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">37,238 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">30,241 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Additional paid-in capital</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>38,644,523 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>34,599,514 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Share subscriptions received </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">60,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Deficit accumulated during
      the development stage </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%" bgColor=#e6efff>(41,204,972</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%" bgColor=#e6efff>(37,504,926</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%">(2,463,211</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%">(2,875,171</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="17%" bgColor=#e6efff>&nbsp;393,449 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="17%" bgColor=#e6efff>&nbsp;13,153 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<P align=center>SEE ACCOMPANYING NOTES</P>
<P align=center>F-5</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-5></A>
<P align=justify><B>ANAVEX LIFE SCIENCES CORP.</B><BR>
  (A Development Stage
  Company)<BR>
  CONSOLIDATED STATEMENTS OF OPERATIONS<BR>
  for the years ended
  September 30, 2013 and 2012<BR>
  and for the period from January 23, 2004 (Date of
  Inception) to September 30, 2013<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="15%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="15%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="15%" align=center valign="bottom" nowrap>January 23, 2004 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD colspan="4" align=center valign="bottom" nowrap>Year ended September 30, </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="15%" align=center valign="bottom" nowrap>(Date of Inception) to </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="15%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">2013 </TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="15%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">2012 </TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      width="15%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">September 30, 2013 </TD>
    <TD
    width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Expenses </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Accounting and audit fees </TD>
    <TD vAlign=bottom align=left width="1%">$</TD>
    <TD vAlign=bottom align=right width="15%">&nbsp;136,758 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">$</TD>
    <TD vAlign=bottom align=right width="15%">&nbsp;139,761 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">$</TD>
    <TD vAlign=bottom align=right width="15%">&nbsp;798,872 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Amortization and depreciation </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>576 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>1,858 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>5,631 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Bank charges and interest </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">4,397 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">5,963 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">46,704 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Consulting fees - Note 8 and 9 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>271,898 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>1,155,366 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>12,015,989 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Insurance </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">16,125 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">10,844 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">75,121 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Investor relations </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>128,575 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>108,138 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>960,282 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Legal fees </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">176,318</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">142,923 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">846,343</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Management fees - Note 8 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>14,625 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Office and miscellaneous expense </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">4,019 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">9,147 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">151,703 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Registration and filing fees </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>33,634 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>26,794 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>188,032 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Rent and administration </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">12,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">236,670 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Research and development - Note 9 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>263,847 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>2,653,860 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>12,822,796 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Salaries and wages - Notes 8 and 9 </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">1,067,294 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">1,067,294 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Travel </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>19,695 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>66,837 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>760,850 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Website design and maintenance </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%">2,231 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%">30,648 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="15%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="15%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="15%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Loss before other income (expenses) </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">(2,137,367</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">(4,321,491</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">(30,021,560</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="15%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="15%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="15%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Other income (expenses) </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Interest and financing fees </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>(51,341</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>(138,341</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>(677,362</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Accretion of debt discount </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">(98,081</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">(2,174,661</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Change in fair value of derivative
      liability </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>15,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>67,500 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>(448,274</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Debt conversion expense </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">(504,160</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Loss on settlement of accounts payable </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>(976,880</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>(1,754,933</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Loss on extinguishment of debt </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">(495,328</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">(3,829,333</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">(5,010,868</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Foreign exchange gain (loss) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>(54,130</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>18,041 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>(62,350</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="15%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="15%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="15%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Net loss for the period </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>&nbsp;(3,700,046</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>&nbsp;(8,301,705</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>&nbsp;(40,654,168</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="15%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="15%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="15%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Basic and diluted loss per share </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>&nbsp;(0.12</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>&nbsp;(0.29</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="15%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="15%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="15%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Weighted average number of shares
      outstanding </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>31,908,441 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>28,168,784 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<P align=center>SEE ACCOMPANYING NOTES</P>
<P align=center>F-6</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-6></A>
<P align=justify><B>ANAVEX LIFE SCIENCES CORP.</B><BR>
  (A Development Stage
  Company)<BR>
  CONSOLIDATED STATEMENTS OF CASH FLOWS<BR>
  for the years ended
  September 30, 2013 and 2012<BR>
  and for the period from January 23, 2004 (Date of
  Inception) to September 30, 2013<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="15%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="15%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="15%" align=center valign="bottom" nowrap>January 23, 2004 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD colspan="4" align=center valign="bottom" nowrap>Year ended September 30, </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="15%" align=center valign="bottom" nowrap>(Date of Inception) to </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="15%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">2013 </TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="15%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">2012 </TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="15%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">September 30, 2013 </TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="15%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="15%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="15%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Cash Flows used in Operating Activities </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Net loss for the period </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="15%"
    bgColor=#e6efff>&nbsp;(3,700,046</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="15%"
    bgColor=#e6efff>&nbsp;(8,301,705</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="15%"
    bgColor=#e6efff>&nbsp;(40,654,168</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Adjustments to reconcile net loss to net cash
      used in operations: </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Amortization and depreciation </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>576 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>1,858 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>5,631 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Accretion of debt discount </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">98,081 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">2,174,661 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Stock-based compensation </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>1,002,500 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>302,208 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>5,845,047 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Amortization of deferred financing charge </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">1,215 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">62,399 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">163,927 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Change in fair value of
      derivative liability </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>(15,000</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>(67,500</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>448,274 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Consulting expense recorded in exchange for
      shares to be issued </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">236,337 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Common shares issued for
      consulting expenses </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>15,895 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>406,405 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Promissory note issued for severance </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">71,500 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Common shares issued for
      severance </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>75,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>415,600 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Common shares issued for research and
      development expenses </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">800,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Management fees contributed </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>14,625 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Debt conversion expense </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">504,160 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Loss on settlement of
      accounts payable </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>976,880 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>1,754,933 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Loss on extinguishment of debt </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">495,328 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">3,829,333 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">5,010,868 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Rent contributed </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>3,750 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Unrealized foreign exchange </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">(4,937</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">(4,937</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Changes in non-cash working
      capital balances related to operations: </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >VAT recoverable </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">809 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Prepaid expenses </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>9,630 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Accounts payable and accrued liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%">465,911 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%">2,281,052 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%">6,238,459 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Net cash used in operating
      activities </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>(777,573</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>(1,692,940</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>(16,564,928</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="15%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="15%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="15%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Cash Flows used in Investing
      Activities </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Acquisition of equipment </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%">(5,631</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Net cash used in investing
      activities </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>(5,631</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="15%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="15%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="15%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Cash Flows provided by
      Financing Activities </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Issuance of common shares, net of share issue
      costs </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">801,285 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">996,250 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">11,048,118 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Share subscriptions received </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>60,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>60,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Proceeds from promissory notes </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">250,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">581,500 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">5,649,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Financing fees </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>(8,150</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>(108,150</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Repayment of promissory note </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">(100,000</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Due to related parties </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>33,665 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Shareholder advances </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%">333,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Net cash provided by
      financing activities </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>1,111,285 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>1,569,600 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>16,915,633 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="15%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="15%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="15%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Increase (decrease) in cash
      during the period </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>333,712 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>(123,340</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>345,074 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Cash, beginning of period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%">11,362 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%">134,702 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Cash, end of period </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>&nbsp;345,074 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>&nbsp;11,362 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>&nbsp;345,074 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify>Supplemental Cash Flow Information - Note 11</P>
<P align=center>SEE ACCOMPANYING NOTES</P>
<P align=center>F-7</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-7></A>
<P align=justify><B>Anavex Life Sciences Corp.</B><BR>
  (A Development Stage
  Company)<BR>
  Consolidated Statement of Changes in Capital Deficit<BR>
  For the
  period from January 23, 2004 (Date of Inception) to September 30, 2013<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Deficit </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD colspan="10" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"> Common Stock </TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Accumulated </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Shares </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Par Value </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Additional </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Common </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>During the </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Paid-in </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Shares to be </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Development </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      width="8%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      width="8%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      width="8%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Capital </TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      width="8%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Issued </TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Stage </TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Total </TD>
    <TD
    width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for cash on January
      23, 2004 - at $0.0033 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>12,000,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;12,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;28,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;40,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Net loss from January 23, 2004 to September 30, 2004 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">(14,395</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">(14,395</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Balance, September 30, 2004 </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">12,000,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">12,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">28,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">(14,395</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">25,605 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for cash on December
      31, 2004 - at $0.0033 </TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">7,200,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">7,200 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">16,800 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">24,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Management fees contributed </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>13,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>13,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Rent contributed </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">3,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">3,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Net loss for the year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>(91,625</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>(91,625</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Balance, September 30, 2005 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>19,200,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>19,200 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>60,800 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(106,020</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(26,020</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Management fees contributed </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">1,625 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">1,625 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Rent contributed </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>750 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>750 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Debt forgiven by directors </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">33,666 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">33,666 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Net loss for the year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>(25,532</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>(25,532</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Balance, September 30, 2006 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>19,200,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>19,200 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>96,841 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(131,552</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(15,511</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Capital stock issued for research and development services
      on September 24, 2007 - at $3.60 </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">222,222 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">222 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">799,778 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">800,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for settlement of loan
      payable on September 25, 2007 - at $3.60 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>92,500 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>93 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>332,907 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>333,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Net loss for the year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">(1,579,993</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">(1,579,993</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Balance, September 30, 2007 </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">19,514,722 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">$</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;19,515 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">$</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;1,229,526 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">$</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">$</TD>
    <TD vAlign=bottom align=right width="8%">(1,711,545</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
    <TD vAlign=bottom align=left width="1%">$</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;(462,504</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
  </TR>
</TABLE>
<P align=center>SEE ACCOMPANYING NOTES</P>
<P align=center>F-8</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-8></A>
<P align=justify><B>Anavex Life Sciences Corp.</B><BR>
  (A Development Stage
  Company)<BR>
  Consolidated Statement of Changes in Capital Deficit<BR>
  For the
  period from January 23, 2004 (Date of Inception) to September 30, 2013<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=center nowrap>&nbsp;</TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>&nbsp;</TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>&nbsp;</TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>&nbsp;</TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>Deficit </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD colspan="10" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"> Common Stock </TD>
    <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>Accumulated </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=center nowrap>Shares </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>Par Value </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>Additional </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>Common </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>During the </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=center nowrap>&nbsp;</TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>&nbsp;</TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>Paid-in </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>Shares to be </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>Development </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="8%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="8%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="8%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Capital </TD>
    <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="8%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Issued </TD>
    <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="8%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Stage </TD>
    <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="8%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Total </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Balance, September 30, 2007 -
      brought forward </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>19,514,722 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;19,515 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;1,229,526 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%"
    bgColor=#e6efff>&nbsp;(1,711,545</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;(462,504</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Capital stock issued for cash on December 10,
      2007 - at $3.50 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">150,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">150 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">524,850 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">525,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Capital stock issued for
      consulting services on December 18, 2007 - at $3.86 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>50,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>50 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>192,950 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>193,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Capital stock issued in settlement of debt on
      December 18, 2007 - at $4.50 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">10,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">10 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">44,990 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">45,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Stock-based compensation for
      shares issued at a discount </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>65,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>65,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Capital stock issued for severance on May 15,
      2008 - at $5.24 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">65,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">65 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">340,535 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">340,600 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Common shares to be issued
      for consulting services </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>252,599 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>252,599 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Common stock issued for consulting services
      on August 19, 2008 - at $5.07 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">25,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">25 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">126,725 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">(126,750</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Capital stock issued for cash
      on August 19, 2008 - at $4.25 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>142,698 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>142 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>606,325 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>606,467 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Stock-based compensation </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">1,493,937 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">1,493,937 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Net loss for the year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>(5,351,269</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>(5,351,269</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Balance, September 30, 2008 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>19,957,420 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;19,957 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;4,624,838 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;125,849 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%"
    bgColor=#e6efff>&nbsp;(7,062,814</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%"
    bgColor=#e6efff>&nbsp;(2,292,170</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
</TABLE>
<P align=center>SEE ACCOMPANYING NOTES</P>
<P align=center>F-9</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-9></A>
<P align=justify><B>Anavex Life Sciences Corp.</B><BR>
  (A Development Stage
  Company)<BR>
  Consolidated Statement of Changes in Capital Deficit<BR>
  For the
  period from January 23, 2004 (Date of Inception) to September 30, 2013<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=center nowrap>&nbsp;</TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>&nbsp;</TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>&nbsp;</TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>&nbsp;</TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>Deficit </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD colspan="10" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"> Common Stock </TD>
    <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>Accumulated </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=center nowrap>Shares </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>Par Value </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>Additional </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>Common </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>During the </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=center nowrap>&nbsp;</TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>&nbsp;</TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>Paid-in </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>Shares to be </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>Development </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="8%" align=center nowrap>&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="8%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="8%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="8%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Capital </TD>
    <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="8%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Issued </TD>
    <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="8%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Stage </TD>
    <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="8%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Total </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Balance, September 30, 2008 -
      brought forward </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>19,957,420 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;19,957 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;4,624,838 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;125,849 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%"
    bgColor=#e6efff>&nbsp;(7,062,814</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%"
    bgColor=#e6efff>&nbsp;(2,292,170</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Stock-based compensation </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">812,336 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">812,336 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Capital stock issued for
      consulting services on November 20, 2008 - $2.63 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>25,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>25 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>65,725 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(65,750</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Capital stock issued for consulting services
      on February 20, 2009 - $2.50 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">25,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">25 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">62,475 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">(62,500</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Capital stock issued for cash
      on March 6, 2009 - at $2.25 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>89,148 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>89 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>200,494 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>200,583 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Capital stock issued for consulting services
      on March 20, 2009 - at $2.00 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">2,500 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">3 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">4,997 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">5,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Capital stock issued for cash
      on March 20, 2009 - at $2.25 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>10,800 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>11 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>24,289 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>24,300 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Capital stock issued for cash on June 11,
      2009 - at $2.25 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">36,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">36 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">80,964 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">81,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Capital stock issued for
      services on June 11, 2009 - at $2.25 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>29,227 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>29 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>65,731 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>65,760 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Capital stock issued for cash on June 19,
      2009 - at $2.25 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">495,556 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">496 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">1,114,504 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">1,115,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Capital stock issued for
      finders' fees on June 26, 2009 - at $2.51 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>22,222 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>22 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>55,755 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>55,777 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Shares to be issued for consulting services -
      Note 8 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">236,337 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">236,337 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Capital stock issued for cash
      on August 19, 2009 - at $2.25 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>128,888 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>129 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>289,869 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>289,998 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Less: Finders fees </TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">(72,850</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">(72,850</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Beneficial conversion
      features on convertible debt issuances </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>333,056 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>333,056 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Extinguishment of debt </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">487,469 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">487,469 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Cancellation of common shares </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(75,000</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(75</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>234,011 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(233,936</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Share subscriptions received </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">300,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">300,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Net loss for the year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>(5,499,419</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>(5,499,419</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Balance, September 30, 2009 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>20,746,761 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;20,747 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;8,383,663 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;300,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%"
    bgColor=#e6efff>&nbsp;(12,562,233</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%"
    bgColor=#e6efff>&nbsp;(3,857,823</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
</TABLE>
<P align=center>SEE ACCOMPANYING NOTES</P>
<P align=center>F-10</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-10></A>
<P align=justify><B>Anavex Life Sciences Corp.</B><BR>
  (A Development Stage
  Company)<BR>
  Consolidated Statement of Changes in Capital Deficit<BR>
  For the
  period from January 23, 2004 (Date of Inception) to September 30, 2013<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Deficit </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD colspan="10" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"> Common Stock </TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Accumulated </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Shares </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Par Value </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Additional </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Common </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>During the </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Paid-in </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Shares to be </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Development </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="8%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="8%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="8%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Capital </TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="8%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Issued </TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Stage </TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Total </TD>
    <TD width="2%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=right valign="bottom" >&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">&nbsp;</TD>
    <TD width="2%" align=right valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=right valign="bottom" >&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">&nbsp;</TD>
    <TD width="2%" align=right valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=right valign="bottom" >&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">&nbsp;</TD>
    <TD width="2%" align=right valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=right valign="bottom" >&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">&nbsp;</TD>
    <TD width="2%" align=right valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=right valign="bottom" >&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">&nbsp;</TD>
    <TD width="2%" align=right valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=right valign="bottom" >&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">&nbsp;</TD>
    <TD width="2%" align=right valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Balance, September 30, 2009 -
      brought forward </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>20,746,761 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;20,747 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;8,383,663 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;300,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%"
    bgColor=#e6efff>&nbsp;(12,562,233</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%"
    bgColor=#e6efff>&nbsp;(3,857,823</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Cumulative effect of accounting changes </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">(333,056</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">(550,804</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">(883,860</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Capital stock issued for cash
      on October 2, 2009 - at $2.25 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>266,666 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>267 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>599,733 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(300,000</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>300,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Capital stock issued in settlement of
      promissory note on February 2, 2010 - at $2.02 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">49,505 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">49 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">99,951 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">100,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Capital stock issued for cash
      on April 9, 2010 - at $2.60 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>92,499 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>93 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>240,405 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>240,498 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Capital stock issued in settlement of debt on
      April 30, 2010 - at $2.85 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">9,825 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">9 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">27,991 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">28,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Finders' fees paid in cash</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(24,050</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(24,050</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Capital stock issued for cash on June 29,
      2010 - at $2.50 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">941,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">941 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">2,351,559 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">2,352,500 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Finders' fees paid in cash</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(206,500</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(206,500</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Capital stock issued in settlement of debt on
      July 5, 2010 - at $2.50 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">400,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">400 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">999,600 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">1,000,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Capital stock issued for cash
      on September 3, 2010 - at $2.75 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>163,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>163 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>448,087 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>448,250 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Capital stock issued for finders' fees on
      September 3, 2010 - at $2.75 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">9,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">9 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">(9</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Finders' fees paid in cash</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(15,125</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(15,125</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Shares issud on conversion of promissory note
      on September 30, 2010 - at $2.25 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">328,058 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">328 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">737,802 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">738,130 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Shares issud on conversion of
      promissory note on September 30, 2010 - at $2.35 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>510,638 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>511 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>1,199,489 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>1,200,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Reclassification of dervative liability on
      modification of note </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">3,144,520 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">3,144,520 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Settlementterms of accounts
      payable </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>444,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>444,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Stock-based compensation </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">770,055 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">770,055 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Equity component of
      convertible promissory note </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>44,220 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>44,220 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Net loss for the year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">(8,783,037</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">(8,783,037</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Balance, September 30, 2010 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">23,516,952 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;23,517 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;18,912,335 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;(21,896,074</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;(2,960,222</TD>
    <TD vAlign=bottom align=left width="2%" >)</TD>
  </TR>
</TABLE>
<P align=center>SEE ACCOMPANYING NOTES</P>
<P align=center>F-11</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-11></A>
<P align=justify><B>Anavex Life Sciences Corp.</B><BR>
  (A Development Stage
  Company)<BR>
  Consolidated Statement of Changes in Capital Deficit<BR>
  For the
  period from January 23, 2004 (Date of Inception) to September 30, 2013<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=center valign="bottom">&nbsp;</TD>
    <TD width="1%" align=center valign="bottom">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Deficit </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center valign="bottom">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD colspan="10" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"> Common Stock </TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Accumulated </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center valign="bottom">&nbsp;</TD>
    <TD width="1%" align=center valign="bottom">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Shares </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Par Value </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Additional </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Common </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>During the </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center valign="bottom">&nbsp;</TD>
    <TD width="1%" align=center valign="bottom">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Paid-in </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Shares to be </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>Development </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center valign="bottom">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      width="8%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      width="8%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      width="8%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Capital </TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      width="8%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Issued </TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Stage </TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Total </TD>
    <TD
    width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD align=center valign="bottom">&nbsp;</TD>
    <TD width="1%" align=center valign="bottom">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom">&nbsp;</TD>
    <TD width="2%" align=center valign="bottom">&nbsp;</TD>
    <TD width="1%" align=center valign="bottom">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom">&nbsp;</TD>
    <TD width="2%" align=center valign="bottom">&nbsp;</TD>
    <TD width="1%" align=center valign="bottom">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom">&nbsp;</TD>
    <TD width="2%" align=center valign="bottom">&nbsp;</TD>
    <TD width="1%" align=center valign="bottom">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom">&nbsp;</TD>
    <TD width="2%" align=center valign="bottom">&nbsp;</TD>
    <TD width="1%" align=center valign="bottom">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom">&nbsp;</TD>
    <TD width="2%" align=center valign="bottom">&nbsp;</TD>
    <TD width="1%" align=center valign="bottom">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom">&nbsp;</TD>
    <TD width="2%" align=right valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Balance, September 30, 2010 - brought
      forward </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>23,516,952 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;23,517 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;18,912,335 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%"
    bgColor=#e6efff>&nbsp;(21,896,074</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%"
    bgColor=#e6efff>&nbsp;(2,960,222</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#ffffff>Capital stock issued for cash on November
      18, 2010 - at $2.75 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>393,846 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>393 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>1,082,682 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>1,083,075 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Less: Share issue costs </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(65,363</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(65,363</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#ffffff>Capital stock issued for finders' fees on
      November 18, 2010 - at $2.75 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>3,636 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>4 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>(4</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Shares issued on the conversion of
      promissory note on November 18, 2010 - at $2.25 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>853,075 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>853 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>1,918,565 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>1,919,418 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#ffffff>Debt conversion expense </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>504,160 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>504,160 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Shares issued on the conversion of a
      promissory note on November 18, 2010 - at $4.12 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>145,063 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>145 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>597,515 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>597,660 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#ffffff>Capital stock issued in settlement of debt
      on November 18, 2010 - at $4.12 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>181,818 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>182 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>748,908 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>749,090 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for cash on November
      25, 2010 - at $3.35 </TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff></TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>29,851 </TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff></TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff></TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>30 </TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff></TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff></TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>99,970 </TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff></TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff></TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff></TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff></TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff></TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff></TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>100,000 </TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#ffffff>Capital stock issued for finders' fees on
      on November 25, 2010 - at $3.35 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>2,985 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>3 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>(3</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for cash on February
      1, 2011 - at $3.75 </TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>61,014 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>61 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>228,739 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>228,800 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for cash on May 3,
      2011 - at $3.00 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>33,334 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>34 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>99,966 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>100,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#ffffff>Capital stock issued on exercise of
      warrants for cash on June 19, 2011 - at $2.25 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>700,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>700 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>1,574,300 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>1,575,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Equity units issued in settlement of an
      account payable on September 28, 2011 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>650,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>650 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>1,059,313 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff></TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff></TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>1,059,963 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#ffffff>Stock-based compensation </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>1,273,162 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>1,273,162 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Net loss for the period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>(7,307,147</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>(7,307,147</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#ffffff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Balance, September 30, 2011 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>26,571,574 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;26,572 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;28,034,245 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%"
    bgColor=#e6efff>&nbsp;(29,203,221</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%"
    bgColor=#e6efff>&nbsp;(1,142,404</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>)</TD>
  </TR>
</TABLE>
<P align=center>SEE ACCOMPANYING NOTES</P>
<P align=center>F-12</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-12></A>
<P align=justify><B>Anavex Life Sciences Corp.</B><BR>
  (A Development Stage
  Company)<BR>
  Consolidated Statement of Changes in Capital Deficit<BR>
  For the
  period from January 23, 2004 (Date of Inception) to September 30, 2013<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=center width="8%">&nbsp;</TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="8%">&nbsp;</TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="8%">&nbsp;</TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="8%">&nbsp;</TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="8%">Deficit </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="8%">&nbsp;</TD>
    <TD align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD colspan="10" align=center style="BORDER-BOTTOM: #000000 1px solid"> Common Stock </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
    width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="8%">Accumulated </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="8%">&nbsp;</TD>
    <TD align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=center width="8%">Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="8%">Par Value </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="8%">Additional </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="8%">Common </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="8%">During the </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="8%">&nbsp;</TD>
    <TD align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=center width="8%">&nbsp;</TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="8%">&nbsp;</TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="8%">Paid-in </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="8%">Shares to be </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="8%">Development </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="8%">&nbsp;</TD>
    <TD align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="8%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="8%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="8%">Capital </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="8%">Issued </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="8%">Stage </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="8%">Total </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Balance, September 30, 2011 - brought
      forward </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>26,571,574 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;26,572 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;28,034,245 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%"
    bgColor=#e6efff>&nbsp;(29,203,221</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%"
    bgColor=#e6efff>&nbsp;(1,142,404</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Capital stock issued for cash on December
      6, 2011 - at $1.25 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>615,600 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>616 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>768,884 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>769,500 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Less: Share issue costs </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">(77,000</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">(77,000</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Capital stock issued for cash on February 9, 2012 - at
      $1.25 </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">270,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">270 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">337,230 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">337,500 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Less: Share issue costs </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(33,750</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(33,750</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Equity units issued for services on
      February 9, 2012 - at $1.99 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>8,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>8 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>15,888 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>15,896 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Equity units issued for settlement of loans payable on May
      31, 2012 </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">2,700,513 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">2,700 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">5,176,884 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">5,179,584 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Capital stock issued for services on July
      12, 2012 - at $1.00 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>75,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>75 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>74,925 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>75,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Stock-based compensation </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">302,208 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">302,208 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net loss for the period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>(8,301,705</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%" bgColor=#e6efff>(8,301,705</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Balance, September 30, 2012 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>30,240,687 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>30,241 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>34,599,514 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(37,504,926</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(2,875,171</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Equity units issued for settlement of loans payable on July
      5, 2013 - Note 5 </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">4,208,910 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">4,209 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">2,563,011 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">2,567,220 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Capital stock issued for cash on July 5, 2013 - at $0.40 -
      Note 6 </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">2,196,133 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">2,196 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">563,257 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">565,453 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Less: Share issue costs </TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(112,174</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(112,174</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Initial purchase shares issued under equity line on July 5,
      2013 - at $0.40 - Note 7 </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">591,858 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">592 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">99,750 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">100,342 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Less: Share issue costs </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(71,335</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>(71,335</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Common stock to be issued for cash - at $0.50 </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">60,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">60,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Stock-based compensation </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>1,002,500 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>1,002,500 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Net loss for the period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">(3,700,046</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="8%">(3,700,046</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Balance, September 30, 2013 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="8%">37,237,588 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="8%">&nbsp;37,238 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="8%">&nbsp;38,644,523 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="8%">&nbsp;60,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="8%">&nbsp;(41,204,972</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="8%">&nbsp;(2,463,211</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%">) </TD>
  </TR>
</TABLE>
<P align=center>SEE ACCOMPANYING NOTES</P>
<P align=center>F-13</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-13></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 1 </TD>
    <TD align=left width="90%" ><U>Business Description, Basis of
      Presentation and Liquidity</U> </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>Business </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>Anavex Life Sciences Corp. (the &#147;Company&#148;) is a
      pharmaceutical company engaged in the development of drug candidates. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>The Company&#146;s lead compound, ANAVEX 2-73 is being
      developed to treat Alzheimer&#146;s disease through disease modification. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>In pre-clinical studies conducted in France, and in
      Greece, ANAVEX 2-73 demonstrated anti- amnesic and neuroprotective
      properties. Based on these pre-clinical studies, the Company sponsored a
      Phase 1 single ascending dose study of ANAVEX 2-73, which was initiated
      and completed in 2011. This study was conducted in Germany in
      collaboration with ABX-CRO Advanced Pharmaceutical Services. The study
      indicated that ANAVEX 2-73 was well tolerated by study subjects in doses
      up to 55mg. During the year ended September 30, 2013, clinical trials had
      been delayed due to lack of funding. On July 5, 2013, the Company
      completed the closing of a private placement offering and a $10,000,000
      purchase agreement (Note 7), the proceeds from which the Company will use
      to further its business plan and clinical trials of ANAVEX 2-73. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>The Company plans to initiate a multiple ascending dose
      study of ANAVEX 2-73 in the first half of fiscal year 2014. Additionally
      we intend to identify and initiate discussions with potential partners in
      the next 12 months. Further, we may acquire or develop new intellectual
      property and assign, license, or otherwise transfer our intellectual
      property to further our goals. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>Basis of Presentation and Liquidity </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>These financial statements have been prepared in
      accordance with accounting principles generally accepted in the United
      States of America and the instructions to Form 10-K. </P></TD>
  </TR>
</TABLE>
<BR>
<P align=center>F-14</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-14></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 2<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 1 </TD>
    <TD align=left width="90%" ><U>Business Description, Basis of
      Presentation and Liquidity </U>&#150; (cont&#146;d) </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America on a going concern basis, which assumes that the Company will continue to realize its assets and discharge its obligations and commitments in the normal course of operations. Realization values may be substantially different from carrying values as shown, and these financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern. At September 30, 2013, the Company had an accumulated deficit of $41,204,972 (2012 - $37,504,926), had a working capital deficit of $1,559,211 and expects to incur further losses in the development of its business, all of which casts substantial doubt about the Company&#146;s ability to continue as a going concern. The Company&#146;s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has no formal plan in place to address this but considers obtaining additional funds by equity financing and/or from issuing promissory notes. Management expects the Company's cash requirement over the next twelve months to be approximately $6,000,000. While the Company is expending its best efforts to achieve the above plans, there is no assurance that any such activity will generate funds for operations.</P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Note 2 </TD>
    <TD align=left width="90%" ><U>Summary of Significant
      Accounting Policies</U> </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">a) </TD>
    <TD><P align=justify>Use of Estimates</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>The preparation of financial statements in accordance
      with accounting principles generally accepted in the United States of
      America requires management to make estimates and assumptions that affect
      the reported amounts of assets and liabilities at the date of the
      financial statements and the reported amounts of revenue and expenses in
      the reporting period. The Company regularly evaluates estimates and
      assumptions related to deferred income tax asset valuations, asset
      impairment, conversion features embedded in convertible notes payable,
      derivative valuations, stock based compensation and loss contingencies.
      The Company bases its estimates and assumptions on current facts,
      historical experience and various other factors that it believes to be
      reasonable under the circumstances, the results of which form the basis
      for making judgments about the carrying values of assets and liabilities
      and the accrual of costs and expenses that are not readily apparent from
      other sources. The actual results experienced by the Company may differ
      materially and adversely from the Company&#146;s estimates. To the extent there
      are material differences between the estimates and the actual results,
      future results of operations will be affected.</P></TD>
  </TR>
</TABLE>
<BR>
<P align=center>F-15</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-15></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 3<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 2 </TD>
    <TD align=left width="90%" ><U>Summary of Significant
      Accounting Policies </U>&#150; (cont&#146;d) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">b) </TD>
    <TD><P align=justify>Principles of Consolidation</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>These consolidated financial statements include the
      accounts of Anavex Life Sciences Corp. and its wholly-owned subsidiary,
      Anavex Life Sciences (France) SA, a company incorporated under the laws of
      France. All inter-company transactions and balances have been
      eliminated.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">c) </TD>
    <TD><P align=justify>Development Stage Company</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>The Company is devoting substantially all of its present
      efforts to establish a new business and none of its planned principal
      operations have commenced. All losses accumulated since inception have
      been considered as part of the Company&#146;s development stage
      activities.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">d) </TD>
    <TD><P align=justify>Equipment</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>Equipment is recorded at cost and is depreciated at 33%
      per annum on the straight-line basis.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">e) </TD>
    <TD><P align=justify>Impairment of Long-Lived Assets</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>The Company reviews the recoverability of its long-lived
      assets whenever events or changes in circumstances indicate that the
      carrying amount of such assets may not be recoverable. The estimated
      future cash flows are based upon, among other things, assumptions about
      future operating performance, and may differ from actual cash flows.
      Long-lived assets evaluated for impairment are grouped with other assets
      to the lowest level for which identifiable cash flows are largely
      independent of the cash flows of other groups of assets and liabilities.
      If the sum of the projected undiscounted cash flows (excluding interest)
      is less than the carrying value of the assets, the assets will be written
      down to the estimated fair value in the period in which the determination
      is made.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">f) </TD>
    <TD><P align=justify>Financial Instruments</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>The carrying value of the Company&#146;s financial
      instruments, consisting of cash and accounts payable and accrued
      liabilities approximate their fair value due to the short-term maturity of
      such instruments. Based on borrowing rates currently available to the
      Company for similar terms and based on the short term duration of the debt
      instruments, the carrying value of the promissory notes payable
      approximate their fair value. Unless otherwise noted, it is management&#146;s
      opinion that the Company is not exposed to significant interest, currency
      or credit risks arising from these financial
      instruments.</P></TD>
  </TR>
</TABLE>
<BR>
<P align=center>F-16</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-16></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 4<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 2 </TD>
    <TD align=left width="90%" ><U>Summary of Significant
      Accounting Policies </U>&#150; (cont&#146;d) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">g) </TD>
    <TD><P align=justify>Foreign Currency Translation</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>The functional currency of the Company is the US dollar.
      Monetary items denominated in a foreign currency are translated into US
      dollars at exchange rates prevailing at the balance sheet date and
      non-monetary items are translated at exchange rates prevailing when the
      assets were acquired or obligations incurred. Foreign currency denominated
      expense items are translated at exchange rates prevailing at the
      transaction date. Unrealized gains or losses arising from the translations
      are credited or charged to income in the period in which they
      occur.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">h) </TD>
    <TD><P align=justify>Research and Development Expenses</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>Research and developments costs are expensed as incurred.
      These expenses are comprised of the costs of the Company&#146;s proprietary
      research and development efforts, including salaries, facilities costs,
      overhead costs and other related expenses as well as costs incurred in
      connection with third-party collaboration efforts. Milestone payments made
      by the Company to third parties are expensed when the specific milestone
      has been achieved.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>In addition, the Company incurs expenses in respect of
      the acquisition of intellectual property relating to patents. The
      probability of success and length of time to developing commercial
      applications of the drugs subject to the acquired patents and trademarks
      is difficult to determine and numerous risks and uncertainties exist with
      respect to the timely completion of the development projects. There is no
      assurance the acquired patents will ever be successfully commercialized.
      Due to these risks and uncertainties, the acquisition costs of patents do
      not meet the definition of an asset and thus are expensed as
      incurred.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">i) </TD>
    <TD><P align=justify>Income Taxes</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>The Company has adopted the asset and liability method of
      accounting for income taxes. Under the asset and liability method,
      deferred tax assets and liabilities are recognized for the future tax
      consequences attributable to temporary differences between the financial
      statements carrying amounts of existing assets and liabilities and their
      respective tax bases. Deferred tax assets and liabilities are measured
      using enacted tax rates expected to apply to taxable income in the years
      in which those temporary differences are expected to be recovered or
      settled.</P></TD>
  </TR>
</TABLE>
<BR>
<P align=center>F-17</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-17></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 5<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 2 </TD>
    <TD align=left width="90%" ><U>Summary of Significant
      Accounting Policies </U>&#150; (cont&#146;d) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">i) </TD>
    <TD><P align=justify>Income Taxes &#150; (cont&#146;d)</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>The Company has adopted the provisions of FASB ASC 740
      "Income Taxes" regarding accounting for uncertainty in income taxes. The
      Company initially recognizes tax positions in the financial statements
      when it is more likely than not the position will be sustained upon
      examination by the tax authorities. Such tax positions are initially and
      subsequently measured as the largest amount of tax benefit that is greater
      than 50% likely of being realized upon ultimate settlement with the tax
      authority, assuming full knowledge of the position and all relevant facts.
      Application requires numerous estimates based on available information.
      The Company considers many factors when evaluating and estimating its tax
      positions and tax benefits, and its recognized tax positions and tax
      benefits may not accurately anticipate actual outcomes. As additional
      information is obtained, there may be a need to periodically adjust the
      recognized tax positions and tax benefits. These periodic adjustments may
      have a material impact on the consolidated statements of
      operations.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">j) </TD>
    <TD><P align=justify>Basic and Diluted Loss per Share</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>The basic loss per common share is computed by dividing
      net loss available to common stockholders by the weighted average number
      of common shares outstanding. Diluted loss per common share is computed
      similar to basic loss per common share except that the denominator is
      increased to include the number of additional common shares that would
      have been outstanding if the potential common shares had been issued and
      if the additional common shares were dilutive. For the year ended
      September 30, 2013, loss per share excludes 12,224,479 (2012 &#150; 6,025,141)
      potentially dilutive common shares (related to outstanding options and
      warrants) as their effect was anti-dilutive.</P></TD>
  </TR>
</TABLE>
<BR>
<P align=center>F-18</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-18></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 6<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 2 </TD>
    <TD align=left width="90%" ><U>Summary of Significant
      Accounting Policies </U>&#150; (cont&#146;d) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">k) </TD>
    <TD><P align=justify>Stock-based Compensation</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>The Company accounts for all stock-based payments and
      awards under the fair value based method.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>Stock-based payments to non-employees are measured at the
      fair value of the consideration received, or the fair value of the equity
      instruments issued, or liabilities incurred, whichever is more reliably
      measurable. The fair value of stock-based payments to non-employees is
      periodically re-measured until the counterparty performance is complete,
      and any change therein is recognized over the vesting period of the award
      and in the same manner as if the Company had paid cash instead of paying
      with or using equity based instruments. Compensation costs for stock-based
      payments with graded vesting are recognized on a straight-line basis. The
      cost of the stock-based payments to non- employees that are fully vested
      and non-forfeitable as at the grant date is measured and recognized at
      that date, unless there is a contractual term for services in which case
      such compensation would be amortized over the contractual term.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>The Company accounts for the granting of share purchase
      options to employees using the fair value method whereby all awards to
      employees will be recorded at fair value on the date of the grant. The
      fair value of all share purchase options are expensed over their vesting
      period with a corresponding increase to additional paid-in
      capital.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>The Company uses the Black-Scholes option valuation model
      to calculate the fair value of share purchase options at the date of the
      grant. Option pricing models require the input of highly subjective
      assumptions, including the expected price volatility. Changes in these
      assumptions can materially affect the fair value estimates.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">l) </TD>
    <TD><P align=justify>Fair Value Measurements</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>The fair value hierarchy under GAAP is based on three
      levels of inputs, of which the first two are considered observable and the
      last unobservable, that may be used to measure fair value which are the
      following:</P></TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="15%"  >&nbsp;</TD>
    <TD align=left>Level 1 - </TD>
    <TD align=left width="78%" ><P align=justify>quoted prices (unadjusted) in active markets for
      identical assets or liabilities; </P></TD>
  </TR>
  <TR>
    <TD width="15%" >&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="78%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" ></TD>
    <TD align=left>Level 2 - </TD>
    <TD align=left width="78%"  ><P align=justify>observable inputs other than Level I, quoted prices for
      similar assets or liabilities in active markets, quoted prices for
      identical or similar assets and liabilities in markets that are not
      active, and model-derived prices whose inputs are observable or whose
      significant value drivers are observable; and </P></TD>
  </TR>
  <TR>
    <TD width="15%" >&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="78%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" ></TD>
    <TD align=left>Level 3 - </TD>
    <TD align=left width="78%" ><P align=justify>assets and liabilities whose significant value drivers
      are unobservable by little or no market activity and that are significant
      to the fair value of the assets or liabilities. </P></TD>
  </TR>
</TABLE>
<BR>
<P align=center>F-19</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-19></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 7<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 2 </TD>
    <TD align=left width="90%" ><U>Summary of Significant
      Accounting Policies </U>&#150; (cont&#146;d) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">l) </TD>
    <TD><P align=justify>Fair Value Measurements &#150; (cont&#146;d)</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>The book value of cash and accounts payable and accrued
      liabilities approximate their fair values due to the short term maturity
      of those instruments. Based on borrowing rates currently available to the
      Company under similar terms, the book value of promissory notes payable
      approximates their fair values. The Company&#146;s promissory notes payable are
      based on Level 2 inputs in the ASC 820 fair value hierarchy.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>At September 30, 2013, the Company&#146;s Level 3 liabilities
      consisted of share purchase warrants that are required to be accounted for
      as liabilities pursuant to ASC 815 because the terms of the warrants
      contain provisions that are in violation of the fixed for fixed criteria
      of that guidance.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>The Company calculated the fair value at the inception of
      these contracts and as at September 30, 2013 using the binomial option
      pricing model to determine the fair value, using the following
      assumptions:</P></TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="15%"  >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="20%">&nbsp;</TD>
    <TD align=right width="20%">At September </TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="20%">At inception </TD>
    <TD align=right width="20%">30, 2013 </TD>
  </TR>
  <TR>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left  >&nbsp;</TD>
    <TD align=center width="20%" >&nbsp;</TD>
    <TD align=right width="20%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Risk-free interest rate </TD>
    <TD align=right width="20%" bgColor=#e6efff>0.28% </TD>
    <TD align=right width="20%" bgColor=#e6efff>0.10% </TD>
  </TR>
  <TR>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left  >&nbsp;</TD>
    <TD align=right width="20%" >&nbsp;</TD>
    <TD align=right width="20%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Expected life (years) </TD>
    <TD align=right width="20%" bgColor=#e6efff>1.49 </TD>
    <TD align=right width="20%" bgColor=#e6efff>1.25 </TD>
  </TR>
  <TR>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left  >&nbsp;</TD>
    <TD align=right width="20%" >&nbsp;</TD>
    <TD align=right width="20%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Expected volatility </TD>
    <TD align=right width="20%" bgColor=#e6efff>81.57% </TD>
    <TD align=right width="20%" bgColor=#e6efff>77.51% </TD>
  </TR>
  <TR>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left  >&nbsp;</TD>
    <TD align=right width="20%" >&nbsp;</TD>
    <TD align=right width="20%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Stock price </TD>
    <TD align=right width="20%" bgColor=#e6efff>$0.61 </TD>
    <TD align=right width="20%" bgColor=#e6efff>$0.65 </TD>
  </TR>
  <TR>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left  >&nbsp;</TD>
    <TD align=right width="20%" >&nbsp;</TD>
    <TD align=right width="20%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Dividend yields </TD>
    <TD align=right width="20%" bgColor=#e6efff>0.00% </TD>
    <TD align=right width="20%" bgColor=#e6efff>0.00% </TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 15%" align=justify>Certain assets and liabilities are
  measured at fair value on a nonrecurring basis; that is, the instruments are not
  measured at fair value on an ongoing basis but are subject to fair value
  adjustments only in certain circumstances (for example, when there is evidence
  of impairment). There were no assets or liabilities measured at fair value on a
  nonrecurring basis during the periods ended September 30, 2013 and 2012. </P>
<P align=center>F-20</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-20></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 8<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 2 </TD>
    <TD align=left width="90%" ><U>Summary of Significant
      Accounting Policies </U>&#150; (cont&#146;d) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">m) </TD>
    <TD><P align=justify>Derivative Liabilities</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>The Company evaluates its financial instruments and other
      contracts to determine if those contracts or embedded components of those
      contracts qualify as derivatives to be separately accounted for in
      accordance with ASC 815 Derivatives and Hedging. The result of this
      accounting treatment is that the fair value of the embedded derivative is
      marked- to-market at each balance sheet date and recorded as a liability
      and the change in fair value is recorded in the consolidated statements of
      operations as other income or expense. Upon conversion or exercise of a
      derivative instrument, the instrument is marked to fair value at the
      conversion date and then that fair value is reclassified to
      equity.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>The classification of derivative instruments, including
      whether such instruments should be recorded as liabilities or as equity,
      is re-assessed at the end of each reporting period. Derivative instruments
      that become subject to reclassification are reclassified at the fair value
      of the instrument on the reclassification date. Derivative instrument
      liabilities will be classified in the balance sheet as current or
      non-current based on whether or not settlement of the derivative
      instrument is expected within 12 months of the balance sheet
      date.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>The Company uses the binomial option pricing model to
      value derivative liabilities. This model uses Level 3 inputs in the fair
      value hierarchy established by ASC 820 Fair Value Measurement.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">n) </TD>
    <TD><P align=justify>Recent Accounting Pronouncements</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>There are no new accounting pronouncements that the
      Company recently adopted or are pending the Company&#146;s adoption that are
      expected to have a material impact on the company&#146;s results of operations,
      financial position or cash flows.</P></TD>
  </TR>
</TABLE>
<BR>
<P align=center>F-21</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-21></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 9<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 3 </TD>
    <TD align=left width="90%" ><U>Equipment</U> </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="15%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="15%">September 30, 2013 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="15%">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="15%">&nbsp;</TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="15%">Accumulated </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="15%">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="15%"><U>Cost</U> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="15%"><U>Depreciation</U> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="15%"><U>Net</U> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Computer equipment </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="15%"
    bgColor=#e6efff>&nbsp;5,631 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="15%"
    bgColor=#e6efff>&nbsp;5,631 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="15%"
    bgColor=#e6efff>&nbsp;- </TD>
    <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="15%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="15%">September 30, 2012 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="15%">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="15%">&nbsp;</TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="15%">Accumulated </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="15%">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="15%"><U>Cost</U> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="15%"><U>Depreciation</U> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="15%"><U>Net</U> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Computer equipment </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="15%"
    bgColor=#e6efff>&nbsp;5,631 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="15%"
    bgColor=#e6efff>&nbsp;5,055 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="15%"
    bgColor=#e6efff>&nbsp;576 </TD>
    <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 4 </TD>
    <TD align=left width="90%" ><U>Derivative Liabilities</U> </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>During the year ended September 30, 2013, the Company
      issued an aggregate of 6,448,966 share purchase warrants that are required
      to be accounted for as liabilities pursuant to ASC 815 because the terms
      of the warrants contain provisions that are in violation of the fixed for
      fixed criteria of that guidance such that the warrant agreements provide
      the holder with a full ratchet down adjustment to the exercise price such
      that in the event the Company, during the term of the warrants, issues
      common stock or common stock equivalents at a price per share lower than
      the exercise price of the warrants, the exercise price of the warrants
      will be adjusted to equal the price at which the new common stock or
      common stock equivalents are issued. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>At September 30, 2013, these share purchase warrants were
      still outstanding and were being accounted for as liabilities carried at
      fair value. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>During the year ended September 30, 2012, the Company had
      derivative liabilities that consisted of embedded conversion features in
      the Company&#146;s convertible promissory notes. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>Pursuant to the guidance of ASC 815, these derivative instruments are required to be recorded as liabilities on the balance sheet measured at fair value and are marked-to-market at each balance sheet date with the change in fair value being recorded in the consolidated statements of operations as other income or expense. </P></TD>
  </TR>
</TABLE>
<BR>
<P align=center>F-22</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-22></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 10<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 4 </TD>
    <TD align=left width="90%" ><U>Derivative Liabilities </U>&#150;
      (cont&#146;d) </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>A summary of the Company&#146;s derivative liabilities for the
      years ended September 30, 2013 and 2012 is as follows: </P></TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="17%">2013 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="17%">2012 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Balance, beginning of the
      period </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="17%" bgColor=#e6efff>&nbsp;- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="17%" bgColor=#e6efff>&nbsp;67,500 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left >Fair value at issuance of derivative
      liability </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">919,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Change in fair value of
      derivative liability </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%"
    bgColor=#e6efff>(15,000</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%"
    bgColor=#e6efff>(67,500</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left >Balance, end of the period </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="17%">&nbsp;904,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="17%">&nbsp;- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>The convertible promissory notes
  containing embedded conversion features that were required to be separately
  accounted for as derivative liabilities matured during the year ended September
  30, 2012 and consequently, the liability was extinguished as at September 30,
  2012.</P>
<P align=center>F-23</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-23></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 11<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 5 </TD>
    <TD align=left width="90%" ><U>Promissory Notes Payable</U> </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD colspan="4" align=center>September 30, </TD>
    <TD align=right width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%">2013 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%">2012 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Promissory note dated June 6, 2012 bearing
      interest at 8% per annum, due on demand </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;49,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Promissory note dated June 26, 2012 bearing
      interest at 8% per annum, due on demand </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>250,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Promissory note dated December 31, 2012
      bearing interest at 12% per annum, due on December 31, 2013 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>100,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Promissory note dated January 9, 2013 with
      a principal balance of $84,060 (CDN$86,677), bearing interest at 12% per
      annum, secured by all the present and future assets of the Company; due on
      demand </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>84,060 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Promissory note dated January 9, 2013 with
      a principal balance of $26,803 (CDN$27,639), bearing interest at 12% per
      annum, secured by all the present and future assets of the Company; due on
      demand </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>26,803 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">210,863 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">299,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Less: current portion </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>(210,863</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>(299,000</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>On June 6, 2012, the Company issued a
  promissory note having a principal balance of $49,000 with terms that included
  interest at 8% per annum and matured on December 3, 2012. On July 5, 2013, this
  note, along with accrued interest of $3,200, was settled in exchange for 130,501
  units of the Company. Each unit consisted of one share of common stock of the
  Company and one share purchase warrant, with each warrant entitling the holder
  thereof to purchase one share of common stock at a price of $0.75 per share for
  a period of five years from the date of issuance. In connection with the
  issuance of this note, the Company paid a finder&#146;s fee totaling $4,900 which was
  deferred and amortized to income using the effective interest method over the
  terms of the note. As at September 30, 2013, there remained an unamortized
  balance of $Nil (September 30, 2012: $1,215) in respect of this deferred
  financing charge.</P>
<P style="MARGIN-LEFT: 10%" align=justify>On June 26, 2012, the Company issued a
  promissory note having a principal balance of $250,000 with terms that included
  interest at 8% per annum and matured on March 31, 2013. On July 5, 2013, this
  note, along with accrued interest of $15,233, was settled in exchange for
  663,082 units of the Company. Each unit consisted of one share of common stock
  of the Company and one share purchase warrant, with each warrant entitling the
  holder thereof to purchase one share of common stock at a price of $0.75 per
  share for a period of five years from the date of issuance.</P>
<P align=center>F-24</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-24></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 12<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 5 </TD>
    <TD align=left width="90%" ><U>Promissory Notes Payable </U>&#150;
      (cont&#146;d) </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On October 17, 2012, the Company issued a promissory note
      having a principal balance of $150,000 with terms that included interest
      at 8% per annum and matured on March 31, 2013. On July 5, 2013, this note,
      along with accrued interest of $5,425 was settled in exchange for 388,562
      units of the Company. Each unit consisted of one share of common stock of
      the Company and one share purchase warrant, with each warrant entitling
      the holder thereof to purchase one share of common stock at a price of
      $0.75 per share for a period of five years from the date of issuance. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On November 14, 2012, the Company issued a promissory
      note having a principal balance of $50,000 with terms that included
      interest at 8% per annum and matured on March 31, 2013. On July 5, 2013,
      this note, along with accrued interest of $1,501 was settled in exchange
      for 128,753 units of the Company. Each unit consisted of one share of
      common stock of the Company and one share purchase warrant, with each
      warrant entitling the holder thereof to purchase one share of common stock
      at a price of $0.75 per share for a period of five years from the date of
      issuance. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On December 31, 2012, the Company issued a promissory
      note having a principal balance of $100,000 with terms that included
      interest at 12% per annum and matured on June 30, 2013, in exchange for an
      accounts payable owing in respect of unpaid consulting fees.  This note
      was not repaid on June 30, 2013 and the maturity date has been extended to
      December 31, 2013. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On February 8, 2013, the Company issued a promissory note
      having a principal balance of $50,000 with terms that included interest at
      10% per annum and matured on June 8, 2013. On July 5, 2013, this note,
      along with accrued interest of $699 was settled in exchange for 126,747
      units of the Company. Each unit consisted of one share of common stock of
      the Company and one share purchase warrant, with each warrant entitling
      the holder thereof to purchase one share of common stock at a price of
      $0.75 per share for a period of five years from the date of issuance. </P></TD>
  </TR>
</TABLE>
<BR>
<P align=center>F-25</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-25></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 13<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 5 </TD>
    <TD align=left width="90%" ><U>Promissory Notes Payable </U>&#150;
      (cont&#146;d) </TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%"  >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="90%" >On January 9, 2013, the Company
      issued two promissory notes (the &#147;Secured Notes&#148;); </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">a) </TD>
    <TD><P align=justify>The Company issued a promissory note in the amount of
      $87,865 (CDN$86,677) to the former President, Secretary, Treasurer, CFO
      and director of the Company (the &#147;President&#148;) in exchange for unpaid
      consulting fees owing to the President. The note is bearing interest at
      12% per annum and was due June 30, 2013.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">b) </TD>
    <TD><P align=justify>The Company issued a promissory note in the amount of
      $28,017 (CDN$27,639) to a former director of the Company (the &#147;Director&#148;)
      in exchange for unpaid consulting fees owing to the Director. The note is
      bearing interest at 12% per annum and was due June 30,
      2013.</P></TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>The Secured Notes are secured by a
  right to delay the transfer of any or all of the Company&#146;s assets until the
  obligations of the Secured Notes are satisfied, including a restriction on the
  transfer of cash by the Company and a security interest over the intellectual
  property of the Company. The security interests of the Secured Notes is ranked
  senior to any and all security interests granted prior to the issuance of the
  notes and to all subsequent security interests granted, unless the holders agree
  in writing to other terms. </P>
<P style="MARGIN-LEFT: 10%" align=justify>In addition, if the promissory notes
  are not repaid within 10 days of their maturity dates, they shall bear late fees
  in addition to interest accruing, at a rate of $100 per day per note.</P>
<P style="MARGIN-LEFT: 10%" align=justify>In an event of default by the Company
  under the terms of the promissory notes, the notes shall bear additional late
  fees of $500 per day per note.</P>
<P style="MARGIN-LEFT: 10%" align=justify>Subsequent to the issuance of these
  promissory notes, the President resigned as President, Secretary, Treasurer, CFO
  and director of the Company and the Director resigned as director of the
  Company.</P>
<P style="MARGIN-LEFT: 10%" align=justify>The Company did not repay the notes on
  June 30, 2013. The Company has disputed the issuance of the Secured Notes and
  should there be an attempt to enforce the Secured Notes or collection on them,
  the Company will consider a legal remedy. The Company had not accrued any late
  fees in connection with these promissory notes as at September 30, 2013 as the
  Company does not consider these amounts to be legally enforceable.</P>
<P align=center>F-26</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-26></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 14<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 5 </TD>
    <TD align=left width="90%" ><U>Promissory Notes Payable </U>&#150;
      (cont&#146;d) </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="90%" >Extinguishment of promissory
      notes payable and accounts payable </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On July 5, 2013, the Company issued equity units in
      settlement of certain of its promissory notes and trade accounts payable.
      Each unit consisted of one common share and common share purchase warrant
      entitling the holder to purchase an additional common share at $0.75 until
      July 5, 2018. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="90%" >The promissory note and accounts
      payable settlements are summarized as follows: </TD>
  </TR>
</TABLE>
<BR>
<DIV align=right>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="90%" border=0>
    <TR vAlign=top>
      <TD colspan="7" align=center style="BORDER-BOTTOM: #000000 1px solid"
      >Amount Settled </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
      <TD colspan="4" align=center style="BORDER-BOTTOM: #000000 1px solid">Units issued </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="12%">&nbsp;</TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=center >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="12%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="12%">Accrued </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="12%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="12%">&nbsp;</TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD align=center width="12%">Loss on </TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      >&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Date of Note </TD>
      <TD align=center width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="12%">Principal </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="12%">Interest </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="12%">Number </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%">Fair
        Value </TD>
      <TD align=center width="2%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="12%">Settlement </TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right bgColor=#e6efff >Promissory notes payable </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="12%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="12%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="12%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="12%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="12%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right >June 6, 2012 </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="12%">49,000 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="12%">3,200 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="12%">130,501 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="12%">98,205 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="12%">46,005 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right bgColor=#e6efff >June 26, 2012 </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="12%" bgColor=#e6efff>250,000 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="12%" bgColor=#e6efff>15,233 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="12%" bgColor=#e6efff>663,082 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="12%" bgColor=#e6efff>498,972 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="12%" bgColor=#e6efff>233,739 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right >October 17, 2012 </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="12%">150,000 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="12%">5,425 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="12%">388,562 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="12%">292,394 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="12%">136,969 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right bgColor=#e6efff >November 14, 2012 </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="12%" bgColor=#e6efff>50,000 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="12%" bgColor=#e6efff>1,501 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="12%" bgColor=#e6efff>128,753 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="12%" bgColor=#e6efff>96,887 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="12%" bgColor=#e6efff>45,386 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right >February 8, 2013 </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">50,000 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">699 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">126,747 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">95,377 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">44,678 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff >&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="12%" bgColor=#e6efff>549,000 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="12%" bgColor=#e6efff>26,058 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="12%" bgColor=#e6efff>1,437,645 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="12%" bgColor=#e6efff>1,081,835 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD align=right width="12%" bgColor=#e6efff>&nbsp;506,777 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR>
      <TD >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="12%">&nbsp;</TD>
      <TD width="2%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="12%">&nbsp;</TD>
      <TD width="2%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="12%">&nbsp;</TD>
      <TD width="2%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="12%">&nbsp;</TD>
      <TD width="2%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="12%">&nbsp;</TD>
      <TD width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right bgColor=#e6efff >Accounts payable </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>1,108,506 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>- </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>2,771,265 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>2,085,386 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>976,880 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR>
      <TD >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="12%">&nbsp;</TD>
      <TD width="2%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="12%">&nbsp;</TD>
      <TD width="2%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="12%">&nbsp;</TD>
      <TD width="2%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="12%">&nbsp;</TD>
      <TD width="2%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="12%">&nbsp;</TD>
      <TD width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff >&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;1,657,506 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;26,058 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>4,208,910 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;3,167,221 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;1,483,657 </TD>
      <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P style="MARGIN-LEFT: 10%" align=justify>The fair value of each unit issued was
  determined to be $0.753 determined by aggregating (i) the fair value of $0.61
  for the Company&#146;s common shares based on their quoted market price on the date
  of settlement and (ii) the fair value of $0.143 for each warrant included in the
  Company&#146;s units. The fair value of the Company&#146;s warrants was determined using
  the binomial option pricing model with the following assumptions: </P>
<DIV align=center>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="40%" border=0>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Stock price </TD>
      <TD align=right width="30%" bgColor=#e6efff >$0.61 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Exercise price </TD>
      <TD align=right width="30%" >$0.75 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Expected volatility </TD>
      <TD align=right width="30%" bgColor=#e6efff >81.57% </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Risk-free discount rate </TD>
      <TD align=right width="30%" >0.28% </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Expected term </TD>
      <TD align=right width="30%" bgColor=#e6efff >1.49 years </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Expected dividend yield </TD>
      <TD align=right width="30%" >0.00% </TD>
    </TR>
  </TABLE>
</DIV>
<P style="MARGIN-LEFT: 10%" align=justify>The loss on settlement of debt was
  reduced by an amount of $11,449 relating to the interest that accrued on the
  promissory notes that was forgiven upon settlement of the notes payable in
  exchange for shares.</P>
<P align=center>F-27</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-27></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 15<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 6 </TD>
    <TD align=left width="90%" ><P align=justify><U>Capital Stock</U> </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On May 24, 2006, the board of directors approved a six
      (6) for one (1) forward split of the authorized issued and outstanding
      common stock. The Company&#146;s authorized capital increased from 25,000,000
      shares of common stock to 150,000,000 shares of common stock. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On September 24, 2007, the Company issued 222,222 common
      shares at $3.60 per share for a total of $800,000 for research and
      development expenses. The common shares were recorded based upon the
      quoted market price of the Company&#146;s common stock on the agreement date. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On September 25, 2007, the Company settled a loan payable
      in the amount of $333,000 by issuing 92,500 common shares at $3.60 per
      share, being the quoted market price of the Company&#146;s common stock on the
      settlement date. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On December 10, 2007, the Company issued 150,000 units at
      $3.50 per unit for proceeds of $525,000. Each unit consisted of one common
      share and one common share purchase warrant entitling the holder to
      purchase an additional common share at $5.00 per share until December 10,
      2009. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On December 18, 2007, the Company issued 10,000 shares at
      $4.50 per share for a total of $45,000 pursuant to an agreement to settle
      a debt and issued 50,000 shares at $3.86 per share for a total of $193,000
      pursuant to a consulting agreement. The Company recorded compensation
      expense of $65,000 in respect of these issuances based on the excess of
      the fair value of these shares over the balances at which they were
      recorded by the Company. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On May 15, 2008, the Company issued 65,000 common shares
      at $5.24 per share for a total of $340,600 to its former CEO in accordance
      with the terms of a severance agreement upon the termination of his
      services. The common shares were recorded based upon the quoted market
      price of the Company&#146;s common stock on the agreement date. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On August 19, 2008, the Company issued 25,000 common
      shares at $5.07 per share for a total of $ 126,750 to a director of the
      Company pursuant to an agreement to provide consulting services. The
      common shares were recorded based upon the quoted market price of the
      Company&#146;s common stock on the agreement date. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On August 19, 2008, the Company issued 142,698 units at
      $4.25 per unit for proceeds of $606,467 pursuant to private placement
      agreements. Each unit consisted of one common share and one common share
      purchase warrant entitling the holder to purchase an additional common
      share at $5.00 per share until August 19, 2009. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On November 20, 2008, the Company issued 25,000 common
      shares at $2.63 per share for a total of $65,750 to a director of the
      Company pursuant to an agreement to provide consulting services. The
      common shares were recorded based upon the quoted market price of the
      Company&#146;s common stock on the issuance date. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On February 20, 2009, the Company issued 25,000 common
      shares at $2.50 per share for a total of $62,500 to a director of the
      Company pursuant to an agreement to provide consulting services. The
      common shares were recorded based upon the quoted market price of the
      Company&#146;s common stock on the issuance date. </P></TD>
  </TR>
</TABLE>
<BR>
<P align=center>F-28</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-28></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 16<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 6 </TD>
    <TD align=left width="90%" ><U>Capital Stock </U>&#150; (cont&#146;d) </TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On March 6, 2009, the Company issued 89,148 units at
      $2.25 per unit for proceeds of $200,583 pursuant to private placement
      agreements. Each unit consisted of one common share and one common share
      purchase warrant entitling the holder to purchase an additional common
      share at $4.00 per share until March 6, 2010. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On March 20, 2009, the Company issued 10,800 units at
      $2.25 per unit for proceeds of $24,300 pursuant to private placement
      agreements. Each unit consisted of one common share and one common share
      purchase warrant entitling the holder to purchase an additional common
      share at $4.00 per share until March 20, 2010. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On March 20, 2009, the Company issued 2,500 common shares
      at $2.00 per share for a total of $5,000 to a public relations consultant
      pursuant to an agreement to provide consulting services. The common shares
      were recorded based upon the quoted market price of the Company&#146;s common
      stock on the issuance date. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On May 14, 2009, the Company entered into a revised
      consulting agreement with a director whereby the consultant returned
      75,000 common shares to the Company for cancellation. The return of shares
      was recorded in the same amount at which they were originally issued. On
      June 11, 2009 the Company issued 36,000 units at $2.25 per unit for
      proceeds of $81,000 pursuant to private placement agreements. Each unit
      consisted of one common share and one common share purchase warrant
      entitling the holder to purchase an additional common share at $4.00 per
      share until June 11, 2010. The Company paid finders&#146; fees in the amount of
      $8,100 in relation to this private placement. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On June 11, 2009 the Company issued 29,227 common shares
      at $2.25 per share for service rendered by consultants. The common shares
      were recorded based upon the fair value of the Company&#146;s common stock on
      the issuance date of the shares. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On June 19, 2009, the Company issued 495,556 units at
      $2.25 per unit for total proceeds of $1,115,000 pursuant to private
      placement agreements. Each unit consisted of one common share and one and
      one-half of a common share purchase warrant entitling the holder to
      purchase additional common shares at $2.25 per share until June 19, 2011. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On June 26, 2009, the Company issued 22,222 common shares
      at $2.51 per share for finder&#146;s fees related to the issuance of a $500,000
      note payable. The common shares were recorded based upon the quoted market
      price of the Company&#146;s common stock on the issue date. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On August 19, 2009, the Company issued 128,888 units at
      $2.25 per unit for total proceeds of $289,998. Of these placements, 40,000
      units consisted of one common share and one share purchase warrant
      entitling the holder to purchase an additional common share at $4.00 per
      share until July 9, 2010 and 88,888 Units consisted of one common share
      and one and one- eighth share purchase warrant entitling the holder to
      purchase an additional common shares at $2.25 per share until August 4,
      2011. The Company paid finders&#146; fees totalling $19,000 in respect of these
      private placements. </P></TD>
  </TR>
</TABLE>
<BR>
<P align=center>F-29</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-29></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 17<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 6 </TD>
    <TD align=left width="90%" ><U>Capital Stock </U>&#150; (cont&#146;d) </TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On October 2, 2009 the Company issued 266,666 units at
      $2.25 per unit for proceeds of $600,000 pursuant to private placement
      agreements. Each unit consisted of one common share and one and one-eighth
      common share purchase warrant entitling the holder to purchase an
      additional common shares at $2.25 per share until October 2, 2011. The
      Company had received $300,000 of this amount in the year ended September
      30, 2010. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On February 2, 2010 the Company issued 49,505 common
      shares of the Company, at their fair value of $2.02 per share pursuant to
      an agreement with a former officer to settle an outstanding amount owed. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On April 9, 2010, the Company issued 92,499 units at
      $2.60 per unit for proceeds of $240,498 pursuant to private placement
      agreements. Each unit consisted of one common share and one-half common
      share purchase warrant entitling the holder to purchase additional common
      shares at $3.50 per share until April 9, 2011. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On April 30, 2010, the Company issued 9,825 common shares
      of the Company, at $2.85 per share as consideration for terminating a
      consulting agreement and for services rendered under the agreement. The
      common shares were recorded based upon the quoted market price of the
      Company&#146;s common stock on the date of the termination of the agreement. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On June 29, 2010, the Company issued 941,000 units at
      $2.50 per unit for total proceeds of $2,352,500 pursuant to private
      placement agreements. Each unit consisted of one common share and one-half
      of a common share purchase warrant entitling the holder to purchase
      additional common shares at $3.50 per share until December 29, 2011. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On July 5, 2010, the Company issued 400,000 units in
      settlement of $1,000,000 owing to a creditor. Each unit consisted of one
      common share and one-half common share purchase warrant entitling the
      holder to purchase additional common shares at 3.50 per share until
      January 5, 2012. The fair value of the units issued was determined to be
      $1,444,000 on the date they were issued and thus the Company recorded a
      loss on settlement of accounts payable of $444,000 with a corresponding
      credit to additional paid-in capital of the same amount on date of
      issuance. The fair value of the shares included in the units was
      determined with reference to their quoted market price and the value of
      the warrants was determined using the Black-Scholes model with the
      following assumptions: exercise price - $3.50, stock price - $3.15,
      expected volatility &#150; 68.45%, expected life &#150; 1.5 years, dividend yield &#150;
      0.00%. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On September 3, 2010, the Company issued 163,000 units at
      $2.75 per unit for proceeds of $448,250 pursuant to private placement
      agreements. Each unit consisted of one common share and one-half common
      share purchase warrant entitling the holder to purchase additional common
      shares at $3.75 per share until March 3, 2012. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On September 3, 2010, the Company issued 9,000 units at
      $2.75 per unit for finder&#146;s fees related to the private placement of the
      same date. Each unit consisted of one common share and one-half common
      share purchase warrant entitling the holder to purchase additional common
      shares at $3.75 per share until March 3, 2012. </P></TD>
  </TR>
</TABLE>
<BR>
<P align=center>F-30</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-30></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 18<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 6 </TD>
    <TD align=left width="90%" ><P align=justify><U>Capital Stock </U>&#150; (cont&#146;d) </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On September 30, 2010, the Company issued 510,638 common
      shares at $2.35 per share pursuant to the terms of a convertible note
      payable. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On September 30, 2010, the Company issued 82,310 units at
      $2.25 per unit pursuant to the terms of convertible notes payable. Each
      unit consisted of one common share and one-half common share purchase
      warrant entitling the holder to purchase additional common shares at $3.50
      per share until September 30, 2011. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On September 30, 2010, the Company issued 245,748 units
      at $2.25 per unit pursuant to the terms of convertible notes payable. Each
      unit consisted of one common share and one common share purchase warrant
      entitling the holder to purchase additional common shares at $3.00 per
      share until September 30, 2012. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On November 18, 2010, the Company issued 393,846 units at
      $2.75 per unit for proceeds of $1,083,075 pursuant to a private placement
      agreement. Each unit consisted of one common share and one-half common
      share purchase warrant entitling the holder to purchase additional common
      shares at $4.50 per share until May 18, 2012. The Company paid a finder&#146;s
      fee totalling $65,363 in respect of this private placement. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On November 18, 2010, the Company issued 3,636 units at
      $2.75 per unit for finder&#146;s fees related to the private placement of the
      same date. Each unit consisted of one common share and one-half common
      share purchase warrant entitling the holder to purchase additional common
      shares at $4.50 per share until May 18, 2012. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On November 18, 2010, the Company issued 853,075 units in
      the conversion of two notes payable originally convertible at $2.50. The
      Company recorded debt conversion expense of $504,160, related to the fair
      value of the additional units issued as a result of converting at the
      lower conversion price. Each unit consisted of one common share and one
      common share purchase warrant entitling the holder to purchase additional
      common shares at $3.00 per share until November 18, 2012. The fair value
      of the shares included in the units was determined with reference to their
      quoted market price and the value of the warrants was determined using the
      Black-Scholes model with the following assumptions: exercise price -
      $3.00, stock price - $4.12, expected volatility &#150; 78.33%, expected life &#150;
      2.0 years, dividend yield &#150; 0.00%, risk-free rate &#150; 0.52%. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On November 18, 2010, the Company issued 145,063 shares
      of common stock at their fair value of $4.12 per share based on their
      quoted market price pursuant to settling non- convertible interest bearing
      notes payable outstanding in the amount of $398,922, including accrued
      interest of $26,032. The Company recorded a loss on settlement of debt of
      $198,738 based on the difference between the carrying value of the debt
      settled and the fair value of the shares issued. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On November 18, 2010, the Company issued 181,818 shares
      of common stock at their fair value of $4.12 per share based on the quoted
      value of units issued in a private placement on the same date to one
      creditor in settlement of $500,000 of debt owing. The Company recorded a
      loss on settlement of accounts payable of $249,090 based on the difference
      of the carrying value of the account payable and the fair value of the
      shares issued. </P></TD>
  </TR>
</TABLE>
<BR>
<P align=center>F-31</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-31></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 19<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 6 </TD>
    <TD align=left width="90%" ><U>Capital Stock </U>&#150; (cont&#146;d) </TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%"><P align=justify>On November 25, 2010, the Company issued 29,851 units at
      $3.35 per unit for proceeds of $100,000 pursuant to a private placement
      agreement. Each unit consisted of one common share and one-half common
      share purchase warrant entitling the holder to purchase additional common
      shares at $4.50 per share until November 25, 2012. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On November 25, 2010, the Company issued 2,985 units at
      $3.35 per unit for finder&#146;s fees related to the private placement of the
      same date. Each unit consisted of one common share and one-half common
      share purchase warrant entitling the holder to purchase additional common
      shares at $4.50 per share until November 25, 2012. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On February 1, 2011, the Company issued 61,014 units at
      $3.75 per unit for proceeds of $228,800 pursuant to a private placement
      agreement. Each unit consisted of one common share and one-half common
      share purchase warrant entitling the holder to purchase additional common
      shares at $5.25 per share until August 1, 2012. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On May 3, 2011, the Company issued 33,334 units at $3.00
      per unit for proceeds of $100,000 pursuant to a private placement
      agreement. Each unit consisted of one common share and one-half common
      share purchase warrant entitling the holder to purchase additional common
      shares at $4.00 per share until April 20, 2013. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On June 19, 2011, the Company issued 700,000 common
      shares at $2.25 per share for proceeds of $1,575,000 pursuant to the
      exercise of warrants. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On September 26, 2011, the Company issued 650,000 units
      in settlement of $975,000 of debt owing. Each unit consisted of one common
      share and one-half common share purchase warrant entitling the holder to
      purchase additional common shares at $2.00 per share until September 26,
      2012. The Company recorded a loss on settlement of accounts payable in the
      amount of $84,963 based on the fair value of shares being $975,000 at
      their issuance and the fair value of the warrants determined to be
      $84,963. The fair value of the shares included in the units was determined
      with reference to their quoted market price and the value of the warrants
      was determined using the Black-Scholes model with the following
      assumptions: exercise price - $2.00, stock price - $1.50, expected
      volatility &#150; 69%, expected life &#150; 1.0 years, dividend yield &#150; 0.00%,
      risk-free interest rate &#150; 0.10%. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On December 6, 2011, the Company issued 615,600 units at
      $1.25 per unit for proceeds of $769,500 pursuant to private placement
      agreements. Each unit consisted of one common share and one-half common
      share purchase warrant entitling the holder to purchase additional common
      shares at $2.00 per share until December 6, 2012. The Company paid
      finder&#146;s fees of $77,000 in connection with this private placement. </P></TD>
  </TR>
</TABLE>
<BR>
<P align=center>F-32</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-32></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 20<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 6 </TD>
    <TD align=left width="90%" ><U>Capital Stock </U>&#150; (cont&#146;d) </TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On February 9, 2012 the Company issued 8,000 units for
      service rendered by a director and officer of the Company. Each unit
      consisted of one common share and one-half common share purchase warrant
      entitling the holder to purchase additional common shares at $2.00 per
      share until February 9, 2013. The fair value of the units issued was
      determined to be $15,896 on the date they were issued and the Company
      recorded consulting fees of $15,896 on the statement of operations for the
      year ended September 30, 2012. The fair value of the shares included in
      the units was determined with reference to their quoted market price and
      the value of the warrants was determined using the Black-Scholes model
      with the following assumptions: exercise price - $2.00, stock price -
      $1.74, expected volatility &#150; 84.88%, expected life &#150; 1.0 years, risk free
      interest rate &#150; 0.15%, dividend yield &#150; 0.00%. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On February 9, 2012, the Company issued 270,000 units at
      $1.25 per unit for proceeds of $337,500 pursuant to private placement
      agreements. Each unit consisted of one common share and one-half common
      share purchase warrant entitling the holder to purchase additional common
      shares at $2.00 per share until February 9, 2013. The Company paid a
      finder&#146;s fee of $33,750 in connection with this private placement. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On May 31, 2012, the Company issued 2,700,513 units in
      settlement of $1,297,889 in promissory notes and $52,367 of accrued
      interest on these notes, which was included in accounts payable and
      accrued liabilities Each unit consisted of one common share and one common
      share purchase warrant entitling the holder to purchase additional common
      shares at $0.75 per share until November 30, 2013. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On June 26, 2012, the Company agreed to issue 75,000
      common shares to the former president of the Company for past services and
      in final settlement of a consulting agreement dated February 1, 2007.
      These shares were issued on July 12, 2012. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On July 5, 2013, the Company issued 4,208,910 units in
      settlement of $549,000 in promissory notes, $26,058 of accrued interest on
      these notes, which was included in accounts payable and accrued
      liabilities, and $1,108,506 in other accounts payable and accrued
      liabilities. Each unit consisted of one common share and one common share
      purchase warrant entitling the holder to purchase additional common shares
      at $0.75 per share until July 5, 2018 (Note 5). </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On July 5, 2013, the Company issued 2,196,133 units at
      $0.40 per unit for gross proceeds of $878,453 pursuant to private
      placement agreements. Each unit consisted of one common share and one
      common share purchase warrant entitling the holder to purchase additional
      common shares at $0.75 per share until July 5, 2018. The Company paid
      finder&#146;s fees of $89,680 and issued warrants to purchase 43,923 shares of
      common stock at $0.75 per share until July 5, 2018 in connection with this
      private placement. In addition, the Company incurred share issuance costs
      of $16,494. </P></TD>
  </TR>
</TABLE>
<BR>
<P align=center>F-33</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-33></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 21<BR>
</P>
<DIV>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
    <TR vAlign=top>
      <TD align=left>Note 6 </TD>
      <TD align=left width="90%"><U>Capital Stock </U>&#150; (cont&#146;d) </TD>
    </TR>
    <TR>
      <TD align=left>&nbsp;</TD>
      <TD align=left width="90%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left></TD>
      <TD align=left width="90%">All of the 6,448,966 warrant agreements issued
        on July 5, 2013 contain the following provisions: </TD>
    </TR>
  </TABLE>
</DIV>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">(i) </TD>
    <TD><P align=justify>a full ratchet down adjustment to the exercise price such
      that in the event the Company, during the term of the warrants, issues
      common stock or common stock equivalents at a price per share lower than
      the exercise price of the warrants, the exercise price of the warrants
      will be adjusted to equal the price at which the new common stock or
      common stock equivalents are issued;</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">(ii) </TD>
    <TD><P align=justify>a put option whereby in the event of certain fundamental
      transactions, as defined in the warrant agreements, the Company may be
      required to pay the Holder an amount of cash equal to the value of the
      warrant as determined in accordance with the Black Scholes option pricing
      model, for each warrant held by the Holder; and</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">(iii) </TD>
    <TD><P align=justify>a contingent call provision whereby the Company may have
      the option to call for cancellation all of any portion of the warrants for
      consideration equal to $0.001 per share, provided the quoted market price
      of the Company&#146;s common stock exceeds $1.50 for a period of twenty
      consecutive trading days, subject to certain minimum volume restrictions
      and other restrictions as provided in the warrant
      agreements.</P></TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="90%" >Common stock to be issued </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>During the year ended September 30, 2013, the Company
      received $60,000 in share subscriptions in respect of the issuance of
      120,000 units at $0.50 per unit. Each unit will consist of one common
      share and one common share purchase warrant entitling the holder to
      purchase additional common shares at $1.00 per share for a period of five
      years from the date of issuance. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Note 7 </TD>
    <TD align=left width="90%" ><P align=justify><U>Equity Line of Credit</U> </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On July 5, 2013, the Company entered into a $10,000,000
      purchase agreement (the &#147;Purchase Agreement&#148;) with Lincoln Park Capital
      Fund, LLC, (&#147;Lincoln Park&#148;) an Illinois limited liability company (the
      &#147;Financing&#148;) pursuant to which the Company may sell and issue to Lincoln
      Park, and Lincoln Park is obligated to purchase, up to $10,000,000 in
      value of its shares of common stock from time to time over a 36 month
      period. In connection with the Financing, the Company also entered into a
      registration rights agreement with Lincoln Park whereby the Company agreed
      to file a registration statement with the Securities and Exchange
      Commission (the &#147;SEC&#148;) covering the shares of the Company&#146;s common stock
      that may be issued to Lincoln Park under the Purchase Agreement. </P></TD>
  </TR>
</TABLE>
<BR>
<P align=center>F-34</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-34></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 22<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>The Company will determine, at its own discretion, the
      timing and amount of its sales of common stock, subject to certain
      conditions and limitations. The purchase price of the shares that may be
      sold to Lincoln Park under the Purchase Agreement will be based on the
      market price of the Company&#146;s shares of common stock immediately preceding
      the time of sale without any fixed discount, provided that in no event
      will such shares be sold to Lincoln Park when the closing sale price is
      less than $0.50 per share. There are no upper limits on the per share
      price that Lincoln Park may pay to purchase such common stock. The
      purchase price will be equitably adjusted for any reorganization,
      recapitalization, non-cash dividend, stock split or similar transaction
      occurring during the business days used to compute such price. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>Pursuant to the Purchase Agreement, Lincoln Park
      initially purchased 250,000 shares of the Company&#146;s common stock for
      $100,000. In consideration for entering into the Purchase Agreement, the
      Company issued to Lincoln Park 341,858 shares of common stock as a
      commitment fee and shall issue up to 133,409 shares pro rata, when and if,
      Lincoln Park purchases at the Company&#146;s discretion the remaining
      $10,000,000 aggregate commitment. The Purchase Agreement may be terminated
      by the Company at any time at its discretion without any cost to the
      Company. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>On October 23, 2013, the registration statement was
      declared effective by the SEC. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>The Company incurred $71,335 in direct expenses in connection with the Purchase Agreement and registration statement.  These were recorded as share issuance costs as a charge against additional paid in capital during the year ended September 30, 2013. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Note 8 </TD>
    <TD align=left width="90%" ><P align=justify><U>Related Party Transactions</U> </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>The following amounts have been donated to the Company by
      the directors: </P></TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="15%" align=center nowrap>&nbsp;</TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="15%" align=center nowrap>&nbsp;</TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="15%" align=center nowrap>January 23, 2004 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD colspan="4" align=center nowrap>Year ended September 30, </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="15%" align=center nowrap>(Date of Inception) </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="15%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">2013 </TD>
    <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="15%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">2012 </TD>
    <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="15%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >to September 30, 2013&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
    <TD align=right width="1%" >&nbsp;</TD>
    <TD align=right width="15%">&nbsp;</TD>
    <TD align=right width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Management fees </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>14,625 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left >Rent </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="15%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="15%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="15%">3,750 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Debt forgiven by directors</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>33,666 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="15%">&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="15%">-</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="15%">52,041 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>During the year ended September 30,
  2013, the Company was charged consulting fees totaling $81,072 (2012: $479,434)
  by directors, officers and a significant shareholder of the Company. As at
  September 30, 2013, included in accounts payable and accrued liabilities is
  $30,447 (2012: $127,452) owing to directors and officers of the Company and a
  former director and officer of the Company.</P>
<P align=center>F-35</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-35></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 23<BR>
</P>
<P style="MARGIN-LEFT: 10%" align=justify>On July 5, 2013, pursuant to an
  employment agreement with the newly appointed President, Chief Executive
  Officer, Chief Financial Officer, Secretary and Treasurer, and Director, of the
  Company, the Company:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">i) </TD>
    <TD><P align=justify>granted 2,000,000 fully vested share purchase options
      exercisable at $0.40 per share until July 5, 2023. The Company recognized
      stock based compensation expense of $1,002,500 (2012: $Nil) during the
      year ended September 30, 2013 in connection with these options.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">ii) </TD>
    <TD><P align=justify>issued 4,000,000 shares of restricted common stock that
      vest as follows:</P></TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="15%"  >&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="80%" >25% upon the Company starting a
      Phase Ib/IIb human study </TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="80%" >25% upon the Company in-licensing
      additional assets in clinical or pre-clinical stage </TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" ></TD>
    <TD align=left><P align=justify>&#149; </P></TD>
    <TD align=left width="80%" ><P align=justify>25% upon the Company securing additional non-dilutive
      equity funding in 2013 of at least $5,000,000 with a share price higher
      than the previous funding. </P></TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="80%" >25% upon the Company obtaining a
      listing on a major stock exchange. </TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 15%" align=justify>No stock-based compensation has been
  recorded in connection with the issuance of these shares in the financial
  statements for the year ended September 30, 2013 as none of the performance
  conditions have yet been met.</P>
<P align=center>F-36</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-36></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 24<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 9 </TD>
    <TD align=left width="90%" ><U>Commitments</U> </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">a) </TD>
    <TD><P align=justify>Share Purchase Warrants</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>A summary of the Company&#146;s share purchase warrants
      outstanding is presented below:</P></TD>
  </TR>
</TABLE>
<BR>
<DIV align=center>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="60%" border=0>
    <TR vAlign=top>
      <TD align=left >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD width="17%" align=center nowrap>&nbsp;</TD>
      <TD width="2%" align=center nowrap >&nbsp;</TD>
      <TD width="1%" align=center nowrap >&nbsp;</TD>
      <TD width="17%" align=center nowrap>Weighted </TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD width="17%" align=center nowrap>&nbsp;</TD>
      <TD width="2%" align=center nowrap >&nbsp;</TD>
      <TD width="1%" align=center nowrap >&nbsp;</TD>
      <TD width="17%" align=center nowrap>Average </TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD width="17%" align=center nowrap>&nbsp;</TD>
      <TD width="2%" align=center nowrap >&nbsp;</TD>
      <TD width="1%" align=center nowrap >&nbsp;</TD>
      <TD width="17%" align=center nowrap>Exercise </TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
      <TD
      width="17%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Number of Shares </TD>
      <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD
      width="17%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Price </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    </TR>
    <TR>
      <TD >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD width="17%">&nbsp;</TD>
      <TD width="2%" >&nbsp;</TD>
      <TD width="1%" >&nbsp;</TD>
      <TD align=center width="17%">&nbsp;</TD>
      <TD width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff >Balance, September 30, 2011 </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="17%" bgColor=#e6efff>2,655,479 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD align=center width="17%" bgColor=#e6efff>&nbsp;3.16 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >Expired </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="17%">(1,552,651</TD>
      <TD align=left width="2%" >) </TD>
      <TD align=left width="1%" >$</TD>
      <TD align=center width="17%">&nbsp;3.16 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff >Issued </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%"
    bgColor=#e6efff>3,147,313 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="17%"
    bgColor=#e6efff>&nbsp;0.93 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >Balance, September 30, 2012 </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="17%">4,250,141 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >$</TD>
      <TD align=center width="17%">&nbsp;1.16 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff >Expired </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="17%" bgColor=#e6efff>(1,549,628</TD>
      <TD align=left width="2%"  bgColor=#e6efff>) </TD>
      <TD align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD align=center width="17%" bgColor=#e6efff>&nbsp;2.56 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >Issued </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="17%">6,448,966 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="17%">&nbsp;0.75 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff >Balance, September 30, 2013 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="17%"
    bgColor=#e6efff>9,149,479 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=center width="17%"
    bgColor=#e6efff>&nbsp;0.75 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P style="MARGIN-LEFT: 15%" align=justify>At September 30, 2013, the Company has
  9,149,479 currently exercisable share purchase warrants outstanding as
  follows:</P>
<DIV align=center>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="50%" border=0>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="29%">Number </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="29%">Exercise Price </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="29%">Expiry Date </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="29%" bgColor=#e6efff>2,700,513 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD align=right width="29%" bgColor=#e6efff>&nbsp;0.75 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="29%" bgColor=#e6efff>November 30, 2013 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="29%">6,448,966 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
      <TD align=left width="1%" >$</TD>
      <TD align=right width="29%">&nbsp;0.75 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="29%">July 5, 2018 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=left
    bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="29%"
    bgColor=#e6efff>9,149,479 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="29%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="29%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P style="MARGIN-LEFT: 15%" align=justify>During the year ended September 30,
  2012, the exercise price and expiry of 200,000 warrants exercisable at $3.50 and
  expiring January 5, 2012 were modified and extended such that these warrants
  were exercisable at $1.50 until January 5, 2013. The fair value of this
  modification was determined to be $80,200 and was determined using the
  Black-Scholes option pricing model using the following weighted average
  assumptions: risk-free interest rate: 0.11%, expected life: 1.0 year, annualized
  volatility: 79.46%, dividend rate: 0%.</P>
<P align=center>F-37</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-37></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 25<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 9 </TD>
    <TD align=left width="90%" ><U>Commitments </U>&#150; (cont&#146;d) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">b) </TD>
    <TD><P align=justify>Stock&#150;based Compensation Plan</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>In April, 2007, the Company adopted a stock option plan
      which provides for the granting of stock options to selected directors,
      officers, employees or consultants in an aggregate amount of up to
      3,000,000 common shares of the Company and, in any case, the number of
      shares to be issued to any one individual pursuant to the exercise of
      options shall not exceed 10% of the issued and outstanding share capital.
      The granting of stock options, exercise prices and terms are determined by
      the Company's Board of Directors. If no vesting schedule is specified by
      the Board of Directors on the grant of options, then the options shall
      vest over a 4-year period with 25% of the options granted vesting each
      year commencing 1 year from the grant date. For stockholders who have
      greater than 10% of the outstanding common shares of the Company and who
      have granted options, the exercise price of their options shall not be
      less than 110% of the fair of the stock on grant date. Otherwise, options
      granted shall have an exercise price equal to their fair value on grant
      date.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>On February 2, 2011, the Company amended and restated the
      2007 stock option plan to increase the number of options authorized to
      4,000,000.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>A summary of the status of Company&#146;s outstanding stock
      purchase options for the year ended September 30, 2013 is presented
      below:</P></TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="15%"  >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="15%" align=center nowrap>&nbsp;</TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="15%" align=center nowrap>Weighted </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="15%" align=center nowrap>Weighted </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="15%" align=center nowrap>Number of </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="15%" align=center nowrap>Average </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="15%" align=center nowrap>Average Grant </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="15%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Shares </TD>
    <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="15%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Exercise Price </TD>
    <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="15%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Date
      fair value </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Outstanding at September 30,
      2011 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#e6efff>2,375,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;3.18 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="15%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left >Forfeited </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="15%">(1,100,000</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="15%">&nbsp;2.82 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="15%">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Granted </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>500,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>&nbsp;1.50 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;0.72 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left >Outstanding at September 30, 2012 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="15%">1,775,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="15%">&nbsp;2.94 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="15%">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Expired </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#e6efff>(550,000</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;3.86 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="15%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left >Forfeited </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="15%">(150,000</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="15%">&nbsp;3.72 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="15%">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Granted </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>2,000,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>&nbsp;0.40 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;0.50 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left >Outstanding at September 30, 2013 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="15%">3,075,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="15%">&nbsp;1.26 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="15%">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Exercisable at September 30,
      2013 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="15%"
    bgColor=#e6efff>2,305,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="15%"
    bgColor=#e6efff>&nbsp;0.79 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="15%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left >Exercisable at September 30, 2012 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="15%">905,000</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="15%">2.81</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="15%">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<P align=center>F-38</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-38></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 26<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 9 </TD>
    <TD align=left width="90%" ><U>Commitments </U>&#150; (cont&#146;d) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">b) </TD>
    <TD><P align=justify>Stock&#150;based Compensation Plan &#150; (cont&#146;d)</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>At September 30, 2013, the following stock options were
      outstanding:</P></TD>
  </TR>
</TABLE>
<BR>
<DIV align=right>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="85%" border=0>
    <TR vAlign=top>
      <TD colspan="3" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Number of Shares </TD>
      <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="1%" align=center nowrap >&nbsp;</TD>
      <TD width="11%" align=center nowrap>&nbsp;</TD>
      <TD width="2%" align=center nowrap >&nbsp;</TD>
      <TD width="1%" align=center nowrap >&nbsp;</TD>
      <TD width="22%" align=center nowrap >&nbsp;</TD>
      <TD width="2%" align=center nowrap >&nbsp;</TD>
      <TD width="1%" align=center nowrap >&nbsp;</TD>
      <TD width="11%" align=center nowrap>Aggregate </TD>
      <TD width="2%" align=center nowrap >&nbsp;</TD>
      <TD width="1%" align=center nowrap >&nbsp;</TD>
      <TD width="11%" align=center nowrap>Remaining </TD>
      <TD align=center width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=center nowrap>&nbsp;</TD>
      <TD width="1%" align=center nowrap >&nbsp;</TD>
      <TD width="11%" align=center nowrap>Number </TD>
      <TD width="2%" align=center nowrap >&nbsp;</TD>
      <TD width="1%" align=center nowrap >&nbsp;</TD>
      <TD width="11%" align=center nowrap>Exercise </TD>
      <TD width="2%" align=center nowrap >&nbsp;</TD>
      <TD width="1%" align=center nowrap >&nbsp;</TD>
      <TD width="22%" align=center nowrap >&nbsp;</TD>
      <TD width="2%" align=center nowrap >&nbsp;</TD>
      <TD width="1%" align=center nowrap >&nbsp;</TD>
      <TD width="11%" align=center nowrap>Intrinsic </TD>
      <TD width="2%" align=center nowrap >&nbsp;</TD>
      <TD width="1%" align=center nowrap >&nbsp;</TD>
      <TD width="11%" align=center nowrap>Contractual </TD>
      <TD align=center width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Total </TD>
      <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD
      width="11%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Vested </TD>
      <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD
      width="11%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Price </TD>
      <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="22%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >Expiry Date </TD>
      <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD
      width="11%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Value </TD>
      <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="11%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Life
        (yrs) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right bgColor=#e6efff>150,000 <SUP>(1)</SUP> </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="11%" bgColor=#e6efff>150,000 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD align=center width="11%" bgColor=#e6efff>&nbsp;3.10 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="22%" bgColor=#e6efff >June 30, 2014</TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="11%" bgColor=#e6efff>- </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="11%" bgColor=#e6efff>0.75 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right>500,000 <SUP>(2)</SUP> </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="11%">- </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >$</TD>
      <TD align=center width="11%">&nbsp;2.50 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="22%" >October 19, 2013 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="11%">- </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="11%">0.05 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right bgColor=#e6efff>5,000 <SUP>(3)</SUP> </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="11%" bgColor=#e6efff>5,000 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD align=center width="11%" bgColor=#e6efff>&nbsp;2.50 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="22%" bgColor=#e6efff >March 2, 2014</TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="11%" bgColor=#e6efff>- </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="11%" bgColor=#e6efff>0.42 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right>50,000 <SUP>(4)</SUP> </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="11%">50,000 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >$</TD>
      <TD align=center width="11%">&nbsp;3.50 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="22%" >June 30, 2014 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="11%">- </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="11%">0.75 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right bgColor=#e6efff>100,000 <SUP>(5)</SUP> </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="11%" bgColor=#e6efff>100,000 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD align=center width="11%" bgColor=#e6efff>&nbsp;3.67 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="22%" bgColor=#e6efff >March 30, 2016 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="11%" bgColor=#e6efff>- </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="11%" bgColor=#e6efff>2.50 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right>270,000 <SUP>(6)</SUP> </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="11%">- </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >$</TD>
      <TD align=center width="11%">&nbsp;3.00 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="22%" >February 8, 2017 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="11%">- </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="11%">3.36 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      bgColor=#e6efff>2,000,000 <SUP>(7)</SUP> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%"
    bgColor=#e6efff>2,000,000 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD align=center width="11%" bgColor=#e6efff>&nbsp;0.40 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="22%" bgColor=#e6efff >July 5, 2023 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%"
    bgColor=#e6efff>500,000 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="11%" bgColor=#e6efff>9.77 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 3px double"
      align=right>3,075,000&nbsp;&nbsp;&nbsp; &nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="11%">2,305,000 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=center width="11%">&nbsp;</TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="22%" >&nbsp;</TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="11%">500,000 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="11%">&nbsp;</TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P style="MARGIN-LEFT: 15%" align=justify>The aggregate intrinsic value is
  calculated as the difference between the exercise price of the underlying awards
  and the quoted market price of the Company&#146;s stock for the options that were
  in-the-money at September 30, 2013.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="15%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(1)</SUP> </TD>
    <TD><P align=justify>As at September 30, 2013 and 2012, these options had
      fully vested. During the year ended September 30, 2012, the expiry of
      these options was extended from June 3, 2013 to June 30, 2014. The fair
      value of this modification was determined to be $18,600 and was determined
      using the Black Scholes option pricing model using the following weighted
      average assumptions: risk-free interest rate: 0.31%, expected life: 2.0
      years, annualized volatility: 84.74%, dividend rate: 0%. The Company did
      not recognize any stock-based compensation for these options during the
      year ended September 30, 2013 (2012: $18,600).</P></TD>
  </TR>
  <TR>
    <TD width="15%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="15%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(2)</SUP> </TD>
    <TD><P align=justify>As at September 30, 2013 and 2012, none of these options
      have vested. The options vest as to 100,000 per compound entered into a
      phase II trial. The fair value of these options was calculated to be
      $740,000, which the Company has not yet recognized in the financial
      statements as the performance conditions have not yet been met.</P></TD>
  </TR>
  <TR>
    <TD width="15%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="15%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(3)</SUP> </TD>
    <TD><P align=justify>As at September 30, 2013 and 2012, these options had
      fully vested. The Company did not recognize any stock-based compensation
      for these options during the year ended September 30, 2013 (2012:
      $nil).</P></TD>
  </TR>
</TABLE>
<BR>
<P align=center>F-39</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-39></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 27<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 9 </TD>
    <TD align=left width="90%"><U>Commitments </U>&#150; (cont&#146;d) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">b) </TD>
    <TD><P align=justify>Stock&#150;based Compensation Plan &#150;
      (cont&#146;d)</P></TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="15%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(4)</SUP> </TD>
    <TD><P align=justify>As at September 30, 2013 and 2012, these options had
      fully vested. The Company did not recognize any stock-based compensation
      during the year ended September 30, 2013 (2012: $nil). During the year
      ended September 30, 2012, the expiry of these options was shortened from
      June 29, 2015 to June 30, 2014. The Company did not recognize any stock
      based compensation expense in connection with this modification because
      the fair value of the modified options was less than the fair value of the
      options under the old terms.</P></TD>
  </TR>
  <TR>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="15%">&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(5)</SUP> </TD>
    <TD><P align=justify>As at September 30, 2013 and 2012, these options had
      fully vested. The fair value of these options at issuance was calculated
      to be $267,000. The Company did not recognize any stock-based compensation
      during the year ended September 30, 2013 (2012: $6,500).</P></TD>
  </TR>
  <TR>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="15%">&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(6)</SUP> </TD>
    <TD><P align=justify>As at September 30, 2013 and 2012, these options had not
      vested. The options vest upon one or more compounds: entering Phase II
      trial &#150; 90,000 options; entering Phase III trial &#150; 90,000 options; and
      receiving FDA approval &#150; 90,000 options. No stock-based compensation has
      been recorded in the financial statements as none of the performance
      conditions have yet been met.</P></TD>
  </TR>
  <TR>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="15%">&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(7)</SUP> </TD>
    <TD><P align=justify>As at September 30, 2013 these options had fully vested
      (2012: None of these options had vested). These options were granted
      during the year ended September 30, 2013 and vested immediately upon
      granting. The Company recognized stock based compensation expense of
      $1,002,500 (2012: $Nil) during the year ended September 30, 2013 in
      connection with these options.</P></TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 15%" align=justify>During the year ended September 30,
  2013, 150,000 options were forfeited for which the Company had recognized
  stock-based compensation of $Nil (2012: $163,415) during the year ended
  September 30, 2013.</P>
<P style="MARGIN-LEFT: 15%" align=justify>During the year ended September 30,
  2012, 1,100,000 options were forfeited for which the Company had recognized
  stock-based compensation of $33,493 during the year ended September 30,
  2012.</P>
<P style="MARGIN-LEFT: 15%" align=justify>The fair value of stock options
  granted has been determined using the Black-Scholes option pricing model using
  the following weighted average assumptions applied to stock options granted
  during the periods:</P>
<DIV align=center>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="60%" border=0>
    <TR vAlign=top>
      <TD align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="25%">2013 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="25%">2012 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Risk-free interest rate </TD>
      <TD align=right width="25%" bgColor=#e6efff>2.73% </TD>
      <TD align=right width="25%" bgColor=#e6efff>0.83% - 2.19% </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Expected life of options </TD>
      <TD align=right width="25%">10.0 years </TD>
      <TD align=right width="25%">4.25 - 5.0 years </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Annualized volatility </TD>
      <TD align=right width="25%" bgColor=#e6efff>71.39% </TD>
      <TD align=right width="25%" bgColor=#e6efff>57.87% - 95.25% </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Dividend rate </TD>
      <TD align=right width="25%">0.00% </TD>
      <TD align=right width="25%">0.00% </TD>
    </TR>
  </TABLE>
</DIV>
<BR>
<P align=center>F-40</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-40></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 28<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 9 </TD>
    <TD align=left width="90%" ><U>Commitments </U>&#150; (cont&#146;d) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">b) </TD>
    <TD><P align=justify>Stock&#150;based Compensation Plan &#150; (cont&#146;d)</P></TD>
  </TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>At September 30, 2013, the following summarizes the
      unvested stock options:</P></TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=center width="15%">&nbsp;</TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="15%">Weighted </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="15%">Weighted </TD>
    <TD align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%">&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=center width="15%">&nbsp;</TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="15%">Average </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="15%">Average </TD>
    <TD align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%">&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=center width="15%">Number of </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="15%">Exercise </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="15%">Grant-Date </TD>
    <TD align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%">&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="15%">Shares </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="15%">Price </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%">Fair
      Value </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Unvested options at September 30, 2011 </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#e6efff>1,445,000 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;3.33 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;2.17 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%">&nbsp;</TD>
    <TD align=left>Granted </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="15%">500,000 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="15%">&nbsp;1.50 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="15%">&nbsp;0.72 </TD>
    <TD align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Forfeited </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#e6efff>(900,000</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;2.74 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;1.60 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%">&nbsp;</TD>
    <TD align=left>Vested </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%">(175,000</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%">) </TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="15%">&nbsp;3.71 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="15%">&nbsp;2.70 </TD>
    <TD align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Unvested options at September 30, 2012 </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#e6efff>870,000 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;2.81 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;1.82 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%">&nbsp;</TD>
    <TD align=left>Granted </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="15%">2,000,000 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="15%">&nbsp;0.40 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="15%">&nbsp;0.50 </TD>
    <TD align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Expired </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#e6efff>(100,000</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;3.86 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;2.49 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%">&nbsp;</TD>
    <TD align=left>Vested </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%">(2,000,000</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%">&nbsp;0.40 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%">&nbsp;0.50 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Unvested options at September 30, 2013 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>770,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>&nbsp;2.68 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>&nbsp;1.74 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 15%" align=justify>As at September 30, 2013, there was no
  unrecognized compensation cost associated with unvested share-based compensation
  awards that will become vested exclusive of achieving any performance milestones
  that is expected to be recognized in the current fiscal year. There has been no
  stock-based compensation recognized in the financial statements for the year
  ended September 30, 2013 (2012: $nil) for options that will vest upon the
  achievement of performance milestones because the Company has determined that
  satisfaction of the performance milestones was not probable. Compensation
  relating to stock options exercisable upon achieving performance milestones will
  be recognized in the period the milestones are achieved.</P>
<P style="MARGIN-LEFT: 15%" align=justify>Stock-based compensation amounts,
  including those relating to shares issued for services during the years ended
  September 30, 2013 and 2012, are classified in the Company&#146;s Statement of
  Operations as follows:</P>
<DIV align=center>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="70%" border=0>
    <TR vAlign=top>
      <TD align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="22%">2013 </TD>
      <TD align=center width="2%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="22%">2012 </TD>
      <TD align=left width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Consulting fees </TD>
      <TD align=left width="1%" bgColor=#e6efff>$</TD>
      <TD align=right width="22%" bgColor=#e6efff>&nbsp;- </TD>
      <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%" bgColor=#e6efff>$</TD>
      <TD align=right width="22%" bgColor=#e6efff>&nbsp;312,903 </TD>
      <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Research and development </TD>
      <TD align=left width="1%">&nbsp;</TD>
      <TD align=right width="22%">- </TD>
      <TD align=left width="2%">&nbsp;</TD>
      <TD align=left width="1%">&nbsp;</TD>
      <TD align=right width="22%">80,200 </TD>
      <TD align=left width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Salaries and wages </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="22%"
    bgColor=#e6efff>1,002,500 </TD>
      <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="22%"
    bgColor=#e6efff>- </TD>
      <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%">$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="22%">&nbsp;1,002,500 </TD>
      <TD align=left width="2%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%">$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="22%">&nbsp;393,103 </TD>
      <TD align=left width="2%">&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<BR>
<P align=center>F-41</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-41></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 29<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 10 </TD>
    <TD align=left width="90%"><U>Income Taxes</U> </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%"><P align=justify>The tax effects of the temporary differences that give
      rise to the Company&#146;s estimated deferred tax assets and liabilities are as
      follows: </P></TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=center width="17%"><U>2013</U> </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="17%"><U>2012</U> </TD>
    <TD align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left><I>Tax rate</I> </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=center width="17%"><I>34%</I> </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="17%"><I>34%</I> </TD>
    <TD align=left width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Net operating loss carryforwards </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="17%" bgColor=#e6efff>&nbsp;7,141,000 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="17%" bgColor=#e6efff>&nbsp;6,775,000 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left>Research and development tax credits </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="17%">705,000 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="17%">741,000 </TD>
    <TD align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Foreign exchange </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>(19,000</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>28,000 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left>Accrued bonuses </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="17%">34,000 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="17%">34,000 </TD>
    <TD align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Intangible asset costs </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>51,000 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>34,000 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left>Stock-based compensation </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="17%">633,000 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="17%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Valuation allowance for deferred tax assets </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%"
    bgColor=#e6efff>(8,545,000</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%"
    bgColor=#e6efff>(7,612,000</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Net deferred tax assets </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="17%"
    bgColor=#e6efff>&nbsp;- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="17%"
    bgColor=#e6efff>&nbsp;- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>The provision for income taxes differ
  from the amount established using the statutory income tax rate as follows:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=center width="17%"><U>2013</U> </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="17%"><U>2012</U> </TD>
    <TD align=left width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Income benefit at statutory rate </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="17%" bgColor=#e6efff>&nbsp;(1,258,000</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="17%" bgColor=#e6efff>&nbsp;(2,823,000</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left>Foreign income taxed at foreign statutory rate </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="17%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="17%">(2,000</TD>
    <TD align=left width="2%">) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Debt extinguishment </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>501,000 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>1,302,000 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left>Research and development tax credit </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="17%">(17,000</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="17%">(175,000</TD>
    <TD align=left width="2%">) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Fair value of derivative liability </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>7,000 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>(23,000</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left>Debt accretion </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="17%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="17%">33,000 </TD>
    <TD align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Other permanent differences </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>(5,000</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>113,000 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left>Adjustment to prior years' tax provision </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="17%">(161,000</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="17%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Change in valuation allowance </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%"
    bgColor=#e6efff>933,000 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%"
    bgColor=#e6efff>1,575,000 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Income Tax Expense </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="17%"
    bgColor=#e6efff>&nbsp;- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="17%"
    bgColor=#e6efff>&nbsp;- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>As of September 30, 2013, the Company
  had net operating loss carry-forwards of approximately $21,022,000 (2012:
  $20,196,000) available to offset future taxable income. The carry-forwards will
  begin to expire in 2027 unless utilized in earlier years. The Company has not
  yet filed any tax returns in France as they are not yet due.</P>
<P align=center>F-42</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-42></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 30<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 10 </TD>
    <TD align=left width="90%" ><U>Income Taxes </U>&#150; (cont&#146;d) </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>The Company evaluates its valuation allowance
      requirements based on projected future operations. When circumstances
      change and this causes a change in management&#146;s judgment about the
      recoverability of deferred tax assets, the impact of the change on the
      valuation allowance is reflected in current income. Because management of
      the Company does not currently believe that it is more likely than not
      that the Company will receive the benefit of these assets, a valuation
      allowance equal to the deferred tax asset has been established at both
      September 30, 2013 and 2012. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>Uncertain Tax Positions </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>The Company files income tax returns in the U.S. federal
      jurisdiction, various state and foreign jurisdictions. The Company&#146;s tax
      returns are subject to tax examinations by U.S. federal and state tax
      authorities, or examinations by foreign tax authorities until respective
      statute of limitation. The Company is subject to tax examinations by tax
      authorities for all taxation years commencing on or after 2005. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Note 11 </TD>
    <TD align=left width="90%" ><P align=justify><U>Supplemental Cash Flow Information</U> </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>Investing and financing activities that do not have a
      direct impact on current cash flows are excluded from the statement of
      cash flows. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>During the year ended September 30, 2013; </P></TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">a) </TD>
    <TD><P align=justify>The Company issued three promissory notes in the
      principal amounts of $100,000, $87,865 (CDN$86,677) and $28,017
      (CDN$27,639) in exchange for accounts payable owing to three vendors in
      respect of unpaid consulting fees.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">b) </TD>
    <TD><P align=justify>The Company issued 4,208,910 units of the Company at
      their fair value of $1.02 per unit to settle (i) interest bearing notes
      payable outstanding in the amount of $549,000; (ii) accrued interest in
      connection with the notes payable of $26,058 included in accounts payable
      and accrued liabilities; and (iii) accounts payable of $1,108,506. Each
      unit consisted of one common share and one common share purchase warrant
      exercisable into one additional common share for $0.75 per share until
      July 5, 2018. In addition, in connection with the settlement, $11,449 of
      accrued interest with respect to the notes payable was forgiven. The
      Company recorded a loss on debt settlement of $1,472,208 as a result of
      this transaction.</P></TD>
  </TR>
</TABLE>
<BR>
<P align=center>F-43</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_F-43></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Consolidated Financial Statements<BR>
  September 30, 2013
  and 2012 &#150; Page 31<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 11 </TD>
    <TD align=left width="90%" ><U>Supplemental Cash Flow
      Information </U>&#150; (cont&#146;d) </TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="90%" >During the year ended September
      30, 2012: </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">a) </TD>
    <TD><P align=justify>The Company issued 544,667 units of the Company at their
      fair value of $1.918 per unit to settle a convertible interest bearing
      note payable outstanding in the amount of $272,333, including accrued
      interest of $22,333 included in accounts payable and accrued liabilities
      and 2,155,846 units of the Company at their fair value of $1.918 per unit
      to settle non- convertible interest bearing notes payable outstanding in
      the amount of $1,077,923 including accrued interest of $30,034 included in
      accounts payable and accrued liabilities. Each unit consisted of one
      common share and one common share purchase warrant exercisable into one
      additional common share for $0.75 per share until November 30, 2013. The
      Company recorded a loss on debt settlement of $3,829,333 as a result of
      this transaction.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">b) </TD>
    <TD><P align=justify>The Company issued 75,000 common shares at their fair
      value of $1.00 per share for a total of $75,000 to the former President of
      the Company pursuant to a severance agreement.</P></TD>
  </TR>
</TABLE>
<BR>
<P align=center>F-44</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-1></A>
<P align=justify>&nbsp;</P>
<P align=justify>&nbsp;</P>
<P align=center>&nbsp;</P>
<P align=center><B>ANAVEX LIFE SCIENCES CORP.</B></P>
<P align=center>(A Development Stage Company)</P>
<P align=center>INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS </P>
<P align=center>March 31, 2014 </P>
<P align=center>(Unaudited)</P>
<P align=center>&nbsp;</P>
<P align=center>F-45</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-2></A>
<P align=center><B>ANAVEX LIFE SCIENCES CORP.</B><BR>
  (A Development Stage
  Company)<BR>
  INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS<BR>
  March 31, 2014 and
  September 30, 2013<BR>
  (Unaudited)<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=center><B><U>ASSETS</U></B> </TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="14%">&nbsp;</TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="14%">&nbsp;</TD>
    <TD align=center width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="14%" align=center nowrap>March 31, </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="14%" align=center nowrap>September 30, </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="14%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">2014 </TD>
    <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="14%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">2013 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="14%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="14%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Current </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; &nbsp;Cash </TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="14%">&nbsp;9,193,558 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="14%">345,074 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp;Prepaid expenses </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>28,478 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>48,375 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="14%">9,222,036 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="14%">393,449 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Deferred financing charges </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>1,068,541 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Equipment </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">1,943 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>&nbsp;10,292,520 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>393,449 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="14%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="14%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center valign="bottom" bgColor=#e6efff><B><U>LIABILITIES</U></B> </TD>
    <TD vAlign=bottom align=center width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="14%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="14%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="14%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="14%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Current </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; &nbsp;Accounts payable and accrued liabilities </TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="14%">&nbsp;1,689,605 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="14%">1,741,797 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp;Promissory notes payable </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>193,720 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>210,863 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="14%">1,883,325 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="14%">1,952,660 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Derivative financial instruments - warrants </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>904,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Convertible debentures, net of debt discounts </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">1,011 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>1,884,336 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>2,856,660 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="14%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="14%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD align=center valign="bottom" bgColor=#e6efff><B><U>CAPITAL DEFICIT</U></B> </TD>
    <TD vAlign=bottom align=center width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="14%" bgColor=#e6efff></TD>
    <TD vAlign=bottom align=center width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=center width="14%" bgColor=#e6efff></TD>
    <TD vAlign=bottom align=center width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="14%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="14%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD
      align=left valign="bottom" nowrap>&nbsp;&nbsp;&nbsp;Authorized:&nbsp;<BR>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;150,000,000
      common shares, par value $0.001 per
      share&nbsp;<BR>
      &nbsp;&nbsp;&nbsp;Issued and
      outstanding:&nbsp;<BR>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38,260,098
      common shares (September 30, 2013 - 37,237,588) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="14%">38,261 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="14%">37,238 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Additional paid-in capital </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>49,595,118 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>38,644,523 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Common stock to be issued </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="14%">640,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="14%">60,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Deficit accumulated during the development
      stage </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>(41,865,195</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>(41,204,972</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">8,408,184 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">(2,463,211</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>&nbsp;10,292,520 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>393,449 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<P align=center>SEE ACCOMPANYING NOTES</P>
<P align=center>F-46</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-3></A>
<P align=center><B>ANAVEX LIFE SCIENCES CORP.</B><BR>
  (A Development Stage
  Company)<BR>
  INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS<BR>
  for the
  three and six months ended March 31, 2014 and 2013<BR>
  and for the period from
  January 23, 2004 (Date of Inception) to March 31, 2014<BR>
  (Unaudited)<BR>
</P>
<DIV>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
    <TR vAlign=top>
      <TD align=left valign="bottom" >&nbsp;</TD>
      <TD width="1%" align=center valign="bottom" >&nbsp;</TD>
      <TD width="11%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
      <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
      <TD width="11%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
      <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
      <TD width="11%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
      <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
      <TD width="11%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
      <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
      <TD width="11%" align=center valign="bottom" nowrap>January 23, 2004 </TD>
      <TD width="2%" align=center valign="bottom" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" >&nbsp;</TD>
      <TD width="1%" align=center valign="bottom" >&nbsp;</TD>
      <TD colspan="4" align=center valign="bottom" nowrap>Three months ended March 31, </TD>
      <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
      <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
      <TD colspan="4" align=center valign="bottom" nowrap>Six months ended March 31, </TD>
      <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
      <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
      <TD width="11%" align=center valign="bottom" nowrap>(Date of Inception) </TD>
      <TD width="2%" align=center valign="bottom" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" >&nbsp;</TD>
      <TD width="1%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="11%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">2014 </TD>
      <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="11%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">2013 </TD>
      <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="11%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">2014 </TD>
      <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="11%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">2013 </TD>
      <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="11%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">to
        March 31, 2014 </TD>
      <TD width="2%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" >Operating expenses </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="11%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="11%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="11%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="11%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="11%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff >General and administrative -
        Notes 9 and 10 </TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>&nbsp;903,015</TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>&nbsp;126,551</TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>&nbsp;1,207,443 </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>&nbsp;415,415</TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>&nbsp;18,406,207 </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" >Research and development </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="11%">118,152 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="11%">560 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="11%">123,332 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="11%">127,563 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="11%">12,946,128 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    </TR>
    <TR>
      <TD valign="bottom" bgColor=#e6efff >&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="11%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="11%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="11%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="11%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="11%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" >Total operating expenses </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%">(1,021,167</TD>
      <TD vAlign=bottom align=left width="2%" >) </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%">(127,111</TD>
      <TD vAlign=bottom align=left width="2%" >) </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%">(1,330,775</TD>
      <TD vAlign=bottom align=left width="2%" >) </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%">(542,978</TD>
      <TD vAlign=bottom align=left width="2%" >) </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%">(31,352,335</TD>
      <TD vAlign=bottom align=left width="2%" >) </TD>
    </TR>
    <TR>
      <TD valign="bottom" bgColor=#e6efff >&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="11%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="11%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="11%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="11%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="11%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" >Other income (expenses) </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="11%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="11%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="11%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="11%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="11%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff >Interest and finance
        expenses, net </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>(5,079</TD>
      <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>(16,558</TD>
      <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>(8,366</TD>
      <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>(26,783</TD>
      <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>(685,728</TD>
      <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" >Accretion of debt discounts </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%">(1,011</TD>
      <TD vAlign=bottom align=left width="2%" >) </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%">- </TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%">(1,011</TD>
      <TD vAlign=bottom align=left width="2%" >) </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%">- </TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%">(2,175,672</TD>
      <TD vAlign=bottom align=left width="2%" >) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff >Change in fair value of
        derivative financial instruments </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>- </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>- </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>683,000 </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>- </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>234,726 </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" >Debt conversion expense </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%">- </TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%">- </TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%">- </TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%">- </TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%">(504,160</TD>
      <TD vAlign=bottom align=left width="2%" >) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff >Loss on settlement of
        accounts payable </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>- </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>- </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>- </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>- </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>(1,754,933</TD>
      <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" >Loss on extinguishment of debt </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%">- </TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%">- </TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%">- </TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%">- </TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%">(5,010,868</TD>
      <TD vAlign=bottom align=left width="2%" >) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff >Foreign exchange gain (loss) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="11%" bgColor=#e6efff>8,397 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="11%" bgColor=#e6efff>37,569 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="11%" bgColor=#e6efff>(3,071</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="11%" bgColor=#e6efff>10,144 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="11%" bgColor=#e6efff>(65,421</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    </TR>
    <TR>
      <TD valign="bottom" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="11%">&nbsp;</TD>
      <TD vAlign=bottom width="2%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="11%">&nbsp;</TD>
      <TD vAlign=bottom width="2%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="11%">&nbsp;</TD>
      <TD vAlign=bottom width="2%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="11%">&nbsp;</TD>
      <TD vAlign=bottom width="2%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="11%">&nbsp;</TD>
      <TD vAlign=bottom width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff >Total other income
        (expenses), net </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="11%" bgColor=#e6efff>2,307 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="11%" bgColor=#e6efff>21,011 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="11%" bgColor=#e6efff>670,552 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="11%" bgColor=#e6efff>(16,639</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="11%" bgColor=#e6efff>(9,962,056</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    </TR>
    <TR>
      <TD valign="bottom" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="11%">&nbsp;</TD>
      <TD vAlign=bottom width="2%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="11%">&nbsp;</TD>
      <TD vAlign=bottom width="2%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="11%">&nbsp;</TD>
      <TD vAlign=bottom width="2%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="11%">&nbsp;</TD>
      <TD vAlign=bottom width="2%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="11%">&nbsp;</TD>
      <TD vAlign=bottom width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff >Net loss and comprehensive
        loss for the period </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="11%" bgColor=#e6efff>&nbsp;(1,018,860</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="11%" bgColor=#e6efff>&nbsp;(106,100</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="11%" bgColor=#e6efff>&nbsp;(660,223</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="11%" bgColor=#e6efff>&nbsp;(559,617</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="11%" bgColor=#e6efff>&nbsp;(41,314,391</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    </TR>
    <TR>
      <TD valign="bottom" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="11%">&nbsp;</TD>
      <TD vAlign=bottom width="2%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="11%">&nbsp;</TD>
      <TD vAlign=bottom width="2%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="11%">&nbsp;</TD>
      <TD vAlign=bottom width="2%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="11%">&nbsp;</TD>
      <TD vAlign=bottom width="2%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="11%">&nbsp;</TD>
      <TD vAlign=bottom width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff >Loss per share </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="11%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="11%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="11%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="11%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="11%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" >&nbsp;&nbsp;&nbsp;Basic </TD>
      <TD vAlign=bottom align=left width="1%" >$</TD>
      <TD vAlign=bottom align=right width="11%">&nbsp;(0.03</TD>
      <TD vAlign=bottom align=left width="2%" >) </TD>
      <TD vAlign=bottom align=left width="1%" >$</TD>
      <TD vAlign=bottom align=right width="11%">&nbsp;(0.00</TD>
      <TD vAlign=bottom align=left width="2%" >) </TD>
      <TD vAlign=bottom align=left width="1%" >$</TD>
      <TD vAlign=bottom align=right width="11%">&nbsp;(0.02</TD>
      <TD vAlign=bottom align=left width="2%" >) </TD>
      <TD vAlign=bottom align=left width="1%" >$</TD>
      <TD vAlign=bottom align=right width="11%">&nbsp;(0.02</TD>
      <TD vAlign=bottom align=left width="2%" >) </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="11%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff >&nbsp;&nbsp;&nbsp;Diluted </TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>&nbsp;(0.03</TD>
      <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>&nbsp;(0.00</TD>
      <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>&nbsp;(0.04</TD>
      <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>&nbsp;(0.02</TD>
      <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="11%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR>
      <TD valign="bottom" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="11%">&nbsp;</TD>
      <TD vAlign=bottom width="2%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="11%">&nbsp;</TD>
      <TD vAlign=bottom width="2%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="11%">&nbsp;</TD>
      <TD vAlign=bottom width="2%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="11%">&nbsp;</TD>
      <TD vAlign=bottom width="2%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="11%">&nbsp;</TD>
      <TD vAlign=bottom width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff >Weighted average number of
        shares outstanding </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="11%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="11%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="11%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="11%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="11%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" >&nbsp;&nbsp;&nbsp;Basic </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%">37,881,209 </TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%">30,240,687 </TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%">37,680,823 </TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%">30,240,687 </TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="11%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff >&nbsp;&nbsp;&nbsp;Diluted </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>37,881,209 </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>30,240,687 </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>37,680,823 </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="11%" bgColor=#e6efff>30,240,687 </TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="11%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P align=center>SEE ACCOMPANYING NOTES</P>
<P align=center>F-47</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-4></A>
<P align=center><B>ANAVEX LIFE SCIENCES CORP.</B><BR>
  (A Development Stage
  Company)<BR>
  INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS<BR>
  for the
  six months ended March 31, 2014 and 2013<BR>
  and for the period from January 23,
  2004 (Date of Inception) to March 31, 2014<BR>
  (Unaudited)<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=center nowrap>&nbsp;</TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="12%" align=center nowrap>&nbsp;</TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="12%" align=center nowrap>January 23, 2004 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD colspan="4" align=center valign="bottom" nowrap>Six months ended March 31, </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="12%" align=center valign="bottom" nowrap>(Date of Inception) </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="12%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">2014 </TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="12%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">2013 </TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="12%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">to
      March 31, 2014 </TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Cash Flows used in Operating Activities </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Net loss for the period </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%"
bgColor=#e6efff>&nbsp;(660,223</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%"
bgColor=#e6efff>&nbsp;(559,617</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#e6efff>&nbsp;(41,314,391</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Adjustments to reconcile net loss to net cash used in
      operations: </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Amortization and depreciation </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>384 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>576 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>6,015 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Accretion of debt discount </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">1,011 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">2,175,672 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Stock-based compensation </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>5,845,047 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Common shares to be issued for services </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">610,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">610,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Amortization of deferred financing charge </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>1,199 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>1,215 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>165,126 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Change in fair value of derivative financial instruments</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(683,000</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(234,726</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Consulting expense recorded in exchange for
      shares to be issued </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>236,337 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Common shares issued for consulting expenses </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">406,405 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Promissory note issued for severance </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>71,500 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Common shares issued for severance </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">415,600 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Common shares issued for research and
      development expenses </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>800,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Management fees contributed </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">14,625 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Debt conversion expense </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>504,160 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Loss on settlement of accounts payable </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">1,754,933 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Loss on extinguishment of debt </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>5,010,868 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Rent contributed </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">3,750 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Unrealized foreign exchange </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>(17,143</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>(3,590</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>(22,080</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Changes in non-cash working capital balances related to
      operations: </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>VAT recoverable </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Prepaid expenses </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(12,253</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(12,253</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Accounts payable and accrued liabilities</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>(22,494</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>300,541 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>6,215,965 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Net cash used in operating activities </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(782,519</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(260,875</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(17,347,447</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Cash Flows used in Investing Activities </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Acquisition of equipment </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>(2,327</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>(7,958</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Net cash used in investing activities </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(2,327</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(7,958</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Cash Flows provided by Financing Activities </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Issuance of common shares, net of share
      issue costs </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>398,170 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>11,446,288 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Share subscriptions received </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(30,000</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">30,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Proceeds from promissory notes </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>250,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>5,649,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Financing fees </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(734,840</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(842,990</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Repayment of promissory note </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>(100,000</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Issuance of convertible debentures </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">10,000,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">10,000,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Due to related parties </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>33,665 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Shareholder advances </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">333,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Net cash provided by financing activities </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>9,633,330 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>250,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>26,548,963 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Increase (decrease) in cash during the
      period </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>8,848,484 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>(10,875</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>9,193,558 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Cash, beginning of period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">345,074 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">11,362 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Cash, end of period </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;9,193,558 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;487 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;9,193,558 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Supplemental Cash Flow Information - Note
      11 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<P align=center>SEE ACCOMPANYING NOTES</P>
<P align=center>F-48</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-5></A>
<P align=justify><B>Anavex Life Sciences Corp.</B><BR>
  (A Development Stage
  Company)<BR>
  Consolidated Statement of Changes in Capital Deficit<BR>
  For the
  period from January 23, 2004 (Date of Inception) to March 31, 2014<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Deficit </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD colspan="10" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"> Common Stock </TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Accumulated </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Shares </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Par Value </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Additional </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Common </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>During the </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Paid-in </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Shares to be </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Development </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Capital </TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Issued </TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Stage </TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Total </TD>
    <TD
    width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for cash on January
      23, 2004 - at $0.0033 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>12,000,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;12,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;28,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;-</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;40,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Net loss from January 23, 2004 to September 30, 2004 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%">(14,395</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%">(14,395</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Balance, September 30, 2004 </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">12,000,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">12,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">28,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">(14,395</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">25,605 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for cash on December
      31, 2004 - at $0.0033 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">7,200,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">7,200 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">16,800 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">24,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Management fees contributed </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>13,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>13,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Rent contributed </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">3,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">3,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Net loss for the year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>(91,625</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>(91,625</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Balance, September 30, 2005 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>19,200,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>19,200 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>60,800 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>(106,020</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>(26,020</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Management fees contributed </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">1,625 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">1,625 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Rent contributed </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>750 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>750 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Debt forgiven by directors </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">33,666 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">33,666 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Net loss for the year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>(25,532</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>(25,532</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Balance, September 30, 2006 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>19,200,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>19,200 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>96,841 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>(131,552</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>(15,511</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Capital stock issued for research and development services
      on September 24, 2007 - at $3.60 </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">222,222 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">222 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">799,778 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">800,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for settlement of loan
      payable on September 25, 2007 - at $3.60 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>92,500 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>93 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>332,907 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>333,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Net loss for the year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%">(1,579,993</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%">(1,579,993</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Balance, September 30, 2007 </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">19,514,722 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">$</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;19,515 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">$</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;1,229,526 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">$</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">$</TD>
    <TD vAlign=bottom align=right width="9%">(1,711,545</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
    <TD vAlign=bottom align=left width="1%">$</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;(462,504</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
  </TR>
</TABLE>
<P align=center>SEE ACCOMPANYING NOTES</P>
<P align=center>F-49</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-6></A>
<P align=justify><B>Anavex Life Sciences Corp.</B><BR>
  (A Development Stage
  Company)<BR>
  Consolidated Statement of Changes in Capital Deficit<BR>
  For the
  period from January 23, 2004 (Date of Inception) to March 31, 2014<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Deficit </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD colspan="10" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"> Common Stock </TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Accumulated </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Shares </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Par Value </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Additional </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Common </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>During the </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Paid-in </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Shares to be </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Development </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Capital </TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Issued </TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Stage </TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Total </TD>
    <TD
    width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=right valign="bottom">&nbsp;</TD>
    <TD width="9%" align=right valign="bottom">&nbsp;</TD>
    <TD width="2%" align=right valign="bottom">&nbsp;</TD>
    <TD width="1%" align=right valign="bottom">&nbsp;</TD>
    <TD width="9%" align=right valign="bottom">&nbsp;</TD>
    <TD width="2%" align=right valign="bottom">&nbsp;</TD>
    <TD width="1%" align=right valign="bottom">&nbsp;</TD>
    <TD width="9%" align=right valign="bottom">&nbsp;</TD>
    <TD width="2%" align=right valign="bottom">&nbsp;</TD>
    <TD width="1%" align=right valign="bottom">&nbsp;</TD>
    <TD width="9%" align=right valign="bottom">&nbsp;</TD>
    <TD width="2%" align=right valign="bottom">&nbsp;</TD>
    <TD width="1%" align=right valign="bottom">&nbsp;</TD>
    <TD width="9%" align=right valign="bottom">&nbsp;</TD>
    <TD width="2%" align=right valign="bottom">&nbsp;</TD>
    <TD width="1%" align=right valign="bottom">&nbsp;</TD>
    <TD width="9%" align=right valign="bottom">&nbsp;</TD>
    <TD width="2%" align=right valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Balance, September 30, 2007 -
      brought forward </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>19,514,722 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;19,515 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;1,229,526 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%"
    bgColor=#e6efff>&nbsp;(1,711,545</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;(462,504</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Capital stock issued for cash on December 10,
      2007 - at $3.50 </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">150,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">150 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">524,850 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">525,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Capital stock issued for
      consulting services on December 18, 2007 - at $3.86 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>50,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>50 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>192,950 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>193,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Capital stock issued in settlement of debt on
      December 18, 2007 - at $4.50 </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">10,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">10 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">44,990 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">45,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Stock-based compensation for
      shares issued at a discount </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>65,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>65,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Capital stock issued for severance on May 15,
      2008 - at $5.24 </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">65,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">65 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">340,535 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">340,600 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Common shares to be issued
      for consulting services </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>252,599 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>252,599 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Common stock issued for consulting services
      on August 19, 2008 - at $5.07 </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">25,000 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">25 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">126,725 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">(126,750</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Capital stock issued for cash
      on August 19, 2008 - at $4.25 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>142,698 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>142 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>606,325 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>606,467 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Stock-based compensation </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">1,493,937 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">1,493,937 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Net loss for the year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>(5,351,269</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>(5,351,269</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Balance, September 30, 2008 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>19,957,420 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;19,957 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;4,624,838 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;125,849 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%"
    bgColor=#e6efff>&nbsp;(7,062,814</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%"
    bgColor=#e6efff>&nbsp;(2,292,170</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>)</TD>
  </TR>
</TABLE>
<P align=center>SEE ACCOMPANYING NOTES</P>
<P align=center>F-50</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-7></A>
<P align=justify><B>Anavex Life Sciences Corp.</B><BR>
  (A Development Stage
  Company)<BR>
  Consolidated Statement of Changes in Capital Deficit<BR>
  For the
  period from January 23, 2004 (Date of Inception) to March 31, 2014<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Deficit </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD colspan="10" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"> Common Stock </TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Accumulated </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Shares </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Par Value </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Additional </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Common </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>During the </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Paid-in </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Shares to be </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Development </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Capital </TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Issued </TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Stage </TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Total </TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;</TD>
    <TD width="2%" align=right valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Balance, September 30, 2008 - brought
      forward </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>19,957,420 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;19,957 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;4,624,838 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;125,849 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%"
    bgColor=#e6efff>&nbsp;(7,062,814</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%"
    bgColor=#e6efff>&nbsp;(2,292,170</TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Stock-based compensation </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">812,336 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">812,336 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for consulting
      services on November 20, 2008 - $2.63 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>25,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>25 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>65,725 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>(65,750</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Capital stock issued for consulting services on February
      20, 2009 - $2.50 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">25,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">25 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">62,475 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">(62,500</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for cash on March 6,
      2009 - at $2.25 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>89,148 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>89 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>200,494 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>200,583 </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Capital stock issued for consulting services on March 20,
      2009 - at $2.00 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">2,500 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">3 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">4,997 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">5,000 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for cash on March 20,
      2009 - at $2.25 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>10,800 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>11 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>24,289 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>24,300 </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Capital stock issued for cash on June 11, 2009 - at $2.25 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">36,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">36 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">80,964 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">81,000 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for services on June
      11, 2009 - at $2.25 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>29,227 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>29 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>65,731 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>65,760 </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Capital stock issued for cash on June 19, 2009 - at $2.25 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">495,556 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">496 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">1,114,504 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">1,115,000 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for finders' fees on
      June 26, 2009 - at $2.51 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>22,222 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>22 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>55,755 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>55,777 </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Shares to be issued for consulting services </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">236,337 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">236,337 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for cash on August 19,
      2009 - at $2.25 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>128,888 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>129 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>289,869 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>289,998 </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Less: Finders fees </TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">(72,850</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">(72,850</TD>
    <TD width="2%" align=left valign="bottom" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Beneficial conversion features on
      convertible debt issuances </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>333,056 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>333,056 </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Extinguishment of debt </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">487,469 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">487,469 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Cancellation of common shares </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>(75,000</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>(75</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>234,011 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>(233,936</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Share subscriptions received </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">300,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">300,000 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Net loss for the year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>(5,499,419</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>(5,499,419</TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;</TD>
    <TD width="2%" align=right valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Balance, September 30, 2009 </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="9%" align=right valign="bottom" bgColor=#e6efff>20,746,761 </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>$</TD>
    <TD width="9%" align=right valign="bottom" bgColor=#e6efff>&nbsp;20,747 </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>$</TD>
    <TD width="9%" align=right valign="bottom" bgColor=#e6efff>&nbsp;8,383,663 </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>$</TD>
    <TD width="9%" align=right valign="bottom" bgColor=#e6efff>&nbsp;300,000 </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>$</TD>
    <TD width="9%" align=right valign="bottom" bgColor=#e6efff>&nbsp;(12,562,233</TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>) </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>$</TD>
    <TD width="9%" align=right valign="bottom" bgColor=#e6efff>&nbsp;(3,857,823</TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>)</TD>
  </TR>
</TABLE>
<P align=center>SEE ACCOMPANYING NOTES</P>
<P align=center>F-51</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-8></A>
<P align=justify><B>Anavex Life Sciences Corp.</B><BR>
  (A Development Stage
  Company)<BR>
  Consolidated Statement of Changes in Capital Deficit<BR>
  For the
  period from January 23, 2004 (Date of Inception) to March 31, 2014<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Deficit </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD colspan="10" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"> Common Stock </TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Accumulated </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Shares </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Par Value </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Additional </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Common </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>During the </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Paid-in </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Shares to be </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Development </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Capital </TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Issued </TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Stage </TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Total </TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Balance, September 30, 2009 - brought
      forward </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>20,746,761 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;20,747 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;8,383,663 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;300,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%"
    bgColor=#e6efff>&nbsp;(12,562,233</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%"
    bgColor=#e6efff>&nbsp;(3,857,823</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Cumulative effect of accounting changes </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">(333,056</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">(550,804</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">(883,860</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for cash on October 2,
      2009 - at $2.25 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>266,666 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>267 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>599,733 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>(300,000</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>300,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Capital stock issued in settlement of promissory note on
      February 2, 2010 - at $2.02 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">49,505 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">49 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">99,951 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">100,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for cash on April 9,
      2010 - at $2.60 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>92,499 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>93 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>240,405 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>240,498 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Capital stock issued in settlement of debt on April 30,
      2010 - at $2.85 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">9,825 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">9 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">27,991 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">28,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Finders' fees paid in cash </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>(24,050</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>(24,050</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Capital stock issued for cash on June 29, 2010 - at $2.50 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">941,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">941 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">2,351,559 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">2,352,500 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Finders' fees paid in cash </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>(206,500</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>(206,500</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Capital stock issued in settlement of debt on July 5, 2010
      - at $2.50 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">400,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">400 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">999,600 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">1,000,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for cash on September
      3, 2010 - at $2.75 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>163,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>163 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>448,087 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>448,250 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Capital stock issued for finders' fees on September 3, 2010
      - at $2.75 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">9,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">9 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">(9</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Finders' fees paid in cash </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>(15,125</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>(15,125</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Shares issud on conversion of promissory note on September
      30, 2010 - at $2.25 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">328,058 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">328 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">737,802 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">738,130 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Shares issud on conversion of promissory
      note on September 30, 2010 - at $2.35 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>510,638 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>511 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>1,199,489 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>1,200,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Reclassification of dervative liability on modification of
      note </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">3,144,520 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">3,144,520 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Settlementterms of accounts payable </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>444,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>444,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Stock-based compensation </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">770,055 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">770,055 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Equity component of convertible promissory
      note </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>44,220 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>44,220 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Net loss for the year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%">(8,783,037</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%">(8,783,037</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Balance, September 30, 2010 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">23,516,952 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;23,517 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;18,912,335 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;(21,896,074</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;(2,960,222</TD>
    <TD vAlign=bottom align=left width="2%" >)</TD>
  </TR>
</TABLE>
<P align=center>SEE ACCOMPANYING NOTES</P>
<P align=center>F-52</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-9></A>
<P align=justify><B>Anavex Life Sciences Corp.</B><BR>
  (A Development Stage
  Company)<BR>
  Consolidated Statement of Changes in Capital Deficit<BR>
  For the
  period from January 23, 2004 (Date of Inception) to March 31, 2014<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Deficit </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD colspan="10" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"> Common Stock </TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Accumulated </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Shares </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Par Value </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Additional </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Common </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>During the </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Paid-in </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Shares to be </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Development </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Capital </TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Issued </TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Stage </TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Total </TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Balance, September 30, 2010 - brought
      forward </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>23,516,952 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;23,517 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;18,912,335 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%"
    bgColor=#e6efff>&nbsp;(21,896,074</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%"
    bgColor=#e6efff>&nbsp;(2,960,222</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#ffffff>Capital stock issued for cash on November
      18, 2010 - at $2.75 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>393,846 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>393 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>1,082,682 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>1,083,075 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Less: Share issue costs </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>(65,363</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>(65,363</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#ffffff>Capital stock issued for finders' fees on
      November 18, 2010 - at $2.75 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>3,636 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>4 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>(4</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#ffffff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Shares issued on the conversion of
      promissory note on November 18, 2010 - at $2.25 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>853,075 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>853 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>1,918,565 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>1,919,418 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#ffffff>Debt conversion expense </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>504,160 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>504,160 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Shares issued on the conversion of a
      promissory note on November 18, 2010 - at $4.12 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>145,063 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>145 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>597,515 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>597,660 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#ffffff>Capital stock issued in settlement of debt
      on November 18, 2010 - at $4.12 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>181,818 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>182 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>748,908 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>749,090 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for cash on November
      25, 2010 - at $3.35 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>29,851 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>30 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>99,970 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>100,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#ffffff>Capital stock issued for finders' fees on
      on November 25, 2010 - at $3.35 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>2,985 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>3 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>(3</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#ffffff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for cash on February
      1, 2011 - at $3.75 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>61,014 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>61 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>228,739 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>228,800 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for cash on May 3,
      2011 - at $3.00 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>33,334 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>34 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>99,966 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>100,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#ffffff>Capital stock issued on exercise of
      warrants for cash on June 19, 2011 - at $2.25 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>700,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>700 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>1,574,300 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>1,575,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Equity units issued in settlement of an
      account payable on September 28, 2011 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>650,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>650 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>1,059,313 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" bgColor=#e6efff></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" bgColor=#e6efff></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>1,059,963 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#ffffff>Stock-based compensation </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>1,273,162 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#ffffff>1,273,162 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Net loss for the period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>(7,307,147</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>(7,307,147</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#ffffff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Balance, September 30, 2011 </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="9%" align=right valign="bottom" bgColor=#e6efff>26,571,574 </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>$</TD>
    <TD width="9%" align=right valign="bottom" bgColor=#e6efff>&nbsp;26,572 </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>$</TD>
    <TD width="9%" align=right valign="bottom" bgColor=#e6efff>&nbsp;28,034,245 </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>$</TD>
    <TD width="9%" align=right valign="bottom" bgColor=#e6efff>&nbsp;- </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>$</TD>
    <TD width="9%" align=right valign="bottom" bgColor=#e6efff>&nbsp;(29,203,221</TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>) </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>$</TD>
    <TD width="9%" align=right valign="bottom" bgColor=#e6efff>&nbsp;(1,142,404</TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>)</TD>
  </TR>
</TABLE>
<P align=center>SEE ACCOMPANYING NOTES</P>
<P align=center>F-53</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-10></A>
<P align=justify><B>Anavex Life Sciences Corp.</B><BR>
  (A Development Stage
  Company)<BR>
  Consolidated Statement of Changes in Capital Deficit<BR>
  For the
  period from January 23, 2004 (Date of Inception) to March 31, 2014<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom">&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom">&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom">&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom">&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom">Deficit </TD>
    <TD width="2%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom">&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD colspan="10" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"> Common Stock </TD>
    <TD width="2%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom">Accumulated </TD>
    <TD width="2%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom">&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom">Shares </TD>
    <TD width="2%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom">Par Value </TD>
    <TD width="2%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom">Additional </TD>
    <TD width="2%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom">Common </TD>
    <TD width="2%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom">During the </TD>
    <TD width="2%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom">&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom">&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom">&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom">Paid-in </TD>
    <TD width="2%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom">Shares to be </TD>
    <TD width="2%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom">Development </TD>
    <TD width="2%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom">&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">Capital </TD>
    <TD width="2%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">Issued </TD>
    <TD width="2%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">Stage </TD>
    <TD width="2%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">Total </TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Balance, September 30, 2011 - brought
      forward </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>26,571,574 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;26,572 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;28,034,245 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%"
    bgColor=#e6efff>&nbsp;(29,203,221</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%"
    bgColor=#e6efff>&nbsp;(1,142,404</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for cash on December
      6, 2011 - at $1.25 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>615,600 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>616 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>768,884 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>769,500 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Less: Share issue costs </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">(77,000</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">(77,000</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Capital stock issued for cash on February 9, 2012 - at
      $1.25 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">270,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">270 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">337,230 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">337,500 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Less: Share issue costs </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>(33,750</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>(33,750</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Equity units issued for services on
      February 9, 2012 - at $1.99 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>8,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>8 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>15,888 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>15,896 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Equity units issued for settlement of loans payable on May
      31, 2012 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">2,700,513 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">2,700 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">5,176,884 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">5,179,584 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for services on July
      12, 2012 - at $1.00 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>75,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>75 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>74,925 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>75,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Stock-based compensation </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">302,208 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">302,208 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Net loss for the period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>(8,301,705</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>(8,301,705</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Balance, September 30, 2012 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>30,240,687 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>30,241 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>34,599,514 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>(37,504,926</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>(2,875,171</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Equity units issued for settlement of loans payable on July
      5, 2013 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">4,208,910 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">4,209 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">2,563,011 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">2,567,220 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for cash on July 5,
      2013 - at $0.40 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>2,196,133 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>2,196 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>563,257 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>565,453 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Less: Share issue costs </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">(112,174</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">(112,174</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Initial purchase shares issued under
      Purchase Agreement on July 5, 2013 - at $0.40 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>591,858 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>592 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>99,750 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>100,342 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Less: Share issue costs </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">(71,335</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">(71,335</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Common stock to be issued for cash - at
      $0.50 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>60,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>60,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Stock-based compensation </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">1,002,500 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">1,002,500 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Net loss for the period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>(3,700,046</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff>(3,700,046</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Balance, September 30, 2013 - brought
      forward </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>37,237,588 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;37,238 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;38,644,523 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;60,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%"
    bgColor=#e6efff>&nbsp;(41,204,972</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%"
    bgColor=#e6efff>&nbsp;(2,463,211</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
</TABLE>
<P align=center>SEE ACCOMPANYING NOTES</P>
<P align=center>F-54</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-11></A>
<P align=justify><B>Anavex Life Sciences Corp.</B><BR>
  (A Development Stage
  Company)<BR>
  Consolidated Statement of Changes in Capital Deficit<BR>
  For the
  period from January 23, 2004 (Date of Inception) to March 31, 2014<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Deficit </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD colspan="10" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"> Common Stock </TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Accumulated </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Shares </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Par Value </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Additional </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Common </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>During the </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Paid-in </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Shares to be </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>Development </TD>
    <TD width="2%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Capital </TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Issued </TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Stage </TD>
    <TD width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="9%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Total </TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="9%" valign="bottom">&nbsp;</TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Balance, September 30, 2013 - brought
      forward </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>37,237,588 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;37,238 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;38,644,523 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>&nbsp;60,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%"
    bgColor=#e6efff>&nbsp;(41,204,972</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="9%"
    bgColor=#e6efff>&nbsp;(2,463,211</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Equity units issued under Purchase Agreement </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">400,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">400 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">187,770 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">188,170 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Commitment shares issued under terms of
      Purchase Agreement </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>2,510 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>3 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>(3</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Capital stock issued for cash - at $0.50 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">120,000 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">120 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">59,880 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">(60,000</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock issued for cash - at $0.30</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>500,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>500 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>149,500 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>30,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>180,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Share issue costs, net of recovery </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">(2,452</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">(2,452</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Issuance of detachable warrants </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>5,989,900 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>5,989,900 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Agent's warrants issued in connection with convertible
      debentures </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">334,900 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">334,900 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Beneficial conversion feature on convertible debentures
      issued </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">4,010,100 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">4,010,100 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Reclassification of derivative financial
      instruments upon modification of warrant terms </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>221,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>221,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="9%">&nbsp;</TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock to be issued pursuant to
      employment agreement </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>610,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff>610,000 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Net loss for the period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%">(660,223</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%">(660,223</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="9%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Balance, March 31, 2014 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="9%">38,260,098 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="9%">&nbsp;38,261 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="9%">&nbsp;49,595,118 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="9%">&nbsp;640,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="9%">&nbsp;(41,865,195</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="9%">&nbsp;8,408,184 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
  </TR>
</TABLE>
<P align=center>SEE ACCOMPANYING NOTES</P>
<P align=center>F-55</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-12></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Interim Condensed Consolidated Financial
  Statements<BR>
  March 31, 2014 and 2012<BR>
  (Unaudited)<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 1 </TD>
    <TD align=left width="90%" ><P align=justify><U>Business Description, Basis of Presentation and
      Liquidity</U> </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>Business </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>Anavex Life Sciences Corp. (the &#147;Company&#148;) is a
      pharmaceutical company engaged in the development of drug candidates. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>The Company&#146;s lead compound, ANAVEX 2-73 is being
      developed to treat Alzheimer&#146;s disease through disease modification. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>In pre-clinical studies conducted in France and in
      Greece, ANAVEX 2-73 demonstrated anti- amnesic and neuroprotective
      properties. Based on these pre-clinical studies, the Company sponsored a
      Phase 1 single ascending dose study of ANAVEX 2-73, which was initiated
      and completed in 2011. This study was conducted in Germany in
      collaboration with ABX-CRO Advanced Pharmaceutical Services. The study
      indicated that ANAVEX 2-73 was well tolerated by study subjects in doses
      up to 55mg. Clinical trials had been delayed due to lack of funding.
      During the six months ended March 31, 2014, the Company completed the
      closing of a securities purchase agreement in the aggregate principal
      amount of $10,000,000 (Note 6), the proceeds from which the Company
      intends to use to further its business plan and clinical trials of ANAVEX
      2-73 and ANAVEX PLUS. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><p>The Company  plans to continue human clinical trials, among them a prospective Phase 1b/2a study  of ANAVEX 2-73 and ANAVEX PLUS, and a Phase 2 trial thereafter and to identify  and initiate discussions with potential partners in the next 12 months.  Further, the Company may acquire or develop new intellectual property and  assign, license, or otherwise transfer our intellectual property to further its  goals.</p></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>Basis of Presentation and Liquidity </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>These interim condensed consolidated financial statements
      have been prepared, without audit, pursuant to the rules and regulations
      of the Securities and Exchange Commission. Accordingly, certain
      information and footnote disclosures normally included in the annual
      financial statements in accordance with generally accepted accounting
      principles have been condensed or omitted pursuant to such rules and
      regulations. In the opinion of management, the disclosures are adequate to
      make the information presented not misleading. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>These statements reflect all adjustments, consisting of
      normal recurring adjustments, which in the opinion of management are
      necessary for fair presentation of the information contained herein. These
      interim condensed financial statements should be read in conjunction with
      the audited financial statements included in its annual report on Form
      10-K for the year ended September 30, 2013. The Company follows the same
      accounting policies in the preparation of interim reports. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><p>Certain amounts for the prior periods have been  reclassified to conform to the current period&rsquo;s presentation.&nbsp; These reclassifications did not impact  reported results or earnings per share.</p></TD>
  </TR>
</TABLE>
<p align="center">F-56</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-13></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Interim Condensed Consolidated Financial
  Statements<BR>
  March 31, 2014 and 2013<BR>
  Unaudited &#150; Page 2<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 1 </TD>
    <TD align=left width="90%" ><P align=justify><U>Business Description, Basis of Presentation and
      Liquidity </U>&#150; (cont&#146;d) </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>Operating results for the six months ended March 31, 2014
      are not necessarily indicative of the results that may be expected for the
      year ended September 30, 2014. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify><U>Basic and Diluted Loss per Share</U> </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>The basic loss per common share is computed by dividing
      net loss available to common stockholders by the weighted average number
      of common shares outstanding. Diluted loss per common share is computed
      similar to basic loss per common share except that the denominator is
      increased to include the number of additional common shares that would
      have been outstanding if the potential common shares had been issued and
      if the additional common shares were dilutive. Additionally, the numerator
      is also adjusted for changes in fair value of the warrant liability which
      is presumed to be share settled. For the six months ended March 31, 2014,
      loss per share excludes 77,305,632 (2012 &#150; 4,697,847) potentially dilutive
      common shares (related to outstanding options and warrants) as their
      effect was anti- dilutive. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Note 2 </TD>
    <TD align=left width="90%" ><P align=justify><U>Recent Accounting Pronouncements</U> </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>There are no new accounting pronouncements that the
      Company recently adopted or are pending the Company&#146;s adoption that are
      expected to have a material impact on the Company&#146;s results of operations,
      financial position or cash flows. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Note 3 </TD>
    <TD align=left width="90%" ><P align=justify><U>Equipment</U> </P></TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="15%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="15%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">March 31, 2014 </TD>
    <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="15%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="15%" align=center nowrap>&nbsp;</TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="15%" align=center nowrap>Accumulated </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="15%" align=center nowrap>&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="15%" align=center nowrap><U>Cost</U> </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="15%" align=center nowrap><U>Depreciation</U> </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="15%" align=center nowrap><U>Net</U> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Computer equipment </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="15%"
    bgColor=#e6efff>&nbsp;2,327 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="15%"
    bgColor=#e6efff>&nbsp;384 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="15%"
    bgColor=#e6efff>&nbsp;1,943 </TD>
    <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="15%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="15%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">September 30, 2013 </TD>
    <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="15%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="15%" align=center nowrap>&nbsp;</TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="15%" align=center nowrap>Accumulated </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="15%" align=center nowrap>&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="15%" align=center nowrap><U>Cost</U> </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="15%" align=center nowrap><U>Depreciation</U> </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="15%" align=center nowrap><U>Net</U> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Computer equipment </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="15%"
    bgColor=#e6efff>&nbsp;5,631 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="15%"
    bgColor=#e6efff>5,631 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="15%"
    bgColor=#e6efff>&nbsp;- </TD>
    <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<p align="center">F-57</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-14></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Interim Condensed Consolidated Financial
  Statements<BR>
  March 31, 2014 and 2013<BR>
  Unaudited &#150; Page 3<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 4 </TD>
    <TD align=left width="90%" ><U>Derivative Financial
      Instruments</U> </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>During the year ended September 30, 2013, the Company
      issued an aggregate of 6,448,966 common stock purchase warrants that were
      required to be accounted for as liabilities pursuant to ASC 815. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>At September 30, 2013, these common stock purchase
      warrants were still outstanding and were being accounted for pursuant to
      the guidance of ASC 815, whereby these derivative instruments are required
      to be recorded as liabilities on the balance sheet measured at fair value
      and were marked-to-market at each balance sheet date with the change in
      fair value being recorded in the consolidated statements of operations as
      other income or expense. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>Effective in the six months ended March 31, 2014, the
      common stock purchase warrants were amended. As of the modification date,
      these warrants are no longer required to be accounted for as liabilities. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>Pursuant to the guidance of ASC 815, the Company
      reclassified the fair value of these instruments on the date of
      modification into equity, with the change in fair value up to the date of
      modification being recorded on the consolidated statements of operations
      as other income. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>A summary of the Company&#146;s derivative liabilities for the
      three months ended March 31, 2014 and for the year ended September 30,
      2013 is as follows: </P></TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=center nowrap>March 31, </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="12%" align=center nowrap>September 30, </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="12%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">2014 </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="12%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">2013 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Balance, beginning of the period </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;904,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>Fair value at issuance of derivative liability </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">919,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Change in fair value of derivative
      liability </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(683,000</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(15,000</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>Transfer to equity upon modification of warrant terms </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">(221,000</TD>
    <TD align=left width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Balance, end of the period </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>&nbsp;- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>&nbsp;904,000 </TD>
    <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<p align="center">F-58</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-15></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Interim Condensed Consolidated Financial
  Statements<BR>
  March 31, 2014 and 2013<BR>
  Unaudited &#150; Page 4<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 5 </TD>
    <TD align=left width="90%"><U>Promissory Notes Payable</U> </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=center valign="bottom" nowrap>March 31, </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="12%" align=center valign="bottom" nowrap>September 30, </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">2014 </TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">2013 </TD>
    <TD
    width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Promissory note dated December 31, 2012
      with a principal balance of $90,390 (CDN$100,000) bearing interest at 12%
      per annum, due on June 30, 2014 </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>90,390 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>100,000 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Promissory note dated January 9, 2013 with
      a principal balance of $78,348 (CDN$86,677), bearing interest at 12% per
      annum, secured by all the present and future assets of the Company; due on
      demand </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>78,348 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>84,060 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp;</TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Promissory note dated January 9, 2013 with
      a principal balance of $24,982 (CDN$27,639), bearing interest at 12% per
      annum, secured by all the present and future assets of the Company; due on
      demand </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>24,982 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>26,803 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">193,720 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">210,863 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Less: current portion </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>(193,720</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>(210,863</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left valign="bottom"></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>On December 31, 2012, the Company
  issued a promissory note having a principal balance of $90,390 (CDN$100,000)
  with terms that included interest at 12% per annum and matured on June 30, 2013,
  in exchange for an accounts payable owing with respect to unpaid consulting
  fees. This note was not repaid on June 30, 2013 and the maturity date has been
  extended to June 30, 2014.</P>
<p align="center">F-59</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-16></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Interim Condensed Consolidated Financial
  Statements<BR>
  March 31, 2014 and 2013<BR>
  Unaudited &#150; Page 5<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 5 </TD>
    <TD align=left width="90%" ><U>Promissory Notes Payable </U>&#150;
      (cont&#146;d) </TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%"  >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="90%" >On January 9, 2013, the Company
      issued two (2) promissory notes (the &#147;Secured Notes&#148;); </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">a) </TD>
    <TD><P align=justify>The Company issued a promissory note in the amount of
      $78,348 (CDN$86,677) to the former President, Secretary, Treasurer, CFO
      and director of the Company (the &#147;President&#148;) in exchange for unpaid
      consulting fees owing to the President. The note is bearing interest at
      12% per annum and was due June 30, 2013.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">b) </TD>
    <TD><P align=justify>The Company issued a promissory note in the amount of
      $24,982 (CDN$27,639) to a former director of the Company (the &#147;Director&#148;)
      in exchange for unpaid consulting fees owing to the Director. The note is
      bearing interest at 12% per annum and was due June 30,
      2013.</P></TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>The Secured Notes are secured by a
  right to delay the transfer of any or all of the Company&#146;s assets until the
  obligations of the Secured Notes are satisfied, including a restriction on the
  transfer of cash by the Company and a security interest over the intellectual
  property of the Company. The security interests of the Secured Notes is ranked
  senior to any and all security interests granted prior to the issuance of the
  notes and to all subsequent security interests granted, unless the holders agree
in writing to other terms. </P>
<P style="MARGIN-LEFT: 10%" align=justify>In addition, the Secured Notes contain
  a provision whereby if they are not repaid within 10 days of their maturity
  dates, they shall bear late fees in addition to interest accruing, at a rate of
  $100 per day per note. In an event of default by the Company, under the terms of
  the Secured Notes, the notes shall bear additional late fees of $500 per day per
note.</P>
<P style="MARGIN-LEFT: 10%" align=justify>Subsequent to the issuance of these
  Secured Notes, the former President resigned as President, Secretary, Treasurer,
  CFO and director of the Company and the former Director resigned as director of
the Company.</P>
<P style="MARGIN-LEFT: 10%" align=justify>The Company did not repay the notes on
  June 30, 2013. The Company has disputed the issuance and enforceability of the
  Secured Notes and should there be an attempt to enforce the Secured Notes or
  collection on them, the Company will consider a legal remedy. The Company has
  not accrued any late fees in connection with these Secured Notes as of March 31,
  2014 or September 30, 2013, as the Company does not consider these amounts to be
legally enforceable.</P>
<p align="center">F-60</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-17></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Interim Condensed Consolidated Financial
  Statements<BR>
  March 31, 2014 and 2013<BR>
  Unaudited &#150; Page 6<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 6 </TD>
    <TD align=left width="90%" ><u>Senior  Convertible Debentures</u></TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=center nowrap>March 31, </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="12%" align=center nowrap>September 30, </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="12%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">2014 </TD>
    <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="12%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">2013 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Senior Convertible Debentures, non-interest
      bearing, unsecured, due March 18, 2044 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>10,000,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>Less: Debt Discount </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="12%">(9,998,989</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1,011 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>Less: current portion </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="12%">(1,011</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="12%"
    bgColor=#e6efff>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>On March 13, 2014, the Company entered
  into a Securities Purchase Agreement (the &#147;Purchase Agreement&#148;) with certain
  purchasers (the &#147;Purchasers&#148;) pursuant to which the Company issued senior
  convertible debentures in the aggregate principal amount of $10,000,000 (the
  &#147;Debentures&#148;). </P>
<P style="MARGIN-LEFT: 10%" align=justify>In connection with the issuance of the
  Debentures, the Company issued an aggregate of 67,666,666 share purchase
  warrants as follows:</P>
<DIV align=center>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="70%" border=0>
    <TR vAlign=top>
      <TD align=left >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD width="15%" align=center nowrap>&nbsp;</TD>
      <TD width="2%" align=center nowrap >&nbsp;</TD>
      <TD width="1%" align=center nowrap >&nbsp;</TD>
      <TD width="15%" align=center nowrap>Non- </TD>
      <TD width="2%" align=center nowrap >&nbsp;</TD>
      <TD width="1%" align=center nowrap >&nbsp;</TD>
      <TD width="15%" align=center nowrap>&nbsp;</TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
      <TD
      width="15%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Purchasers </TD>
      <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD
      width="15%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">purchasers </TD>
      <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD
      width="15%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Total </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff >Series A Warrants </TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="15%" bgColor=#e6efff>33,333,333 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="15%" bgColor=#e6efff>500,000 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="15%" bgColor=#e6efff>33,833,333 </TD>
      <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >Series B Warrants </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%">33,333,333 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%">500,000 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%">33,833,333 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>66,666,666 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>1,000,000 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>67,666,666 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P style="MARGIN-LEFT: 10%" align=justify>Each Series A warrant is exercisable
  into one common share of the Company at $0.30 per share until March 18,
  2019.</P>
<P style="MARGIN-LEFT: 10%" align=justify>Each Series B warrant is exercisable
  into one common share of the Company at $0.42 per share until March 18, 2019 </P>
<P style="MARGIN-LEFT: 10%" align=justify>The
  Debentures are unsecured, non-interest bearing and are due on March 18, 2044. At
  any time, the Purchasers are entitled to convert the Debentures, in whole or in
  part, into common shares of the Company at $0.30 per share (&#147;the Conversion
  Price&#148;). The Conversion Price of the debenture will be adjusted in the event of
  common stock dividend, split or consolidation.</P>
<p align="center">F-61</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-18></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Interim Condensed Consolidated Financial
  Statements<BR>
  March 31, 2014 and 2013<BR>
  Unaudited &#150; Page 7<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 6 </TD>
    <TD align=left width="90%" ><U>Senior Secured Convertible
      Debentures</U> </TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>Pursuant to the guidance of ASC 470-20 Debt with
      Conversion and Other Options, the Company allocated the proceeds from the
      issuance of the Debentures between the Debentures and the detachable
      Purchaser warrants using the relative fair value method. The fair value of
      the Purchaser warrants of $22,326,200 at issuance resulted in a debt
      discount at issuance of $5,989,900. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>The Company recorded a beneficial conversion feature
      discount of $4,010,100 in respect of the Debentures issued, based on the
      intrinsic value of the conversion feature limited to a maximum of the
      total proceeds of the Debentures allocated to the Debentures. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>The total debt discount at issuance of $10,000,000 is
      being amortized using the effective interest method over the term of the
      Debentures. During the six months ended March 31, 2014, the Company
      recorded accretion expense of $1,011 (2013: $Nil) in respect of the
      accretion of this discount. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>In consideration for the Debentures issued, the Company
      issued an aggregate of 1,000,000 share purchase warrants to non-lenders as
      described above. The fair value of the Non- Purchaser Warrants of
      $334,900, along with finder&#146;s fees and other financing costs directly
      associated with the issuance of the Debentures in the amount of $734,840,
      was recorded as a deferred financing charge and is being amortized to
      income over the term of the Debentures using the effective interest
      method. During the six months ended March 31, 2014, the Company had
      recorded financing expense of $1,199 (2013: $Nil) in respect of the
      amortization of these charges. Accumulated amortization as at March 31,
      2014 was $1,199 (2013: $Nil). </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>The fair value of the Purchaser and Non-Purchaser
      warrants at issuance was determined using the Black Scholes option pricing
      model with the following weighted average assumptions: </P></TD>
  </TR>
</TABLE>
<BR>
<DIV align=center>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="50%" border=0>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Risk-free interest rate </TD>
      <TD align=left width="30%" bgColor=#e6efff >1.56% </TD>
    </TR>
    <TR>
      <TD align=left >&nbsp;</TD>
      <TD align=left width="30%"  >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Expected life (years) </TD>
      <TD align=left width="30%" bgColor=#e6efff >5.00 </TD>
    </TR>
    <TR>
      <TD align=left >&nbsp;</TD>
      <TD align=left width="30%"  >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Expected volatility </TD>
      <TD align=left width="30%" bgColor=#e6efff >97.16% </TD>
    </TR>
    <TR>
      <TD align=left >&nbsp;</TD>
      <TD align=left width="30%"  >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Dividend yields </TD>
      <TD align=left width="30%" bgColor=#e6efff >0.00% </TD>
    </TR>
  </TABLE>
</DIV>
<P style="MARGIN-LEFT: 10%" align=justify>In connection with the Purchase
  Agreement, the Company also entered into a registration rights agreement with
  each Purchaser whereby the Company agreed to file a registration statement with
  the Securities and Exchange Commission (the &#147;SEC&#148;) covering the resale of the
  shares of the Company&#146;s common stock issuable upon conversion of the Debentures
  and upon exercise of the Purchaser warrants.</P>
<P style="MARGIN-LEFT: 10%" align=justify>The Registration Statement was filed
  with the SEC on April 11, 2014.</P>
<p align="center">F-62</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-19></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Interim Condensed Consolidated Financial
  Statements<BR>
  March 31, 2014 and 2013<BR>
  Unaudited &#150; Page 8<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 7 </TD>
    <TD align=left width="90%" ><P align=justify><U>Capital Stock</U> </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On May 24, 2006, the board of directors approved a six
      (6) for one (1) forward split of the authorized issued and outstanding
      common stock. The Company&#146;s authorized capital increased from 25,000,000
      shares of common stock to 150,000,000 shares of common stock. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On September 24, 2007, the Company issued 222,222 common
      shares at $3.60 per share for a total of $800,000 for research and
      development expenses. The common shares were recorded based upon the
      quoted market price of the Company&#146;s common stock on the agreement date. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On September 25, 2007, the Company settled a loan payable
      in the amount of $333,000 by issuing 92,500 common shares at $3.60 per
      share, being the quoted market price of the Company&#146;s common stock on the
      settlement date. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On December 10, 2007, the Company issued 150,000 units at
      $3.50 per unit for proceeds of $525,000. Each unit consisted of one common
      share and one common share purchase warrant entitling the holder to
      purchase an additional common share at $5.00 per share until December 10,
      2009. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On December 18, 2007, the Company issued 10,000 shares at
      $4.50 per share for a total of $45,000 pursuant to an agreement to settle
      a debt and issued 50,000 shares at $3.86 per share for a total of $193,000
      pursuant to a consulting agreement. The Company recorded compensation
      expense of $65,000 in respect of these issuances based on the excess of
      the fair value of these shares over the balances at which they were
      recorded by the Company. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On May 15, 2008, the Company issued 65,000 common shares
      at $5.24 per share for a total of $340,600 to its former CEO in accordance
      with the terms of a severance agreement upon the termination of his
      services. The common shares were recorded based upon the quoted market
      price of the Company&#146;s common stock on the agreement date. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On August 19, 2008, the Company issued 25,000 common
      shares at $5.07 per share for a total of $ 126,750 to a director of the
      Company pursuant to an agreement to provide consulting services. The
      common shares were recorded based upon the quoted market price of the
      Company&#146;s common stock on the agreement date. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On August 19, 2008, the Company issued 142,698 units at
      $4.25 per unit for proceeds of $606,467 pursuant to private placement
      agreements. Each unit consisted of one common share and one common share
      purchase warrant entitling the holder to purchase an additional common
      share at $5.00 per share until August 19, 2009. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On November 20, 2008, the Company issued 25,000 common
      shares at $2.63 per share for a total of $65,750 to a director of the
      Company pursuant to an agreement to provide consulting services. The
      common shares were recorded based upon the quoted market price of the
      Company&#146;s common stock on the issuance date. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On February 20, 2009, the Company issued 25,000 common
      shares at $2.50 per share for a total of $62,500 to a director of the
      Company pursuant to an agreement to provide consulting services. The
      common shares were recorded based upon the quoted market price of the
      Company&#146;s common stock on the issuance date. </P></TD>
  </TR>
</TABLE>
<p align="center">F-63</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-20></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Interim Condensed Consolidated Financial
  Statements<BR>
  March 31, 2014 and 2013<BR>
  Unaudited &#150; Page 9<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 7 </TD>
    <TD align=left width="90%" ><U>Capital Stock </U>&#150; (cont&#146;d) </TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On March 6, 2009, the Company issued 89,148 units at
      $2.25 per unit for proceeds of $200,583 pursuant to private placement
      agreements. Each unit consisted of one common share and one common share
      purchase warrant entitling the holder to purchase an additional common
      share at $4.00 per share until March 6, 2010. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On March 20, 2009, the Company issued 10,800 units at
      $2.25 per unit for proceeds of $24,300 pursuant to private placement
      agreements. Each unit consisted of one common share and one common share
      purchase warrant entitling the holder to purchase an additional common
      share at $4.00 per share until March 20, 2010. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On March 20, 2009, the Company issued 2,500 common shares
      at $2.00 per share for a total of $5,000 to a public relations consultant
      pursuant to an agreement to provide consulting services. The common shares
      were recorded based upon the quoted market price of the Company&#146;s common
      stock on the issuance date. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On May 14, 2009, the Company entered into a revised
      consulting agreement with a director whereby the consultant returned
      75,000 common shares to the Company for cancellation. The return of shares
      was recorded in the same amount at which they were originally issued. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On June 11, 2009 the Company issued 36,000 units at $2.25
      per unit for proceeds of $81,000 pursuant to private placement agreements.
      Each unit consisted of one common share and one common share purchase
      warrant entitling the holder to purchase an additional common share at
      $4.00 per share until June 11, 2010. The Company paid finder&#146;s fees in the
      amount of $8,100 in relation to this private placement. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On June 11, 2009 the Company issued 29,227 common shares
      at $2.25 per share for service rendered by consultants. The common shares
      were recorded based upon the fair value of the Company&#146;s common stock on
      the issuance date of the shares. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On June 19, 2009, the Company issued 495,556 units at
      $2.25 per unit for total proceeds of $1,115,000 pursuant to private
      placement agreements. Each unit consisted of one common share and one and
      one-half of a common share purchase warrant entitling the holder to
      purchase additional common shares at $2.25 per share until June 19, 2011. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On June 26, 2009, the Company issued 22,222 common shares
      at $2.51 per share for finder&#146;s fees related to the issuance of a $500,000
      note payable. The common shares were recorded based upon the quoted market
      price of the Company&#146;s common stock on the issue date. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On August 19, 2009, the Company issued 128,888 units at
      $2.25 per unit for total proceeds of $289,998. Of these placements, 40,000
      units consisted of one common share and one share purchase warrant
      entitling the holder to purchase an additional common share at $4.00 per
      share until July 9, 2010 and 88,888 Units consisted of one common share
      and one and one- eighth share purchase warrant entitling the holder to
      purchase an additional common shares at $2.25 per share until August 4,
      2011. The Company paid finders&#146; fees totalling $19,000 in relation to
      these private placements. </P></TD>
  </TR>
</TABLE>
<p align="center"> F-64</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-21></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Interim Condensed Consolidated Financial
  Statements<BR>
  March 31, 2014 and 2013<BR>
  Unaudited &#150; Page 10<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 7 </TD>
    <TD align=left width="90%" ><U>Capital Stock </U>&#150; (cont&#146;d) </TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On October 2, 2009 the Company issued 266,666 units at
      $2.25 per unit for proceeds of $600,000 pursuant to private placement
      agreements. Each unit consisted of one common share and one and one-eighth
      common share purchase warrant entitling the holder to purchase an
      additional common shares at $2.25 per share until October 2, 2011. The
      Company had received $300,000 of this amount in the year ended September
      30, 2010. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On February 2, 2010 the Company issued 49,505 common
      shares of the Company, at their fair value of $2.02 per share pursuant to
      an agreement with a former officer to settle an outstanding amount owed. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On April 9, 2010, the Company issued 92,499 units at
      $2.60 per unit for proceeds of $240,498 pursuant to private placement
      agreements. Each unit consisted of one common share and one-half common
      share purchase warrant entitling the holder to purchase additional common
      shares at $3.50 per share until April 9, 2011. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On April 30, 2010, the Company issued 9,825 common shares
      of the Company, at $2.85 per share as consideration for terminating a
      consulting agreement and for services rendered under the agreement. The
      common shares were recorded based upon the quoted market price of the
      Company&#146;s common stock on the date of the termination of the agreement. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On June 29, 2010, the Company issued 941,000 units at
      $2.50 per unit for total proceeds of $2,352,500 pursuant to private
      placement agreements. Each unit consisted of one common share and one-half
      of a common share purchase warrant entitling the holder to purchase
      additional common shares at $3.50 per share until December 29, 2011. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On July 5, 2010, the Company issued 400,000 units in
      settlement of $1,000,000 owing to a creditor. Each unit consisted of one
      common share and one-half common share purchase warrant entitling the
      holder to purchase additional common shares at 3.50 per share until
      January 5, 2012. The fair value of the units issued was determined to be
      $1,444,000 on the date they were issued and thus the Company recorded a
      loss on settlement of accounts payable of $444,000 with a corresponding
      credit to additional paid-in capital of the same amount on date of
      issuance. The fair value of the shares included in the units was
      determined with reference to their quoted market price and the value of
      the warrants was determined using the Black-Scholes model with the
      following assumptions: exercise price - $3.50, stock price - $3.15,
      expected volatility &#150; 68.45%, expected life &#150; 1.5 years, dividend yield &#150;
      0.00%. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On September 3, 2010, the Company issued 163,000 units at
      $2.75 per unit for proceeds of $448,250 pursuant to private placement
      agreements. Each unit consisted of one common share and one-half common
      share purchase warrant entitling the holder to purchase additional common
      shares at $3.75 per share until March 3, 2012. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On September 3, 2010, the Company issued 9,000 units at
      $2.75 per unit for finder&#146;s fees related to the private placement of the
      same date. Each unit consisted of one common share and one-half common
      share purchase warrant entitling the holder to purchase additional common
      shares at $3.75 per share until March 3, 2012. </P></TD>
  </TR>
</TABLE>
<p align="center"> F-65</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-22></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Interim Condensed Consolidated Financial
  Statements<BR>
  March 31, 2014 and 2013<BR>
  Unaudited &#150; Page 11<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 7 </TD>
    <TD align=left width="90%" ><P align=justify><U>Capital Stock </U>&#150; (cont&#146;d) </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On September 30, 2010, the Company issued 510,638 common
      shares at $2.35 per share pursuant to the terms of a convertible note
      payable. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On September 30, 2010, the Company issued 82,310 units at
      $2.25 per unit pursuant to the terms of convertible notes payable. Each
      unit consisted of one common share and one-half common share purchase
      warrant entitling the holder to purchase additional common shares at $3.50
      per share until September 30, 2011. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On September 30, 2010, the Company issued 245,748 units
      at $2.25 per unit pursuant to the terms of convertible notes payable. Each
      unit consisted of one common share and one common share purchase warrant
      entitling the holder to purchase additional common shares at $3.00 per
      share until September 30, 2012. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On November 18, 2010, the Company issued 393,846 units at
      $2.75 per unit for proceeds of $1,083,075 pursuant to a private placement
      agreement. Each unit consisted of one common share and one-half common
      share purchase warrant entitling the holder to purchase additional common
      shares at $4.50 per share until May 18, 2012. The Company paid a finder&#146;s
      fee totalling $65,363 in respect of this private placement. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On November 18, 2010, the Company issued 3,636 units at
      $2.75 per unit for finder&#146;s fees related to the private placement of the
      same date. Each unit consisted of one common share and one-half common
      share purchase warrant entitling the holder to purchase additional common
      shares at $4.50 per share until May 18, 2012. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On November 18, 2010, the Company issued 853,075 units in
      the conversion of two notes payable originally convertible at $2.50. The
      Company recorded debt conversion expense of $504,160, related to the fair
      value of the additional units issued as a result of converting at the
      lower conversion price. Each unit consisted of one common share and one
      common share purchase warrant entitling the holder to purchase additional
      common shares at $3.00 per share until November 18, 2012. The fair value
      of the shares included in the units was determined with reference to their
      quoted market price and the value of the warrants was determined using the
      Black-Scholes model with the following assumptions: exercise price -
      $3.00, stock price - $4.12, expected volatility &#150; 78.33%, expected life &#150;
      2.0 years, dividend yield &#150; 0.00%, risk-free rate &#150; 0.52%. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On November 18, 2010, the Company issued 145,063 shares
      of common stock at their fair value of $4.12 per share based on their
      quoted market price pursuant to settling non- convertible interest bearing
      notes payable outstanding in the amount of $398,922, including accrued
      interest of $26,032. The Company recorded a loss on settlement of debt of
      $198,738 based on the difference between the carrying value of the debt
      settled and the fair value of the shares issued. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On November 18, 2010, the Company issued 181,818 shares
      of common stock at their fair value of $4.12 per share based on the quoted
      value of units issued in a private placement on the same date to one
      creditor in settlement of $500,000 of debt owing. The Company recorded a
      loss on settlement of accounts payable of $249,090 based on the difference
      of the carrying value of the account payable and the fair value of the
      shares issued. </P></TD>
  </TR>
</TABLE>
<p align="center">F-66</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-23></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Interim Condensed Consolidated Financial
  Statements<BR>
  March 31, 2014 and 2013<BR>
  Unaudited &#150; Page 12<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 7 </TD>
    <TD align=left width="90%" ><P align=justify><U>Capital Stock </U>&#150; (cont&#146;d) </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On November 25, 2010, the Company issued 29,851 units at
      $3.35 per unit for proceeds of $100,000 pursuant to a private placement
      agreement. Each unit consisted of one common share and one-half common
      share purchase warrant entitling the holder to purchase additional common
      shares at $4.50 per share until November 25, 2012. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On November 25, 2010, the Company issued 2,985 units at
      $3.35 per unit for finder&#146;s fees related to the private placement of the
      same date. Each unit consisted of one common share and one-half common
      share purchase warrant entitling the holder to purchase additional common
      shares at $4.50 per share until November 25, 2012. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On February 1, 2011, the Company issued 61,014 units at
      $3.75 per unit for proceeds of $228,800 pursuant to a private placement
      agreement. Each unit consisted of one common share and one-half common
      share purchase warrant entitling the holder to purchase additional common
      shares at $5.25 per share until August 1, 2012. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On May 3, 2011, the Company issued 33,334 units at $3.00
      per unit for proceeds of $100,000 pursuant to a private placement
      agreement. Each unit consisted of one common share and one-half common
      share purchase warrant entitling the holder to purchase additional common
      shares at $4.00 per share until April 20, 2013. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On June 19, 2011, the Company issued 700,000 common
      shares at $2.25 per share for proceeds of $1,575,000 pursuant to the
      exercise of warrants. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On September 26, 2011, the Company issued 650,000 units
      in settlement of $975,000 of debt owing. Each unit consisted of one common
      share and one-half common share purchase warrant entitling the holder to
      purchase additional common shares at $2.00 per share until September 26,
      2012. The Company recorded a loss on settlement of accounts payable in the
      amount of $84,963 based on the fair value of shares being $975,000 at
      their issuance and the fair value of the warrants determined to be
      $84,963. The fair value of the shares included in the units was determined
      with reference to their quoted market price and the value of the warrants
      was determined using the Black-Scholes model with the following
      assumptions: exercise price - $2.00, stock price - $1.50, expected
      volatility &#150; 69%, expected life &#150; 1.0 years, dividend yield &#150; 0.00%,
      risk-free interest rate &#150; 0.10%. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On December 6, 2011, the Company issued 615,600 units at
      $1.25 per unit for proceeds of $769,500 pursuant to private placement
      agreements. Each unit consisted of one common share and one-half common
      share purchase warrant entitling the holder to purchase additional common
      shares at $2.00 per share until December 6, 2012. The Company paid
      finder&#146;s fees of $77,000 in connection with this private placement. </P></TD>
  </TR>
</TABLE>
<p align="center">F-67</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-24></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Interim Condensed Consolidated Financial
  Statements<BR>
  March 31, 2014 and 2013<BR>
  Unaudited &#150; Page 13<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 7 </TD>
    <TD align=left width="90%" ><U>Capital Stock </U>&#150; (cont&#146;d) </TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On February 9, 2012 the Company issued 8,000 units for
      service rendered by a director and officer of the Company. Each unit
      consisted of one common share and one-half common share purchase warrant
      entitling the holder to purchase additional common shares at $2.00 per
      share until February 9, 2013. The fair value of the units issued was
      determined to be $15,896 on the date they were issued and the Company
      recorded consulting fees of $15,896 on the statement of operations for the
      year ended September 30, 2012. The fair value of the shares included in
      the units was determined with reference to their quoted market price and
      the value of the warrants was determined using the Black-Scholes model
      with the following assumptions: exercise price - $2.00, stock price -
      $1.74, expected volatility &#150; 84.88%, expected life &#150; 1.0 years, risk free
      interest rate &#150; 0.15%, dividend yield &#150; 0.00%. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On February 9, 2012, the Company issued 270,000 units at
      $1.25 per unit for proceeds of $337,500 pursuant to private placement
      agreements. Each unit consisted of one common share and one-half common
      share purchase warrant entitling the holder to purchase additional common
      shares at $2.00 per share until February 9, 2013. The Company paid a
      finder&#146;s fee of $33,750 in connection with this private placement. During
      the six months ended March 31, 2014, the Company recorded a recovery of
      $25,150 in respect of these finder&#146;s fees, which has been recorded as
      additional paid in capital. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On May 31, 2012, the Company issued 2,700,513 units in
      settlement of $1,297,889 in promissory notes and $52,367 of accrued
      interest on these notes, which was included in accounts payable and
      accrued liabilities Each unit consisted of one common share and one common
      share purchase warrant entitling the holder to purchase additional common
      shares at $0.75 per share until November 30, 2013. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On June 26, 2012, the Company agreed to issue 75,000
      common shares to the former president of the Company for past services and
      in final settlement of a consulting agreement dated February 1, 2007.
      These shares were issued on July 12, 2012. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On July 5, 2013, the Company issued 4,208,910 units in
      settlement of $549,000 in promissory notes, $26,058 of accrued interest on
      these notes, which was included in accounts payable and accrued
      liabilities, and $1,108,506 in other accounts payable and accrued
      liabilities. Each unit consisted of one common share and one common share
      purchase warrant entitling the holder to purchase additional common shares
      at $0.75 per share until July 5, 2018. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On July 5, 2013, the Company issued 2,196,133 units at
      $0.40 per unit for gross proceeds of $878,453 pursuant to private
      placement agreements. Each unit consisted of one common share and one
      common share purchase warrant entitling the holder to purchase additional
      common shares at $0.75 per share until July 5, 2018. The Company paid
      finder&#146;s fees of $89,680 and issued warrants to purchase 43,923 shares of
      common stock at $0.75 per share until July 5, 2018 in connection with this
      private placement. In addition, the Company incurred share issuance costs
      of $16,494. </P></TD>
  </TR>
</TABLE>
<p align="center">F-68</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-25></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Interim Condensed Consolidated Financial
  Statements<BR>
  March 31, 2014 and 2013<BR>
  Unaudited &#150; Page 14<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 7 </TD>
    <TD align=left width="90%" ><U>Capital Stock </U>&#150; (cont&#146;d) </TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>All of the 6,448,966 warrant agreements issued on July 5,
      2013 contain a contingent call provision whereby the Company may have the
      option to call for cancellation all or any portion of the warrants for
      consideration equal to $0.001 per share, provided the quoted market price
      of the Company&#146;s common stock exceeds $1.50 for a period of twenty
      consecutive trading days, subject to certain minimum volume restrictions
      and other restrictions as provided in the warrant agreements. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On February 24, 2014, the Company issued 120,000 units at
      $0.50 per unit for gross proceeds of $60,000, which was received during
      the year ended September 30, 2013. Each unit consisted of one common share
      and one common share purchase warrant entitling the holder to purchase
      additional common shares at $1.00 per share for a period of five years
      from the date of issuance. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On February 24, 2014, the Company issued 500,000 units at
      $0.30 per unit for gross proceeds of $150,000. Each unit consisted of one
      common share and one common share purchase warrant entitling the holder to
      purchase additional common shares at $0.75 per share for a period of five
      years from the date of issuance. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>Common stock to be issued </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On February 28, 2014, the Company received $30,000 in
      share subscriptions in respect of the issuance of 100,000 units at $0.30
      per unit. Each unit consisted of one common share and one common share
      purchase warrant entitling the holder to purchase additional common shares
      at $0.75 per share for a period of five years from the date of issuance. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Note 8 </TD>
    <TD align=left width="90%" ><P align=justify><U>Lincoln Park Purchase Agreement</U> </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>On July 5, 2013, the Company entered into a $10,000,000
      purchase agreement (the &#147;Purchase Agreement&#148;) with Lincoln Park Capital
      Fund, LLC, (&#147;Lincoln Park&#148;) an Illinois limited liability company (the
      &#147;Financing&#148;) pursuant to which the Company may sell and issue to Lincoln
      Park, and Lincoln Park is obligated to purchase, up to $10,000,000 in
      value of its shares of common stock from time to time over a 25 month
      period. In connection with the Financing, the Company also entered into a
      registration rights agreement with Lincoln Park whereby the Company agreed
      to file a registration statement with the Securities and Exchange
      Commission (the &#147;SEC&#148;) covering the shares of the Company&#146;s common stock
      that may be issued to Lincoln Park under the Purchase Agreement. </P></TD>
  </TR>
</TABLE>
<p align="center">F-69</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-26></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Interim Condensed Consolidated Financial
  Statements<BR>
  March 31, 2014 and 2013<BR>
  Unaudited &#150; Page 15<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 8 </TD>
    <TD align=left width="90%" ><U>Lincoln Park Purchase
      Agreement </U>&#150; (Cont&#146;d) </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>The Company will determine, at its own discretion, the
      timing and amount of its sales of common stock, subject to certain
      conditions and limitations. The purchase price of the shares that may be
      sold to Lincoln Park under the Purchase Agreement will be based on the
      market price of the Company&#146;s shares of common stock immediately preceding
      the time of sale without any fixed discount, provided that in no event
      will such shares be sold to Lincoln Park when the closing sale price is
      less than $0.50 per share. There are no upper limits on the per share
      price that Lincoln Park may pay to purchase such common stock. The
      purchase price will be equitably adjusted for any reorganization,
      recapitalization, non-cash dividend, stock split or similar transaction
      occurring during the business days used to compute such price. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>Pursuant to the Purchase Agreement, Lincoln Park
      initially purchased 250,000 shares of the Company&#146;s common stock for
      $100,000. In consideration for entering into the Purchase Agreement, the
      Company issued to Lincoln Park 341,858 shares of common stock as a
      commitment fee and shall issue up to 133,409 shares pro rata, when and if,
      Lincoln Park purchases, at the Company&#146;s discretion, the remaining
      $10,000,000 aggregate commitment. The Purchase Agreement may be terminated
      by the Company at any time at its discretion without any cost to the
      Company. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>On October 23, 2013, the registration statement was
      declared effective by the SEC. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>The Company incurred $98,939 in direct expenses in
      connection with the Purchase Agreement and registration statement. These
      were recorded as share issuance costs as a charge against additional paid
      in capital during the year ended September 30, 2013 and during the six
      months ended March 31, 2014. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>During the six months ended March 31, 2014, the Company
      issued to Lincoln Park an aggregate of 402,510 shares of common stock
      under the Purchase Agreement, including 400,000 shares of common stock for
      an aggregate purchase price of $188,170 and 2,510 commitment shares. </P></TD>
  </TR>
</TABLE>
<p align="center">F-70</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-27></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Interim Condensed Consolidated Financial
  Statements<BR>
  March 31, 2014 and 2013<BR>
  Unaudited &#150; Page 16<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 9 </TD>
    <TD align=left width="90%" ><P align=justify><U>Related Party Transactions</U> </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>During the three and six months ended March 31, 2014, the
      Company was charged consulting fees totaling $Nil and $Nil, respectively
      (2013: $10,654 and $81,072, respectively) by directors, officers of the
      Company. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>As of March 31, 2014, included in accounts payable and
      accrued liabilities was $23,196 (September 30, 2013: $30,447) owing to
      directors and officers of the Company and a former director and officer of
      the Company. </P></TD>
  </TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>&nbsp;</P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>During the year ended September 30, 2013, pursuant to an
      employment agreement with the President, Chief Executive Officer, Chief
      Financial Officer, Secretary and Treasurer, and Director, of the Company,
      the Company: </P></TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">i) </TD>
    <TD><P align=justify>granted 2,000,000 fully vested share purchase options
      exercisable at $0.40 per share until July 5, 2023. No stock based
      compensation expense has been recognized during the three months ended
      March 31, 2014 and 2012 in connection with these options. The Company
      recognized stock based compensation expense of $1,002,500 during the year
      ended September 30, 2013 in connection with these options.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">ii) </TD>
    <TD><P align=justify>issued 4,000,000 shares of restricted common stock that
      vest as follows:</P></TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="15%"  >&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="80%" ><P align=justify>25% upon the Company starting a Phase Ib/IIb human study </P></TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" ></TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="80%" ><P align=justify>25% upon the Company in-licensing additional assets in
      clinical or pre-clinical stage (vested during the six months ended March
      31, 2014) </P></TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" ></TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="80%" ><P align=justify>25% upon the Company securing additional non-dilutive
      equity funding in 2013 of at least $5,000,000 with a share price higher
      than the previous funding </P></TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>&#149; </TD>
    <TD align=left width="80%" ><P align=justify>25% upon the Company obtaining a listing on a major stock
      exchange </P></TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>Included in operating results for the three and six months ended March 31, 2014 is an amount of $610,000 relating to the vesting of 1,000,000 shares of restricted common stock upon the achievement of certain performance conditions.  The fair value of $0.61 per share was determined with reference to the quoted market price of the Company's shares on the commitment date.  This amount has been included in common stock to be issued at March 31, 2014. </P>
<P style="MARGIN-LEFT: 10%" align=justify>Included in operating results for the
  period from January 23, 2004 (Date of inception) to March 31, 2014 is $18,375 in
  general and administrative expenses donated to the Company by the directors and
  $33,666 in debts forgiven by the directors of the Company.</P>
<p align="center">F-71</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-28></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Interim Condensed Consolidated Financial
  Statements<BR>
  March 31, 2014 and 2013<BR>
  Unaudited &#150; Page 17<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 10 </TD>
    <TD align=left width="90%"><U>Commitments</U> </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">a) </TD>
    <TD><P align=justify>Share Purchase Warrants</P></TD>
  </TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>A summary of the Company&#146;s share purchase warrants
      outstanding is presented below:</P></TD>
  </TR>
</TABLE>
<BR>
<DIV align=center>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="70%" border=0>
    <TR vAlign=top>
      <TD align=center>&nbsp;</TD>
      <TD align=center width="1%">&nbsp;</TD>
      <TD width="17%" align=center nowrap>&nbsp;</TD>
      <TD width="2%" align=center nowrap>&nbsp;</TD>
      <TD width="1%" align=center nowrap>&nbsp;</TD>
      <TD width="17%" align=center nowrap>Weighted </TD>
      <TD align=left width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=center>&nbsp;</TD>
      <TD align=center width="1%">&nbsp;</TD>
      <TD width="17%" align=center nowrap>&nbsp;</TD>
      <TD width="2%" align=center nowrap>&nbsp;</TD>
      <TD width="1%" align=center nowrap>&nbsp;</TD>
      <TD width="17%" align=center nowrap>Average </TD>
      <TD align=left width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=center>&nbsp;</TD>
      <TD align=center width="1%">&nbsp;</TD>
      <TD width="17%" align=center nowrap>&nbsp;</TD>
      <TD width="2%" align=center nowrap>&nbsp;</TD>
      <TD width="1%" align=center nowrap>&nbsp;</TD>
      <TD width="17%" align=center nowrap>Exercise </TD>
      <TD align=left width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=center>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
    width="1%">&nbsp;</TD>
      <TD
      width="17%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Number of Shares </TD>
      <TD
    width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
    width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
      width="17%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Price </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    </TR>
    <TR>
      <TD>&nbsp;</TD>
      <TD width="1%">&nbsp;</TD>
      <TD width="17%">&nbsp;</TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="1%">&nbsp;</TD>
      <TD width="17%">&nbsp;</TD>
      <TD width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Balance, September 30, 2012 </TD>
      <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="17%" bgColor=#e6efff>4,250,141 </TD>
      <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="1%" bgColor=#e6efff>$</TD>
      <TD align=right width="17%" bgColor=#e6efff>&nbsp;1.16 </TD>
      <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Expired </TD>
      <TD align=left width="1%">&nbsp;</TD>
      <TD align=right width="17%">(1,549,628</TD>
      <TD align=left width="2%">) </TD>
      <TD align=left width="1%">$</TD>
      <TD align=right width="17%">&nbsp;2.56 </TD>
      <TD align=left width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Issued </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%"
    bgColor=#e6efff>6,448,966 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%"
    bgColor=#e6efff>&nbsp;0.75 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Balance, September 30, 2013 </TD>
      <TD align=left width="1%">&nbsp;</TD>
      <TD align=right width="17%">9,149,479 </TD>
      <TD align=left width="2%">&nbsp;</TD>
      <TD align=left width="1%">$</TD>
      <TD align=right width="17%">&nbsp;0.75 </TD>
      <TD align=left width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Expired </TD>
      <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD align=right width="17%" bgColor=#e6efff>(2,700,513</TD>
      <TD align=left width="2%" bgColor=#e6efff>) </TD>
      <TD align=left width="1%" bgColor=#e6efff>$</TD>
      <TD align=right width="17%" bgColor=#e6efff>&nbsp;0.75 </TD>
      <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Issued </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="17%">68,286,666 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=left
    width="2%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%">$</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="17%">&nbsp;0.36 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=left
    width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Balance, March 31, 2014 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="17%"
    bgColor=#e6efff>74,735,632 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="17%"
    bgColor=#e6efff>&nbsp;0.40 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P style="MARGIN-LEFT: 15%" align=justify>At March 31, 2014, the Company had
  74,735,632 share purchase warrants outstanding as follows:</P>
<DIV align=center>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="50%" border=0>
    <TR vAlign=top>
      <TD width="33%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">Number </TD>
      <TD
    width="9%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
    width="1%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
      width="20%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">Exercise Price </TD>
      <TD
    width="1%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
    width="1%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
      width="34%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">Expiry Date </TD>
      <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right valign="bottom" bgColor=#e6efff>6,448,966 </TD>
      <TD width="9%" align=right valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>$</TD>
      <TD width="20%" align=right valign="bottom" bgColor=#e6efff>&nbsp;0.75 </TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="34%" align=right valign="bottom" bgColor=#e6efff>July 5, 2018 </TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right valign="bottom">500,000 </TD>
      <TD width="9%" align=right valign="bottom">&nbsp;</TD>
      <TD width="1%" align=left valign="bottom">$</TD>
      <TD width="20%" align=right valign="bottom">&nbsp;0.75 </TD>
      <TD width="1%" align=left valign="bottom">&nbsp;</TD>
      <TD width="1%" align=left valign="bottom">&nbsp;</TD>
      <TD width="34%" align=right valign="bottom">February 14, 2019 </TD>
      <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right valign="bottom" bgColor=#e6efff>120,000 </TD>
      <TD width="9%" align=right valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>$</TD>
      <TD width="20%" align=right valign="bottom" bgColor=#e6efff>&nbsp;1.00 </TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="34%" align=right valign="bottom" bgColor=#e6efff>February 24, 2019 </TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right valign="bottom">33,833,333 </TD>
      <TD width="9%" align=right valign="bottom">&nbsp;</TD>
      <TD width="1%" align=left valign="bottom">$</TD>
      <TD width="20%" align=right valign="bottom">&nbsp;0.30 </TD>
      <TD width="1%" align=left valign="bottom">&nbsp;</TD>
      <TD width="1%" align=left valign="bottom">&nbsp;</TD>
      <TD width="34%" align=right valign="bottom">March 13, 2019 </TD>
      <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right valign="bottom"
      bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">33,833,333 </TD>
      <TD width="9%" align=right valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>$</TD>
      <TD width="20%" align=right valign="bottom" bgColor=#e6efff>&nbsp;0.42 </TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="34%" align=right valign="bottom" bgColor=#e6efff>March 13, 2019 </TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 3px double">74,735,632 </TD>
      <TD width="9%" align=right valign="bottom">&nbsp;</TD>
      <TD width="1%" align=left valign="bottom">&nbsp;</TD>
      <TD width="20%" align=left valign="bottom">&nbsp;</TD>
      <TD width="1%" align=left valign="bottom">&nbsp;</TD>
      <TD width="1%" align=left valign="bottom">&nbsp;</TD>
      <TD width="34%" align=left valign="bottom">&nbsp;</TD>
      <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P style="MARGIN-LEFT: 15%" align=justify>All of the 6,448,966 warrants expiring
  on July 5, 2018 and the 500,000 warrants expiring February 14, 2019 contain a
  contingent call provision whereby the Company may have the option to call for
  cancellation of all or any portion of the warrants for consideration equal to
  $0.001 per share, provided the quoted market price of the Company&#146;s common stock
  exceeds $1.50 for a period of twenty consecutive trading days, subject to
  certain minimum volume restrictions and other restrictions as provided in the
  warrant agreements.</P>
<p align="center">F-72</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-29></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Interim Condensed Consolidated Financial
  Statements<BR>
  March 31, 2014 and 2013<BR>
  Unaudited &#150; Page 18<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 10 </TD>
    <TD align=left width="90%"><U>Commitments </U>&#150; (cont&#146;d) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">b) </TD>
    <TD><P align=justify>Stock&#150;based Compensation Plan</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>In April, 2007, the Company adopted a stock option plan
      which provides for the granting of stock options to selected directors,
      officers, employees or consultants in an aggregate amount of up to
      3,000,000 common shares of the Company and, in any case, the number of
      shares to be issued to any one individual pursuant to the exercise of
      options shall not exceed 10% of the issued and outstanding share capital.
      The granting of stock options, exercise prices and terms are determined by
      the Company's Board of Directors. If no vesting schedule is specified by
      the Board of Directors on the grant of options, then the options shall
      vest over a 4-year period with 25% of the options granted vesting each
      year commencing 1 year from the grant date. For stockholders who have
      greater than 10% of the outstanding common shares of the Company and who
      have granted options, the exercise price of their options shall not be
      less than 110% of the fair of the stock on grant date. Otherwise, options
      granted shall have an exercise price equal to their fair value on grant
      date.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>On February 2, 2011, the Company amended and restated the
      2007 stock option plan to increase the number of options authorized to
      4,000,000.</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>A summary of the status of Company&#146;s outstanding stock
      purchase options for the year ended March 31, 2014 is presented
      below:</P></TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="15%"  >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="13%" align=center valign="bottom" nowrap>Weighted </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="13%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="13%" align=center valign="bottom" nowrap>Average </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="13%" align=center valign="bottom" nowrap>Weighted Average </TD>
    <TD width="2%" align=center valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=center valign="bottom" nowrap>Number of </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="13%" align=center valign="bottom" nowrap>Exercise </TD>
    <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
    <TD width="13%" align=center valign="bottom" nowrap>Grant Date fair </TD>
    <TD width="2%" align=center valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      width="13%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Shares </TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      width="13%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Price </TD>
    <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      width="13%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">value </TD>
    <TD
    width="2%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Outstanding at September 30, 2012 </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="13%" align=right valign="bottom" bgColor=#e6efff>1,775,000 </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>$</TD>
    <TD width="13%" align=right valign="bottom" bgColor=#e6efff>&nbsp;2.94 </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="13%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left valign="bottom">Expired </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=right valign="bottom">(550,000</TD>
    <TD width="2%" align=left valign="bottom">) </TD>
    <TD width="1%" align=left valign="bottom">$</TD>
    <TD width="13%" align=right valign="bottom">&nbsp;3.86 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=left valign="bottom">&nbsp;</TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Forfeited </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="13%" align=right valign="bottom" bgColor=#e6efff>(150,000</TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>$</TD>
    <TD width="13%" align=right valign="bottom" bgColor=#e6efff>&nbsp;3.72 </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="13%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left valign="bottom">Granted </TD>
    <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      width="13%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">2,000,000 </TD>
    <TD
    width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD
      width="13%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;0.40 </TD>
    <TD
    width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">$</TD>
    <TD width="13%" align=right valign="bottom">&nbsp;0.50 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Outstanding at September 30, 2013 </TD>
    <TD width="1%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 3px double">&nbsp;</TD>
    <TD width="13%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 3px double">3,075,000 </TD>
    <TD width="2%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 3px double">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 3px double">$</TD>
    <TD width="13%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 3px double">&nbsp;1.26 </TD>
    <TD width="2%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 3px double">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="13%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left valign="bottom">Expired </TD>
    <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      width="13%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(505,000</TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD
      width="13%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;2.50 </TD>
    <TD
    width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=left valign="bottom">&nbsp;</TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Outstanding at March 31, 2014 </TD>
    <TD width="1%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 3px double">&nbsp;</TD>
    <TD width="13%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 3px double">2,570,000 </TD>
    <TD width="2%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 3px double">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 3px double">$</TD>
    <TD width="13%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 3px double">&nbsp;1.02 </TD>
    <TD width="2%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 3px double">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="13%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left valign="bottom">Exercisable at March 31, 2014 </TD>
    <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 3px double">&nbsp;</TD>
    <TD
      width="13%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 3px double">2,300,000 </TD>
    <TD
    width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 3px double">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 3px double">$</TD>
    <TD
      width="13%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 3px double">&nbsp;0.79 </TD>
    <TD
    width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 3px double">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=left valign="bottom">&nbsp;</TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Exercisable at September 30, 2013 </TD>
    <TD width="1%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="13%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">2,305,000 </TD>
    <TD width="2%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD width="13%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;0.79 </TD>
    <TD width="2%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="13%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<p align="center">F-73</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-30></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Interim Condensed Consolidated Financial
  Statements<BR>
  March 31, 2014 and 2013<BR>
  Unaudited &#150; Page 19<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 10 </TD>
    <TD align=left width="90%"><U>Commitments </U>&#150; (cont&#146;d) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">b) </TD>
    <TD><P align=justify>Stock&#150;based Compensation Plan &#150; (cont&#146;d)</P></TD>
  </TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>At March 31, 2014, the following stock options were
      outstanding:</P></TD>
  </TR>
</TABLE>
<BR>
<DIV align=right>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="85%" border=0>
    <TR vAlign=top>
      <TD colspan="3" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Number of Shares </TD>
      <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
      width="10%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="10%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="15%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="10%" align=center valign="bottom" nowrap>Aggregate </TD>
      <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="10%" align=center valign="bottom" nowrap>Remaining </TD>
      <TD width="2%" align=center valign="bottom">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="10%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="10%" align=center valign="bottom" nowrap>Number </TD>
      <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="10%" align=center valign="bottom" nowrap>Exercise </TD>
      <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="15%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="10%" align=center valign="bottom" nowrap>Intrinsic </TD>
      <TD width="2%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="1%" align=center valign="bottom" nowrap>&nbsp;</TD>
      <TD width="10%" align=center valign="bottom" nowrap>Contractual </TD>
      <TD width="2%" align=center valign="bottom">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Total </TD>
      <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
      width="10%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
      width="10%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Vested </TD>
      <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
      width="10%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Price </TD>
      <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
      width="15%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Expiry Date </TD>
      <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
      width="10%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Value </TD>
      <TD
    width="2%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
    width="1%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD width="10%" align=center valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">Life
        (yrs) </TD>
      <TD
    width="2%" align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right valign="bottom" bgColor=#e6efff>150,000 </TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(1</TD>
      <TD width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="10%" align=right valign="bottom" bgColor=#e6efff>150,000 </TD>
      <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>$</TD>
      <TD width="10%" align=right valign="bottom" bgColor=#e6efff>&nbsp;3.10 </TD>
      <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="15%" align=right valign="bottom" bgColor=#e6efff>June 30, 2014 </TD>
      <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="10%" align=right valign="bottom" bgColor=#e6efff>- </TD>
      <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="10%" align=right valign="bottom" bgColor=#e6efff>0.25 </TD>
      <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right valign="bottom">50,000 </TD>
      <TD width="1%" align=left valign="bottom">&nbsp;</TD>
      <TD width="10%" align=right valign="bottom">(2</TD>
      <TD width="2%" align=left valign="bottom">) </TD>
      <TD width="1%" align=left valign="bottom">&nbsp;</TD>
      <TD width="10%" align=right valign="bottom">50,000 </TD>
      <TD width="2%" align=left valign="bottom">&nbsp;</TD>
      <TD width="1%" align=left valign="bottom">$</TD>
      <TD width="10%" align=right valign="bottom">&nbsp;3.50 </TD>
      <TD width="2%" align=left valign="bottom">&nbsp;</TD>
      <TD width="1%" align=left valign="bottom">&nbsp;</TD>
      <TD width="15%" align=right valign="bottom">June 30, 2014 </TD>
      <TD width="2%" align=left valign="bottom">&nbsp;</TD>
      <TD width="1%" align=left valign="bottom">&nbsp;</TD>
      <TD width="10%" align=right valign="bottom">- </TD>
      <TD width="2%" align=left valign="bottom">&nbsp;</TD>
      <TD width="1%" align=left valign="bottom">&nbsp;</TD>
      <TD width="10%" align=right valign="bottom">0.25 </TD>
      <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right valign="bottom" bgColor=#e6efff>100,000 </TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(3</TD>
      <TD width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="10%" align=right valign="bottom" bgColor=#e6efff>100,000 </TD>
      <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>$</TD>
      <TD width="10%" align=right valign="bottom" bgColor=#e6efff>&nbsp;3.67 </TD>
      <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="15%" align=right valign="bottom" bgColor=#e6efff>March 30, 2016 </TD>
      <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="10%" align=right valign="bottom" bgColor=#e6efff>- </TD>
      <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="10%" align=right valign="bottom" bgColor=#e6efff>2.00 </TD>
      <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right valign="bottom">270,000 </TD>
      <TD width="1%" align=left valign="bottom">&nbsp;</TD>
      <TD width="10%" align=right valign="bottom">(4</TD>
      <TD width="2%" align=left valign="bottom">) </TD>
      <TD width="1%" align=left valign="bottom">&nbsp;</TD>
      <TD width="10%" align=right valign="bottom">- </TD>
      <TD width="2%" align=left valign="bottom">&nbsp;</TD>
      <TD width="1%" align=left valign="bottom">$</TD>
      <TD width="10%" align=right valign="bottom">&nbsp;3.00 </TD>
      <TD width="2%" align=left valign="bottom">&nbsp;</TD>
      <TD width="1%" align=left valign="bottom">&nbsp;</TD>
      <TD width="15%" align=right valign="bottom">February 8, 2017 </TD>
      <TD width="2%" align=left valign="bottom">&nbsp;</TD>
      <TD width="1%" align=left valign="bottom">&nbsp;</TD>
      <TD width="10%" align=right valign="bottom">- </TD>
      <TD width="2%" align=left valign="bottom">&nbsp;</TD>
      <TD width="1%" align=left valign="bottom">&nbsp;</TD>
      <TD width="10%" align=right valign="bottom">2.86 </TD>
      <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right valign="bottom"
      bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">2,000,000 </TD>
      <TD width="1%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD width="10%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(5</TD>
      <TD width="2%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
      <TD width="1%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD width="10%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">2,000,000 </TD>
      <TD width="2%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>$</TD>
      <TD width="10%" align=right valign="bottom" bgColor=#e6efff>&nbsp;0.40 </TD>
      <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="15%" align=right valign="bottom" bgColor=#e6efff>July 5, 2023 </TD>
      <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="1%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD width="10%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
      <TD width="2%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
      <TD width="10%" align=right valign="bottom" bgColor=#e6efff>9.27 </TD>
      <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 3px double">2,570,000 </TD>
      <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 3px double">&nbsp;</TD>
      <TD
      width="10%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 3px double">&nbsp;</TD>
      <TD
    width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 3px double">&nbsp;</TD>
      <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 3px double">&nbsp;</TD>
      <TD
      width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 3px double">2,300,000 </TD>
      <TD
    width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 3px double">&nbsp;</TD>
      <TD width="1%" align=left valign="bottom">&nbsp;</TD>
      <TD width="10%" align=left valign="bottom">&nbsp;</TD>
      <TD width="2%" align=left valign="bottom">&nbsp;</TD>
      <TD width="1%" align=left valign="bottom">&nbsp;</TD>
      <TD width="15%" align=left valign="bottom">&nbsp;</TD>
      <TD width="2%" align=left valign="bottom">&nbsp;</TD>
      <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 3px double">&nbsp;</TD>
      <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 3px double">-</TD>
      <TD
    width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 3px double">&nbsp;</TD>
      <TD width="1%" align=left valign="bottom">&nbsp;</TD>
      <TD width="10%" align=left valign="bottom">&nbsp;</TD>
      <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P style="MARGIN-LEFT: 15%" align=justify>The aggregate intrinsic value is
  calculated as the difference between the exercise price of the underlying awards
  and the quoted market price of the Company&#146;s stock for the options that were
  in-the-money at March 31, 2014.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="15%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(1)</SUP> </TD>
    <TD><P align=justify>As of March 31, 2014 and September 30, 2013, these
      options had fully vested. The Company did not recognize any stock-based
      compensation for these options during the six months ended March 31, 2014
      (2013: $Nil).</P></TD>
  </TR>
  <TR>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="15%">&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(2)</SUP> </TD>
    <TD><P align=justify>As of March 31, 2014 and September 30, 2013, these
      options had fully vested. The Company did not recognize any stock-based
      compensation during the six months ended March 31, 2014 (2013:
      $nil).</P></TD>
  </TR>
  <TR>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="15%">&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(3)</SUP> </TD>
    <TD><P align=justify>As of March 31, 2014 and September 30, 2013, these
      options had fully vested. The fair value of these options at issuance was
      calculated to be $267,000. The Company did not recognize any stock-based
      compensation during the six months ended March 31, 2014 (2013:
      $Nil).</P></TD>
  </TR>
  <TR>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="15%">&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(4)</SUP> </TD>
    <TD><P align=justify>As of March 31, 2014 and September 30, 2013, these
      options had not vested. The options vest upon one or more compounds:
      entering Phase II trial &#150; 90,000 options; entering Phase III trial &#150;
      90,000 options; and receiving FDA approval &#150; 90,000 options. No
      stock-based compensation has been recorded in the financial statements as
      none of the performance conditions have yet been met.</P></TD>
  </TR>
  <TR>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="15%">&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(5)</SUP> </TD>
    <TD><P align=justify>As of March 31, 2014 and September 30, 2013 these options
      had fully vested. These options were granted during the year ended
      September 30, 2013 and vested immediately upon granting. The Company
      recognized stock based compensation expense of $Nil during the six months
      ended March 31, 2014 (2013: $Nil) in connection with these
      options.</P></TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 15%" align=justify>During the six months ended March 31,
  2014, 505,000 options expired for which the Company had recognized stock-based
  compensation of $Nil (2013: $Nil) during the six months ended March 31,
  2014.</P>
<p align="center">F-74</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_G-31></A>
<P align=justify>Anavex Life Sciences Corp.<BR>
  (A Development Stage
  Company)<BR>
  Notes to the Interim Condensed Consolidated Financial
  Statements<BR>
  March 31, 2014 and 2013<BR>
  Unaudited &#150; Page 20<BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 10 </TD>
    <TD align=left width="90%" ><U>Commitments </U>&#150; (cont&#146;d) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">b) </TD>
    <TD><P align=justify>Stock&#150;based Compensation Plan &#150; (cont&#146;d)</P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD><P align=justify>At March 31, 2014, the following summarizes the unvested
      stock options:</P></TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="15%"  >&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=center nowrap>&nbsp;</TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="12%" align=center nowrap>Weighted </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="12%" align=center nowrap>Weighted </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=center nowrap>&nbsp;</TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="12%" align=center nowrap>Average </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="12%" align=center nowrap>Average </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=center nowrap>Number of </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="12%" align=center nowrap>Exercise </TD>
    <TD width="2%" align=center nowrap >&nbsp;</TD>
    <TD width="1%" align=center nowrap >&nbsp;</TD>
    <TD width="12%" align=center nowrap>Grant-Date </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="12%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Shares </TD>
    <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="12%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Price </TD>
    <TD width="2%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="12%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Fair
      Value </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Unvested options at September 30, 2012 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>870,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;2.81 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;1.82 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>Granted </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">2,000,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">&nbsp;0.40 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">&nbsp;0.50 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Expired </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(100,000</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;3.86 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;2.49 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>Vested </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">(2,000,000</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">&nbsp;0.40 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">&nbsp;0.50 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Unvested options at September 30, 2013 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>770,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;2.68 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;1.74 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>Expired </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">(500,000</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">&nbsp;2.50 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">&nbsp;1.48 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Unvested options at March 31, 2014 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>270,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;3.00 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;2.21 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 15%" align=justify>As of March 31, 2014, there was no
  unrecognized compensation cost associated with unvested share-based compensation
  awards that will become vested exclusive of achieving any performance milestones
  that is expected to be recognized in the current fiscal year. There has been no
  stock-based compensation recognized in the financial statements for the six
  months ended March 31, 2014 (2013: $nil) for options that will vest upon the
  achievement of performance milestones because the Company has determined that
  satisfaction of the performance milestones was not probable. Compensation
  relating to stock options exercisable upon achieving performance milestones will
  be recognized in the period the milestones are achieved.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>Note 11 </TD>
    <TD align=left width="90%" ><U>Supplemental Cash Flow
      Information</U> </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>Investing and financing activities that do not have a
      direct impact on current cash flows are excluded from the statement of
      cash flows. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>During the six months ended March 31, 2014, the Company
      reclassified an amount of $221,000 into equity upon modification of the
      terms of certain derivative instruments. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="90%" ><P align=justify>During the six months ended March 31, 2013, the Company
      issued three promissory notes in the aggregate principal amount of
      $212,292 in exchange for accounts payable owing to three vendors in
      respect of unpaid consulting fees. </P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="90%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="90%" ><P align=justify>These transactions have been excluded from the statements
      of cash flows. </P></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Note  12</TD>
    <TD align=left ><u>Subsequent  Events</u></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left ><p>On May 6, 2014, in favor of new directors  Bernd Metzner, PhD and Elliot Favus, MD, the Company&rsquo;s board of directors (the  &ldquo;Board&rdquo;) approved the grant to each of options to purchase one hundred fifty  thousand (150,000) shares of Company common stock at the closing market price  for the common stock as of May 7, 2014 ($0.30), with said options to vest  annually over a three year period commencing on the first anniversary of the  date of each director&rsquo;s appointment, as applicable.</p></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left ><p>On May 9, 2014, the Board approved a cash  bonus in the amount of $400,000 to the Company&rsquo;s President and CEO, Christopher  Missling, related to the Company&rsquo;s success in securing $10,000,000 in financing  under the March 13, 2014 Securities Purchase Agreement (the &ldquo;March Financing&rdquo;).  Additionally, the Board granted to Mr. Missling 500,000 options to purchase  shares of the Company&rsquo;s common stock at a price per share equal to the common  stock&rsquo;s closing price on May 8, 2014 ($0.33). The Board determined that the  March Financing constituted the achievement of certain milestones under Mr.  Missling employment agreement, entitling Mr. Missling to receive the applicable  distributions and benefits thereunder.</p></TD>
  </TR>
</TABLE>
<p align="center">F-75</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_65></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 3px solid; BORDER-BOTTOM: #000000 0px solid"
    align=center>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 0px solid"
    align=center><B>ANAVEX LIFE SCIENCES CORP.</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>11,011,420
      Shares of Common Stock</B> </TD></TR>
  <TR vAlign=bottom>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=center>PROSPECTUS</TD></TR>
  <TR vAlign=bottom>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=center>July 23, 2014  </TD>
  </TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 3px solid" align=center>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<p align="justify">You should rely only on the information contained in this  prospectus. We have not authorized any person to provide you with different  information. If anyone provides you with different or inconsistent information,  you should not rely on it. This prospectus is not an offer to sell, nor are the  Selling Security Holders seeking an offer to buy, securities in any state where  the offer or solicitation is not permitted. The information contained in this  prospectus is complete and accurate as of the date on the front cover of this  prospectus, but information may have changed since that date. </p>
<P align=center>&nbsp;</P>
<P align=center>60</P>
<HR align=center width="100%" color=black noShade SIZE=5>
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
